The theme for Budget 2022 is "Keluarga Malaysia, makmur sejahtera" (Malaysian family, prosperous and peaceful).
Finance Minister Tengku Zafrul Abdul Aziz said it is based on three core concepts "rakyat yang sejahtera" (people's wellbeing), resilient businesses and a prosperous economy.
Screengrab from the live broadcast of the Budget 2022 speech from Parliament on Oct 29, 2021.
PETALING JAYA: Tengku Datuk Seri Zafrul Abdul Aziz has started delivering his Budget 2022 speech in Parliament here on Friday (Oct 29).
The Finance Minister is expected to deliver a Budget in line with the Malaysian Family concept, which will concentrate on the country's recovery after the Covid-19 pandemic.
On Wednesday (Oct 27) Prime Minister Datuk Seri Ismail Sabri Yaakob said Budget 2022 was from the people, by the people, for the people and would be of high impact for all layers of society and businesses.
Ismail Sabri said Budget 2022 would also generate more jobs to tackle unemployment and enable the recovery process to return the country and its economy to the pre-Covid-19 pandemic with new norms in place.
He added that Budget 2022 was drawn up carefully and comprehensively, taking into account the views of all quarters, including Opposition parties.
Here are the highlights of the Budget 2022 speech as they are delivered:
Budget 2022 allocation
Budget 2022 has a total allocation of RM332.1bil, the largest-ever for the country. This surpasses Budget 2021 allocation of of RM322.54bil.
Tengku Zafrul said this involves RM233.5bil in administrative expenses, RM75.6bil in development, RM23bil for the Covid-19 fund and RM2bil for unexpected expenses.
Family focus
The Bantuan Keluarga Malaysia outlined in Budget 2022 will benefit over 9.6 million recipients with an allocation of RM8.2bil.
Households with three children or more with household income less than RM2,500 will receive RM2,000 in aid. An extra RM500 will be given to for single mothers/fathers with dependents and monthly income of up to RM5,000. This means single mothers/fathers with three children and above are entitled to a maximum RM2,500 in aid.
An additional allocation of RM300 will be given to senior citizens.
Overall, RM2.4bil in welfare aid is allocated to benefit over 440,000 households.
Education first
Education gets the biggest slice of the pie in Budget 2022 with RM52.6bil for the Education Ministry and RM14.5bil for the Higher Education Ministry.
Tengku Zafrul said this includes RM450mil in aid to be provided to three million students.
Health matters
Health Ministry gets an allocation of 32.4bil, the second-largest after the Education Ministry.
From the allocation, RM2bil will be channeled to purchase of vaccines and RM2bil for additional Covid-19 expenses.
He added that the government would be purchasing another 88 million doses of vaccines, which includes the third dose for children between the ages of 12 and 17.
PTPTN repayment incentives
Government to give discounts to PTPTN borrowers for payments from Nov 1 to April 30.
Borrowers will get a 15% discount for full settlement; 12% for payments of at least 50% of the outstanding balance in a single payment. Those who make repayments through salary deduction or scheduled direct debit will get a 10% discount.
Just for jobs
Allocation of RM4.8bil to create 600,000 job opportunities under the JaminKerja initative.
With a target of 300,000 hires, the initiative will offer incentives to employers such as 20% of the first six months' pay, and 30% of the following six months pay for hired employees making above RM1,500.
Among others, RM1.1bil has been allocated for training and upskilling programmes for 220,000 trainees.
The Technical and Vocational Education and Training (TVET) sector will receive an allocation of RM6.6bil under Budget 2022.
Tengku Zafrul said the focus is on eeting industry needs and an additional allocation of RM200mil has been allocated for joint venture programmes with industries.
Boosting healthy lifestyles
There will be an excise duty imposed on nicotine-based gel or liquid products for vaping and electronic cigarettes, says the Finance Minister.
"Towards a healthy lifestyle the government plans to broaden the scope of excise duty to include premix sugary drinks made from chocolate, malt, coffee and tea," said Tengku Zafrul.
Women matters
The goverment will make it mandatory for all publicly-listed companies to appoint at least one woman to its board of directors.
Tengku Zafrul said RM5mil would also be allocated for the Women Leadership Foundation to encourage female participation in the economic sector.
Free self-hygiene kits will be given to young women in the B40 category monthly, which will benefit some 130,000 youths nationwide.
Tengku Zafrul added that RM11mil would be allocated for free mammogram and cervix examinations.
New villages
A total of RM200mil has been allocated for the Chinese community, among them for the purpose of upgrading Chinese new villages, as well as financing schemes for the small and medium enterprises (SMEs).
RM145mil has been set aside for the Indian community, among them for the implementation of programmes to strengthen the community's social economy through Tekun Nasional, the national Entrepreneurial Group Economic Fund, under the Indian Entrepreneurs Development Scheme.
Levelling up eSports
To push the eSports industry in the country, RM20mill will be allocated under Budget 2022.
This includes RM5mil to develop an excellence centre for drone sports in the country.
Housing for all
RM1.5bil has been allocated for continuing low-cost housing projects. Another RM2bil allocated for housing credit guarantee scheme to help those without a stable income to buy a house.
Tengku Zafrul also said the government would no longer impose the real property gains tax (RPGT) on Malaysians, permanent residents and companies when they dispose of their real property assets from the sixth year onwards.
For sporting excellence
To further improve the national Paralympics team, the National Sports Council (NSC) will receive a RM10mil allocation. This is to enhance training programs and organise leagues for various sports to prepare for the 2024 Paris Paralympics.
RM158mil will be allocated to renovate, enhance and build sporting facilities around the country.
RM50mil will be allocated to encourage people to continue leading an active lifestyle.
Cash in hand
Employees’ contribution rate to the Employees Provident Fund (EPF) that was reduced to 9% in 2020 will remain until June 2022.
Boost for youths
A RM300mil allocation to provide RM150 in credit into eWallets of youth aged 18 to 20 who are students at institutions of higher learning.
Lower vehicular taxes continue
To reduce the cost of vehicle ownership, the government will extend the 100% sales tax exemption on completely knocked down (CKD, locally-assembled) passenger vehicles and 50% on completely built-up (CBU, imported cars) including MPVs and SUVs for six months until June 30, 2022.
The exemption was introduced by the government in 2020 to drive sales in the automotive sector which was affected by the Covid-19 pandemic.
Defending the nation
The Defence Ministry will get an allocation of RM16bil, of which RM1.6bil is to upgrade the readiness of main assets of the Armed Forces. This allocation also involves RM14mil to replace main equipment of Naval Special Forces (Paskal) and Air Force Special Forces (Paskau) such as parachutes, closed-circuit diving equipment and boats.
e-vehicles to get a power up
Tengku Zafrul said the government sees the potential of electronic vehicles (EV) to minimise pollution, and therefore plans to give up to 100% exemption of import and excise duties as well as sales tax.
Road tax exemptions of up to 100% will also be given out for electronic cars.
Tax relief of up to RM2,500 will be given for the purchase, assembly, renting and leasing of EVs.
Tourism budget
A total of RM1.6bil has been allocated for the tourism industry. RM600mil will be allocated under the Penjana Tourism Financing dan BPMB Rehabilitation Scheme while RM85mil will be go towards a three-month special assistance for over 20,000 tourism operators.
Zafrul also announced matching grants for the purpose of the renovation of budget hotels and homestays, with an allocation of RM30mil.
To spur domestic tourism, the RM1,000 tax rebate will be extended until 2022.
Sabah and Sarawak
The two states will receive increased development allocations of RM5.2bil and RM4.6bil respectively under Budget 2022.
Fisheries and agriculture
RM1.7bil allocated for the various incentives and subsidies for the fisheries and agriculture industries.
Please folllow The Star's coverage of Budget 2022 here.
Click on the logo to see the full text of Tengku Zafrul's Budget 2022 speech in Malay.
Related stories:
Budget 2022: RM52.6bil allocation for Education Ministry, says Tengku Zafrul
Budget 2022: RM32.4bil allocated for health
Budget 2022: RM2.4bil in welfare aid allocated to benefit over 440,000 households
Here are five key takeaways from Malaysia’s 2022 budget:
5 key takeaways:
1. What’s in it for households, firms hit hard economically by COVID-19?
https://www.bharian.com.my/berita/nasional/2021/10/881438/bajet-2022-bantuan-keluarga-malaysia-bkm-sebanyak-rm2000
Households are set to benefit from a new cash aid scheme - Malaysian Family Assistance. Under the scheme, RM8.2 billion will be allocated to households, benefitting more than 9.6 million recipients, said Mr Tengku Zafrul.
Households with three or more children and a monthly income of less than RM2,500 will receive a one-off payment of RM2,000.
Additionally, single parents or households earning less than RM5,000 each month will receive a one-off payment of RM500. Senior citizens will also receive RM300 each.
Companies will also receive aid to get back on their feet.
Among others, income tax instalment payment for micro, small- and medium-size enterprises (SMEs) can be deferred for up to six months until Jun 30, 2022.
Landlords who give rental discounts of at least 30 per cent to businesses will be granted tax relief.
Firms are also given tax deduction of up to RM300,000 to renovate their spaces, such as to improve seating arrangement or air circulation, in order to minimise the spread of COVID-19.
2. What additional resources will the health sector get?
The Health Ministry is set to receive RM32.4 billion, the second largest allocation behind the Education Ministry.
Mr Tengku Zafrul outlined that RM4 billion has been allocated for COVID-19 management, of which RM2 billion is for vaccines and another RM2 billion is to boost the capacity of public health facilities such as by purchasing test kits, personal protective equipment and medication.
He added that the government has signed agreements to obtain 88 million doses of COVID-19 vaccines, which are sufficient to immunise more than 140 per cent of the population, and enough to give third doses to all residents above the age of 12.
Mr Tengku Zafrul also announced that RM100 million will be allocated to sponsor 3,000 contract medical and dental officers to pursue specialist programmes.
3. What are the green measures?
Meanwhile, Mr Tengku Zafrul said the 2022 budget was formulated while keeping in mind the 17 Sustainable Development Goals (under the the 2030 Agenda for Sustainable Development) and the implementation of environmentally friendly programmes.
In line with Malaysia’s commitment to be carbon neutral by 2050, he announced that the Voluntary Carbon Market initiative will be launched under the auspices of Bursa Malaysia.
“This initiative will act as a voluntary platform for carbon credit trading between green asset owners and any entity towards a shift to low-carbon practices,” said Mr Tengku Zafrul.
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Tengku Zafrul added that the government is also looking to support the development of the local electric vehicle (EV) industry, and intends to provide full exemption on import duty, excise duty and sales tax for EV vehicles.
Road tax exemption of up to 100 percent is also given to the vehicles.
In addition, individual income tax relief of up to RM2,500 will be given to offset the costs of purchase and installation, rental and hire purchase as well as subscription fees for EV charging facilities.
4. How will tourism industry players benefit?
The budget also encompasses initiatives targeted at players in the tourism industry, which have been hit badly by COVID-19.
Mr Tengku Zafrul said a total of RM1.6 billion will be allocated for a number of efforts, including a RM600 million wage subsidy for tour operators who have experienced at least 30 per cent dip in income. More than 26,000 employers and 330,000 workers are expected to benefit from these subsidies, he added.
Tengku Zafrul added that matching grants worth RM30 million will be given to more than 700 budget hotels and homestays registered under the Ministry of Tourism, Arts and Culture for repair works.
He said RM60 million in incentive funds will be allocated for activities to promote domestic tourism. Moreover, special individual income tax relief of up to RM1,000 for residents who spend on domestic tourism will be extended until 2022.
5. What kind of assistance will be given to women, children?
A key highlight for the 2022 budget is the special assistance given to women and children.
Mr Tengku Zafrul announced that the government is making it mandatory for all public listed companies to appoint at least one woman to its board of directors in order to recognise women’s roles in the decision-making process.
“Currently, women hold 25 per cent of the board positions in 100 main public listed companies.
“However, 27 per cent or 252 companies listed on Bursa Malaysia still do not have women on their boards,” he said.
The minister added that companies who hire unemployed women, housewives and single mothers will receive government incentives. Putrajaya will pay incentives amounting to 30 per cent of their monthly wages for the first six months, and 40 per cent for the next six months.
This applies to monthly salaries of RM1,200 and above, the minister said.
Additionally, the government is looking to allocate an additional RM13 million to the police’s Sexual, Women and Children’s Investigations Division (D11).
Addressing the issue of orphaned children whose parents succumbed to COVID-19, Mr Tengku Zafrul said that RM25 million will be allocated to Yayasan Keluarga Malaysia to ensure their education, welfare and future.
“The government urges all parties, including NGOs, local communities, local leaders and even corporate companies to play a role to ensure that the welfare of these children continue to be safeguarded so that everyone can live together as one family without separation and build a bright future,” he said.
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