Graphic By TMR
The four thrusts anchoring the 2020 budget are:
1) Driving economic growth in the new economy and digital era.
2) Investing in Malaysians: Levelling up human capital.
3) Creating a united, inclusive and equitable society.
4) Revitalisation of public institutions and finances.
• Total Budget: RM297 billion (In 2019, RM314 billion).
• Operating Expenditure: RM241 billion (In 2019, RM262 billion).
• Development Expenditure: RM56 billion (In 2019, RM54 billion).
TOP 10 ALLOCATIONS
Education = RM64.1 billion.
Finance = RM37.8 billion.
Health = RM30.6 billion.
Home Affairs = RM16.9 billion.
Defence = RM15.6 billion.
Rural Development = RM10.9 billion.
Works = RM8 billion.
Prime Minister’s Department = RM7.9 billion.
Agriculture = RM4.9 billion.
Housing and Local Government = RM4.8 billion.
1) Govt will allocate RM100 million to rehabilitate low and medium-cost public housing.
2) Govt will continue with Bandar Malaysia project and it will include a People’s Park, with 5,000 units of affordable homes and greater Bumiputera participation.
3) Govt will lower the threshold on high-rise property prices in urban areas for foreign ownership from RM1 million to RM600,000 next year.
4) Govt to provide financing worth RM10 billion with financial institutions for rent-to-own financing schemes.
1) Govt has allocated RM21.6 billion for the National Fiberisation & Connectivity Plan.
2) Govt to introduce a 5G Ecosystem Development Grant worth RM50 million.
3) Lowered broadband prices by 49% and increased speeds by three times.
4) Govt will allocate RM20 million to grow local e-sports.
5) Digital Services Tax will come into effect starting January 2020.
6) Govt will credit RM30 into e-wallets of Malaysians aged 18 and above earning less than RM100,000 per year
• No re-implementation of GST.
• Subsidies increased to RM24.2 billion from RM22.3 billion in 2019
• Target fiscal deficit for 2020 is 3.2%.
• GDP projection of 4.8% in 2020 from 4.7% in 2019.
• Expected inflation rate for 2020 is 2%.
• Minimum wage increased to RM1,200 per month.
• New personal income band for taxable income in excess of RM2million to be taxed at 30% from 28%.
• Govt is paying RM2.4 billion to service the debt interest for 1MDB and SRC International in 2019 and a further RM2.7 billion in 2020.
• Allocations for Sabah and Sarawak is RM1.14 billion and RM1.30 billion respectively.
• Govt created an additional 350,000 jobs for Malaysians and reduce foreign workers dependency by more than 130,000.
• #WatanKerja — Malaysian citizens who replace foreign workers will be given a two-year salary incentive of RM350 and RM500 per month by the respective sectors.
• RM810 allocation for the welfare of Felda settlers.
• Cost of living assistance of RM50 per month for civil servants.
• Govt to allocate RM5 billion for Bantuan Sara Hidup (BSH) in 2020 and expand the scheme to cover 1.1 million single individuals aged above 40 years old, who are earning less than RM2,000 per month.
• Married couples can withdraw from their EPF to fund for IVF treatments.
• RM23 million to ensure school facilities are OKU friendly.