BUDGET 2012: HIGHLIGHTS

Budget 2012: Highlights (2011/10/07)

* One off cash assistance of RM500 to all households with a monthly income of RM3,000 and below, costing RM1.8 billion to benefit 3.4 million households.

* One off RM100 aid for each school pupil aged 6 to 16.

* One off RM200 cash voucher for all Malaysian school pupils and higher learning institution students.

* Ceiling for house prices under a government deposit guarantee scheme for first time house buyers to be raised to RM400,000 from RM200,000.

* Civil service salary hikes of between 7 and 13 percent.

* Additional bonus of half-month salary with a minimum payment of RM500 for civil servants and an assistance of RM500 for government pensioners, to be paid together with December 2011 salary.

* A RM443million fund to build 15,000 units of housing for lower to middle income earners.

* Increase in the rate of automatic annual increments in civil service salaries of between RM80 and RM320.

* Civil service pensions to be raised, involving a RM600 million allocation.

* RM120 million to offer 5,000 Masters and 500 doctoral scholarships for eligible civil servants, including teachers.

* The government will offer 20,000 places for diploma teachers to pursue undergraduate studies.

* A special one-off payment of RM3,000 to 4,300 individuals who have completed their contracts with the Department of Special Affairs (JASA) and Social Development Department (KEMAS).

* RM442 million for the development expenditure of the Royal Malaysia Police, including for police housing quarters, purchase of communication and technical equipment as well as upgrading of headquarters, stations and training centres.

* RM500 million to upgrade and maintain army camps and quarters nationwide under the Army Care programme.

* RM50 million for the introduction of a special programme to enable army personnel who retired with less than 21 years of service and are not eligible for pension, to venture into businesses and obtain jobs in the public and private sectors.

* A one-off payment of RM3,000 to each ex-member as well as widows and widowers of special constable and auxiliary police who served in protecting the country during the emergency era.

* Build 85 government subsidised discount grocery stores nationwide.

* To review real property gains tax to curb speculation.

* To extend import and excise duty exemption on hybrid and electric cars until end-2013.

* Malaysia to establish RM2.6 billion worth of funds for small and medium enterprises (SME). * Malaysian state-run planter FELDA to list its global arm by mid 2012: “The listing will create another blue-chip plantation company besides attracting international investors to Bursa Malaysia. The rights and interests of the FELDA settlers will continue to be protected by Koperasi Permodalan FELDA. FELDA are expected to receive a windfall with amount to be announced before listing.

* To extend tax exemption on issuance and trading on foreign currency sukuk by three years.

* To cut tax for three years on expenses incurred in issuance of sukuk wakala starting 2012.

* To implement RM6 billion private sector financed special stimulus package for infrastructure works.

* To allow 100 percent foreign ownership of 17 service subsectors including healthcare and logistics.

* To implement RM98.4 billion rolling plan until 2013 for high impact development projects.

* To grant tax benefits to investors who use Malaysian Treasury Management Centre to accelerate financial markets development. These include income tax exemption of 70 percent for five years, withholding tax exemption on interest payments on borrowing and stamp duty exemption on loan and service agreements. – Reuters

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