Salient points in mini-budget
Mar 10, 09 4:58pm
The following are salient points in the mini-budget announced by Deputy Prime Minister Najib Razak today.MCPX
GDP growth is expected to be in the range of –1% to 1% for 2009. Without the two stimulus packages, the economy faces the prospect of a deep recession.
RM60 billion stimulus package - RM15 billion is fiscal injection, RM25 billion Guarantee Funds, RM10 billion equity investments, RM7 billion private finance initiative (PFI) and off-budget projects, as well as RM3 billion in tax incentives.
According to the government, the deficit can be financed from domestic sources. The financing of the deficit will not crowd out the private sector in sourcing funds.
The RM60 billion is allocated to achieve four aims:
1. Reducing unemployment, increasing employment - RM2 billion
2. Easing the burden of the rakyat, especially vulnerable groups - RM10 billion
3. Assisting the private sector - RM29 billion
4. Building capacity for the future - RM19 billion
Reducing unemployment, increasing employment
To create a total of 163,000 training and job placement opportunities in the public and private sectors
To establish 22 JobsMalaysia Centres and upgrade 109 existing centres to facilitate access for workers and employers to obtain job placements, career counselling and information on training opportunities
Employers who employ workers retrenched from July 1 2008 be given double tax deduction on the amount of remuneration paid.
Government to recruit 63,000 staff to fill vacancies and serve as contract officers in various government agencies
To encourage more Malaysians to pursue Masters and PhD by financing tuition fees and research grants up to RM20,000 for student pursuing PhDs locally and RM10,000 for those taking Masters programme
Levy on foreign workers will be doubled for all sectors except construction, plantation and for domestic maids; the levy will be paid by the employers and not by the workers
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