Budget allocation:
- 2016 budget allocates total RM 267.2 billion, an increase from a revised allocation of RM 260.7 billion for 2015. The initial allocation for 2015 was RM 273.9 billion.
- For 2016, federal government revenue collection is projected at RM 225.7 billion, up RM3.2 billion from 2015.
Salient points:
- Minimum wage to increase from RM900 to RM1000 a month for Peninsular Malaysia except for domestic workers.
- To enable more workers to benefit from Socso, there will be compulsory savings of up to RM4,000 instead of RM3,000.
- Parents with disabled children get RM6,000 tax relief and another RM14,000 if their child furthers their studies.
- Tax exemption of RM8,000 instead of RM6,000 for children above 18 in an education institution both local or overseas.
- Children supporting parents, even if not living together, will receive a tax relief of RM1,500 for both parents, if the parents are above 60.
- Tax exemption of RM4,000 instead of RM3,000 for those with a spouse with no income.
- Middle class families with a household income between RM3,860 and RM8,320 will get RM2,000 tax relief for every child under 18.
- RM50 million to improve prison security measures
- RM13.1 billion to improve safety and national security.
- RM864 million to procure offshore patrol vessel and patrol boats.
- 2,000 affordable homes for military starting 2016.
- RM180 million to set up the National Disaster Management Agency.
- RM300 a month aid for poor senior citizens.
- RM662 million has been set aside to help children from poor families - aid of RM100-RM450 a month.
- RM2 billion allocated for aiding the disabled, senior citizens and poor families. RM350/month for working disabled persons, RM200 for those who are unemployed. RM300 a month for those who are bed-bound.
- RM4.6 billion for vaccine, consumables, medicine in public hospitals.
- The government has allocated RM52 million for 328 1Malaysia clinics. Apart from this, 33 new 1Malaysia clinics will be opened.
- Five new hospitals will be constructed in Pasir Gudang, Kemaman, Pendang, Maran and Cyberjaya. Kajang Hospital to be redeveloped.
- BR1M to be continued. Based on response, Najib says the people are thankful for the help. BR1M allocations to be increased, with one new category.
- For those earning below RM1000, BR1M increased to RM1,050
- Those earning below RM3,000, BR1M increased from RM900 to RM1000
- Those earning RM3001-RM4,000, BR1M increased from RM750 to RM800
- single people aged 21 and above earning not more than RM2,000, BR1M increased from RM350 to RM400
- Skim Khairat Kematian - RM1,000 to be continued
- RM150 million will be allocated to improve 11,000 homes belonging to the poor in rural areas.
- A total of 5,000 Rumah Prima housing units and PPA1M to be built in 10 locations near LRT Monorail stations whereas 800 units of affordable homes by GLCs near MRT stations in the city centre.
- 20,000 homes for Felda, with the maximum price reduced to RM70,000 compared to RM90,000.
- RM200million for first home deposit funding scheme.
- RM40 million to do infrastructure and easy loan programmes for Chinese residents of new areas to pay land premiums and house restorations.
- RM50 million by SME Bank to help small Indian entrepreneurs.
- RM100 million for Indian socioeconomic development programmes.
-The government will build 22,300 flats and 9,800 terrace houses under the Rakyat Housing Scheme.
- 100,000 homes, priced between RM90,000 and RM300,000 for civil servants will be ready by 2018.
- 10,000 Mesra Rakyat homes to be built, with RM20,000 subsidy for each unit. The government has allocated RM200 million for this.
- Tekun to provide RM100 million loan for Indian entrepreneurs.
- RM90mil allocated as micro-credit loans for small traders and Chinese businessmen.
- RM300mil allocated to improve the welfare and development of the Orang Asli community.
- New boats and facilities for 1Malaysia clinics in rural areas.
- RM70 million interest-free loans for long house building in Sabah and Sarawak. Limit of RM50,000 loan for each long house unit.
- RM360 million will be used to improve National Service and RM160 million allocated for NGOs.
- Government aims for 30% women involvement in decision making levels in poublic and private sector.
- The Pan-Borneo Sarawak Highway that is set to complete in 2021 will be toll-free. It is 1090km-long and costs RM16.1 billion.
- All economy class flights will be exempted from GST for rural routes.
- Aid for students slashed from RM540 million to RM350 million. In the past, RM100 aid was for all primary and secondary students. However, it has now been limited for students whose household income is less than RM3,000.
- RM30.1 billion is allocated to the economic sector.
- RM13.1 billion is earmarked for education and training, health, housing and the well-being of the people.
- RM5.2 billion is allocated to the security sector.
- Federal Government revenue collection is estimated at RM225.7 billion, an increase of RM3.2 billion compared to 2015.
- Fiscal deficit is expected to decline to 3.1 per cent of GDP in 2016.
- RM900 million allocated for 'Project Traffic Dispersal' at Jalan Tun Razak, to be executed immediately with strategic cooperation of public-private sectors.
- RM42 million to build Mukah, Sarawak airport and upgrade Kuantan and Kota Bharu airports.
- Domestic investments will increase with expected contributions of 26.7 percent to GDP in 2016. This will be driven by private investments that will increase to RM218.6 billion and public investments of RM112.2 billion.
- Develop Malaysian Vision Valley, 108,000 hectares from Nilai to Port Dickson, with forecasted investments starting with RM5 billion in 2016.
- Execute Cyber City Centre in Cyberjaya with development valued at nearly RM11 billion over a five-year period
- Develop Bandar Lapangan Terbang or Aeropolis KLIA in 1,300 acres of land and expected to attract as much as RM7 billion investments.
- Investments estimated at RM18 billion for 2016 for RAPID Complex Project in Pengerang, Johor.
- The government will pump RM515 million for efforts to improve electricity supply in Sabah.
- A total of 1.2 million student will receive the 1Malaysia book voucher worth RM250.
- RM100 aid for households with income below RM3,000. Expected to benefit 3.5mil students.
- Malaysia has agreed to the Trans Pacific Partnership Agreement (TPPA) in principle, while it has inked 13 Free Trade Agreements (FTA).
- For farming, RM5.3 billion will be used for the purpose of modernisation.
- The tourism sector is expected to contribute RM103 billion. To make it more convenient for tourists, E-Visa for seven countries will be made available in mid-2016.
- RM67 million allocated for bus operation routes outside the city.
- The government will fork out RM60 million for social amenity projects and flood prevention efforts.
- RM1.2 billion will be allocated to improve internet speed from 5mbps to 20mbps.
- The government will continue negotiations regarding high speed rail with Singapore.
- RM28 billion for new MRT projects, which would benefit two million residents
- RM730 million in the development of chemical industry, electronic and electrical machinery, aviation, medical equipment and services.
- For Felda settlements, RM200 million will be used improve roads in these areas.
- The government will fork out RM1.4 billion to improve rural roads nationwide.
- Budget 2016, total allocation (RM267.2 billion), operating expenditure (RM215.2 billion) and development expenditure (RM52 billion)
- Let's be thankful to God that the current government has the political will to implement the GST even thought it causes unpopular reactions.
- This responsible government will continue to make the right decisions even if it’s not popular for the sake of the country and people.
- The poverty rate has been reduced to 0.6% in 2014 from 3.8% in 2009. In fact, extreme poverty has almost been wiped out.
-Fiscal deficit is expected to reduce to 3.2% this year from 6.7%.
- Economic growth is expected to increase 4-5% in 2016, driven by investment (6.7%) and private consumption (6.4%)
-Taxes will be increased 26% for those earning between RM600,000 and RM1 million.
- National revenue would reduce by RM21bil if there was no GST and had we remained with just Sales Service Tax (SST).
- Price of oil expected to remain low in 2016, so collection from oil-related resources expected to be around RM31.7bil.
- Prepaid phone users will get GST rebate, which will be credited to their accounts. From Jan 1 next year.
- For medicine, it would be increased from 4,215 kinds of medicine to 8,630 kinds of (zero-rated GST) medicine.
- If Malaysia has no GST, national deficit will be 4.8%. With GST, deficit expected to be 3.1% for 2016.
- If Malaysia stuck to the Sales Service Tax (SST), collection would only be RM18 billion. Whereas GST has netted RM39 billion.
- National revenue would reduce by RM21 billion if there was no GST.
- Price of oil expected to remain low in 2016, therefore collection from oil-related resources expected to be around RM31.7 billion.
- For the first half of 2015, the economic growth was 5.3%. The economy managed to reach 4.5 to 5.5% throughout the year in 2015.
- GST flat rate: all controlled medicine, including 95 brands of over-the-counter medicine, like cancer, high blood pressure and heart diseases.
- More Small-time farmers can register under flat-rate GST scheme and increase 2% income - threshold for those who can apply decreased from RM100,000 to RM50,000.
- Exemptions from GST for all items that are being re-imported after being temporarily exported for promotion, research or display.
- For oil and gas industries, GST exemptions given to re-import of equipment exported temporarily for rent. For teaching material and equipment, for skills and vocational training.