A TOTAL of RM3.12 billion has been allocated for Selangor’s Budget 2018, Menteri Besar Azmin Ali announced at the state assembly today.

This is about 10% lower that Budget 2017, which allocated around RM3.45 billion.

Of that figure, RM1.66 billion has been allocated for the state’s development, 9% lower than 2017’s allocation of RM1.8 billion. Selangor is expecting a budget deficit of RM870 million. 

The Menteri Besar’s Office and the state secretariat were allocated RM1.202 billion, the state treasury (RM2.3 million), the state agricultural department (RM19 million), the state forestry (RM7 million) and the state public works department (RM200 million).

The state irrigation and drainage department is allocated RM114 million, Selangor Islamic Religious Department (RM106 million), the state urban and rural development department (RM3.08 million) and the state veterinary services (RM6.6 million).

In presenting the budget today, Azmin said Selangor remained the second highest state in manufacturing investment, with 242 projects making up RM7.88 billion or 22.7% of total manufacturing investments last year.

Azmin said Selangor continued to draw investment, including the latest IKEA Supply Malaysia Sdn Bhd regional distribution and supply centre in Pulau Indah, the third largest in the world.

Inflation was recorded at 4.3% and 4% in the first and second quarter, due to higher transportation cost.

Azmin also noted the prices of goods has increased, citing the price of mackerel increasing 11% over the last year.

“Just as the national budget is the ‘Mother of all Budgets’, the GST is the mother of all causes that has increased the costs of living nationwide,” Azmin said.

Transportation cost rose 15.8% due to rising fuel prices, Azmin said.  

The Bukit Antarabangsa state assemblyman said the state’s economic growth is projected to be 5.5% to 6.0% in 2018, compared with 5.0% to 5.5% growth this year. 

This year, the services sector is expected to contribute 59.7% of the state’s GDP, while manufacturing is expected to contribute 28.8%.

“Selangor remains a prime destination for investment due to the confidence in the good governance and transparency of the state government,” Azmin said. 

“Investor confidence remains vital for Selangor to head off global economic uncertainty ... in particular the foreign policies of the (Donald) Trump administration and unresolved issues regarding Brexit.

“Unlike Putrajaya, the Selangor government does not have to go to the White House to grovel at a foreign power (for investments),” Azmin said in revealing foreign investment rose to RM7.88 million from RM6.5 billion in 2016. 

Azmin said there was RM3.24 billion in the state coffers, as of Oct 31. 

The state government collected RM2.5 billion in revenues for the year as of Oct 31, with RM626 million from taxes. In comparison, the state government collected RM2.5 billion in 2016. 

The state government is in the final stages of signing a RM1.2 billion development venture with an unnamed Japanese firm in Kuala Langat. 

Selangor allocated RM32.4 million for road construction, which includes: Kajang to Kg Pasir, Sungai Lalang (RM1.3 million), Sg Kelambu to Genting Sanyen (RM1 million), Sg Kundang, Gombak bridge (RM6 million), Kg Rantau, Panjang bridge (RM5 million), and the upgrade of Sg Rasah, Klang bridge (RM3.7 million). 

Amin also touched on the Smart-Sewa Scheme, whereby low-income tenants who have been renting homes between two and five years will be able to transfer 30% of their rent to be used as a downpayment for a home purchase. 

The scheme, launched in 2016, will see its allocation increased from RM10 million to RM100 million and will be managed by Perumahan dan Hartanah Selangor Sdn Bhd.

Azmin added 861 low-cost homes are now owned by Selangor Housing and Property Board.

The state government will also allocate RM30 million for the replacement of 188 old lifts under its SMART LIFE programme. 

Low-cost housing arrears amounting to RM5.7 million dating to 2011 will be forgiven, Azmin said.

A repainting programme costing RM20 million for 138 low-cost housing blocks will also be carried out next year. 

Selangor State Development Corporation will develop 136 housing units at Felda Sg Tengi Selatan at the cost of RM97,000 per unit.

RM44.1 million has been allocated for the government’s health programme, Peduli Sihat, where 149,382 cards were distributed, benefitting 600,000 people. 

RM181.98 million has been allocated for higher education. 

Mothers whose household incomes are below RM2,000 will receive RM2,400 a year, under the state’s Kasih Ibu Smart Selangor programme. 

“In consideration of the safety of teachers and students,” Azmin also announced RM30 million for the fire safety upgrades of 44 tahfiz schools throughout the state. 

Azmin also announced the business assessment and licensing tax for 2018, amounting to RM70 million, will be forgiven. 

There will also be a  RM200,000 community well-being development fund for all state assemblymen, including an increase of 371 village committees allocation from RM10,000 to RM20,000 each. – November 3, 2017.