BUDGET 2023, which will be unveiled by Finance Minister Tengku Zafrul Tengku Abdul Aziz at 4pm today, will focus on three main issues centering on recovery, resilience and reform. 

In a pre-budget statement, the Finance Ministry said the budget theme was “Keluarga Malaysia, Malaysia Sejahtera”, with an emphasis on the people’s wellbeing, resilient businesses, and a prosperous and sustainable economy. 

For the people, the government has said that it will focus on rising income, in line with Malaysia’s target to become a high-income nation.  

It will also focus on social welfare protection, among others by providing direct cash aid. Targeted assistance, in terms of effective distribution of subsidies will also be looked into. 

In terms of businesses, the government’s focus will be on building more resilient small and medium sized enterprises (SME) given its significant contribution towards Malaysia’s economy. 

Increasing productivity by way of digitalisation and automation as well as initiatives to attract tourists to the country will also be a focus in Budget 2023. 

It is not clear if Budget 2023 will be as large as Budget 2022, when the government allocated RM332.1 billion as Malaysia headed into economic recovery post Covid-19. 

While speculations are rife that Budget 2023 will be an election budget full of sweeteners, economists have called on the government to put the people first, given inflationary pressures and the declining ringgit.

The Malaysian Insight reports highlights from the budget speech: 

6.26pm: RM216 million ifor activities to improve, clean and treat rivers throughout the country.

6.24pm: Imported (CBU) electric vehicles will have full import and excise duty exemptions until the end of 2024.

6.23pm: RM3 billion guarantee value is allocated for the Green Technology Financing Scheme (GTFS) until 2025.

6.22pm: DNB to get RM1.3 billion to expand access to 5G across the country.

6.20pm: RM8 billion is allocated by the government for the Jendela Phase 2, which is to prepare for the 100% internet access in residential areas. To improve digital connectivity in 47 industrial areas and almost 3,700 schools, another RM700 million is allocated.

6.18pm: Youth and Sports Ministry gets RM332 million. RM145 million is allocated for maintenance, upgrading, and construction of sports facilities. RM154 million will be given for the building of sporting ecosystem within the country, including the search for new talents and training programmes. RM12 million will be allocated to the uplifting of OKU sports.

6.16pm: RM50 million for the local film production fund, to encourage local film-making. RM2 million more will be allocated to the digital content fund.

6.15pm: The government will increase multi-tiered levies against companies with a high volume of foreign workers. This is so that companies reduce dependency on foreign workers.

6.13pm: Civil servants below Grade 56 will be receive RM700 in financial aid.

Financial assistance for Hari Raya Aidilfitri will be increased to RM600 and expected to be paid by March 2023.

6.12pm: Civil servants from grade 11 to 56 will be given a salary raise of RM100 in 2023.

6.04pm: To help the unemployed through job matching, the government will develop 13 MYFutureJobs Satellite Centres in UTCs across the country, with an allocation of RM8 million.

In addition, HRD Corp and Perkeso will also establish a national placement centre in the Klang Valley as a one-stop shop for jobs.

Socso will also increase the number of employment service case managers to support unemployed jobseekers.

6.01pm: RM20 million is allocated for the formation of two new UTCs in addition to maintaining the existing UTCs.

6.00pm: The government also plans to extend tax incentives for intellectual property development until 31 December 2025.

5.59pm: For 2023, Khazanah Nasional Berhad will invest RM1 billion under the impact fund, of which RM230 million will be reserved for investment in locally owned high-tech companies.

5.58pm: EPF will continue the development of Kwasa Damansara by creating more than 6,000 job opportunities with a total investment exceeding RM3 billion until 2025.

In addition, PNB through the Menara Merdeka 118 project will bring a gross development value of over RM10 billion and create up to 4,000 new job opportunities.

5.56pm: GLC and GLIC are committed to investing up to RM50 billion for 2023. Funding will be for:

* RM1.3 billion investment in venture capital to support start-up companies and entrepreneurs

* RM1.35 billion focus on food security projects

* push the sustainability agenda with the launch of the sustainability framework and set targets to achieve a fully ESG-compliant portfolio and carbon neutral operations;

* RM330 million in green procurement, in addition to providing EV infrastructure

* RM45 billion in domestic direct investment.

5.53pm: National cyber security to receive RM73 million, to strengthen the monitoring, detection and reporting of cyber threats, including building cyber forensic system capabilities.

5.47pm: * RM118 million to maintain the military family home (RKAT). The government plans to build a new RKAT of various classes in Butterworth Air Force station in addition to the 12 ongoing RKAT construction projects

* RM42 million to repair and upgrade PDRM residential quarters;

* RM28 million as an allocation for 2023 to continue three projects for the construction of quarters under the Department of Prisons including Labuan Correctional Centre and the Malaysian Correctional Academy;

* Providing a 50% discount Prasarana public transport to 21,000 armed forces veteran card holders and police retirees in Kuala Lumpur, Selangor, Pahang and Penang.

5.40pm: A National Scam Response Centre (NSRC), involving the police, BNM, MCMC, NFCC, and financial institutions will be set up this month as a proactive way to take action against online scams. This comes on top of the abolishment of SMS OTPs, announced earlier this month.

5.36pm: Nadma will receive RM174 million. An additional RM400 million is to offer assistance in case there is flooding at the end of the year.

5.35pm: RM15 billion will be allocated to the Flood Mitigation Plans through to 2030. Of this, RM562 million will be for the construction of Sabo dams.

5.34pm: RM485 million to maintain Malaysian Maritime Enforcement Agency assets.

5.34pm: RM17.4 billion is allocated to the Defence Ministry, RM4 billion will be used to purchase and maintain military assets, while RM431 million will be used to purchase and maintain police assets.

5.33pm: RM25 million for incentives in terms of discounts, vouchers, and packages of up to RM100 for accommodation, travel packages and more to encourage tourism.

5.32pm: RM200 million for the tourism sector.

5.18pm: RM1.8 billion to build new hospitals, clinics and facilities, as well as for the procurement of medical equipment.

5.16pm: RM4.9 billion to increase the capacity of public health services. This is a 12% increase compared to 2022.

5.14pm: RM36.1 billion is allocated for the Ministry of Health, the third highest allocation recipients after Ministry of Finance and Ministry of Education.

5.12pm: RM1.7 billion in micro loan funds and business facilities for small traders.

5.11pm: RM45 billion is allocated for Semarak Niaga Keluarga Malaysia programme.

5.10pm: RM1,000 one-off grant for all registered SMEs and registered taxi drivers. This will cost the govt a total of RM1 billion and will benefit 1 million recipients.

5.09pm: Reduction of the tax rate on the first RM100,000 of taxable income, from 17% to 15% for SMEs.

5.06pm: The government is allocating RM1.2 billion for the disabled: care for chronic patients, allowance for the disabled who are unable to work and allowance for disabled workers.

5.00pm: The government has allocated RM256 million for 320,000 rubber smallholders during the monsoon season.

RM305 million is allocated for provisions, social assistance and improving the living standards of Orang Asli.

4.59pm: RM1.8 billion subsidy for paddy farmers, fisherman and small planters.

4.58pm: My50 monthly pass initiative to target nearly 180,000 public transport users. My50 is an unlimited travel pass that offers 30 days unlimited rides on Rapid KL LRT, MRT, Monorail, BRT, Rapid KL bus and MRT feeder bus services in Klang Valley.

4.55pm: PTPTN loan repayment exemption for all students who get a first class bachelor’s degree.

On top of that the govt will offer a PTPTN discount from November 1, 2022 to April 30, 2023 as follows:

- 20% for full payment
- 15% for payment of at least 50%
- 15% for payment from salary or auto debit.

4.54pm: RM1 billion has been allocated for senior citizens.

4.53pm: RM209 million in subsidies for air travel in rural Sabah and Sarawak.

4.52pm: The government has allocated RM3 billion to guarantee the financing for first-time homebuyers, benefitting 12,000.

4.49pm: RM55.6 billion has been allocated for the Education Ministry

* RM1.1 billion for the maintenance and repairing of schools
* RM1.2 billion for the upgrading of schools in impoverished areas
* RM430 million for the building of new schools in Sabah, Sarawak, Terengganu, Cyberjaya, Selangor.

4.46pm: A total of RM1.2 billion is allocated for upgrading rundown school buildings and infrastructure, especially in Sabah and Sarawak.

4.45pm: RM6.7 bilion has been set aside for TVET.

4.44pm: RM3.8 billion has been allocated for scholarships and education loans.

4.42pm: RM777 million has been allocated for the Supplementary Food Programme (RMT) to ensure that students will receive nutritious food. To benefit 800,000 students.

A total of RM1.1 billion has been allocated for school maintenance and repair works.

4.40pm: The government is providing RM825 million for early school assistance, which has been increased to RM150 from RM100 for each student regardless of the parents’ income.

4.38pm: 50,000 jobs will be offered in the public sector and GLCs through the MyStep initiative.

4.37pm: RM600-RM750 a month employment incentive allocation under Perkeso, for a period of three months for vulnerable groups. This would cost a total of RM150 million.

4.36pm: RM200 million has been allocated to the cost of transporting and distributing essential goods such as rice, cooking oil, LPG and diesel to rural areas.

4.35pm: The government has allocated RM55 billion for subsidies, assistance and incentives to reduce the cost of living of the people.

4.33pm: RM235 million was be allocated for female entrepreneurs.

One-off RM200 will be credited into the e-wallet account of youths aged 18-20, and full-time students aged 21 and above under the ePemula programme, which will cost the government a total of RM400 million.

4.32pm: An anti-sexual harassment tribunal will be set up to focus on all sexual harassment issues in 2023.

A social support centre for domestic violence victim will be set up, with an allocation of RM8 million.

4.31pm: One-off cash assistance of RM500 to mothers of households receiving Bantuan Kerajaan Malaysia aid, who give birth to children in 2023. This is under the CahayaMata Keluarga Malaysia Initiative.

4.30pm: RM40 in electricity subsidy will be extended to families earning RM1,169 or below, in accordance with the poverty income line.

4.28pm: Tax exemption of RM3,000 on the payment of nursery and kindergarten fees until assessment year 2024.

4.26pm: RM11 million allocated to increase screening tests through subsidies for mammograms and cervical cancer screening.

Tax exemption for women for the year 2023 to 2028 to encourage more women to return to the workforce.

4.25pm: M40 group earning less than RM100,000 annually will receive RM100 to their e-wallet accounts by way of the e-Pemula initiative. This will target 8 million individuals.

4.24pm: Income tax rate decreases by 2%. In this case, those with an annual income of RM50,001 to RM70,000 will have rate reduced from 13% to 11%, while those earning 
RM70,001 to RM100,000 annually will have tax rate reduced from 21% to 19%.

4.22pm: RM10 billion has been allocated for BKM and the welfare department.

4.21pm: The elderly and single individuals will receive BKM assistance of RM350 and RM600, depending on their income.Single parents are entitled to RM3,000, a RM500 increase from RM2,500 last year.

4.19pm: Those who earn less than RM2,500 with one to four kids will receive RM1,000 - RM2,000 in Bantuan Keluarga Malaysia assistance.

4.18pm: Bantuan Keluarga Malaysia assistance of RM2,500 (a one-off payment) will be given to those earning less than RM2,500 with more than 5 household members.

4.14pm: The top three recipients are Ministry of Finance (RM67.2 billion), Ministry of Education (RM55.6 billion), and Ministry of Health (RM36.1 billion), constituting 43.3% of total expenditure.

4.13pm: Budget 2023 is RM372.3 billion, the biggest budget in the history of Malaysia. Last year’s budget was RM332 billion.