Highlights from Budget 2024

13 Oct 2023 09:39pm
Anwar (centre) with his wife, also Bandar Tun Razak MP Datuk Seri Dr Wan Azizah Ismail (second from left) as well as Deputy Finance Minister Datuk Seri Ahmad Maslan and Steven Sim.
Anwar (centre) with his wife, also Bandar Tun Razak MP Datuk Seri Dr Wan Azizah Ismail (second from left) as well as Deputy Finance Minister Datuk Seri Ahmad Maslan and Steven Sim.

KUALA LUMPUR - Below are the highlights from Budget 2024 tabled by Prime Minister Datuk Seri Anwar Ibrahim.

  1. Themed ‘Reforming the Economy: Empowering the People’, it is the second budget tabled by Anwar since becoming the 10th prime minister on Nov 24, 2022
  2. Estimated revenue is revised to RM303.2 billion against RM291.5 billion previously
  3. Fiscal deficit projected to fall to 4.3 pct in 2024 from 5.0 pct targeted for this year and 5.6 pct in 2022
  4. RM303.8 billion has been allocated for operating expenditure, RM90 billion for development expenditure and RM2 billion for contingency savings
  5. Increase in 12MP ceiling of RM15 billion brings the total to RM415 billion for five years
  6. Several tax reformation measures will be implemented to broaden the national revenue base next year.
  7. Govt plans to raise the services tax to 8.0 pct from 6.0 pct
  8. Capital gains tax for disposal of unlisted shares by local companies will be implemented based on net profit at 10 pct rate from March 1, 2024
  9. Govt to draft new legislation to implement Luxury Goods Tax at a rate of 5.0 pct to 10 pct on luxury goods.
  10. Govt plans to implement Global Minimum Tax for 2025, applicable only for companies with global revenue of at least 750 million euros
  11. Part of the subsidy savings will be channelled directly to increase cash aid allocation via the Rahmah Cash Contribution from RM8 billion to RM10 billion
  12. The government will open a high-tech industrial area in Kerian, North Perak to build a wider ecosystem for the E&E cluster in the northern region.
  13. MITI and MIDA are responsible for facilitating FDI and DDI investment matters starting from the application until the investment is realised
  14. Malaysia aims to be ranked in the top 20 for the Global Startup Ecosystem by 2030, in addition to making Kuala Lumpur a digital industry and startup hub for the Southeast Asian region
  15. The government will allocate RM100 million to the MyCIF over a three-year period
  16. Govt planning income tax exemption on income arising from Islamic securities selling and buying from year of assessment 2024.
  17. Govt to enforce mandatory e-invoice to taxpayers with annual income or sales of over RM100 million effective Aug 1, 2024.
  18. Malaysia remains in first place in the total global Islamic Finance Development Indicator for the 10th year in a row
  19. Govt prepared RM2.4 billion for Felda, Felcra and Risda to stimulate agricommodity activity and improve smallholders’ socioeconomy
  20. GLCs and GLICs are ready to fund up to RM1.5 billion to encourage start-up companies including bumiputera SME entrepreneurs to venture into the field of HGHV
  21. A total of RM510 million is available as R&D funds under the Ministry of Science, Technology and Innovation and the Ministry of Higher Education
  22. The government has allocated RM28 million to develop MYStartup platform
  23. The government provides a total of RM76 million to strengthen the ecosystem of research, development, commercialisation and innovation activities
  24. The government allocates RM10 million to boost innovation among industry players in the field of E&E technology
  25. The government is allocating RM100 million through the Palm Replanting Programme Incentive to address old palm trees issue
  26. The government allocates RM90 million to Risda and Felcra to encourage smallholders to optimise the use of farmland in the production of food crops and livestock
  27. Prasarana Malaysia Bhd to acquire 150 electric buses and build three bus depots at a cost of RM600 million to support the needs of LRT3 project
  28. The government agrees to raise the activation price of the Rubber Production Incentive to RM3 per kilogramme with an allocation of RM400 million
  29. The government proposes full income tax exemption for five years to Labuan entities that carry out trading activities related to Islamic finance to support the development of IBFC
  30. Total investment value of GLCs expected to hit RM130 billion this year
  31. Govt to introduce rebate scheme (rebate of up to RM2,400 per buyer) to promote the use of electric motorcycles for those with an annual income of RM120,000 and below
  32. Govt will increase allocation for Housing Credit Guarantee Scheme to RM10 billion to benefit 40,000 borrowers
  33. A total of RM2.47 billion is provided to implement the People's Housing Project for 2024
  34. The government is ready to extend the offer period of the Net Energy Metering (NEM) programme until Dec 31, 2024 to encourage more people to install solar panels in residential premises
  35. Total value of loans and financing guarantees available for MSMEs at about RM44 billion next year
  36. Agrobank allocates up to RM430 million in loan facilities for agro-food entrepreneurs
  37. Bumiputera investment institutions will be centralised under Yayasan Pelaburan Bumiputera
  38. The government allocates RM60 million for CyberSecurity to develop a 5G Cyber ​​Security Testing Framework, local expertise in cyber technology
  39. The initial estimate for the Penang LRT to Seberang Perai amounts to RM10 billion
  40. The government advises private employers to study the appropriateness of remuneration and rewards for employees, taking into account the current cost of living challenges.
  41. Pelaburan Hartanah Bhd is merged under PNB and strengthened through the government's strategic land injection for housing development.
  42. Federal govt set to pioneer the issuance of biodiversity sukuk of up to RM1 billion involving the replanting of degraded forest to generate carbon credits
  43. The government proposes an additional tax deduction of up to RM300,000 on MRV expenses related to the development of carbon projects
  44. Proposed development of Carey Island Port will be realised through Request for Proposals to strengthen Port Klang's role
  45. RM47 million allocated to upgrade facilities of Tioman Airport’s passenger terminal
  46. RM900 million in financing prepared under BNM for SMEs to increase productivity via automation, digitalisation
  47. RM330 million under Tekun, RM30 million biz financing for the Indian community
  48. Development financial institutions to be restructured via merger of Bank Pembangunan Malaysia, SME Bank, Exim Bank
  49. Govt considering capital gains tax exemption on approved IPO share disposal, internal restructuring of venture capital firms - BERNAMA