PETALING JAYA: Prime Minister Datuk Seri Najib Tun Razak announced key measures to sustain development and economical growth on Tuesday, 20 January 2015.
According to him, the Government will continue to seek ways to ensure the country continues to grow as well as protecting the people’s well-being.
The highlights of his announcement include:
* The 2015 National Service Training Programme stopped this year to save RM400mil; programme to be reviewed and enhanced.
* Electricity tariff will not be increased this year.
* Free visa for tourists, among them from China, in a strategy to boost the country’s tourism industry.
* Levy on foreign workers to be reviewed.
* Priority given in project tenders to local contractors registered with the Construction Industry Development Board – Class G1 (Class F), G2 (Class E) and G3 (Class D) contractors.
* Local contractors to be given the task of carrying out repair works on flood-hit areas.
* Increasing the frequency and duration of mega sales nationwide.
* Extending the period of mega sales nationwide.
* Intensify domestic tourism promotions by offering competitive airfares.
* Scheduled gas price hike for the industrial sector postponed.
* Projects such as the MRT Line 2, LRT 3, Kuala Lumpur-Singapore High-Speed Rail will be continued.
Najib also said that the Government has revised the fiscal deficit forecast to 3.2% for this year from 3% projected earlier.
He said the notion that declining oil prices and a subsequent contraction in export revenue would result in a deficit current account was not true.
With the reduction in the retail price of petrol and diesel by 35 sen and 30 sen, respectively, Najib said the rakyat’s gross disposal income now stands around RM7.5bil.
Najib said the current account balance is expected to remain in surplus, adding that although the ringgit has depreciated, it is expected to stabilise over time to reflect the strong economic fundamentals.
He noted that the development expenditure of RM48.5bil for this year will be maintained and spent, with operating expenditure expected to be reduced by RM5.5bil.
Budget 2915: Main points
KUALA LUMPUR, 10 October 2014: There will be no GST (Goods and Service Tax) imposed on RON95 petrol, diesel, and LPG, while individual income tax payers will enjoy lower rates in Budget 2015 as announced by Prime Minister Datuk Seri Najib Tun Razak.
The other highlights of Budget 2015 include:
* Income tax rates to be cut by one to three percentage points
* Families with monthly income of less than RM4,000 will not have to pay tax
* Government revenue estimated at RM23.2bil with implementation of GST
* Government to exempt goods from GST amounting to a total of RM3.8bil
* Items exempted from GST are – all types of fruits, both local and imported; white bread and wholemeal bread; Coffee powder, tea dust and cocoa powder; Yellow mee, kuey teow, laksa and meehoon; essential medicines covering nearly 2,900 brands which are used to treat 30 types of diseases, including heart failure, diabetes, hypertension, cancer and for fertility treatment
* With GST implementation, Sales and Services Tax (SST) abolished, resulting in revenue foregone of RM13.8bil
* RM690mill net revenue collection from GST
* RM4.9bil to be channelled back to the people through assistance programmes such as the increase in Bantuan Rakyat 1Malaysia (BR1M)
* BR1M for those earning RM3,000 and below will be increased to RM950 from RM650
* For those earning RM3,000 to RM4,000, BR1M increased to RM750 (from RM450)
* Allowance of MPs of Dewan Rakyat will be increased from the equivalent grade 54 to equivalent grade Jusa C, consistent with their responsibility
* Allowance of MPs of Dewan Negara will be increased from equivalent grade 48 to equivalent between grade 54 and Jusa C
* Salaries and allowances of the Speaker of Dewan Rakyat and Speaker of Dewan Negara as well as their respective Deputies will be increased effective 1 Jan 2015
* Government will review the salary scheme of members of the administration. This includes the Prime Minister, the Deputy Prime Minister, Ministers and Deputy Ministers
* A half-month bonus with a minimum payment of RM500 to be paid in January 2015 for civil servants
* Government pensioners will also receive special financial assistance of RM250
* Several infrastructure projects will be implemented – 59km Sungai Besi-Ulu Klang Expressway (SUKE) with total construction cost of RM5.3bil; 276km West Coast Expressway from Taiping to Banting (RM5bil); 47km Damansara-Shah Alam Highway (DASH)(RM4.2bil); 36km Eastern Klang Valley Expressway (EKVE)(RM1.6bil); 56km Second MRT Line from Selayang to Putrajaya (estimated RM23bil); LRT 3 Project linking Bandar Utama to Shah Alam and Klang (about RM9bil); and RM150mil upgrading of East Coast railway line
* RM223.4bil for operating expenditure, RM50.5bil for development expenditure
* RM65.6bil for emoluments, RM38.1bil for supplies and services
* RM29.3bil allocated to the economic sector
* RM12.6bil allocated to the social sector for education, training, health, housing and well-being of society
* RM4.9bil earmarked for the security sector, RM1.7bil for general administration and RM2bil for contingencies
* For 2015, economic growth expected to remain strong between 5% and 6%, fiscal deficit projected to further decline to 3% of GDP
* Pengerang Integrated Petroleum Complex project with total investment of RM69bil, which is expected to create over 10,000 jobs
* RM70mil Sustainable Mobility Fund to be established under SME Bank – 50 electric buses will be introduced initially
* RM100mil Digital Content Industry Fund to be set up under the Communications and Multimedia Commission to further promote creative industries like animation, filming, designing and cultural heritage
Budget 2015: Full text of Najib’s speech.
Najib delivering the Budget 2015 speech.
KUALA LUMPUR: (Bernama) The following is the full Budget 2015 text tabled by Prime Minister and Finance Minister Datuk Seri Najib Tun Razak at the Dewan Rakyat Friday.
Mr. Speaker Sir
1. In the name of Allah, the Most Gracious and the Most Merciful. Let us pray and seek His blessings for me to table this important document, the 2015 Budget, to this august House and the rakyat.
2. Before I proceed, on behalf of the Government, I would like to extend condolences on the loss of Allahyarham Tun Hajah Suhaila Binti Tan Sri Mohammad Noah who was the wife of our third Prime Minister. May her soul be placed among the pious.
3. I would also like to take this opportunity on this blessed Friday afternoon to welcome back YAB Deputy Prime Minister and others who have returned from performing the Haj. I also wish them the gift of Haji Akbar.
4. Throughout nearly 60 years of independence, we have formulated various short, medium and long-term plans in our efforts to achieve prosperity. The fact is we have implemented various strategies that were carefully and sistematically planned to develop the economy. If not, Malaysia would not have reached its present level of success.
5. Nevertheless, many people are not aware that the process to develop and prosper the nation has not been easy. It takes hard work, comprehensive plans as well as painful and unpopular decisions. However, all these have to be undertaken by a responsible and accountable Government that always prioritises the interests of the rakyat.
6. From an economic perspective, when we achieved independence 57 years ago, we developed the country based on agriculture before progressing to a modern industrialised economy. Next, we moved into the upper-middle income phase. We are now moving towards a services-based economy and knowledge-based economy.
7. In brief, the objectives, principles and thrusts of the three Outline Perspective Plans, ten Malaysia Plans, New Economic Policy, National Development Policy, National Vision Policy and since 2010, the National Transformation Policy, have all focused on poverty eradication, increasing income and restructuring of society. This is with the aim to achieve socio-economic goals; diversify the commodity-based economy; human capital development; enhancing competitiveness of the public and private sectors; higher value chain; inclusive development; as well as transformation of the Government, economy, social and politics.
8. Clearly, our former leaders in their wisdom have carried out responsibilities to develop Malaysia in their own mould. The struggle started with Tunku Abdul Rahman, followed by Tun Abdul Razak who had implemented development and restructured society, to Tun Hussein who maintained peace and unity. Tun Mahathir modernised the country while Tun Abdullah emphasised human capital development.
9. Further, the present Government is committed to driving growth with a broader approach to place Malaysia on a strong foundation.
10. This is my sixth budget since I assumed leadership of the administration, and the country’s 56th budget. The 2015 Budget completes the ten Malaysia Plans.
11. Further, in May 2015, the 11th Malaysia Plan (11MP) will be launched. At the same time, a new approach known as the Malaysian National Development Strategy (MyNDS) is being formulated.
12. MyNDS will be a key basis to planning and preparation of programmes and projects under 11MP. The emphasis is on using limited resources optimally, with focus on high-impact projects and programmes at low cost as well as efficient and rapid implementation. This means Budget 2016 will be the trigger to the final five years of Malaysia’s progress to a high-income advanced economy by 2020.
13. Many countries such as Korea, Germany, Japan, Taiwan and China began their economic progress based on agriculture and have since moved to an economy that emphasises high level of knowledge, skills, innovation and expertise.
14. To put it simply, economic planning and policies of a country need to be adjusted according to the developments and challenges in the domestic and external environment. Hence, to remain resilient and competitive, Malaysia must move to an economy based on knowledge, high skills, expertise, creativity and innovation.
15. Indeed, from the economic perspective, a rapidly developing country typically generates wealth through capital economy activities. However, the rakyat voice their grievances and complaints through blogs, letters, meetings, interviews and dialogues over the millions spent, billions allocated and various mega projects questioning the benefits to the people.
16. I understand the people on the ground, whether in rural and urban areas, may not comprehend or appreciate the relevance of the budget to them.
17. The biggest challenge I face in administrating Malaysia is its diverse communities. As recent as yesterday, I was asked by reporters on what was the most difficult issue that I had to decide on. I responded that it is how to balance between policies that are populist in nature as compared to those policies based on economic and financial imperatives.
18. The Government is steadfast in strengthening fiscal governance. For instance, consolidating the fiscal deficit is a moral responsibility of our generation towards the future generation. In essence, we do not want Malaysia to inherit Federal Government finances burdened with debt.