3 Main Focus Areas：Recovery、Resilience and Reform

Keluarga Malaysia, Makmur Sejahtera

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz has unveiled Budget 2022 amounting to RM332.1bil, the highest allocation compared with previous budgets.

A total of RM23 billion has been allocated for the Covid-19 fund, RM233.5 billion for operational expenditure and RM75.6 billion for development.

Here are the key takeaways of Budget 2022:

Allocations

• RM233.5 billion allocated for operating expenditure under Budget 2022.
• RM75.6 billion allocated for development expenditure under Budget 2022.
• Education Ministry receives the highest allocation in Budget 2022 amounting to RM52.6 billion.
• RM32.4 billion set aside for Health Ministry, second largest allocation after Education Ministry, with RM2 billion for vaccination expenses and another RM2 billion for other Covid-19 expenses.
• RM8.2 billion allocated for the introduction of Bantuan Keluarga Malaysia (BKM) worth RM8.2 billion, to benefit 9.6 million people.

Employment

• RM4.8 billion allocated for job guarantee programs to generate 600,000 jobs.
• RM2 billion allocated for incentives to hire the unemployed women, including the handicapped, Orang Asli and ex-convicts.
• RM1.1 billion allocated for up skilling of 220,000workers.
• Minimum EPF contributions lowered from 11% to 9% until June 2022.

Education

• The government will give between a 10-15% discount on repayment of PTPTN loans.
• The government will allocate RM450 million for 3 million students, each eligible student will be getting RM150 in cash aid.
• RM6.6 billion allocated for Technical and Vocational Education and Training (TVET) programs, including another RM200 million allocated for public-private programs.
• RM450 million allocated to purchase tablets for 600,000 B40 undergraduates.
• RM120 million will be allocated to Chinese andvernacular schools.
• RM746 million will be allocated to upgrade schools in Sabah and Sarawak.
• RM50 million will be allocated for special needs schools.
• RM400 million for milk for students from low-income families.

Bantuan Keluarga Malaysia (BKM)

• BKM to benefit 9.6 million people with an allocation of RM8.2 billion.
• A one-off contribution of RM2,000 will be given to households earning under RM2,500 with three or more children.
• RM500 will be given to single mothers or fathers who have dependents and a monthly income of less than RM5,000.
• RM300 will be given to households with senior citizens.
• MySalam will extend to Bantuan Keluarga Malaysia recipients and their dependents.

Health

• RM2 billion from the allocation will be channeled to Covid-19 expenses, which will be the 3rd dose for children between 12 to 17 years old.
• The government will procure an additional 88 million vaccine doses for booster doses and vaccinations for teenagers.
• RM11 million allocated for mammogram and cervical cancer screening subsidies.
• Free sanitary pads to be provided monthly to 130,000 Teens in B40 Group.
• RM70 million allocated for mental health programs.
• Tax relief for cost of medical expenses/consultation involving registered psychiatrists, clinical psychologists, counsellors.
• Contracts of 10,000 medical, dental, and pharmaceutical officers will extend from 2 to 4 years.

Welfare

• RM25 million for Yayasan Keluarga Malaysia for orphans of parents who died from Covid-19.
• RM80 million for housewives and widows through Kasih Suri Keluarga Malaysia program.
• Welfare department aid will now be in line with the new poverty figure of RM1,169, which will benefit more people. This will cost the government RM2.4 billion and will benefit 440.000 households.
• Government to fully bear the cost of motor vehicle license for the disabled. (OKU)

Tax

• Tax Identification Number to come into force next year.
• Increase in tax relief for SOSCO from RM250 to RM350.
• Real property gains tax removed for house sales from 6th year onwards.
• Tax relief of up to RM4,000 for EPF contributions for those in gig industries.
• Special RM2,500 tax relief for purchase of mobile phones, computers, and tablets.
• Government to extend sugar tax to chocolate or cocoa, malt, coffee, and tea-based premix drinks containing sugar.
• Income tax to be levied on those who receive incomes from foreign sources beginning 1st January 2021.
• RM2,000-RM7,000 in tax relief for taxpayers who take courses to improve their career prospects.
• Employers to receive tax relief and exemptions on cost of boosters shots.
• Government to introduce a one-off tax scheme called Cukai Makmur to companies making over RM100 million annually.
• Government will introduce excise duty on liquid, gel-based vape e-liquids.
• Exemption of entertainment duties on all entertainment activities, including theme parks and cinemas in federal territories.
• Exemption of tourism tax until 31st December 2021.
• Taxes exemption for all revenue generated by social enterprises for 3 years.
• Sales tax to be imposed on low-value items from abroad that are sold online.
• Special tax exemption for building/commercial unit owners who give at least 30% rental discount.
• Government to increase windfall tax threshold for palm oil sector from RM2,500 to RM3,000 in the Peninsula and from RM3,000 to RM3,500 in Sabah and Sarawak.

Finance

• RM2.1 billion for the Cooperatives Commission of Malaysia for equity investments.
• RM1.8 billion in micro-credit financing schemes through Tekun, Agrobank, Bank Simpanan Nasional, Bank Rakyat and Bank Negara Malaysia.
• Bursa Malaysia to launch Voluntary Carbon Market as voluntary platform for carbon credit trading between green asset owners and other entities.
• Sales tax exemption for cars extended till 30th June 2022.

SMEs, Businesses

• SMEs allowed to postpone income tax instalments for six months until 30th June 2022.
• Matching grant of RM100 million for Bumiputera SMEs to explore aerospace industry.
• Bank Negara to allocate RM1 billion towards assisting SMEs in adopting sustainable and low-carbon practices.
• RM100 million for smart automation matching grants to benefit 200 manufacturing and services companies.
• RM85 million for special assistance to over 20,000 registered tour operators.
• RM14.2 billion to support the expansion of SMEs.
• SME Digitalisation Grant Scheme to be increased to RM200 million in 2022, with RM50 million for Bumiputera micro entrepreneurs in rural areas.
• Securities Commission Malaysia to make it compulsory for public-listed companies to have at least 1 female director on their boards.
• RM40 billion for funding programs for entrepreneurs, including interest-free grants up to RM10,000 from Tekun.
• RM250 million allocated to support the Shop Malaysia Online and Go-eCommerce Onboarding programs.
• RM74 million for training and entrepreneur mentorship programmes for those interested to be franchise entrepreneurs.

Development

• RM3.5 billion to continue infrastructure development programs, including the Pan Borneo Highway and Central Spine Road.
• RM700 million to continue the Jendela program to ensure digital connectivity in 47 industrial zones and 630 schools in rural areas.
• RM20 million for the development of national esports championships.
• RM14 million to support the United Nations Development Program initiatives.
• RM30 million for internet connectivity in 40 PPR projects.

Infrastructure

• RM700 million allocated to enhance digital connectivity in 47 industrial areas and 630 schools, especially those in rural areas.
• RM20 million to be allocated to each state for projects related to food security, tourism, and nature conservation.
• RM107 million to develop road infrastructure in villages.
• RM1.7 billion in subsidies, incentives for farming and fisheries industries, including RM1.5 billion in subsidies for seeds and fertilizer.
• RM365 million for the repair of civil servants’ quarters and buildings.
• RM382 million for water supply projects in rural areas.
• RM200 million for transport costs for the distribution of essentials to rural areas.
• RM80 million in aid for public buses.
• RM1.5 billion for road projects.
• RM159 million allocated to upgrade sporting facilities nationwide.

National Safety

• RM230 million for the welfare of police and military officers.
• The government will increase the allowance for volunteer police by RM2 an hour, estimated to benefit 10,000 officers.
• Secure borders will add 8 border posts.
• The country will add 4 new immigration entry points.
• RM100 million for natural disasters.
• RM1.6 billion to upgrade military assets.

Tourism

• RM20 million to promote Malaysia as a healthcare travel destination.
• RM1.6 billion for the tourism sector, which includes:
• Wage subsidy programs.
• Grant programs.
• RM85 million in cash aid for tour operators.
• RM50 million for tourism infrastructure.
• RM30 million in matching grants for budget hotels.
• RM50 million in matching grants for organizations involved in arts and culture programs.
• RM60 million for the promotion of domestic tourism activities.
• RM1,000 tax relief for domestic travel extended for 2022.

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