2014 Malaysian federal budget
| Supply 2014 | |
|---|---|
| Presented | 25 October 2013 |
| Parliament | 13th |
| Party | Barisan Nasional |
| Finance minister | Najib Razak |
| Treasurer | Ministry of Finance |
| Total revenue | MYR224.0 billion |
| Total expenditures | MYR264.1 billion |
| Program Spending | MYR46.5 billion |
| Debt payment | MYR23.2 billion |
| Deficit | MYR37.1 billion (3.5% of GDP) |
| Debt | MYR519.3 billion (53% of GDP) |
| GDP | MYR826.0 billion (5.0-5.5%) |
| Website | www |
|
‹ 2013 2015› | |
The Malaysian federal budget for 2014 fiscal year was presented to the Dewan Rakyat by Prime Minister and Minister of Finance, Najib Razak on Friday, 25 October 2013.
Summary
[edit]Cash handouts
[edit]- Pensioners will receive a special financial assistance of RM250 to assist them in meeting the rising cost of living.
- Government to give a half-month bonus for 2013 with a minimum payment of RM500 to be paid in early January 2014.
- Cash handouts to households with a monthly income of below RM3,000 will be increased to RM650 from RM500.
- For individuals aged 21 and above and with a monthly income not exceeding RM2,000, cash handouts will be increased to RM300 from RM250.
- For the first time, cash assistance of RM450 will be extended to households with a monthly income of between RM3,000-RM4,000.
- To implement all cash schemes, government will allocate RM4.6 billion which is expected to benefit 7.9 million recipients.
Real property gains tax
[edit]- For gains on properties disposed within the holding period of up to 3 years, RPGT rate is increased to 30%.
- For disposals within the holding period up to 4 and 5 years, the rates are increased to 20% and 15%, respectively.
- Raise the minimum price of property that can be purchased by foreigners to 1 million ringgit from RM500,000.
- Prohibit developers from implementing projects that have features of Developer Interest Bearing Scheme (DIBS), to prevent developers from incorporating interest rates on loans in house prices during the construction period.
- Financial institutions are prohibited from providing final funding for projects involved in the DIBS scheme. Malaysia's top three banks are Maybank, CIMB and Public Bank.
Affordable homes
[edit]- To further increase access to home ownership at affordable prices, an estimated 223,000 units of new houses will be built by the government and the private sector in 2014.
- Government to allocate RM578 million to the National Housing Department (JPN) for low cost flats consisting of 16,473 housing units.
- Malaysian's government to provide 80,000 housing units with an allocation of RM1 billion under affordable housing scheme. The sales price of the houses will be 20% lower than market prices.
- Introduce the Private Affordable Ownership Housing Scheme (MyHome) to encourage the private sector to build more low and medium-cost houses. The scheme provides a subsidy of RM30,000 to the private developers for each unit built.
- Preference will be given to developers who build low and medium-cost houses in areas with high demand and limited to 10,000 units in 2014.
- The scheme is for housing projects approved effective from 1 January 2014 with an allocation of RM300 million.
Tax relief
[edit]- Government proposes a special tax relief of RM2,000 be given to taxpayers with a monthly income up to RM8,000 received in 2013.
Goods and sales tax
[edit]- To implement goods and services tax (GST) on 1 April 2015
- GST rate fixed at 6%, the lowest among Asean countries.
- GST replaces current sales tax and service tax.
- Basic food items, transportation services, highway tolls, water and first 200 units of electricity for domestic users per month to be exempt from GST.
- Sale, purchase and rental of residential properties as well as selected financial services are exempted from GST.
- Najib: "The reality is that inflation now is low at around 2%. The government is confident this will be the best time to impose GST as inflation is minimal and under control."
- Training grant of RM100 million will be provided to businesses that send their employees for GST training in 2013 and 2014.
- Financial assistance amounting to RM150 million will be provided to small and medium enterprises for the purchase of accounting software in 2014 and 2015.
Corporate tax
[edit]- Corporate income tax rate be reduced by 1 percentage from 25% to 24%.
- Income tax rate for small and medium companies will be reduced by 1 percentage point from 20% to 19% from the year of assessment 2016.
Income tax
[edit]- Government to give one-off cash assistance of RM300 to low income group
- Personal income tax rates be reduced by 1 to 3 percentage points for all tax payers.
- Individual income tax structure will be reviewed
- Chargeable income subject to the maximum rate will be increased from exceeding RM100,000 to exceeding RM400,000.
- Current maximum tax rate at 26% to be reduced to 24%.
- Measures to be effective in 2015.
Subsidies
[edit]- Subsidy programme to be "gradually restructured".
- A portion of savings from restructuring to be distributed in the form of direct cash assistance with the other half to finance development projects.
- To abolish the sugar subsidy of 34 sen effective 26 October 2013.
Improving budget management
[edit]- Committed to reducing the fiscal deficit gradually, with the aim of achieving a balanced budget by 2020.
- To ensure federal debt level will remain low and not exceed 55% of GDP.
- Government to conduct audits on projects valued at more than RM100 million during its implementation.
Islamic finance
[edit]- Securities Commission to introduce the a framework for Social Responsible Investment (SRI) Sukuk, or Islamic bonds, to finance "sustainable and responsible" investment initiatives.
Agriculture
[edit]- Government to allocate RM6 billion allocated for agriculture programmes.
- Says to RM243 million allocated for rubber, palm oil and cocoa replanting as well as forest plantation programmes.
Logistics
[edit]- Government to allocate RM3 billion in soft loans under the Maritime Development Fund through Bank Pembangunan Malaysia.
- The fund is to provide financing to encourage the development of the shipping industry, shipyard construction, oil and gas as well as maritime-related support activities.
Aviation
[edit]- To replace existing air traffic control and management system in Subang, a new air traffic management centre costing RM700 million will be built at Kuala Lumpur International Airport (KLIA).
- Kota Kinabalu, Sandakan, Miri, Sibu and Mukah airports in Sabah and Sarawak to be upgraded with RM312 million allocation.
Public investments
[edit]- Public investments to reach RM106 billion. Projects to be implemented include:
- A 316-kilometre West Coast Expressway. Locally listed Kumpulan Europlus Bhd owns 80% of the project, while IJM Corp owns the balance 20%.
- Double-tracking rail project along west coast Malaysia. The project is carried out by as a joint venture between MMC Corp and Gamuda.
- Various projects from state oil firm Petronas under its RM300 billion capex programme, including a petrochemicals plant in Johor.
Internet access
[edit]- To carry out second phase of high-speed broadband project with the private sector involving RM1.8 billion investment. State-linked telco Telekom Malaysia is involved in the project.
- To increase Internet coverage in rural areas, 1,000 telecommunication transmission towers will be built in the next three years, with an investment of RM1.5 billion.
- To increase Internet access in Sabah and Sarawak, new underwater cables will be laid within three years at a cost of RM850 million.
Total revenues and spending
[edit]Revenues
[edit]Revenue estimates for 2016 Budget, excluding 2016 tax measures
Companies income tax (29.3%)
Interests and proceeds from investments (14.3%)
Individual income tax (12.8%)
Petroleum income tax (12.6%)
Excise duties (6.0%)
Licenses, registration fees and permits (5.9%)
Sales tax (4.9%)
Services tax (3.0%)
Stamp duty (3.0%)
(In million MYR)
| Source | Projected Revenues |
% of Total Projected Revenues |
Actual Revenues |
|---|---|---|---|
Direct tax
|
133,148
|
59.4%
|
|
Indirect tax
|
38,822
|
17.3%
|
|
Non-tax revenue
|
50,627
|
22.6%
|
|
| Non-revenue receipts | 852 | 0.4% | |
| Federal territories revenue | 645 | 0.3% | |
| Grand Total Revenue | 224,094 |
Expenditures by object
[edit]Official sources[permanent dead link]
These tables are in million MYR.
| Description | Projected Expenditures |
Actual Expenditures |
|---|---|---|
| Operating expenditures | ||
| Emoluments | 63,610.0 | |
| Supplies and services | 36,622.8 | |
| Assets | 1,408.6 | |
| Fixed Charges and Grants | 114,505.4 | |
| Other Expenditures | 1,504.1 | |
| Total Operating Expenditure | 217,651.0 | |
| Development expenditures | ||
| Direct Grant | 41,512.8 | |
| Loans | 2,987.2 | |
| Contingencies Reserve | 2,000.0 | |
| Total Development Expenditure | 46,500.0 | |
| Grand Total Expenditure | 264,151.0 | |
Expenditures by budget function
[edit]Official source[permanent dead link]
These tables are in million MYR. The budget for the 2014 fiscal year (also demonstrating the basic budget structure) can be found below.[1]
| Function | Description | Projected | Actual | ||
|---|---|---|---|---|---|
| Expenditures | Operating Expenditures |
Development Expenditures |
Expenditures | ||
| 1 | Parliament | 86.7 | 86.7 | — | |
| 2 | Office of the Keeper of the Rulers' Seal | 2.2 | 2.2 | — | |
| 3 | Audit Department | 169.1 | 169.1 | — | |
| 4 | Election Commission | 83.0 | 83.0 | — | |
| 5 | Public Services Commission | 54.1 | 54.1 | — | |
| 6 | Prime Minister's Department | 16,450.6 | 5,869.6 | 10,580.9 | |
| 7 | Public Service Department | 2,225.5 | 2,181.6 | 43.9 | |
| 8 | Attorney General Chambers | 197.4 | 197.4 | — | |
| 9 | Malaysian Anti-Corruption Commission | 297.5 | 297.5 | — | |
| 10 | Treasury | 4,627.5 | 3,266.5 | 1,361.0 | |
| 11 | Treasury General Services | 34,574.4 | 34,574.4 | — | |
| 12 | Contribution to Statutory Funds | 2,916.9 | 2,916.9 | — | |
| 13 | Ministry of Foreign Affairs | 846.8 | 641.8 | 205.0 | |
| 20 | Ministry of Plantation Industries and Commodities | 2,031.7 | 1,318.5 | 713.2 | |
| 21 | Ministry of Agriculture and Agro-based Industry | 6,035.0 | 4,367.4 | 1,667.6 | |
| 22 | Ministry of Rural and Regional Development | 9,832.1 | 5,724.4 | 4,107.8 | |
| 23 | Ministry of Natural Resources and Environment | 2,486.0 | 1,112.1 | 1,373.9 | |
| 24 | Ministry of International Trade and Industry | 1,290.4 | 601.1 | 689.3 | |
| 25 | Ministry of Domestic Trade, Co-operatives and Consumerism | 1,172.3 | 1,131.4 | 40.9 | |
| 27 | Ministry of Works | 6,191.5 | 2,605.5 | 3,586.0 | |
| 28 | Ministry of Transport | 5,221.1 | 1,311.1 | 3,910.0 | |
| 29 | Ministry of Energy, Green Technology and Water | 2,101.7 | 135.7 | 1,965.9 | |
| 30 | Ministry of Science, Technology and Innovation | 1,353.3 | 734.8 | 618.5 | |
| 31 | Ministry of Tourism and Culture | 1,503.5 | 1,219.6 | 283.9 | |
| 32 | Ministry of the Federal Territories | 1,775.3 | 504.8 | 1,270.5 | |
| 40 | Education Service Commission | 16.8 | 16.8 | — | |
| 41 | Ministry of Education | 54,600.6 | 50,565.5 | 4,035.1 | |
| 42 | Ministry of Health | 22,160.4 | 20,498.1 | 1,662.3 | |
| 43 | Ministry of Urban Wellbeing, Housing and Local Government | 3,914.6 | 2,371.3 | 1,543.2 | |
| 45 | Ministry of Youth and Sports | 753.9 | 579.8 | 174.1 | |
| 46 | Ministry of Human Resources | 1,422.2 | 847.7 | 574.5 | |
| 47 | Ministry of Communications and Multimedia | 2,046.3 | 1,452.9 | 593.4 | |
| 48 | Ministry of Women, Family and Community Development | 2,159.1 | 2,052.1 | 107.0 | |
| 60 | Ministry of Defence | 16,100.2 | 13,355.3 | 2,744.9 | |
| 62 | Ministry of Home Affairs | 12,607.8 | 13,355.3 | 647.0 | |
| 70 | Contingency fund | 2,000.0 | — | 2,000.0 | |
| Total Functional Expenditure | 221,307.7 | 174,807.7 | 46,500.0 | ||
| Dependent | Description | Projected | Actual | ||
| Expenditures | Operating Expenditures |
Development Expenditures |
Expenditures | ||
| (1) | Royal spending for the Yang di-Pertuan Agong | 13.5 | 13.5 | — | |
| (2) | Royal allowances | 1.8 | 1.8 | ||
| (3) | Chief Justice, Chief Judges, Judges | 100.1 | 100.1 | ||
| (4) | Auditor General | 0.7 | 0.7 | ||
| (5) | Speaker of the Dewan Rakyat | 1.3 | 1.3 | ||
| (6) | President of the Dewan Negara | 1.3 | 1.3 | ||
| (7) | Election Commission | 1.6 | 1.6 | ||
| (8) | Law Services Commission | 0.05 | 0.05 | ||
| (9) | Public Services Commission | 10.4 | 10.4 | ||
| (10) | Education Services Commission | 3.8 | 3.8 | ||
| (11) | Police Force Commission | 1.4 | 1.4 | ||
| (12) | Treasury | 5,407.8 | 5,407.8 | ||
| (13) | Payment for public debt | 23,185.9 | 23,185.9 | ||
| (14) | Pensions, retirement allowances and rewards | 14,113.6 | 14,113.6 | ||
| Total Dependent Expenditure | 42,843.3 | 42,843.3 | — | ||
| Grand Total Expenditure | 264,151.0 | ||||
Supplementary supply bill
[edit]On 24 March 2014, the Government tabled the Supplementary Supply (2013) Bill 2014 to seek for an additional expenditure for services for the year 2013 amounting to MYR2.392 billion (MYR2,392,077,572).[2] Deputy Finance Minister Ahmad Maslan tabled the bill for the first reading at the Dewan Rakyat.
A total of 12 ministries, departments and agencies had applied for the supplementary expenditure which is an allocation to the Statutory Fund amounting to RM2,099,876,700; Public Service Department (RM55.6 million); Prime Minister's Department (RM53.4 million) and the Ministry of Works (RM50 million). In addition, the supplementary expenditure also involved the Ministry of Communications and Multimedia; Foreign Ministry; The Agriculture and Agro-based Industry Ministry; Home Ministry; and the Ministry of Energy, Green Technology and Water. The other ministries included the Ministry of Natural Resources and Environment; Science, Technology and Innovations Ministry; and the Ministry of Urban Wellbeing, Housing and Local Government.[3]
References
[edit]- ^ "www.federalgazette.agc.gov.my" (PDF). Retrieved 23 October 2015.
- ^ "www.federalgazette.agc.gov.my" (PDF). Retrieved 22 October 2015.
- ^ "Supplementary Supply (2013) Bill 2014 tabled | The Malaysian Times". Retrieved 22 October 2015.
External links
[edit]- "#Bajet 2014". najibrazak.com. Retrieved 21 October 2015.[permanent dead link]
- 2014 Budget | Prime Minister's Office of Malaysia
- Laporan Ekonomi 2013/2014