2019年财政部长LIM GUAN ENG的预算讲话
2018年11月2日在德文郡RAKYAT推出供应单（2019年）
“一个马来西亚的复活，一个动态的经济，一个繁荣的社会”
议长先生，
1.我谨此动议将该条例草案定为“一项法案，即将综合基金的款项用于2019年的服务，以及适用于该年度服务的款项”，这是第二次。
介绍
2.问候，Salam Harapan和Salam Sayangi Malaysiaku，我向议长先生，政府和反对党议员以及马来西亚同胞提出申诉。事实上，我们真的很幸运能够获得民联政府的信任，支持和机会，以更加发达，有竞争力和透明的方式重塑对这个国家的管理。
3.在这个重要的日子，我站在你面前，以预算2019年预算，这是民联政府的第一份预算。首先，我要感谢马来西亚人民，他们用一个廉洁民主的政府取代全球盗贼政府，表现出极大的坚韧，勇敢和对国家的永恒热爱。
你们，人民在六十一年后创造了历史，选择了一个新的政府，这个政府不仅是世界上最古老的总理，也是国际上最受尊敬的政治家之一。
经济表现和挑战
议长先生，
新政府继承了一个令人担忧的财政状况，陷入了困境。截至2018年6月底，我们的实际债务和负债为10,650亿令吉，债务负担比前任政府正式披露的高出近3,500亿令吉。
细分直接联邦政府债务为3,752亿令吉，承诺或有负债为1,558亿令吉，其他负债包括1,849亿令吉，包括公私合作（PPP）项目的租赁付款。
万亿林吉特债务是由金融丑闻引起的，这些丑闻伪装成大型项目掩盖的投资和巨额债务。我们发现联邦政府在2018年4月30日秘密支付1MDB的债务，总额接近70亿令吉。尽管如此，我们还确认我们可能需要支付高达439亿令吉的债务，以解决所有问题。 1MDB的债务。
我们发现异常合同，如跨沙巴天然气管道和多产品管道项目，这些项目的成本约为96亿令吉，其中已经支付了83亿令吉，尽管已完成的工程不到10％。像东海岸铁路（ECRL）这样的大型项目将耗资高达8,100亿令吉，而经常性运营亏损则需要数百亿林吉特。
6.此外，会计师事务所已确认马来西亚皇家海关（海关）和国内税收局（IRB）披露过去几年政府收入被夸大，未偿还商品和服务税（GST）和所得税退税。
截至2018年5月31日，消费税退税额为194亿令吉，所得税退税额为160亿令吉，退税总额为354亿令吉。这些退款属于纳税人，未经他们的许可或知情而被滥用。与1MDB和其他可以在较长时间内偿还的财务丑闻相关的债务不同，政府在道义上要求这些退税必须在2019年归还其合法的所有者，公司和马来西亚人民。
7.这是马来西亚人成为全球盗贼统治者必须付出的高昂代价。为了恢复我们的财政健康，总理已经要求马来西亚人做好为国家做出牺牲的准备。因此，在我们致力于财政整顿的同时，我们将同样优先考虑经济增长，以改善人民的社会经济福祉。议长先生，
8.国际货币基金组织已将2018年全球经济增长预测从3.9％下调至3.7％。明年，全球增长预计将保持在3.7％。全球贸易增长预测也从2018年的4.8％降至4.2％，2019年降至4％。
9.美利坚合众国（美国）与中华人民共和国（中华人民共和国）之间全面贸易战的前景渺茫，以及强硬的美国货币政策，已经促使新兴市场大规模资本外流进入美国。双赤字（经常账户赤字和财政赤字）受到的打击最为严重。
截至2018年10月31日，土耳其里拉今年兑美元汇率已下跌32.1％。阿根廷人民币汇率下跌48.7％，不得不将利率提高至72％以阻止资本外流。与此同时，印尼盾兑美元汇率下跌11.3％。
10.马来西亚作为一个新兴经济体，将面临外国净流出的必然前景。虽然这给令吉带来压力，对马来西亚经济的信心和经常账户盈余将为我们的货币提供支撑，避免大幅加息。
因此，令吉在2018年10月31日之前一直是表现最佳的新兴市场货币之一。我们对印度卢比的利率为12.3％，印尼卢比为8.1％，菲律宾比索为3％，中国人民币为3.2％和新加坡元兑换0.6％。
11.此外，马来西亚股市也证明有弹性，今年截至2018年10月31日，富时大马隆综合指数今年年初下跌4.1％，而摩根士丹利资本国际新兴市场指数则自开盘以来已下跌17.7％。 2018。
在其他主要区域市场，新加坡下降12.0％，香港下降18.3％，韩国下降18.2％，菲律宾下降18.2％，印度尼西亚下降8％，泰国下降6.2％。这是国内外投资者对新民联政府的信任投票。
12.鉴于上述全球逆风并且与国际货币基金组织削减全球经济增长率一致，马来西亚将把我们预测的国内生产总值增长率从之前宣布的5.0-5.5％下调至2018年的4.8％。我们的出口继续增长今年1月至6月期间的利润率为6.9％，有助于实现健康的经常账户盈余189亿令吉，占GDP的2.8％。
截至2018年10月15日，我们的国际储备为1,028亿美元或426亿令吉，6足以为7.3个月的进口提供资金。我们的通胀率仍然较低，1月至9月期间仅为1.2％，使我们的货币政策保持宽松，有利于经济增长。
13.在提交今年的预算案时，马来西亚注意到日益恶劣的全球环境迫使我们优先考虑可持续经济增长，以及紧急财政整顿和纪律。尽管2019年全球经济不确定性为4.9％，但我们预计国内生产总值将继续健康增长。
关注2019年预算
议长先生，
14. 2019年预算案的主题是“复兴的马来西亚，一个充满活力的经济，一个繁荣的社会”将有三个重点领域，有十二个关键战略，以确定恢复马来西亚经济作为亚洲虎的道路。
三个重点领域是：
第一：实施机构改革;
第二：确保马来西亚的社会经济福祉;
和三：培育创业经济。
重点1：实施制度改革7
15.马来西亚宏观经济管理中最薄弱的环节是我们的公共财政管理不善，例如1M亿令吉的1MDB丑闻，并在“十亿美元鲸”一书中明确列出。
我们将实施制度改革，促进透明的财政纪律，这不仅可以防止这种渎职行为的重复，而且可以确保整体的宏观经济稳定和经济增长的可持续性。
战略1：加强财政管理
16. ONE：联邦政府正在为本预算案实施“零基预算”。首先，通过目标而不是前一年的预算来确保支出是合理的，从而提高效率，提高效率和实现更高的成本节约;其次，审查替代方案以实现相同的目标;第三，所有可自由支配的开支都是从零开始计划的。
17. TWO：我们将在2021年之前制定一项财政责任法案，以避免导致巨额债务的鲁莽巨额开支。
18.三：我们打算明年制定一项新的“政府采购法”，以管理采购程序，以确保透明度和竞争，同时惩罚滥用权力，疏忽和腐败。公开招标不仅可以为纳税人实现更高的经济效益，还可以培养更有效率和竞争力的私营部门。
19.第四：为确保全面披露我们的债务和负债以及我们的资产价值，目前的现金会计基础应在2021年之前转换为权责发生制。
议长先生，
战略2：重组和合理化政府债务
20.在过去十年中，联邦政府越来越依赖不太透明的政府担保借款或租赁融资计划，称为公私合作伙伴关系（PPP）项目，以支付其支出。
政府担保借款的价值由2008年的692亿令吉增加至2017年的2,380亿令吉，大幅增加244％。相比之下，官方联邦政府债务在同一时期仅增加了124％。
21.基本上，前几年宣布和实现的预算赤字从未真正反映出发生的实际赤字。因此，尽管我们尽最大努力降低成本并推迟非关键支出，但实现2018年赤字目标2.8％是不现实的。
只有继续以前将我们的费用隐藏在资产负债表外的做法才能达到2.8％的赤字目标。
22.因此，2018年的财政赤字预计为3.7％。财政赤字的增加是在我们考虑了以前未列入预算的项目之后产生的，例如1MDB债务的10亿令吉利息服务成本，以及9亿令吉的13亿令吉。去年宣布收购柔佛州东部分散通道，Prasarana收购10亿令吉，运输部铁路项目收购14亿令吉，并偿还部分GST退款金额为39亿令吉。
23.在接下来的三年里，哈拉潘政府致力于保持财政整顿的道路，以在2019年实现3.4％的赤字; 2020年为3.0％，2021年为2.8％。
从中期来看，我们预计赤字将进一步降至2％的区域。
24.展望未来，联邦政府仍将发布政府担保，但仅限于现有的基础设施项目，如MRT2和LRT3项目，以及能够展示一定程度财务可持续性的选定机构。
25.为了确保对我们1万亿令吉的债务进行成功的财政整顿，该政府将通过以下措施减少我们的债务占国内生产总值的百分比：
26. ONE：我们将设立一个债务管理办公室，负责审查和管理政府及其机构当前和未来的债务和债务。
该办公室应监督联邦政府，法定机构和特殊目的工具的债务发行。由于债务发行协调不力，政府打算避免提高偿债费用。
该办公室还将整合政府资金来源，集中管理资金，使10个有盈余的法定机构能够以更具竞争力的成本帮助满足其他机构的资金需求。
27.两个：为了使我们的债务合理化，我们不仅要审查我们现有的债务，还必须审查我们未来的债务承诺，其中包括经常性运营租赁，数额达数百亿林吉特。
因此，政府已决定取消150亿令吉的多产品管道和跨沙巴管道项目。 810亿令吉东海岸铁路线（ECRL）的建设暂停，目前正在等待重新谈判该项目的费用。
28.在MRT2完成之前，我们暂时取消了600亿令吉的MRT3项目。我们还推迟了吉隆坡 – 新加坡高速铁路的实施，这将使我们至少花费1,100亿令吉。
29.政府决定开展若干基础设施项目，这些项目在与各自供应商进行重新谈判后将能够产生高经济乘数效应。
对于Prasarana Malaysia Bhd开展的37公里LRT3项目，我们能够将项目的总成本从316亿令吉降至166亿令吉。这意味着节省了47％或150亿令吉。
对于MRT公司管理的MRT2项目，我们成功地将建筑合同的成本从399亿令吉减少到88亿令吉，节省了22.4％。
30.在上次大选之前通过直接谈判以52亿令吉获得的巴生谷双轨2项目已经终止。该项目将通过公开招标进行重新招标，预计将大幅降低成本。
此外，各政府机构正在重新谈判前政府签订的合同，金额达190亿令吉。这些190亿令吉的合约是通过直接谈判或有限招标授予的。政府已经让政府决定是否继续这些合同。
如果建筑成本降低10％，这些项目可以继续进行。政府预计将从这项工作中节省19亿令吉。从这些项目中节省的数十亿林吉特大大减少了我们未来的债务负担。
31.三：政府将采取一切必要行动，收回1MDB丢失和被盗的资金。 2018年10月30日，我们已向英格兰法院申请撤销2017年5月9日国际石油公司（IPIC）与Aabar Investments PJS在伦敦设立的仲裁庭以及1MDB与我们分别签署的同意奖。财政部长
马来西亚正在利用欺诈手段作为未按照同意奖向IPIC或Aabar支付43.2亿美元余额的理由，并收回已支付的14.6亿美元。 32。
政府还与外国政府携手合作，收回与1MDB相关的扣押现金和资产。我们成功夺取了一艘十亿令吉的豪华游艇，12艘Equanimity，并将于2018年11月5日开始为期一个月的国际拍卖。
33.四：联邦政府不仅会跟踪和公布直接的联邦政府债务比率，还会提供必要的透明度来披露我们的债务和负债总额。
截至2017年12月31日，直接联邦政府债务为6,870亿令吉，占国内生产总值的50.7％。截至2018年6月30日，直接联邦政府债务已增加至7,250亿令吉，但维持在国内生产总值的50.7％。
34.一旦考虑到承诺的或有负债和租赁付款，2017年我们对GDP的总体负债率为80.3％，预计2018年底将降至74.6％。
展望2019年，我们预计联邦政府直接债务占国内生产总值的比率为51.8％，而我们的总负债将减少至73.5％。
策略3：提高政府收入议长先生，
35.为实现上述目标，我们将首先利用政府资产，其次，审查我们的税收政策。利用政府资产的措施是：利用资产13
36.一：如果机会出现，当政府能够实现我们非核心资产的全部价值时，我们将寻求减少我们在这些非战略性公司的股份，并利用所得款项削减债务。
37. TWO：基于土地掉期交易的公共项目的真正公私伙伴关系（PPP）模式将使用公开招标机制而不是直接谈判来实施。
以前，通过直接谈判模式，政府土地的实际价值总是低估，而公共工程项目的成本过高。
38.基于公开招标的真实PPP模式将使政府能够获得所处置资产的最高收入，同时获得所授予项目的最佳价值。
在这个新模式的基础上，将实施二十四个PPP项目，如学校，军营，警察和消防站以及价值52亿令吉的经济适用房，政府预计将超过8亿令吉土地销售的公共工程。
39.三：我们将根据对土地的条件，通过拍卖向最高投标者计划定期和交错的土地销售，以最大限度地增加政府的收入。
40.四：为了将基础设施资产私有化，政府打算建立世界上第一个“机场房地产投资信托基金（REIT）”。机场房地产投资信托基金的投资者将获得从马来西亚机场控股有限公司（MAHB）收取的使用费收入，该机构拥有经营这些机场的特许权。
政府希望通过向房地产投资机构出售30％的房地产投资信托基金，筹集40亿令吉，而这些投资者将获得投资高质量基础设施资产的宝贵机会。
该REIT活动仅在新的受监管资产基础和用户费用结构经过协商和最终确定后才能实施。
41.展望未来，机场房地产投资信托基金将有机会通过发行新的房地产投资信托基金单位或借款来公开筹集资金，以资助机场的改善和扩建，尤其是那些面临产能过剩的机场。这种财务结构将大大减轻政府的债务负担，使其自身为所有这些项目提供资金，同时保持MAHB不会因重资本投资和债务而陷入困境。
其他项目也可以从类似的资金和投资结构中受益，例如医院或铁路基础设施。
审查税收
议长先生，
42.正如我们在“哈拉邦宣言”中所承诺的那样，我们在2018年6月1日对商品及服务税进行了零评级，并于2018年9月1日用商品及服务税取代了商品及服务税。在商品及服务税下，只有545项为零 – 根据SST，几乎10倍的项目被免除。也许最大的影响是企业，其中472,000家公司以前需要15个才能收集商品及服务税。
相比之下，只有大约10万家公司需要收集SST，这大大减轻了许多中小企业的负担。根据国内贸易和消费者事务部的初步研究，与2018年5月商品及服务税制度期间的价格相比，2018年9月检查的商品和服务中有70％或291件物品价格下降。
43.海关部门和财政部通过涉及5万人的公共互动和成千上万的问题，解决了几乎与海事处有关的所有业务问题和出现问题。我亲自参加了18次SST对话，全国有超过15,000名商务人士。
44.为了进一步提高SST的效率和有效性，从2019年1月1日起，政府将对注册服务税实体的特定企业对企业服务税给予豁免。
这将防止因复合税收而增加经营成本，并保护我们本地服务业的竞争力。
45.为了协助从进口商而非其他注册制造商购买产品的小型制造商所面对的问题，政府将从2019年1月1日开始实行销售税减免信贷制度。同样，这将防止复合税收，反过来又会减少做生意的成本。
46.除此之外，税务改革委员会于2018年9月成立，旨在确定并提出改进措施和其他措施，以建立更加进步和有效的税收制度。提议的税收改革包括：
47. ONE：进口服务将征收服务税，以确保我们的本地服务提供商，如建筑，平面设计，信息技术（IT）和工程设计服务，从2019年1月1日起不会对其外国竞争者造成不公平的不利影响。
48. TWO：对于消费者进口的在线服务，外国服务提供商将被要求在马来西亚皇家海关注册，从2020年1月1日起对交易收取相关的服务税。
这些服务的示例包括但不限于下载的软件，音乐，视频或数字广告。
49.上述措施将抵消实体零售商对其虚拟店面对手，特别是外国实体经营的对手的成本劣势。
议长先生，
50.三：政府将推出一项特别自愿披露计划，为纳税人提供机会，自愿宣布任何未报告的收入用于马来西亚税收目的，包括离岸账户。
51.今年，马来西亚现在是经济合作与发展组织（经合组织）共同报告标准的参与者，我们将与税务机关自动交换（非居民人）的金融账户信息。一个人的居住国。
52.特别自愿披露方案将于2018年11月3日至2019年6月30日期间提供，纳税人将获得减刑率。如果从2018年11月3日至2019年3月31日披露未报告的收入，则罚款将为应纳税额的10％。如果从2019年4月1日至2019年6月30日进行披露，则罚款将为纳税额的15％。
该计划于2019年6月30日结束后，根据现行税法的规定，处罚率将在80％至最高300％之间。有了清洁透明的政府，马来西亚人将非常愿意缴税，因为他们知道这个政府的领导人不会欺骗和偷钱。
53.四：IRB将仔细审查和调查拥有奢侈品，珠宝，手提包或财产所显示的无法解释的非凡财富。 IRB将使用法律允许的一切必要措施来收回此类款项，无论是以额外的税收，罚款还是罚款。
54.第五：政府还将审查各种税收法案下的现有救济和激励措施，以使其相关并减少泄漏。政府现在还将把减税和减免津贴的期限定为最长7年。
这将适用于未使用的商业损失，资本补贴，再投资补贴，投资税收减免和先驱损失。
55.六：我们还将对130多种支持投资的财政计划进行彻底审查，由32个审批机构管理，旨在使不再相关或不完整的激励措施失效。
56.七：马来西亚皇家海关在成功推出SST系统后，将加强执法打击走私香烟。目前，由于普遍存在廉价的违禁品替代品甚至是带有假冒标签的非法产品，政府收入减少。
由于打击走私和欺诈活动，政府希望至少能够收回10亿令吉的税收损失。
57.八：为鼓励国内旅游，政府建议从2019年6月1日开始，对所有出境旅客征收离境税。建议的费率为2层，东盟国家的出境旅客为20令吉，东盟以外国家则为40令吉。 。提议的费率与许多其他国家的收费标准一致或不高，包括泰国20美元，香港特区15美元和日本10美元。
58.九：房地产收益税将在第五年后修订以处置物业控股公司的财产或股份，具体如下：
•对于公司和外国人，税率应从5％增加到10％; •对于马来西亚个人，税率应从0％增加到5％。但是，价格低于20万令吉的低成本，低中等成本和经济适用房将被免除。
59.十：价值超过1,000,000令吉的物业转让印花税将由3％增加至4％。
60.十一：自1999年以来，批发货币市场基金的利息免税被授予发展单位信托业。在马来西亚，这些基金的增长幅度很大，自2010年以来每年增长24％，截至2017年12月，总资金规模达到429亿令吉。
因此，这些资金的免税将从2019年1月1日起停止。
61.十二月：纳闽国际商业和金融中心成立为离岸和中岸服务中心，提供广泛的商业和投资结构，促进跨境交易，商业交易和财富管理需求。
政府将继续通过取消对马来西亚林吉特20笔贸易的限制，纳闽与马来西亚居民之间的交易以及维持目前3％的税率来提高纳闽的竞争力。但是，根据1990年纳闽商业活动税法，将取消2万令吉的税收上限。
62.十三：自2005年以来未增加的对博彩业的税费，费用和征税增加如下：
•赌场牌照每年由1.2亿令吉增加至1.5亿令吉;
•总收集的赌场关税增加至35％;
•机器经销商的许可证每年从RM1,000增加到RM50,000;和
•总收款时游戏机的关税从20％增加到30％。但是，特别抽奖的数量将减少一半。
63.总体而言，2019年，联邦政府预计将获得2,618亿令吉的收入。这包括来自马来西亚国家石油公司的300亿令吉的一次性特别红利，这笔红利将用于偿还消费税和370亿令吉的所得税退税。
我们非常感谢马来西亚国家石油公司作为一家公司以极其谨慎的方式运营，并且能够累积上述储备，这些储备可以与政府分享，而不会损害其为未来增长投资的能力。
21聚焦2：确保马来西亚的社会经济福祉
议长先生，
64.改善人民的社会经济福祉将是这一新政府是否成功的关键绩效指标。我们将通过确保福利和生活质量，改善就业和就业能力，增加财富和社会福利保护，提高实际可支配收入和教育以实现更美好的未来来实现这一目标。
战略4：确保福利和生活质量
65. ONE：我们将通过“Bantuan Sara Hidup”（BSH）现金补助继续政府对B40家庭的支持。但是，该计划将针对有需要的人，并根据家庭的规模进行加强。
从2019年1月开始：
•每月每月收入RM2,000及以下的家庭将获得RM1,000的总和;
•月收入在RM2,001至RM3,000之间的家庭将获得RM750;
•每月收入RM3,001至RM4,000的人将获得500令吉。
66.但是，对于每个18岁及以下的儿童或家庭中的残疾儿童（因此没有年龄限制），每名儿童最多可以额外补足120令吉，最多可容纳4名儿童。
因此，在每月家庭收入低于RM2,000的四口之家中，家庭每年将获得总计1,480令吉。这超过了同一家庭现有的RM1,200 BR1M付款。
67.因此，410万个家庭将继续得到政府的财政援助，总额达50亿令吉。
68. TWO：对于e-Kasih项目下的家庭主妇，我们已经制定了EPF i-SURI捐款计划，我们鼓励有爱心的丈夫为他们的妻子退休储蓄做出贡献，拨款4500万令吉。
对于其丈夫每月至少为其妻子账户缴纳5令吉的eKasih受益人，政府将每月缴纳40令吉。
69.三：Pakatan Harapan宣言承诺为发动机容量为1300cc或更低的个别车主以及125cc或更低的摩托车车主提供有针对性的燃油补贴。
不过，政府已决定将计划扩展至1,500cc及以下的车主，以改善我们的承诺。拥有多辆汽车的车主将无法获得此优惠。
政府已决定每位汽车和摩托车车主每月最多可享受100升和40升RON95汽油，补贴价格至少为每升RM0.30，具体取决于汽油的市场价格。
多达400万车主和260万名摩托车车主将从这项有针对性的补贴中受益，这将使政府在2019年花费20亿令吉。
非补贴车辆必须根据自动价格机制（APM）每周支付燃油价格。该计划预计将于明年第二季度开始实施。这项新计划还将确保停止燃油价格套利和跨境走私所产生的泄漏。
70.四：为尽量减少马来西亚半岛城市和农村地区以及沙巴和沙捞越之间的价格差异，政府将拨出1.5亿令吉来平衡关键商品的价格。
它们是1公斤包装的小麦粉，加工糖和食用油，10公斤包装中15％碎粒的当地大米，以及RON95汽油，柴油和液化石油气（LPG）。
71.五：政府还采用最新技术和技术，在价格监测方面更加有效和有效。 Instead of hiring thousands of “price-checkers”, we call upon all consumers to download the Price Catcher mobile application and be part of a vigilant crowdsourcing effort to collect information on the prices of goods and services.
This service will benefit not only all consumers in knowing the best prices in town, it will help the authorities monitor against unlawful pricing practices. The Government will allocate RM20 million towards better enforcement.
72. SIX: Currently, all households which consume RM20 or less of electricity usage per month are fully subsidised by the Government. The Government intends to make this policy more targeted where only the poor and hardcore poor registered with eKasih will qualify. In doing so, the Government is able to increase the subsidy to RM40 per month benefiting 185,000 accounts, with the allocation of RM80 million.
73. SEVEN: The Government will identify and collaborate with NGOs and social enterprises to support their efforts in uplifting the underprivileged and marginalised communities.
Examples of such partnerships will include the Government procurement of envelopes from Persatuan Pemulihan Orang Kurang Upaya. The government will allocate RM10 million for this initiative.
74. EIGHT: Income tax deductions will be provided for contributions from any parties to any social enterprise subject to a maximum of 10% of aggregate income of a company or 7% of aggregate income for a person other than a company.
Strategy 5: Improving Employment and Employability
Mr Speaker Sir,
75. With an unemployment rate of only 3.4%, Malaysia is considered to be enjoying full employment. However, there are structural problems causing long-term unemployment especially among the youth.
We will tackle these problems:
76. ONE: The Human Resource Development Fund (HRDF) will launch 2 new programmes, “Apprenticeship” and “Graduate Enhancement Programme for Employability” (GENERATE) to provide skills to school-leavers as well as to increase the marketability of our graduates from the institutions of higherlearning. HRDF will allocate RM20 million in matching grants for these programmes which will benefit at least 4,000 youths.
77. TWO: The government will introduce policies to encourage the employment of those past the retirement age of 60. By 2020, there will be an estimated 1 million Malaysians aged between 61 and 65 years old who will still be active and productive.
We propose that the employer portion of EPF contributions be cut to 4% from the current 6% effective 1 January 2019. To boost the disposable income of working retirees, it is also proposed that the current mandatory employee contribution for this group be zeroed. We also propose to provide additional tax deduction to employers who employ this group up to a monthly salary of RM4,000.
This provides an incentive for employers to hire or retain retirees, particularly among the B40.
78. THREE: To ensure that ex-convicts are not left behind as the country moves forward and are able to contribute to economic growth, the Government will provide an additional tax deduction for companies who employ ex-convicts up to a monthly salary of RM4,000 each.
I wish to thank those who shared their inputs and suggestions, including this measure, through the Budget 2019 portal.
79. FOUR: Amongst the elderly, we also have many government pensioners who are receiving pensions of less than RM1,000 per month. We hear their appeals for assistance. Hence the Government will provide a one-off RM500 assistance to the qualified recipients.
80. FIVE: Amidst those working with the Government and serving the nation, there are nearly 30,000 ‘contract of service’ officers who do not enjoy most of the benefits extended to the civil service.
As such the Government will allocate RM10 million per annum to make available healthcare service for the parents of these ‘contract of service’ officers. In addition, these officers may apply for ‘Quarantine Leave’ when their children suffer from infectious diseases commencing 12 November 2018.
81. SIX: The Government currently approves Unrecorded Leave for Muslim officers to perform their umrah for up to 7 days for the entire duration of service. To appreciate the fact that we have 201,600 non-Muslims in the service, the Government has agreed to similarly allow for up to 7 days of Unrecorded Leave throughout the duration of service for the purposes of performing their religious pilgrimage and functions.
82. SEVEN: The Government is also cognizant of the need and importance of a living wage in an environment of rising costs. As a first step, the minimum wage shall be raised to RM1,100 per month for the whole of Malaysia starting 1 January 2019.
83. EIGHT: To reduce wage disparity, regulations will be implemented requiring public-listed companies in Malaysia to publicly disclose key pay metrics each year in their annual report. This will include ‘the lowest wage paid’, ‘average wage per worker’, the ‘highest and lowest wage ratio’ as well as a statement by the company of how they intend to improve their employees' average pay.
84. NINE: The Government will review our labour laws to improve the labour market, workers welfare and ban discriminatory practices by employers. We will also expedite the resolution of industrial disputes between employers and employees by setting up Industrial Appeals Court.
Strategy 6: Enhancing Health & Social Welfare Protection
Mr Speaker Sir,
85. ONE: The Government also wants to assist those who have lost employment with the full implementation of the Employment Insurance System (EIS) starting 1 January 2019. The Social Security Organisation (SOCSO) will pay compensation to those who have lost their jobs, including employment-seeking and skills training allowance.
The EIS would also provide advice and help these workers find new jobs at the fifty-four SOCSO offices around the country.
86. TWO: The Government is committed to helping Malaysian households become more financially resilient through insurance 28 and takaful protection.
Financial emergencies such as a critical illness in the family can cause severe financial stress. Insurance and takaful can act as a safety net by providing financial support and enabling households to get back on their feet especially for the lower income groups.
In partnership with the private insurance industry, the Government will pilot a national B40 Health Protection Fund to provide free protection against top 4 critical illness for up to RM8,000 and up to 14 days of hospitalisation income cover at RM50 per day starting 1 January 2019.
In other words, hospitalisation income of RM700 per annum is available. We are grateful to Great Eastern Life Insurance for agreeing to contribute the initial seed funding of RM2 billion to this Fund to be managed by Bank Negara Malaysia. We are expecting the fund size to grow with more partnership and contributions with other insurance companies.
This is a big step for Malaysia because for the very first time, together with the Employees Provident Fund and the Social Security Organisation, we are starting a more comprehensive social welfare protection coverage, particularly for the middle- and lower-income groups.
87. THREE: It is also our wish and intent that as the B40 households learn the benefit of insurance and takaful, they will over time acquire their own protection policies.
For this purpose, Bank Negara Malaysia has launched ‘Perlindungan Tenang’ in 2017 to make available affordable, accessible and simple insurance and takaful products for Malaysians costing as little as less than a packet of cigarettes a month.
The Government proposes to waive stamp duty for all Tenang Insurance products for two years beginning 1 January 2019.
88. FOUR: To encourage higher insurance take up rate, the combined tax relief for EPF contribution and life insurance or takaful deduction will be separated into RM4,000 for EPF contribution and RM3,000 for takaful or life insurance premiums. For civil servants under the pension scheme, the tax deduction will be up to RM7,000.
89. FIVE: The Government will be allocating nearly RM29 billion for Ministry of Health, which is an increase of 7.8% compared to the previous year. This includes an allocation of RM10.8 billion to provide medicine, to upgrade and improve the quality of health services at our clinics and hospitals.
90. SIX: The Health Ministry will pilot a nationwide health screening programme, Skim Perlindungan Kesihatan (PEKA) for 800,000 individuals aged 50 and above in B40 households at a cost of RM100 million.
91. SEVEN: To protect women’s health, we are allocating RM20 million to provide free mammogram screening, PVHPV vaccination as well as pap smear tests for 70,000 women.
92. EIGHT: The Government will also allocate RM50 million for the specific purpose of treating rare diseases, Hepatitis C virus, stunted growth among children, providing more haemodialysis treatments and Enhanced Primary Healthcare (EnPHC).
93. NINE: The Government will widen the Public-Private Partnership programs where the Government will invest in the healthcare facilities while the private sector will also invest to deliver the best quality of service to the people.
The examples of such partnerships include Pusat Katarak Majlis Agama Islam Wilayah Persekutuan (MAIWP), Selayang. 94. TEN: Statistics from the Ministry of Health showed that nearly one out of two Malaysians were overweight or obese.
Therefore, the Government has decided to add as a start, ‘sugar sweetened beverages’ to the list of manufactured goods subject to excise duty in an effort to help address this issue.
The duty proposed will be at RM0.40 per litre to be implemented on 1 April 2019:
• for non-alcoholic beverages containing added sugars of more than 5gm per 100ml drink;
和
• for fruit or vegetable juice containing added sugars of more than 12gm per 100ml drink.
95. ELEVEN: The Ministry of Health has also set 2045 as the year to achieve our goal to be a “Smoke-free Malaysia”. As such, the Ministry will expand the number of locations where smoking will be disallowed starting 1 January 2019. 96. We can only enjoy the fruits of economic growth and the country’s prosperity if we are safe and secure.
The Government will strengthen our national security by allocating development 31 expenditure of RM5.9 billion to the Ministry of Defence and Ministry of Home Affairs.
Strategy 7: Raising Real Disposable Income
Mr Speaker Sir,
97. Based on the study by Khazanah Research Institute, in 2016, households with income below RM2,000 spent 95% of their incomes in consumption respectively.
The income remaining after accounting for inflation is only RM76 in 2016, as compared to RM124 in 2014. The two largest expenditure components other than food, is housing and transport.
Therefore, besides attempting to increase real disposable income of ordinary households with the measures mentioned earlier, this Government wants to specifically address the cost and affordability of housing and transport for Malaysians for both the B40s and M40s. Housing for All
98. We will continue to support the construction and completion of affordable homes with an allocation of nearly RM1.5 billion for Program Perumahan Rakyat, Perumahan Penjawat Awam Malaysia, PR1MA and Syarikat Perumahan Nasional Bhd to ensure the availability of supply.
99. However, without the necessary availability and accessibility of loans from financial institutions, the supply of these affordable homes will fail to meet the pent-up demand for housing.
To assist 32 the lower income group earning not more than RM2,300 per month to own a house for the first-time, a fund amounting to RM1 billion will be established by Bank Negara Malaysia, to help them to purchase affordable homes priced up to RM150,000.
The fund will be made available from 1 January 2019 at participating financial institutions, namely AmBank, CIMB, Maybank, RHB and BSN through a concessionary financing rate as low as only 3.5% per annum.
This will significantly reduce the monthly financing instalment of borrowers to own a house, and make it easier to qualify for the required financing. The RM1 billion fund is available for two years or until the allocation is exhausted.
100. For first-time home-buyers purchasing residential properties priced up to RM500,000, the Government will exempt stamp duty up to RM300,000 on sale and purchase agreements as well as loan agreements for a period of two years until December 2020.
For first-time home-buyers with household income of RM5,000 or less, the Government will allocate RM25 million to Cagamas Berhad to provide mortgage guarantees to enable borrowers to obtain higher financing from financial institutions, inclusive of down payment support.
These measures are expected to give between 7% and 11% cost savings to the house buyers, before taking into consideration any promotional discounts which may be offered by the property developers.
101. In line with the Government’s intent to assist civil servants acquiring their homes, the Public Sector Housing Financing Board will extend the loan repayment period from 30 to 35 years for the first loan, and from 25 to 30 years for the second loan.
102. The Government will also allocate RM400 million for the upgrading, repair and maintenance of government housing quarters of the police, armed forces and teachers to improve the living conditions and ensure their fitness for occupation.
103. The Government has already announced that we have exempted construction and building materials from SST. In return, we have secured the commitment from the Real Estate Housing Developers Association (REHDA) that there will be a 10% reduction in the price of houses that are not subjected to price control in new projects.
104. There is an existing over-hang of RM22 billion worth of residential properties as at 31 March 2018, a 65% increase as compared to RM13.3 billion last year. To address this, the Government will for a limited time of 6 months only, starting 1 January 2019, waive all stamp duty charges for first time purchases of homes valued between RM300,001 and RM1 million.
This will be part of a National Home Ownership Campaign, where in return, developers will offer a minimum price discount of 10% for these residential properties.
105. Finally, as a demonstration of this Government’s willingness to explore new, technology-enabled and innovative mechanisms to solve our housing problems, we will be approving private sector driven ‘Property Crowdfunding’ platforms which will serve as an alternative source of financing for first time home buyers. These exchange platforms will be regulated by the Securities Commission 34 under the peer-to-peer financing framework.
As an example, the buyer will be able to acquire a selected property for 20% of the price of the property, while the balance 80% will be fulfilled via potential investors who are interested to fund the acquisition in exchange for the potential appreciation in value of the property over a particular period of time.
106. In simple terms, Ah Chong will be able to own and stay in a RM250,000 property by paying up RM50,000 without having to procure a mortgage. Ali who might only be interested in investing in a new property for capital appreciation will fund the balance of the RM200,000 via the peer-to-peer Property Crowdfunding exchange.
This financial innovation will be the first in the world, and if successful, will transform the affordability of homes for firsttime home buyers in the country. The first exchange is expected to go live in the first quarter of 2019, after all necessary approvals are obtained from Securities Commission.
Encouraging Public Transport Adoption
Mr Speaker Sir,
107. After housing expenses, transport is the next biggest expense item. Many household don’t just own one car, they own at least two. The typical monthly expenses for just a Perodua Myvi would be approximately RM900 after taking into consideration the loan instalment, petrol, parking and maintenance. Therefore, a key solution to increasing the real disposable income of Malaysian 35 households is to migrate from private car ownership to the adoption of public transport.
108. To increase the utilisation of public transport, the Government will allocate RM240 million to introduce a RM100 unlimited public transport pass, to kick off initially on the RapidKL rail and bus network on 1 January 2019.
There will also be a RM50 monthly pass available just for RapidKL bus services only. The campaign will be expanded to other bus companies at a subsequent stage. This scheme will immediately increase the disposable income of households by hundreds of ringgit a month.
109. The Government’s wholly-owned public transport subsidiary, Syarikat Prasarana Bhd will also seek to improve its bus network by fully utilising and optimising its current fleet of 1,131 RapidKL, 408 RapidPenang, 69 RapidKuantan and 300 MRT feeder buses. The company will also work in partnership with other existing bus companies to manage routes and services as well as cost control, in order to maximise efficiency and the quality of service.
110. The reduction of LRT3 and MRT2 construction cost increases the operational viability of the projects, which in turn translates into lower public transportation fares. This will encourage public transportation usage.
111. Kuala Lumpur City Council, will allocate RM20 million next year to provide additional free GoKL free bus services from the existing 4 routes to further improve public transport coverage in Kuala Lumpur. 36
112. The Government will also make available RM500 million for a Public Transport Loan Fund with 2% interest subsidy via Bank Pembangunan Malaysia available to taxi and bus companies as well as other public transport operators.
113. The Government will freeze toll hikes on all intra-city tolls around the country for 2019 that will cost the Government approximately RM700 million. The Government will also abolish toll for motorcycles for the First and Second Penang Bridge, as well as the Second Link in Johor, costing approximately RM20 million per annum effective 1 January 2019.
114. In addition, the Government will prioritise solutions for both the Causeway and the Second Link to Singapore to ease congestion and hardship of Malaysians and residents who travel on a daily basis. It will include an allocation of RM10 million to upgrade the Autogate Malaysia Automated Clearance System and M-Bike.
Strategy 8: Education for a Better Future
Mr Speaker Sir,
115. The only sustainable and guaranteed mechanism to achieve higher income growth is through better quality education at all levels. The Education Ministry remains the single largest recipient of Budget allocation at RM60.2 billion or 19.1% of the total Budget 2019.
The measures will include:
116. ONE: A total of RM2.9 billion will be provided to help students from lower income groups in terms of food, text books and cash assistance.
117. TWO: The Government has allocated RM652 million for the purposes of upgrading of schools, as compared to RM615 million allocated in 2018, as follows:
• National Schools RM250 million • Chinese Schools (SJKC) RM50 million • Tamil Schools (SJKT) RM50 million • Full Boarding Schools RM50 million • Maktab Rendah Sains Mara RM50 million
• Government Aided Religious Schools RM50 million
• Mission Schools RM50 million
• Tahfiz Schools RM50 million
• Registered Religious Pondok Schools RM25 million
• Conforming Schools RM15 million
• Independent Chinese Secondary Schools RM12 million
118. THREE: All donations to national schools and public institutions of higher learning (IPTA) registered with the Ministry of Education for the purposes of upgrading infrastructure will be tax exempted starting 1 January 2019.
This is to incentivise and recognise Malaysians who contribute directly towards nation building. For the other schools and institutions of higher learning registered with the Ministry of Education, the exemptions will be evaluated on a case-by-case basis.
119. FOUR: We will allocate RM100 million towards the reconstruction of dilapidated schools throughout the country, to be funded via competitively-tendered Public Private Partnership projects via land currently owned by the Ministry of Education.
120. FIVE: RM206 million will be allocated towards the development and provision of training programs in Polytechnics and Community Colleges.
121. SIX: We will also introduce a RM30 million the Training and Vocational Education and Training (TVET) Prestige Fund, a contestable fund where we will encourage the various training institutions to bid for funds to run competitive programs with specific KPIs on job placements for the graduates. There will also be an additional allocation of RM20 million to raise youth competency via a TVET sponsored Bootcamp.
122. SEVEN: Research funds amounting to RM400 million allocated will be allocated to our institutions of higher learning via a contestable fund. In addition, RM30 million will be disbursed in 39 the form of matching grants via the Malaysia Partnerships and Alliances in Research (MyPAIR) program.
123. EIGHT: The Government will continue to provide scholarships and lending to all Malaysians via various Ministries and Agencies with a total allocation of RM3.8 billion. RM2 billion of this amount is allocated to provide scholarship for Bumiputeras under the sponsorship of MARA.
124. NINE: The Government will allocate RM17.5 million over the next 5 years to Malaysia Professional Accountancy Centre (MyPAC) to produce 600 qualified Bumiputeras accountants towards meeting the goal of 3,000 Bumiputera accountants registered with the Malaysia Institute of Accounts from the 1,554 today.
125. TEN: The Government will allocate RM210 million as part of the Bumiputera Empowerment Agenda to strengthen education and human capital development programs via Program Peneraju Tunas, Program Peneraju Skil dan Program Peneraju Profesional which will be managed by Yayasan Peneraju Pendidikan Bumiputera.
126. ELEVEN: To ensure the sustainability of the National Higher Education Loan Fund (PTPTN), we plan to introduce:
• progressive loan repayment schedule with a percentage ranging from 2% to 15% of the borrowers’ monthly income depending on their income level. This repayment schedule 40 will only apply to those with at least RM1,000 in monthly income;
• tax relief for companies that help settle all the remaining loans of their employees for the year ending 2019;
• additional individual tax relief for all additional savings deposited in the PTPTN National Education Savings Scheme (SSPN) from RM6,000 to RM8,000;
• discounts on the loan will be given to students from B40 households who have successfully obtained first class honours in their studies;
• writing off the debt of those who are 60 years old and above with monthly income less than RM4,000, benefiting up to 350 debtors and costing RM4.2 million.
127. TWELVE: To instil good moral values and a strong sense of patriotism amongst our youth, a new program, PATRIOT will be introduced for youths aged 15 to 30 involving 70,000 participants a year with an allocation of RM70 million.
128. THIRTEEN: The Government congratulates all medal winners in the Asian and Asian Paralympic Games that have enhanced the good name of Malaysia and brought international goodwill.
The Government is allocating RM100 million to prepare our athletes for the Tokyo Olympics 2020 in hopes of bringing back our first gold medal.
129. FOURTEEN: We will also allocate RM10 million for E-Sports to Malaysia Digital Economy Corporation (MDEC), recognising that this is an activity and industry which is increasingly popular among the younger generation involving software engineers and gaming developers. Upholding Islam
130. As the religion of the Federation, Islam enjoys a unique constitutional position. Allocation for Islamic affairs for both development and operating expenditures has been increased from RM1.1 billion in 2018 to RM1.2 billion in 2019 to ensure the growth of the religion would not be impeded by the challenging economic conditions.
Moreover, RM150 million have been made available to carry out programmes such as building mosque and surau across the country, “Khaira Ummah” initiative to train more professionals among the huffaz and religious learning modules using braille.
FOCUS 3: TO FOSTER AN ENTREPRENEURIAL ECONOMY
Mr Speaker Sir,
131. We need to create an environment for our human talent to fulfil their potential. Strong and dynamic economic growth can be found especially by promoting an entrepreneurial state relying on innovation and creativity, and by embracing the new economy and digital economy.
132. The entrepreneurial state model will also adopt a collaborative approach by relying on the 4P partnership involving the Public, Private, Professionals and the People to manage and steer the project. There will be co-financing by the four principal partners but the project will be managed by the private sector or professionals and accountable to both the government and the people.
Strategy 9: Unleashing the Power of the New Economy
Mr Speaker Sir,
Embracing the Digital Economy
133. To support new technology developments and ensure sufficient funding for entrepreneurs via conventional and alternative financing sources, we propose the following initiatives:
134. ONE: The many venture capital funds managed by Government agencies – Malaysia Technology Development Corporation, Malaysia Debt Ventures Bhd, Malaysia Venture Capital Management Bhd, Kumpulan Modal Perdana Sdn Bhd and Cradle Fund Sdn.Bhd, will be streamlined and made more efficient in delivering capital to companies in various stages of financing needs.
Therefore, to ensure that the funds are accessible to those who are most likely to succeed, the funding disbursements will be tied to the companies’ ability to secure matching funds from the private sector.
135. TWO: Government-Linked Investment Funds will similarly allocate RM2 billion in matching funds to co-invest with the private equity and venture capital funds. This Fund will focus on strategic sectors and new growth areas for Malaysia.
136. THREE: The Government will allocate RM50 million to set up a Co-Investment Fund (CIF) to invest alongside private investors via new alternative financing platforms via Equity Crowdfunding and Peer-to-Peer Financing.
137. The Securities Commission has approved the regulatory framework for these platforms. To date, almost RM170 million have been raised through these crowdfunding platforms, benefitting more than 450 companies across a broad cross-section of sectors. Almost 10,000 investors have participated in these crowdfunding campaigns thus far, where 45% of investors have been youths below the age of 35.
138. FOUR: The Capital Markets and Services (Prescription of Securities) Guidelines will be gazetted in early 2019 to set up a new regulatory framework to approve and monitor Digital Coin and Token Exchanges.
139. FIVE: To promote Malaysia as the hub and pioneer of the bond and sukuk markets, the Government will:
• extend the double tax deduction policy for additional expenditure incurred when issuing sukuk under the principles of Ijarah and Wakalah, as well as for additional expenditure incurred by the companies issuing retail bonds or sukuk. Both these policies will be made available for 3 years commencing in 2019 as the year of assessment;和
• set up a Special Committee on Islamic Finance led by the Ministry of Finance and comprised of member from Bank Negara Malaysia and Securities Commission.
140. SIX: To promote a world-class film production industry in Malaysia, we will continue the Film In Malaysia Incentive (FIMI) with an allocation of RM30 million. Moreover, Khazanah Nasional Berhad (Khazanah) will provide an allocation of RM100 million for FIMI specifically applicable to film production at the Pinewood studio in Iskandar Johor.
141. SEVEN: To support the growth of the digital economy, the Government will launch the National Fibre Connectivity Plan in 45 2019 with an allocation of RM1 billion. The plan will develop our broadband infrastructure to ensure more efficient spectrum allocation to achieve the targeted 30 Mbps speed at rural and remote areas in the country within 5 years as part of the overall plan to achieve world class infrastructure at affordable prices.
The Government has also enforced the Mandatory Standards for Access Pricing (MSAP) which will result in fixed broadband prices to be reduced by at least 25% by the end of 2018.
Accelerating Adoption of Industry 4.0
Mr Speaker Sir,
142. The Industry 4.0 blueprint, titled “Industry4WRD” aims to make Malaysia the prime destination for high-tech industries. The Government will initiate the following measures to support Industry4WRD:
143. ONE: We will allocate RM210 million from 2019 to 2021 to support the transition and migration to Industry4.0. We will assist the first 500 SMEs to carry out the Readiness Assessment to migrate to Industry4.0 platforms via Malaysia Productivity Corporation.
144. TWO: The Government will provide RM2 million in the Knowledge Resource for Science and Technology Excellence (KRSTE.my) to enable greater collaboration between public and private sector based on existing resources. In 2019, the Government will make available 250 facilities and 1,200 scientific 46 equipment and research data for the private sector to access and share. On top of that, we will start a Researcher-Mapping program to place at least 100 researchers at our research facilities with the private sector, with the cost borne by the Government.
145. THREE: To incentivise SMEs to invest in automation and modernisation which forms part of the Industry4.0, we have allocated RM2 billion under Business Loan Guarantee Scheme (SJPP) where the Government will provide guarantees of up to 70%.
146. FOUR: We will create a RM3 billion Industry Digitalisation Transformation Fund with a subsidised interest rate of 2% under Bank Pembangunan Malaysia Berhad.
The purpose of this fund is to accelerate the adoption of smart technology consisting of driving automation, robotics and artificial intelligence in the industry.
147. FIVE: MIDA will continue to provide matching grants through its High Impact Fund (HIF) with a specific emphasis of Industry4.0 initiatives. This includes activities such as Research & Development, initiatives to obtain international certification and standards, modernizing and upgrading of facilities and tools and licensing or purchase of new or high technology.
148. SIX: Khazanah will lead and develop an 80-acre development in Subang as a world class aerospace industry hub. Khazanah will also work with all relevant agencies, especially MARA to produce high-skilled workers to meet the demands of the industry.
149. On top of these measures, the Government also intends to upgrade the marketability of our graduates and the skill-level of the Industry4.0-related workforce by providing double tax deduction:
• For scholarships and bursaries provided by companies to students enrolled for technical and vocational training, diploma and degree courses in engineering and technology;
• For company expenses related to participation in the National Dual Training Scheme for Industry4.0 and other related programmes approved by the Ministry of Human Resources, or the Malaysia Investment Development Authority;和
• For company expenses in carrying out structured training programmes for students in the fields of engineering and technology which are approved by the Ministry of Human Resources.
Strategy 10: Seizing Opportunities in the Face of Global Challenges
Mr Speaker Sir,
150. Malaysia will undoubtedly be affected by the US-China trade war given that both these countries are among our top 3 trading partners.
However, the trade conflict between China and the United States has also created a unique opportunity for Malaysia, 48 where we are extremely well positioned as a safe haven for manufacturing investors.
151. Therefore, it is not surprising that Malaysia continues to attract Foreign Direct Investment (FDI) at a healthy rate. From January to August 2018, Malaysia recorded a total of RM61.6 billion in investment approvals, up from RM40.4 billion during the same time period in 2017.
152. The manufacturing sector continues to comprise the largest share of investment approvals – RM49.8 billion, or approximately 81% of total investments. These 411 projects have the potential to create more than 34,000 jobs nationwide. This shows that investor confidence in Malaysia has not wavered after the 14th general election.
153. In the World Bank’s Doing Business Report 2019 published this week, Malaysia’s ranking jumped from 24th to 15th in the world. To further enhance Malaysia’s competitiveness and ease of doing business, MoF and MITI will form a joint task force jointly chaired by both Ministers to drive regulatory reform, particularly in the areas of improving trade processes and tax administration. We will send the signal to the world that we are investment friendly and we are open for business.
154. To increase investments of companies already participating in the Principal Hub, we propose to improve the existing incentives by charging a concessionary 10% income tax rate on the overall 49 statutory income related to Principal Hub activities for a period of 5 years.
Strengthening Small Medium Enterprises (SME)
Mr Speaker Sir,
155. Small and Medium Enterprises (SMEs) constitute 98.5% of businesses in the country and is the heartbeat of the economy.
Therefore, to ensure that they continue to thrive, especially in the key targeted industries, we will implement the following measures:
156. ONE: A RM4.5 billion SME Loan Fund will be made available via commercial financial institutions with a 60% guarantee from Skim Jaminan Pembiayaan Perniagaan (SJPP), including RM1 billion for Bumiputera SMEs;
157. TWO: The corporate income tax rate for taxable income of up to RM500,000 and SMEs with less than RM2.5 million in paid up capital, will be reduced from 18% to 17%.
158. THREE: We will encourage exports through financing by EXIM Bank by making available RM2 billion worth of credit and takaful facilities to the SME exports.
159. FOUR: We will be allocating RM100 million to upgrade the capability of the SMEs in the halal industry via various programs in order to increase exports and to make Malaysia a global halal hub by 2020.
160. FIVE: There will also be a RM1 billion SME Syariah Compliant Financing Scheme made available via Islamic financial institutions where the Government will provide a subsidy of 2% profit rate.
161. SIX: Permodalan Usahawan Malaysia Berhad will also make available RM200 million for the wholesale and retail industry, as well as for the purchase of business premises to be rented to Bumiputera SMEs.
Another RM100 million is allocated to TEKUN to finance small entrepreneurs.
162. SEVEN: The Government will allocate RM20 million to initiate a ‘Buy Malaysian First’ campaign to support local products and services.
The campaign will be run at the grassroots level to provide a platform for local producers, manufacturers and service providers to market their products and services at hypermarkets, shopping centres and trade fairs.
To take the lead, the Ministry of Finance will ensure Malaysian products and services, such as surgical instruments and medical implants which have received international certifications will not be discriminated against in our procurement processes.
163. To ensure the continued upgrading of our local corporations, the Government is also committed to reduce our dependency on low-skilled foreign labour. Therefore, we will implement a new tiered levy system where the levies charged will be higher for employers with a higher percentage of foreign workers.
164. The shortage of workers in the agriculture and plantation industry and the decline in prices of agricultural commodities have affected output in these sectors. The Government will assist these two sectors by reducing the extension levy for foreign workers who have served for 10 years or more, from RM10,000 to RM3,500 per worker per annum.
Lubricating the Logistics and Transportation Sector
Mr Speaker Sir,
165. The logistics sector plays an important role in the development of the country, particularly where both exports and manufacturing are key thrusts of the economy. The Government will allocate RM2.46 billion for upgrading and restoration works for railway tracks to upgrade the country’s transport infrastructure.
166. The government will also support the development and growth of the Kota Perdana Special Border Economic Zone in Bukit Kayu Hitam, Kedah as a strategic trading and logistic hub between Malaysia and Thailand. As an initial phase of the project, RM25 million will be allocated to develop a truck depot to catalyse development in the area.
167. The government intends to convert 380 acres of land in Pulau Indah into a Free Trade Zone to support and catalyse increased shipping and logistics activities in Port Klang. The new FTZ will 52 serve as a natural extension to Port Klang Free Zone.
The land will be developed through a joint venture or solely by the private sector.
Value-adding Commodities
Mr Speaker Sir,
168. Palm oil and rubber are the two export-oriented commodities which contribute significantly to our economy. The sector also provides a key source of income for our smallholders.
In order to raise the demand for palm oil and increase the sustainability of our energy resources, the Government will implement the Biodiesel B10 program (comprising a mix of 10% palm oil) for the transportation sector and B7 for the industrial sector in 2019.
In addition, to raise the sustainability and export competitiveness of our palm oil industry, the Government will allocate RM30 million to assist smallholders to obtain the Malaysian Sustainable Palm Oil (MSPO) certification.
169. For the rubber industry, the Government is committed to increase the utilisation of local rubber as a new raw material for various industrial products. As an example, the Government will increase the use of local rubber as a composite material for the construction of roads in Malaysia to increase durability while at the same time reducing maintenance cost.
To assist smallholders, the Government targets the use of Cuplumb Modified Bitumen (CMB) to build roads at ports and industrial areas in stages. The Government will allocate RM100 million for this purpose.
170. In addition, the Government will continue to provide Rubber Production Incentive with an allocation of RM50 million to protect the effects of the fall in rubber prices for smallholders. The smallholders would receive supplement income from the fund when rubber prices fall below RM2.20 per kilogram.
171. For the agricultural sector, the Government will allocate
• RM47 million for Research and Development to increase the productivity of our seeds, grains and fruits;
• RM18 million to incentivise the automation of the agrofood industry;和
• RM52 million to implement agricultural and agrofood industry, as well as entrepreneurship training for youths.
Boosting Tourism
Mr Speaker Sir,
172. The tourism industry is a key contributor to our services sector, constituting 14.9% of our GDP or RM201.4 billion in 2017. Given the importance of the tourism industry, especially as a foreign exchange earner, the Government will pay specific attention to achieve the Ministry of Tourism’s target of 30 million foreign tourists contributing RM100 billion by 2020.
173. To achieve these goals, the Government will allocate RM100 million in matching grants to the private sector for running promotional and marketing campaigns overseas to increase the number of visitors to the country.
174. The government will provide tax free incentives to Penang’s Swettenham Pier in the form of duty-free shops to cater to its booming cruise tourism and develop the tourism potential of Pulau Pangkor by declaring it as a duty free island. The duty-free island status of Pulau Langkawi has been enhanced and will be further expanded.
175. To assist the respective state governments in encouraging tourism activities, the Government will share 50% of the proceeds on tourism tax, estimated at RM50 million, with the states.
176. The Government will also make available RM500 million worth of loan facilities via the SME Tourism Fund with SME Bank at a 2% interest subsidy. This will assist handicraft makers and homestay operators to expand their businesses.
177. Khazanah Nasional Berhad will lead the public-private partnership to redevelopment and restoration of the Sultan Abdul Samad building in Kuala Lumpur into an arts, cultural and heritage hub. Such an urban regeneration project will be carried out by a local heritage company ThinkCity with an international organisation accredited with UNESCO.
178. Medical tourism in Malaysia continues to gain global recognition. The Government will also allocate RM20 million for the Malaysia Healthcare Tourism Council (MHTC) to generate 25% growth in a year to collaborate with reputable private hospitals to enable the branding of Malaysia as a destination of choice for medical tourism.
Strategy 11: Redefining the Role of Government in Business
Mr Speaker Sir,
179. The business of the Government is not to be in business. Clearly, government owned companies have been competing directly with private companies in non-strategic sectors. The outcome was the apparent ‘crowding out’ of private sector investments where private companies are unable to grow and compete.
180. For an entrepreneurial economy to succeed, the private sector must lead. For a start the Ministry of Finance will set up a Special Task Force to evaluate the role and functions of statutory bodies and companies owned by Ministry of Finance, Inc. to reduce duplication of functions and involvement in areas where the private sector is efficient and competent. Going forward, the Government will focus its expenditure and investments only in strategic sectors and areas where the markets are unable to meet the needs of the people.
181. We will tap on the quality of service and delivery, while making available our capacity and resources to the private sector. As an example, our TVET training institutes can offer the courses run by the private sector to ensure relevance and quality, while in exchange, we can offer our under-utilised infrastructure as shared facilities for them. The same can be done for Pusat Sains Negara and Planetarium at minimal cost to the Government.
Strategy 12: Ensuring Equitable and Sustainable Economic Growth
Mr Speaker Sir,
182. Malaysia can succeed at being a developed high-income nation when there is equitable, inclusive and sustainable growth for all regardless of race and religion.
Ensuring Balanced Development
Mr Speaker Sir,
183. As a responsible Government, we must ensure balanced development throughout the country, especially in the rural regions. Therefore, we will upgrade rural infrastructure facilities by:
184. ONE: An allocation of RM926 million to build and upgrade roads and bridges; 57
185. TWO: An allocation of RM694 million and RM738 million to supply electricity and water respectively to rural and remote regions;
186. THREE: We will allocate RM85 million to New Villages for the purposes of upgrading and maintaining basic infrastructure such as roads, community halls and open spaces;
187. FOUR: There will also be a RM100 million allocation to support the Indian community, including technical and skills training to improve the career advancement opportunities of the Indian youths;
188. FIVE: We will allocate RM100 million to strengthen the development of orang asli communities via the construction and upgrading of infrastructure for the supply of water, relocation, education, welfare and economic development.
189. SIX: The Government will allocate RM20 million to residents associations registered with the Registrar of Societies to carry out community, security and neighbourhood activities.
190. SEVEN: For FELDA developments, we will allocate RM100 million to upgrade roads, RM160 million to carry out water supply projects and RM35 million for buildings and basic infrastructure such as street lights. This represents an overall increase of 51% compared to the previous year’s allocation. 58
191. The Government will continue to ensure the development of Sabah and Sarawak. Development expenditure of RM5,009 million has been allocated to Sabah as compared to RM4,133 million in 2018. As for Sarawak, RM4,346 million has been allocated compared to RM4,336 million in 2018.
192. The Government will continue to implement the Pan Borneo Highway encompassing Sabah and Sarawak, subject to a cost rationalisation exercise.
In addition, projects in Sabah and Sarawak will include the construction and upgrading of water, electricity and road infrastructure, health and education facilities as well as the development of the respective economic corridors.
Women in the Workforce
Mr Speaker Sir,
193. Our current women participation rate in the labour force is only 53.5% in 2017 compared to 77.7% for men. Of the number who were not working, 60% or 2.6 million women cited housework as the reason why they did not join the labour force.
194. According to a report recently published by Khazanah Research Institute, raising women’s employment level by 30% would raise Malaysia’s GDP by around 7 to 12%. Hence, it is imperative for this Government to formulate policies to encourage women to participate in the workforce:
195. ONE: We will allocate RM10 million to set up another 50 childcare facilities in Government buildings to ease the burden of working mothers.
We will continue to encourage and incentivise the private sector to follow suit to ensure equal employment opportunities for women.
196. TWO: The Government is committed towards increasing women participation to 30% at leadership and decision-making levels in companies and organisations. We have led by example by electing the very first female Deputy Prime Minister in Malaysia, accompanied by 4 female Ministers. As of today, 36% of the senior officers in the public sector are women.
197. THREE: We will encourage higher women participation among the public listed companies as only 23.2% of the appointed Board of Directors are women today among the top 100 largest companies on Bursa Malaysia.
We call upon the private sector to emulate the Government by ensuring the objective of 30% women participation in the Board of Directors is achieved by 2020.
Environment and Energy for the Future
Mr Speaker Sir,
198. The Government is committed to take all necessary measures to protect our Environment, both as a responsibility to and a gift to our future generations. As forest and marine reserves are under the care of the State Governments, the Federal Government will 60 allocate RM60 million to help fund specific projects by the state governments to protect and expand our existing natural reserves.
199. The Government will take steps to list the Forest Research Institute Malaysia (FRIM) Forest Park in Selangor, and Royal Belum Perak as UNESCO World Heritage Sites.
200. We will allocate RM5 million for micro-grants to implement programs with the cooperation from United Nations Development Program (UNDP), to manage and protect the environment in Orang Asli and Orang Asal communities.
201. In addition, to attract environmentally-friendly investments and to reduce the usage of conventional plastic, the Government proposes Pioneer Status incentive of 70% or investment allowance of 60% for 5 years to be granted to companies which produces environmentally-friendly plastics based on bio-resin and biopolymer.
202. To incentivise investments in green technology, there will be a RM2 billion Green Technology Financing Scheme (GTFS) made available at selected commercial banks where the Government will subsidise the interest cost by 2% for the first 5 years.
203. Bank Pembangunan Malaysia Berhad will also provide a Sustainable Development Financing Fund of RM1 billion to support the Agenda 2030 for Sustainable Development as well as the 17 Sustainable Development Goals (SDG) under the United 61 Nations Development Programme. To this end, we will provide a subsidised interest rate of 2% as an incentive.
204. In order to encourage the use of green energy, the Government will expand the list of green assets which qualifies for the Green Technology Investment Allowance (GITA) from 9 assets to 40 assets in the MyHijau directory.
结论
Mr Speaker Sir,
205. This 2019 Budget will allocate a total of RM314.5 billion in expenditure as compared to an estimated RM290.4 billion in 2018. From the total, RM259.8 billion is for Operating Expenditure while RM54.7 billion is provided for Development Expenditure. This does not take into consideration the Contingency Fund of RM2 billion.
206. For Development Expenditure, the Economic Sector received the highest allocation of RM29.2 billion encompassing transport, trade, industry, energy and public utilities and agriculture. The Social Sector will receive RM15.2 billion, followed by the Security Sector, RM7.1 billion and General Administration, RM3.2 billion.
207. The Development Expenditure has increased from RM44.9 billion in 2017 to a projected RM54.9 billion and RM54.7 billion in 2018 and 2019 respectively. The key reason is due to a reclassification of what was previously classified as Operating to 62 Development Expenditure amounting to RM6.9 billion and RM 9.7 billion in 2018 and 2019 respectively.
208. Examples of reclassified items are payments to Prasarana for LRT construction and to Suria Strategic Energy Resources for the gas pipeline projects. They were treated as transfers under operating expenditure when they are actually development expenditures. Other similar expenditures were lease or maintenance payments for the construction of PDRM buildings and capital refurbishment of schools.
209. To ensure that the Government is able to meet the objectives expressed in the Mid-Term Review by the Prime Minister as well as this Budget, we will need to have an effective and efficient public sector. Policy making and implementation must have clarity, certainty and engender confidence. Only then can we build public trust amongst investors and our people in our institutions.
210. We will increase the reach of alternative service providers to reduce the role of the government in providing non-core services. This will be pioneered in the welfare sector by working together with NGOs. For example, children from orphanages will be transferred to family-based care.
211. The Government is allocating RM286.8 million for Malaysian Anti-Corruption Commission operating expenses, an 18.5% increase from RM242.1 million allocated last year. In 2019, the staffing will be increased by 100 personnel. This is to ensure that the MACC has all the necessary resources and manpower to 63 combat corruption in both the private and public sector, and follow the money trail to recover stolen funds.
Mr Speaker Sir,
212. The Government records its appreciation to the Malaysian Armed Forces, Royal Malaysian Police, Fire Rescue Department, Royal Malaysian Customs Department for ensuring the security, peace and safety of the country. In appreciation of the efforts and dedication of the civil servants and for those serving at grades 54 and below, the Government would like to announce a bonus of RM500.
For government pensioners a bonus of RM250 will be paid. Unlike the previous government that likes to make bonus payments only one year later, these bonus payments will be made by the end of December 2018. These bonus payments will cost the Government RM1 billion.
213. The government wishes to thank Malaysians who donated to the Tabung Harapan Malaysia set up to allow Malaysians to display their patriotism by donating to pay off our country’s debts. Your love for Malaysia has allowed us to collect RM196.5 million and the Tabung Harapan will be closed on 31 December 2018.
214. There is no doubt that the new Malaysia under the dynamic and forward-looking leadership of Yang Amat Berhormat Prime Minister (Langkawi) has caught the imagination of the rakyat and the world. In fact, there is now renewed confidence in Malaysia that we will overcome our economic challenges and take on a new trajectory of growth.
215. The confidence in Yang Amat Berhormat Prime Minister (Langkawi) and in Malaysia cannot be better expressed than the offer by the Japanese Government to guarantee JPY200 billion of 10-year Samurai bonds, or approximately RM7.4 billion, via Japan Bank of International Cooperation at an indicative coupon of 0.65%.
This JPY200 billion Samurai Bond will be issued before March 2019. We wish to record our appreciation to the Japanese government for guaranteeing the JPY200 billion samurai bond.
216. Despite facing fiscal challenges, our financial sector remains healthy and monetary sector is stable. Sustainable economic growth must be maintained to improve economic well-being, and the higher revenues generated will also help to address our public finances.
217. In conclusion, the historic moment on 9 May 2018 will only matter if the government’s fiscal health can be restored and the people are better off economically in the form of higher wages, better jobs and more money to spend.
218. As long as we are clean, people-centric and focused on carrying out institutional reforms, we can restore Malaysia back to fiscal health in three years. Let our love for our country unite us, our challenges make us stronger and our confidence awaken Malaysia as an Asian Tiger all over again.
219. Malaysians are special that despite our differences, whether by race, religion or background, we continue to work with and 65 believe in each other. The choice made by the people has been proven correct yet again yesterday after two former Goldman Sachs bankers, Tim Leissner and Roger Ng, were arrested and charged by the US Justice Department.
220. These are the unscrupulous bankers who engineered the US$6.5 billion or RM26 billion of 1MDB bonds, by colluding with thieves in Malaysia to steal from the people of Malaysia. Better news yet, Jho Low, the architect of the fraudulent scams, has been indicted in absentia in the United States.
221. To those who have stolen our money, you should not only return the money back but you must also be severely punished. To those who still support these thieves, you should apologise and resign from public office.
222. Malaysia is clean and we are proud that Malaysia is clean again. For those who have strayed, return back to the righteous path. Amar makruf nahi mungkar. Now, Malaysians dare to dream again of our country that belongs to the people and that the future of our children will never be stolen again. Let us begin our journey of hope, “Malaysia Wibawa, Ekonomi Dinamik, Rakyat Sejahtera”.
Mr. Speaker Sir, I beg to propose.
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