ID :
17477
Sat, 08/30/2008 - 11:12
Auther :
Shortlink :
https://oananews.org//node/17477
The shortlink copeid
BUDGET 2009 FOR WELL-BEING OF ALL MALAYSIANS
KUALA LUMPUR, Aug 29 (Bernama) -- The government Friday tabled Budget 2009 which focuses on measures to maintain the well-being of Malaysians that has been enhanced over the last 51 years since independence, by seeking to strengthen the nation's economic resilience to mitigate the adverse impact of an increasingly
challenging external environment.
"Today, as we face a global environment of higher prices and slower
economic
growth, I am confident, if we remain united, we shall overcome this challenge as
well," said Prime Minister Abdullah Ahmad Badawi when tabling in the Lower House
of Parliament next year's budget carrying the theme of "A Caring
Government".
The strategies formulated demonstrate that the government was responsive to
the concerns of the people and had taken measures to lighten the burden of all
Malaysians, particularly the lower income group, he said.
The approach taken was focused towards support and assistance, which not
only improved the quality of life but also enabled all Malaysians to enhance
their productivity, he added.
The budget was also in line with the medium-term plan as articulated in the
National Mission and the Ninth Malaysia Plan (9MP) to further develop the nation
towards Vision 2020.
Abdullah, who is also the Finance Minister, proposed for next year's budget
an allocation of RM207.9 billion, of which RM154.2 billion was for operating
expenditure and RM53.7 billion for development expenditure, and said the budget
focused on the three specific strategies of ensuring the well-being of
Malaysians, developing quality human capital, and strengthening the nation's
resilience.
He said that in ensuring the well-being of the people, the government would
ensure that all Malaysians would continue to benefit from the country's economic
growth.
"The government will implement a broad range of measures to reduce the
impact of the higher cost of living, particularly among the lower income group
and the vulnerables," he said.
As in previous budgets, the government empathised with the difficulties
faced by the lower income group, he said and announced that the government had
raised the eligibility criteria for welfare assistance under the Welfare
Department from a monthly household income of RM400 to RM720 for Peninsular
Malaysia, RM830 for Sarawak and RM960 for Sabah.
Abdullah said the government recognised the contributions of pensioners
towards the development of the country, and in assisting the lower income
pensioners cope with the recent price increases, government pensioners who had
served at least 25 years upon retirement would be given a pension of not less
than RM720 per month from Jan 1 next year.
The prime minister said the government had always assisted victims of
calamities, such as floods and fire, and would now set up a special fund of RM25
million to channel timely financial assistance to families deprived of their
sources of income, particularly arising from accidents to breadwinners.
Efforts to eradicate poverty remains an important government agenda in
Budget 2009. Abdullah said the government was confident that hardcore poverty
would be eradicated by 2010.
He also said that the government would continue to implement programmes to
enhance income, as well as provide skills and career development training under
the "Skim Pembangunan Kesejahteraan Rakyat" programme.
Abdullah said the government proposed an allocation of RM220 million for
the
"Program Lonjakan Mega Luar Bandar" rural development programme being
implemented in Pulau Banggi, Sabah, and Tanjung Gahai in Kuala Lipis, Pahang,
which would benefit 13,300 households.
The provision of housing for the poor was being stepped up with the
government proposing a RM50 million allocation to build 1,400 houses and repair
1,000.
Abdullah said priority would be given to senior citizens, the disabled and
single parents with many dependents as well as victims of natural disasters.
He also said that hardcore poverty in Sabah and Sarawak was also being
given
attention in the budget. He said measures would continue to be taken to increase
income and enhance the quality of life of Malaysians in the two states by
improving basic amenities, such as electricity, water and rural roads.
For this, RM580 million and RM420 million were being allocated for East
Malaysia states of Sabah and Sarawak, respectively, he said.
Abdullah also said that as part of the government's effort to further
reduce
the financial burden of the lower income group, households which incurred
monthly electricity bills of RM20 or less would not have to pay for electricity
for the period of Oct 1 2008 to the end of 2009.
A total of 1.1 million households would benefit from this measure which
would cost the government RM170 million for the period, he added.
Abdullah said that realising that higher inflation rate had also affected
the purchasing power of the lower middle-income group, the government proposed
that the current tax rebate of RM350 per person be increased to RM400 for those
with taxable income of RM35,000 and below. With this increase, some 100,000 tax
payers would be out of the tax net, he added.
Additionally, to reduce the tax burden of individuals, especially those
dependent on interest income from savings, the government proposed that all
interest income for individuals be tax exempt.
To mitigate the impact of rising prices on consumers, the government
proposed to reduce import duties on various consumer durables from between 10
per cent and 60 per cent to between five per cent and 30 per cent. These
included blender, rice cooker, microwave oven and electric kettle.
Abdullah also said that the government would reduce the road tax on private
passenger vehicles with diesel engines to be the same as those with petrol
engines effective Sept 1 this year as, currently, private passenger vehicles
with diesel engines owned by individuals and companies were subject to a higher
road tax compared with those with petrol engines.
The prime minister said the primary strategy of Budget 2009 was to focus on
measures to make employee welfare a priority. He said that to encourage the
private sector to give employee welfare priority, the government proposed that
the travel allowance for commuting to work provided by employers be given full
tax deduction while the employees receiving such an allowance be given tax
exemption of up to RM2,400 per year.
Furthermore, the government has proposed tax exemption for private sector
employers who give their employees interest subsidies on loans for housing,
motor vehicles and education limited to total loans of up to RM300,000 in a move
to make employee welfare a priority in the private sector.
Abdullah said tax exemption was also proposed for employers who provided
mobile phones for their staff and paid their telephone and Internet bills. It
was also proposed that employers be given tax exemption for staff discounts of
up to RM1,000 a year on company traded goods, he said.
He also said that the proposed tax exemption also covered staff discounts
rendered by the company, such as private schools providing free education to
children of their employees. It was also proposed that tax exemption be given
for childcare allowance of up to RM2,400 per year.
Abdullah said the government proposed to extend the tax exemption on
medical
benefits by employers to include maternity expenses. In addition, he said, given
the growing acceptance of traditional medicine, namely acupuncture and
ayurvedic, the government also proposed an extension of tax exemption to cover
such medical benefits.
The prime minister said that to assist civil servants with young children,
the government proposed to raise from RM2,000 to RM3,000 from Jan 1 next year
the eligibility criteria of monthly household income for those households
provided with the RM180 monthly subsidy towards nursery fees.
He also said that the free return air fares to home states, between
Peninsular Malaysia and Sabah and Sarawak, enjoyed by government servants once
every two years to foster closer family ties would be provided every year from
Jan 1 next year.
Abdullah said the government would continue to encourage greater utilisation
of public transportation, in the context of improving the productivity and
quality of life.
"I believe a more efficient, reliable and integrated public transportation,
which provides seamless travel and greate frequency of services, is required,"
he said.
The prime minister said RM35 billion would be expended between 2009 and
2014
to further improve the efficiency of public transportation, which included
projects to enhance the capacity of existing rail services, build new rail
tracks, increase the number of buses, as well as provide better infrastructure
facilities.
Besides increasing the number of RapidPenang buses to 350 next year, he
said, the Light Rail Transit (LRT) system in the Klang Valley would be extended
by 30 km, that is 15 km respectively for the Kelana Jaya and Ampang lines.
"Upon completion in 2011, the extensions are expected to benefit 2.6
million
residents in the Subang Jaya-USJ and Kinrara-Puchong areas, compared with 1.9
million currently," he said.
Abdullah said the government would continue to encourage greater
utilisation
of public transportation, in the context of improving the productivity and
quality of life.
"I believe a more efficient, reliable and integrated public transportation,
which provides seamless travel and greate frequency of services, is required,"
he said.
The prime minister said RM35 billion would be expended between 2009 and
2014
to further improve the efficiency of public transportation, which included
projects to enhance the capacity of existing rail services, build new rail
tracks, increase the number of buses, as well as provide better infrastructure
facilities.
Besides increasing the number of RapidPenang buses to 350 next year, he
said, the Light Rail Transit (LRT) system in the Klang Valley would be extended
by 30 km, that is 15 km respectively for the Kelana Jaya and Ampang lines.
"Upon completion in 2011, the extensions are expected to benefit 2.6
million
residents in the Subang Jaya-USJ and Kinrara-Puchong areas, compared with 1.9
million currently," he said.
Abdullah said a new LRT line would be built along a 42-km route from Kota
Damansara to Cheras, with a capacity exceeding 300,000 passengers daily when
completed in 2014.
He also said that Keretapi Tanah Melayu (KTM) Berhad commuter rail services
would be upgraded through the rehabilitation of the existing 20 Electric
Multiple Units (EMUs), which was expected to be completed next year, and the
addition of 13 new units of EMUs by 2011.
The 7.5-km Sentul-Batu Caves rail track was under construction and was
expected to be completed by 2010, he added.
To provide facilities for inter-urban taxis and buses from the northern
region, a new integrated terminal would be built, he said, adding that the
terminal would contribute towards further reducing traffic congestion in the
heart of Kuala Lumpur.
Abdullah said the government would continue to help reduce the operating
costs of public transport operators.
Besides the recent increase in the quota for diesel subsidy, the
government
would provide a soft loan facility of RM3 billion under the Public
Transportation Fund, administered by Bank Pembangunan Malaysia Bhd, to finance
the acquisition of buses and rail assets, he said.
He said the government also proposed to reduce toll charges by 50 per cent
for all buses, except at border entry points, namely the southern Johor
Causeway, southern Second Link and northern Bukit Kayu Hitam, for a period of
two years from Sept 15 this year.
The government would provide compensation to toll operators for their loss
of revenue, estimated at RM45 million per year, he added.
Abdullah said bus operators would also be given sales tax exemption on the
purchase of locally assembled new buses and Accelerated Capital Allowance on the
expenditure incurred while road tax would be reduced to RM20 a year for all bus
and taxi operators, including rent-a-car and limousine operators.
To ensure that specific attention is given to efforts for overall
development of the public transportation system, Abdullah said, the Public Land
Transportation Commission would be established under the Prime Minister's
Department to plan, integrate, regulate and improve the overall public
transportation services. The commission was expected to commence operations by
mid-2009.
Abdullah also said that the government would implement several agriculture
programmes to ensure adequate food supply.
For this, he said, the government had provided RM5.6 billion under the
National Food Security Policy for the period 2008 to 2010, among others to
provide incentives to agriculture entrepreneurs to reduce pollution costs and
encourage higher agriculture output.
An amount of RM300 million had been allocated in an effort to increase fish
landings. Of the sum, RM180 million was in the form of cost-of-living allowance
to fishermen and fishing boat owners as well as RM120 million as incentive for
fish landings.
Abdullah said the government proposed that the expansion of chicken and
duck
farms be given Reinvestment Allowance of 60 per cent for a period of 15 years to
help increase poultry output.
An allocation of RM475 million was to be provided in the form of
agricultural inputs, fertilizers and pesticides to assist padi farmers, besides
proposing that import duty on fertilizers and pesticides be abolished.
Abdullah said the socio-economic status of the Orang Asli community would
continue to be elevated to ensure that they benefited from the nation's
prosperity.
He said the government allocated RM160 million to provide better education
opportunities as well as improve health and basic amenities for the Orang Asli.
The prime minister said the government had not forgotten the less
fortunate.
He said the government would extend a monthly allowance of RM150 to the
disabled who were unable to work while the monthly allowance for disabled
students in special education schools would be increased from RM50 to RM150.
Teaching assistants in these schools would be provided incentive payments
of
RM200 per month, he added.
US$1=RM3.39
-- BERNAMA
challenging external environment.
"Today, as we face a global environment of higher prices and slower
economic
growth, I am confident, if we remain united, we shall overcome this challenge as
well," said Prime Minister Abdullah Ahmad Badawi when tabling in the Lower House
of Parliament next year's budget carrying the theme of "A Caring
Government".
The strategies formulated demonstrate that the government was responsive to
the concerns of the people and had taken measures to lighten the burden of all
Malaysians, particularly the lower income group, he said.
The approach taken was focused towards support and assistance, which not
only improved the quality of life but also enabled all Malaysians to enhance
their productivity, he added.
The budget was also in line with the medium-term plan as articulated in the
National Mission and the Ninth Malaysia Plan (9MP) to further develop the nation
towards Vision 2020.
Abdullah, who is also the Finance Minister, proposed for next year's budget
an allocation of RM207.9 billion, of which RM154.2 billion was for operating
expenditure and RM53.7 billion for development expenditure, and said the budget
focused on the three specific strategies of ensuring the well-being of
Malaysians, developing quality human capital, and strengthening the nation's
resilience.
He said that in ensuring the well-being of the people, the government would
ensure that all Malaysians would continue to benefit from the country's economic
growth.
"The government will implement a broad range of measures to reduce the
impact of the higher cost of living, particularly among the lower income group
and the vulnerables," he said.
As in previous budgets, the government empathised with the difficulties
faced by the lower income group, he said and announced that the government had
raised the eligibility criteria for welfare assistance under the Welfare
Department from a monthly household income of RM400 to RM720 for Peninsular
Malaysia, RM830 for Sarawak and RM960 for Sabah.
Abdullah said the government recognised the contributions of pensioners
towards the development of the country, and in assisting the lower income
pensioners cope with the recent price increases, government pensioners who had
served at least 25 years upon retirement would be given a pension of not less
than RM720 per month from Jan 1 next year.
The prime minister said the government had always assisted victims of
calamities, such as floods and fire, and would now set up a special fund of RM25
million to channel timely financial assistance to families deprived of their
sources of income, particularly arising from accidents to breadwinners.
Efforts to eradicate poverty remains an important government agenda in
Budget 2009. Abdullah said the government was confident that hardcore poverty
would be eradicated by 2010.
He also said that the government would continue to implement programmes to
enhance income, as well as provide skills and career development training under
the "Skim Pembangunan Kesejahteraan Rakyat" programme.
Abdullah said the government proposed an allocation of RM220 million for
the
"Program Lonjakan Mega Luar Bandar" rural development programme being
implemented in Pulau Banggi, Sabah, and Tanjung Gahai in Kuala Lipis, Pahang,
which would benefit 13,300 households.
The provision of housing for the poor was being stepped up with the
government proposing a RM50 million allocation to build 1,400 houses and repair
1,000.
Abdullah said priority would be given to senior citizens, the disabled and
single parents with many dependents as well as victims of natural disasters.
He also said that hardcore poverty in Sabah and Sarawak was also being
given
attention in the budget. He said measures would continue to be taken to increase
income and enhance the quality of life of Malaysians in the two states by
improving basic amenities, such as electricity, water and rural roads.
For this, RM580 million and RM420 million were being allocated for East
Malaysia states of Sabah and Sarawak, respectively, he said.
Abdullah also said that as part of the government's effort to further
reduce
the financial burden of the lower income group, households which incurred
monthly electricity bills of RM20 or less would not have to pay for electricity
for the period of Oct 1 2008 to the end of 2009.
A total of 1.1 million households would benefit from this measure which
would cost the government RM170 million for the period, he added.
Abdullah said that realising that higher inflation rate had also affected
the purchasing power of the lower middle-income group, the government proposed
that the current tax rebate of RM350 per person be increased to RM400 for those
with taxable income of RM35,000 and below. With this increase, some 100,000 tax
payers would be out of the tax net, he added.
Additionally, to reduce the tax burden of individuals, especially those
dependent on interest income from savings, the government proposed that all
interest income for individuals be tax exempt.
To mitigate the impact of rising prices on consumers, the government
proposed to reduce import duties on various consumer durables from between 10
per cent and 60 per cent to between five per cent and 30 per cent. These
included blender, rice cooker, microwave oven and electric kettle.
Abdullah also said that the government would reduce the road tax on private
passenger vehicles with diesel engines to be the same as those with petrol
engines effective Sept 1 this year as, currently, private passenger vehicles
with diesel engines owned by individuals and companies were subject to a higher
road tax compared with those with petrol engines.
The prime minister said the primary strategy of Budget 2009 was to focus on
measures to make employee welfare a priority. He said that to encourage the
private sector to give employee welfare priority, the government proposed that
the travel allowance for commuting to work provided by employers be given full
tax deduction while the employees receiving such an allowance be given tax
exemption of up to RM2,400 per year.
Furthermore, the government has proposed tax exemption for private sector
employers who give their employees interest subsidies on loans for housing,
motor vehicles and education limited to total loans of up to RM300,000 in a move
to make employee welfare a priority in the private sector.
Abdullah said tax exemption was also proposed for employers who provided
mobile phones for their staff and paid their telephone and Internet bills. It
was also proposed that employers be given tax exemption for staff discounts of
up to RM1,000 a year on company traded goods, he said.
He also said that the proposed tax exemption also covered staff discounts
rendered by the company, such as private schools providing free education to
children of their employees. It was also proposed that tax exemption be given
for childcare allowance of up to RM2,400 per year.
Abdullah said the government proposed to extend the tax exemption on
medical
benefits by employers to include maternity expenses. In addition, he said, given
the growing acceptance of traditional medicine, namely acupuncture and
ayurvedic, the government also proposed an extension of tax exemption to cover
such medical benefits.
The prime minister said that to assist civil servants with young children,
the government proposed to raise from RM2,000 to RM3,000 from Jan 1 next year
the eligibility criteria of monthly household income for those households
provided with the RM180 monthly subsidy towards nursery fees.
He also said that the free return air fares to home states, between
Peninsular Malaysia and Sabah and Sarawak, enjoyed by government servants once
every two years to foster closer family ties would be provided every year from
Jan 1 next year.
Abdullah said the government would continue to encourage greater utilisation
of public transportation, in the context of improving the productivity and
quality of life.
"I believe a more efficient, reliable and integrated public transportation,
which provides seamless travel and greate frequency of services, is required,"
he said.
The prime minister said RM35 billion would be expended between 2009 and
2014
to further improve the efficiency of public transportation, which included
projects to enhance the capacity of existing rail services, build new rail
tracks, increase the number of buses, as well as provide better infrastructure
facilities.
Besides increasing the number of RapidPenang buses to 350 next year, he
said, the Light Rail Transit (LRT) system in the Klang Valley would be extended
by 30 km, that is 15 km respectively for the Kelana Jaya and Ampang lines.
"Upon completion in 2011, the extensions are expected to benefit 2.6
million
residents in the Subang Jaya-USJ and Kinrara-Puchong areas, compared with 1.9
million currently," he said.
Abdullah said the government would continue to encourage greater
utilisation
of public transportation, in the context of improving the productivity and
quality of life.
"I believe a more efficient, reliable and integrated public transportation,
which provides seamless travel and greate frequency of services, is required,"
he said.
The prime minister said RM35 billion would be expended between 2009 and
2014
to further improve the efficiency of public transportation, which included
projects to enhance the capacity of existing rail services, build new rail
tracks, increase the number of buses, as well as provide better infrastructure
facilities.
Besides increasing the number of RapidPenang buses to 350 next year, he
said, the Light Rail Transit (LRT) system in the Klang Valley would be extended
by 30 km, that is 15 km respectively for the Kelana Jaya and Ampang lines.
"Upon completion in 2011, the extensions are expected to benefit 2.6
million
residents in the Subang Jaya-USJ and Kinrara-Puchong areas, compared with 1.9
million currently," he said.
Abdullah said a new LRT line would be built along a 42-km route from Kota
Damansara to Cheras, with a capacity exceeding 300,000 passengers daily when
completed in 2014.
He also said that Keretapi Tanah Melayu (KTM) Berhad commuter rail services
would be upgraded through the rehabilitation of the existing 20 Electric
Multiple Units (EMUs), which was expected to be completed next year, and the
addition of 13 new units of EMUs by 2011.
The 7.5-km Sentul-Batu Caves rail track was under construction and was
expected to be completed by 2010, he added.
To provide facilities for inter-urban taxis and buses from the northern
region, a new integrated terminal would be built, he said, adding that the
terminal would contribute towards further reducing traffic congestion in the
heart of Kuala Lumpur.
Abdullah said the government would continue to help reduce the operating
costs of public transport operators.
Besides the recent increase in the quota for diesel subsidy, the
government
would provide a soft loan facility of RM3 billion under the Public
Transportation Fund, administered by Bank Pembangunan Malaysia Bhd, to finance
the acquisition of buses and rail assets, he said.
He said the government also proposed to reduce toll charges by 50 per cent
for all buses, except at border entry points, namely the southern Johor
Causeway, southern Second Link and northern Bukit Kayu Hitam, for a period of
two years from Sept 15 this year.
The government would provide compensation to toll operators for their loss
of revenue, estimated at RM45 million per year, he added.
Abdullah said bus operators would also be given sales tax exemption on the
purchase of locally assembled new buses and Accelerated Capital Allowance on the
expenditure incurred while road tax would be reduced to RM20 a year for all bus
and taxi operators, including rent-a-car and limousine operators.
To ensure that specific attention is given to efforts for overall
development of the public transportation system, Abdullah said, the Public Land
Transportation Commission would be established under the Prime Minister's
Department to plan, integrate, regulate and improve the overall public
transportation services. The commission was expected to commence operations by
mid-2009.
Abdullah also said that the government would implement several agriculture
programmes to ensure adequate food supply.
For this, he said, the government had provided RM5.6 billion under the
National Food Security Policy for the period 2008 to 2010, among others to
provide incentives to agriculture entrepreneurs to reduce pollution costs and
encourage higher agriculture output.
An amount of RM300 million had been allocated in an effort to increase fish
landings. Of the sum, RM180 million was in the form of cost-of-living allowance
to fishermen and fishing boat owners as well as RM120 million as incentive for
fish landings.
Abdullah said the government proposed that the expansion of chicken and
duck
farms be given Reinvestment Allowance of 60 per cent for a period of 15 years to
help increase poultry output.
An allocation of RM475 million was to be provided in the form of
agricultural inputs, fertilizers and pesticides to assist padi farmers, besides
proposing that import duty on fertilizers and pesticides be abolished.
Abdullah said the socio-economic status of the Orang Asli community would
continue to be elevated to ensure that they benefited from the nation's
prosperity.
He said the government allocated RM160 million to provide better education
opportunities as well as improve health and basic amenities for the Orang Asli.
The prime minister said the government had not forgotten the less
fortunate.
He said the government would extend a monthly allowance of RM150 to the
disabled who were unable to work while the monthly allowance for disabled
students in special education schools would be increased from RM50 to RM150.
Teaching assistants in these schools would be provided incentive payments
of
RM200 per month, he added.
US$1=RM3.39
-- BERNAMA
