Malaysia Budget 2012 8 October 2011

Malaysia Tax Budget 2012 Full Highlights

* One off cash assistance of RM500 to all households with a monthly income of RM3,000 and below, costing RM1.8 billion to benefit 3.4 million households.

* Ceiling for house prices under a government deposit guarantee scheme for first time house buyers (My First Home Scheme) to be raised to RM400,000 from RM200,000.

* To review real property gains tax to curb speculation.

* To extend import and excise duty exemption on hybrid and electric cars until end-2013.

* To increase EPF contribution by Employer to 13% from 12% for staff earn less than RM5,000.

* Tax deduction is given on franchise fees for local franchise brands.

* A compensation of 2% per annum on the amount of tax refunded late by LHDN.


* One off RM200 cash voucher for all Malaysian school pupils and higher learning institution students

* Abolition of RM24.50 and RM33.50 for co-curriculum, internal test papers, Malaysian Schools Sports Council fees and insurance premium involving students in primary and secondary schools respectively, beginning the 2012 school year.

* Financial contributions from companies and individuals to upgrade school facilities to be eligible for tax deductions, to encourage more charitable activities.

* Civil service salary hikes of between 7 and 13 percent.

* Establishment of Professional Services Fund to encourage professionals such as lawyers, doctors and accountants to set up firms in small towns, with BSN providing RM100 million for soft loans with an interest of 4 per cent.

* Additional bonus of half-month salary with a minimum payment of RM500 for civil servants and an assistance of RM500 for government pensioners, to be paid together with December 2011 salary.

* A RM443 million fund to build 15,000 units of housing for lower to middle income earners.

* Increase in the rate of automatic annual increments in civil service salaries of between RM80 and RM320.

* Civil service pensions to be raised, involving a RM600 million allocation.

* RM120 million to offer 5,000 Masters and 500 doctoral scholarships for eligible civil servants, including teachers.

* The government will offer 20,000 places for diploma teachers to pursue undergraduate studies.

* A special one-off payment of RM3,000 to 4,300 individuals who have completed their contracts with the Department of Special Affairs (JASA) and Social Development Department (KEMAS).

* RM442 million for the development expenditure of the Royal Malaysia Police, including for police housing quarters, purchase of communication and technical equipment as well as upgrading of headquarters, stations and training centres.

* RM500 million to upgrade and maintain army camps and quarters nationwide under the Army Care programme.

* RM50 million for the introduction of a special programme to enable army personnel who retired with less than 21 years of service and are not eligible for pension, to venture into businesses and obtain jobs in the public and private sectors.

* A one-off payment of RM3,000 to each ex-member as well as widows and widowers of special constable and auxiliary police who served in protecting the country during the emergency era.

* Build 85 government subsidised discount grocery stores nationwide.

* Malaysia to establish RM2.6 billion worth of funds for small and medium enterprises (SME).

* Malaysian state-run planter FELDA to list its global arm by mid 2012: “The listing will create another blue-chip plantation company besides attracting international investors to Bursa Malaysia. The rights and interests of the FELDA settlers will continue to be protected by Koperasi Permodalan FELDA.
FELDA are expected to receive a windfall with amount to be announced before listing.

* RM140 million to implement RISDA’s new planting and rubber re-planting programmes benefiting 20,000 smallholders.

* To extend tax exemption on issuance and trading on foreign currency sukuk by three years

* Private budget taxi owners will get to enjoy assistance worth about RM7,560 through the various incentives

* To cut tax for three years on expenses incurred in issuance of sukuk wakala starting 2012.

* To implement RM6 billion private sector financed special stimulus package for infrastructure works.

* To allow 100 percent foreign ownership of 17 service subsectors including healthcare and logistics.

* To implement RM98.4 billion rolling plan until 2013 for high impact development projects

* To grant tax benefits to investors who use Malaysian Treasury Management Centre to accelerate financial markets development. These include income tax exemption of 70 percent for five years, withholding tax exemption on interest payments on borrowing and stamp duty exemption on loan and service agreements.

* To implement RM98.4 billion rolling plan until 2013 for high impact development projects

* To grant tax benefits to investors who use Malaysian Treasury Management Centre to accelerate financial markets development.

* To establish a RM500 million syariah-compliant Commercialisation Innovation Fund with an attractive profit margin, to enable small and medium-scale enterprises (SMEs) to commercialise researh products.

* Opening of 85 more Kedai Rakyat 1Malaysia with an allocation of RM40 million.

– Reuters

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Author:
Mr. Tony Ng B.C. is Founder and Managing Partner of NBC Professional Group.
Tony Ng BC has written 86 articles for NBC Blog.

4 Comments

  • Everything good is happening to all civil servants. How about we who work in private sectors. NOTHING!!!!!!!!!!!!!!!!!!!!!

  • this budget already concerned about households, housing purchase price, EPF and much more and these things are for the Malaysian as a whole.. including those in public sector and PRIVATE.. if anyone from private sector have any grievance about salary, that you should aware with your performance in work.. because people who are choose the job not vice versa. *this is as my own note too in seeking job in future.

  • Malaysian

    Do you mean that ALL CIVIL SERVANTS are performing GOOD and deserve the benefits?

  • Hi Malaysian, this is very subjective & I personally hate to go to any Government Departments.

    I sometimes feel sad on my clients who need to visit several times to any licensing departments just for a simple license application.

    But don’t discount the facts that certain government departments/agencies have improved a lot on the customer relationship management (compared to last time, I mean)

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