LIVE UPDATE: Guan Eng tables Budget 2020 in Dewan Rakyat
0 month ago, 11-Oct-2019
Finance Minister Lim Guan Eng tabling the Budget 2020 at the Parliament today.? – Bernama photo
KUCHING: Finance Minister Lim Guan Eng is currently tabling the much awaited Budget 2020 in the Dewan Rakyat.
Lim began his budget speech at 4.05 pm.
This is the second time that Guan Eng is tabling the countrys annual budget since Pakatan Harapan came to power in May last year.
The highlights of the Budget 2020 that have been tabled by the Pakatan Harapan federal government are as follows:
- Government has no intention to reintroduce GST.
- 2020 Budget has four thrusts including boosting economic growth in new economy and digital era, investing in people.
- Government will make available up to RM1 billion in customised packaged investment incentives annually over five years.
- Government has embarked on comprehensive review and revamp of existing incentive framework, to be ready by Jan 1, 2021, comprising the Promotion of Investment Act 1986, Special Incentive Package and incentives under the Income Act 1967.
- Government has allocated up to RM1 billion worth of customised packaged investment incentives annually over five years to attract targeted Fortune 500 companies and global unicorns in high technology, manufacturing, creative and new economic sectors.
- Government has allocated RM10 million for the International Trade and Industry Ministry to focus on post-approval investment monitoring and realisation.
- Government will provide income tax exemption of up to 10 years to electrical and electronic (E&E) companies investing in selected knowledge-based services.
- Government will provide special Investment Tax Allowance to encourage companies in E&E sector that have exhausted the Reinvestment Allowance toreinvest in Malaysia
- Government eyes making Port Klang a regional maritime centre and cargo logistics hub.
- Broadband prices have been lowered by 49 per cent, triggered a shift in consumer demand for faster internet connections.
- Budget 2020 will have an allocation of RM297 billion – less than the RM314.5 billion allocated for Budget 2019 and a difference of RM17.5 billion. The budget will comprise of an operational expenditure of RM241 billion and a development expenditure of RM56 billion.
- Accelerated Capital Allowance and Automation Equipment Capital Allowance for manufacturing sector on the first RM2 million and RM4 million incurred on qualifying capital expenditure is extended to the assessment year 2023.
- The incentive is also expanded to include the services sector on the first RM2 million incurred on qualifying capital expenditure for assessment years 2020 to 2023.
- Government allocates RM50 million for the repair and maintenance of roads leading to Port Klang
Transport Ministry to commence feasibility studies on the Serendah-Port Klang Rail Bypass for cargo shipments and the Klang Logistics Corridor — a dedicated privatised highway connecting Northport and Westport, both projects estimated to cost RM8.3 billion.
- Government allocates additional RM50 million to stimulate public-private partnerships for the Kota Perdana Special Border Economic Zone at Bukit Kayu Hitam???????.
- National Fiberisation and Connectivity Plan will adopt public-private partnership approach involving total investment of RM21.6 billion.
- RM210 million earmarked to accelerate deployment of new digital infrastructure for public buildings such as schools, industrial parks.
- Government to introduce a 5G Ecosystem Development Grant worth RM50 million.
- RM250 million will be allocated by the Malaysian Communications and Multimedia Commission to ensure that the interiors of Malaysia, especially rural areas in Sabah and Sarawak, will have access to broadband via satellite technology.
- To boost use of e-wallets, government to offer one-time RM30 digital stimulus to qualified Malaysians aged 18 and above with annual income less than RM100,000.
- New ‘Skim Jaminan Pinjaman Perniagaan’ allocation of RM500 million in guarantee facility will be launched, earmarked for women entrepreneurs.
- RM50 million allocation proposed to encourage SMEs to engage in more export promotion activities.
- Grants amounting to RM445 million proposed to support Bumiputera entrepreneurial development.
- Islamic Economic Blueprint to be formulated to position Malaysia as the centre of excellence for Islamic finance.
- eSports has been given an allocation of RM20 million to develop it further in the nation, in recognition of its high potential.
- Government is concerned by impact of low commodity prices on livelihoods of Malaysians in this sector.
- RM550 million proposed for oil palm replanting loan fund for smallholders.
- RM200 million set aside for ‘Bantuan Musim Tengkujuh’ to eligible rubber smallholders under RISDA, Lembaga Industri Getah Sabah.
- RM100 million allocation for Rubber Production Incentive in 2020 to enhance income of smallhoilders faced with low rubber prices
After the national budget has been tabled, it will be debated at policy level by the MPs before being taken to the committee level and passed by the Dewan Rakyat.