KUALA LUMPUR, Oct 14 — Budget 2024, which will see a higher national revenue through economic and fiscal restructuring as well as the implementation of tax reforms and targeted subsidies, will be utilised in the best way possible to uplift the people’s standard of living, said Prime Minister Datuk Seri Anwar Ibrahim.
The record-high RM393.8 billion budget contained three areas of focus: best governance for service agility; economic restructuring to accelerate growth; and improving the people’s standard of living.
With its emphasis on giving direct aid to the rakyat, RM58.1 billion has been allocated next year for providing various forms of assistance comprising subsidies, incentives, and aid.
Anwar, who is also Finance Minister, said the focus was on channelling direct cash aid to people in need, apart from providing education, healthcare, and basic infrastructure for all.
"Budget 2024, which I call the Second Madani Budget, represents the determination and seriousness of the Unity Government in fulfilling the need to improve the standing of the national economy and the people,” he said when tabling Budget 2024 in the Dewan Rakyat yesterday.
Three ministries — finance, education and health — were the biggest recipients of allocations under Budget 2024, themed Reformasi Ekonomi: Memperkasa Rakyat (Economic Reform: Empowering People).
Based on the Madani Economy framework unveiled in July, the country’s financial resources will be managed efficiently to ensure Malaysia's resources will benefit all the people.
Efforts are needed to widen the revenue base, implement targeted subsidy, and eradicate all forms of corruption and irregularities, apart from enhancing the standard of government service and delivery system.
Several tax reform measures to be implemented next year will not burden the majority of the people, including Service Tax rate adjustment, enforcement of Capital Gains Tax, and introduction of Luxury Goods Tax.
Stressing that enforcement agencies will continue to intensify efforts to check leakages in national revenue, Anwar said subsidy rationalisation will be implemented in phases beginning next year and part of the savings from this move will be used to increase allocations for Sumbangan Tunai Rahmah cash aid from RM8 billion to RM10 billion.
The subsidy rationalisation exercise will involve, among others, diesel and electricity, while for chicken and eggs, the temporary price control imposed previously would be lifted so that the local market can function freely again to ensure security of supply for these items.
On the targeted electricity subsidy, which still sees the government bearing RM16 billion this year for domestic consumers and Micro, Small and Medium Enterprises (PMKS), the Prime Minister said the government will improve the subsidy mechanism by basing it on the level of electricity usage, thus encouraging efficient consumption of energy daily.
Malaysia, which ranks third highest in the world in petrol subsidy with RON95 among the cheapest in the world, is grappling with a serious issue of leakages and would rationalise diesel subsidy in phases.
"To make a success of the subsidy rationalisation exercise, there must be honest trade ties between buyers and sellers. The government will not keep quiet if subsidy rationalisation is made an excuse for hiking prices indiscriminately and unreasonably,” he added.
The issue of rice price hike related to food security was also touched upon, with Anwar concerned about the direct impact of global food supply chain disruptions on basic goods in the local market.
"The government will continue to intensify efforts to ensure continuity and better self-sufficiency in the country’s food industry. The Second Madani Budget allocates RM2.6 billion to extend various types of subsidy and incentive to farmers and fishermen,” he said.
Other measures included implementing pioneer projects on the five-season planting of padi in two two years in several areas, increasing subsidy for hill padi from RM40 million to RM50 million and maintaining diesel subsidy for fishermen.
On the whole, RM400 million has been allocated next year for implementing the Programme to Strengthen Food Security.
In response to the people’s grouses on cost of living challenges and hikes in goods prices, the government has allocated RM200 million to continue with Payung Rahmah initiatives including Jualan Rahmah and Pasar Rahmah programmes, and improve the Sumbangan Tunai Rakyat (STR) and Sumbangan Asas Rahmah (Sara).
Apart from providing RM500 million to increase the participation of the hardcore poor in the Inisiatif Pendapatan Rakyat (IPR), measures to give vulnerable groups decent-paying jobs were also strengthened by extending the policy of reserving one per cent of job opportunities for disabled persons (PwD) to cover former convicts and senior citizens.
The government will also enhance social protection programmes like the Self-Employed Social Security Scheme and increase matching contributions for i-Saraan KWSP, i-Suri KWSP Skim Keselamatan Sosial Suri Rumah and the salary ceiling for Socso monthly contributions.
Attention was also given to efforts to improve equitable job opportunities among the people and specific assistance for vulnerable groups and the needy.
Anwar, who took two hours and 40 minutes to present the budget, also spoke at length on matters concerning education and people’s health, which has become a benchmark for Malaysia to be on 25th spot in the United Nations Human Development Index (HDI).
The Education Ministry, which will receive a RM58.7 billion allocation, will benefit from various government measures, including the provision of RM1.9 billion for the upgrading and maintenance of schools throughout the country, including 185 projects in Sarawak and 155 in Sabah, and RM2.5 billion for the construction of 26 new schools.
For higher education, RM16.3 billion has been allocated, including to replace Wi-Fi facilities and widening coverage at all public universities, maintaining and repairing infrastructure at institutions of higher learning, and replacng dilapidated equipment.
"The government will continue to make knowledge more accessible by encouraging vulnerable communities like PwD, Orang Asli, single mothers and senior citizens to enrol for the Lifelong Learning Programme at community colleges. A total of RM5 million has been provided for the benefit of 5,000 of focus communities at 105 community colleges throughout the country," he said.
The government had also agreed to give discounts of between 10 and 15 per cent for Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) loan repayments from October 14, 2023 to March 31, 2024.
As economic complexities require the development of highly skilled new talents, the development of local talents will be speeded up through technical and vocational education and training (TVET), which has been given RM6.8 billion in total allocations.
"RM17 million has been provided to implement the Tahfiz TVET Programme. This programme will provide opportunities for tahfiz students to upskill while continuing with the hafazan studies,” Anwar said.
On the health service sector, RM41.2 billion, the biggest increase among ministries, was allocated, with RM5.5 billion for procuring medicines, consumables, reagents, and vaccines.
The Madani Medical Scheme will be extended nationwide with RM100 million allocation to benefit 700,000 people, and the mySalam scheme will be continued for two more years.
2026 had been designated as Visit Malaysia Year with the targeted arrival of 26.1 million international tourists and for this purpose, the government has provided RM350 million to intensify tourism promotion and activities so Malaysia will regain its status as a major global tourist destination.
On the country’s creative industry, he said the government will provide RM60 million under the Digital Content Fund to promote local works and support contents based on nationhood values, RM90 million under the Film in Malaysia Incentive (Fimi) initiative to continue encouraging the production of international quality films, and RM10 million for the MyCreative Matching Fund Scheme to support local art practitioners in implementing creative projects.
The government also proposed to set a special income tax rate of between 0 and 10 per cent for film production companies, foreign film actors, and film crews undertaking filming in Malaysia.
On the importance of having a good road network to facilitate the people’s movements and activities of traders for generating local economies, he said major road infrastructure projects will be intensifed and transport subsidies maintained.
The Sarawak Pan Borneo Highway will be fully completed next year while the tender process for 19 work packages for the Sabah Pan Borneo Highway Phase 1b will be completed this November.
The Sarawak-Sabah Link Road (SSLR) Phase 2 project with an alignment of over 320 kilometres and costing almost RM7.4 billion will be implemented at the end of this year.
The government also agreed to revive the proposal to build five LRT3 stations that were shelved, namely those at Tropicana, Raja Muda, Temasya, Bukit Raja, and Bandar Botanik.
“Keeping these stations should complete and improve the public transportation network in the Klang Valley, which will benefit two million people at a total cost of RM4.7 billion,” Anwar said.
On the people’s need for residential units, RM2.47 billion overall has been set aside to implement public housing projects for 2024, in addition to increasing the Housing Credit Guarantee Scheme of up to RM10 billion for the benefit of 40,000 borrowers.
He also touched on the recent issue of national security which saw foreign elements trying to cause disruptions at the country’s borders, in addition to a rise in provocation by misusing issues on religion, royalty, and race.
“The safety of the country’s borders and waters will continue to be defended, besides increasing the efficiency and effectiveness of controls at international entry points,” Anwar said.
The government’s efforts next year will be to increase water assets, build seven security posts, and create a single border agency (SBA).
— Bernama
