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Tuesday, October 27, 2009

What does the 1Malaysia 2010 Budget has in store for you? - Part 1

The Malaysia Prime Minister Datuk Seri Najib Tun Razak has tabled the 2010 Budget last Friday evening with the theme "1Malaysia, Together We Prosper" totalling about RM191.5B. The summary of the 2010 1Malaysia Budget is here. So, what does it really have in store for most us?

From the summary of the 2010 Malaysia Budget, it looks like there are few points for us, me at least.

  • To ensure that fuel subsidies only benefit targeted groups, Govt will implement a fuel subsidy management system in early 2010, which will utilise the MyKad.

I'm not sure how the government going to implement this, but if government is to implement this, why not give the allocated budget for fuel subsidy to everyone fair and square. If they plan to allocate RM1B for the fuel subsidy, might as well, divide the RM1B to the number of citizens in Malaysia so that everyone is getting the same amount fair and square.

By implementing the fuel subsidy using MyKad, the poor will be badly affected. With this implementation, public transportation fees might increase, the same goes to food price and many other things will have increase in the price as businessmen will take the opportunity to increase the price according to the un-subsidized fuel price. So, what the poor in Malaysia can do? They are not getting anything from the subsidy since most of them will not be driving or at least not enjoying the benefit of subsidy. Why can't our government implement something similar to Brunei?

Giving the subsidy money to the people is always better, because the poor can enjoy the subsidy. The money can be use to ease their burden, but our Government choose to use subsidy program, thus helping the rich to pay less for fuel, while at the same time increasing the inflation rate in Malaysia. Is this "1Malaysia, Together We Prosper"?

More like another rich man budget to me. What is your comment on the fuel subsidy?

There are other "goodies" from the 2010 Malaysia Budget for poor citizen like me which I will discuss it in my next post. Below are the other "goodies" which the Malaysia PM has in store for the "rakyat".
  • The maximum income tax rate for individuals to be reduced to 26% from assessment year 2010. Personal relief increased to RM9,000.
  • Personal relief for EPF and life insurance schemes to be increased to RM7,000.
  • Taxpayers will get tax relief on broadband subscription fee of up to RM500 from 2010 to 2012.
  • To promote prudent spending, a service charge of RM50 a year to be imposed on each principal credit card and charge card; and RM25 a year on each supplementary card, effective from Jan 1, 2010.

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