Translate This Page

Monday, October 10, 2011

Malaysia Budget for the Year 2012: "National Transformation Policy: Welfare for the Rakyat, Well-Being of the Nation"



The followings are the key take away from the Malaysia Budget for the Year 2012 which was tabled by the Malaysia Prime Minister, Dato Seri Najib Tun Razak last Friday in the Parliament.

- The theme for Budget 2012 is “National Transformation Policy: Welfare for the Rakyat, Well-Being of the Nation”

- Last year our FDI growth was the strongest in Asia and in the first 6 months of this year have already reached RM21.2bil

- In 2012, private investment is forecast to climb 15.9%, supported by foreign and domestic investment

- GDP in the first 6 months of 2011 was 4.4%, driven by strong domestic consumption

- In 2011, the economy is forecast to grow by 5-5.5%

- Private and public investment are forecast to increase by 15.9% and 7%, supported by foreign investment, the ETP and 10MP

- In 2012, the service sector is expected to grow 6.5%, the construction sector 7% and GDP is forecast to be between 5 and 6%

- Budget 2012 allocates RM232.8bil for Government plans, including RM181.6bil for management and RM51.2bil for development


- RM29.8bil has been allocated for investment in infrastructure, industrial and rural development

- RM13.6bil has been allocated for the social sector, including education and training, welfare, housing and community development

- Total revenue for 2012 is forecast to increase 1.9% to RM186.9bil and the deficit to decrease to 4.7% of GDP from 5.4% in 2011

- We will focus on accelerating investment and further liberalise 17 services sub-sectors, in places enabling 100% foreign equity.

- RP2 will be implemented in 2012, and it will be allocated RM98.4bil, to be split evenly between 2012 & 2013

- RP2 main projects will include the East Coast Highway from Jabor to T'ganu and road upgrades from Kota Marudu to Ranau

- RM18bil of the RM20bil PPP Facilitation Fund will be used for high impact projects, with RM2 billion for bumiputera entrepreneurs

- In 2012, the Government will allocate RM978mil to accelerate the development in five regional corridors

- The Treasury Management Centre will be established and offer incentives to develop M'sia as a competitive financial centre

- We will develop the Kuala Lumpur International Financial District, with incentives including income tax exemptions for firms

- We will develop the Kuala Lumpur International Financial District, with incentives including income tax exemptions for firms

- Income tax exemptions for non-ringgit sukuk issuance and transactions will be extended for another 3 years

- To promote the development of Exchange Traded Funds products I-VCAP will provide RM200mil for Shariah-compliant ETFs

- Felda GVH will be listed on Bursa Malaysia by mid-2012 to raise funds for the company to become a global conglomerate. Felda settlers are expected to receive a windfall, and the amount will be announced before listing

- A RM2bil shariah-compliant SME Financing Fund managed by selected Islamic banks will be established in 2012

- A RM100mil SME Revitalisation Fund offering loans up to a maximum of RM1mil for entrepreneurs will be available from Jan 2012

- Full exemption of import duty and excise duty on hybrid cars and electric cars will continue to be given until 2013

- To promote tourism, the Langkawi Five Year Tourism Development Master Plan will be launched with an allocation of RM420mil



I personally think the budget benefits the civil servants while at the same time, the budget neglect the needs of the middle class society in Malaysia. But what do you think of the Malaysia Budget 2012?

No comments:

Post a Comment