Nation

Live updates: Budget 2023

KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, retables the revised Budget 2023 in Parliament.



Budget 2023 key highlights

  • The government projects that economic growth will be around 4.5 percent.
  • The government plans to introduce a Luxury Goods Tax from this year with a certain value limit according to the type of luxury goods. Among them are luxury watches and luxury fashion items.
  • In line with international best practice, the government will study to introduce Capital Gains Tax for the disposal of unlisted shares by companies from 2024 at a low rate. The government will hold an engagement session with relevant parties to examine the details of this proposal.
  • The government is not planning to implement the Goods and Services Tax (GST) as food inflation is more than five per cent and wages are still at low levels.
  • The government supports Generational Endgame (GEG) and agrees that half of the excise duty will be reallocated to the Health Ministry to improve healthcare services.
  • The government is providing RM50 million for building and upgrades involving 3,000 stalls and kiosks as a facility for small hawkers to do business in a focused location the whole country.
  • A total of RM176 million is provided for upgrading premises and business facilities including MARA, DBKL, Perbadanan Usahawan Nasional Berhad (PUNB) and Perbadanan Urban Development (UDA).
  • The government will accelerate the implementation of the JENDELA project as a national effort to provide internet network facilities.
  • RM 725 million is provided to implement digital connectivity in 47 industrial areas and nearly 3,700 schools.
  • The government promises comprehensive 5G coverage and at a reasonable price for the people. It is taking an approach to ensure DNB is managed in a more transparent and inclusive manner to achieve full participation by telecommunication service providers.
  • Agencies under the Home Ministry will be provided with almost RM1 billion to strengthen domestic safety. Efforts include acquiring more than2,100 units of body cameras for the Royal Malaysia Police.
  • The government will add 42 border control posts of the police, Immigration, ESSCOM and Malaysian Maritime Enforcement Agency (MMEA) to fortify national borders in addition to maintaining all ships and boats of the MMEA.
  • To help Malaysian Armed Forces with home ownership, the Government will build more than 7,000 affordable housing units under the One Member, One Household Programme (SASaR) in Kuala Lumpur.
  • The government has no plans to reintroduce the Goods and Services Tax (GST) just yet.
  • Income tax for micro SMEs reduced from 17% to 15% for the first RM150,000.
  • The government will study the possibility of introducing a capital gains tax from 2024.
  • The government will maintain electricity subsidies for all domestic users and SMEs.
  • Lower income Amanah Saham Bumiputera (ASB) contributors will be given more dividends government to bear driving license fees for motorcycles (B2), taxi, buses and e-hailing driving
  • The government plans to impose excise duty on nicotine-based liquids or gels used in electronic cigarettes and vapes.
  • The government mandated the Tun Razak Exchange (TRX) as Malaysia's international financial hub.
  • BNM provides loans of up to RM2 billion to support sustainable technology start-ups and help SME companies implement low carbon practices.
  • Khazanah is providing RM150 million to boost environmentally-friendly project development. This includes supporting the market carbon and reforestation.
  • In addition, the Green Technology Financing Scheme (GTFS) is improved with the guaranteed value increased to RM3 billion until 2025.
  • BNM provides loans of up to RM2 billion to support sustainable technology start-ups and help SME companies implement low carbon practices.
  • Khazanah is providing RM150 million to boost environmentally-friendly project development. This includes supporting the market carbon and reforestation.
  • In addition, the Green Technology Financing Scheme (GTFS) is improved with the guaranteed value increased to RM3 billion until 2025.
  • The government plans to extend the period of the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) until December 31, 2025, by extending the incentive period from 3 to 5 years for eligible green activities.
  • The government has accepted the commitment of the private sector to create a MADANI Endowment with assets worth over RM 1 billion.
  • The government will establish a National Land Committee Waqf with the objective of contributing 20 percent of the expansion Islamic social finance sector by 2030. Anwar himself will chair this committee.
  • The government aims to complete repairs for 400 dilapidated clinics and 380 dilapidated schools with an allocation of RM 1.2 billion.
  • The Ministry of Women, Family and Community Development will create a Child Development Department under the Social Welfare Department
  • To encourage women to return to work, SOCSO will amend its act to allow the granting of a grant equal to 80 per cent of the value of the insured salary employee.
  • Women returning to work after giving birth will benefit from this grant involving a total of 290 million ringgit per year.
  • SOCSO will provide incentives to employers who employ 17,000 graduates, especially from TVET. As much as RM600 per month is provided for three months in addition to the salary offered. RM45 million is provided for this purpose.
  • SOCSO also provides incentives to employers of vulnerable groups such as the disabled, ex-convicts, homeless and unemployed of up to RM600 per month for a period of up to three months.
  • The government will cover training fees up to RM4,000 for gig workers undergoing micro credentials skills improvement programs. SOCSO will also provide an allowance of RM300 for three months to supplement the income of gig workers who are active and undergoing a training program.
  • Sabah and Sarawak will continue to benefit greatly from development allocations of RM6.5 billion and RM5.6 billion respectively.
  • RM2.5 billion is provided to implement projects involving public infrastructure which are mostly for the benefit of Sabah and Sarawak involving road and street lighting projects as well as water and electricity supply.
  • The government will enact the Consumer Credit Act and establish a Consumer Credit Monitoring Board to regulate the credit business which is expected to be presented this year.
  • To strengthen the role of National Scam Response Centre (NSRC), a total of RM10 million in operating grants is provided.
  • Bank Negara will also enforce the "kill switch" policy to all banking institutions to enable users themselves to take immediate action to freeze their accounts, ATM cards from being used in case of suspicious activity.
  • The government will amend the Insolvency Act 1967 so that bankruptcy cases can be automatically discharged at short notice.
  • The Whistleblower Act to be amended to provide greater protection for those who provide information in the fight against graft and other wrongdoings.
  • Government to provide RM100 a day allowance for search and rescue personnel who help with relief efforts in Turkey and Syria.
  • Government to offer RM350 in special Aidilfitri aid for government pensioners.
  • Special Aidilfitri aid of RM700 for all civil servants Grade 56 and below, including contract workers
  • Government to contribute RM500 to EPF Account 1 of members aged 40 to 54 with less than RM10,000. This will benefit two million people and cost Putrajaya RM1 billion.
  • Amanah Saham Malaysia fund will be increased to RM5 billion.
  • Self employed individuals will be required to contribute to Skim Keselamatan Sosial Pekerjaan Sendiri. The government will spend RM100 million to help this group of people with their contributions to the scheme.
  • RM5 billion in funds under the Housing Credit Guarantee Scheme (SJKP) for 20,000 eligible borrowers.
  • Free internet will be provided to 56 People's Housing Project (PPR) nationwide.
  • RM50 million to ensure safety of facilities in people's housing projects (PPR).
  • Income tax exemptions for HEALTH - medical expenditure will be increased to RM10,000 from RM8,000.
  • RM80 million for the PEKA B40 health scheme.
  • The government will upgrade 26 hospitals.
  • RM700 million allocated to upgrade the Melaka hospital to address congestion.
  • RM120 million for Skim Perubatan Madani to help the poor access to health services.
  • RM36.3 billion allocated to the Health Ministry.
  • Provisions includes nearly RM3 billion for the appointment of more permanent and contract health workers.
  • PTPTN borrowers earning less than RM1,800 given six month loan moratorium.
  • 20 per cent discount on PTPTN loan repayments for three months from March 1.
  • Government to allocate RM428 million for research and development activities.
  • RM35 million to improve internet connectivity in higher education institutions.
  • RM436 million to improve and replace old infrastructure in public varsities.
  • RM15.3 billion for higher education ministry.
  • Schools will be provided with 50,000 laptops.
  • RM108 million allocated for Program Makanan Prasekolah, which will benefit 240,000 students.
  • RM777 million to be channelled to Rancangan Makanan Tambahan (RMT), benefitting 700,000 students.
  • RM560 million to build seven new schools.
  • Education Ministry to receive RM55.2 billion, the highest allocation.
  • RM1 billion in loans to help improve local food production.
  • Income tax for those earning between RM100,000 to RM1 million a year increased by 0.5 per cent to 2 per cent. Less than 150,000 people are expected to be affected.
  • Personal income tax reduced by 2 per cent for those earning between RM35,000 to RM100,000. This will benefit around 2.4 million taxpayers.
  • RM400 million in e-credit for two million youths aged 18 to 20, at RM200 each.
  • RM8 billion in cash aid under Sumbangan Tunai Rahmah (STR), benefitting 8.7 million people. The poorest will receive up to RM3,100.
  • RM225 million for essential goods for the poor.
  • RM100 million for Jualan Rahmah sales in all Parliamentary constituencies, which will see essential items being sold for 30 per cent less compared to market prices.
  • Civil servants to get RM180 in childcare subsidy a month. Households with income of RM7,000 and below will qualify for this.
  • A special unit in the police force will be established to combat child pornography.
  • Employers who hire inmates, including former residents of the Henry Gurney school and other institutions, eligible for additional tax deductions.
  • Government to introduce Skill for Inmate programme to assimilate inmates back into society.
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