Corporate, Economy, Featured and Exclusive - October 23, 2015

Highlights of Budget 2016

By BERNAMA

Najib Razak budget 2016 fb picture inside story 231015 02The following are the highlights of Budget 2016 themed “Prospering the Rakyat” tabled by Prime Minister Najib Abdul Razak at the Dewan Rakyat here today.

  • MCMC to provide RM1.2 billion for rural broadband projects, National Fibre
    Backbone Infrastructure, High-speed Broadband, undersea cable system
  • RM250 million to be channelled for national broadcasting digitalisation project to enhance audio visual quality and provide value-add to TV content
  • RM1.4 billion to build and upgrade 700km rural roads nationwide
  • RM878 million for Rural Electrification Project covering 10,000 houses
  • RM568 million for Rural Water Supply Project to benefit 3,000 houses
  • Building and improving rail transport network and highways
  • RM900 million allocated to implement Jalan Tun Razak Traffic Dispersal Project
  • Feasibility study on constructing a Masjid Tanah-Klebang-Jambatan Syed Abdul Aziz coastal highway in Melaka
  • RM42 million allocation for the construction of Mukah Airport, Sarawak, and upgrading airports in Kuantan and Kota Bharu.
  • Feasibility study for the extension of the runway in Batu Berendam Airport, Melaka
  • Special Reinvestment Allowance for manufacturing and agriculture sectors
    for selected existing companies
  • 20% stamp duty exemption on Syariah-compliant loan instruments to finance the purchase of houses
  • Additional RM1 billion for Syariah-compliant SME Financing System until
    Dec 31 2017
  • RM107 million allocated to SME Blueprint
  • RM60 million earmarked for Entrepreneur Acceleration Scheme, SME Capacity and Capacity Enhancement Scheme
  • Establishing a RM200 million SME Technology Transformation Fund to provide
    soft loans at 4%
  • Domestic investment with contribution to the GDP is estimated at 26.7% in 2016
  •  Development of the Malaysian Vision Valley with initial investment forecast at RM5 billion in 2016
  • Implementation of Cyber City Centre in Cyberjaya with development cost of
    almost RM11 billion
  • Development of an airport township or KLIA Aeropolis to attract an investment of RM7 billion
  • Investment of RM6.7 billion by Khazanah Nasional Berhad in nine high-impact domestic projects
  • Investment of RM18 billion for RAPID Complex in Pengerang, Johor
  • Development of Rubber City, Kedah with an allocation of RM320 million, Samalaju Industrial Park, Sarawak (RM142 million) and Palm Oil Jetty in Sandakan, Sabah (RM20 million)
  •  RM30.1 billion is allocated to the economic sector
  • RM13.1 bilion is earmarked for education and training, health, housing and the well-being of the people
  • RM5.2 billion is allocated to the security sector
  • Federal Government revenue collection is estimated at RM225.7 billion, an increase of RM3.2 billion compared to 2015
  • Fiscal deficit is expected to decline to 3.1% of GDP in 2016
  • Economic growth at 5.3% in the first half of 2015 and 4.5% to 5.5% for the full year
  • GDP expected to expand 4%-5% in 2016, driven by private investment and consumption growth of 6.7% and 6.4% respectively
  • Exports expected to grow by 0.9% and imports by 1.5%
  • Construction sector expands by 8.4%, services by 5.4%,manufacturing by 4.3%
  • Fiscal deficit expected to decline from 6.7% to 4.3% this year
  • Foreign direct investment remains strong at RM22.4 billion
  • Inflation expected to be under control at 2%-3%
  • Number of GST-registered companies approaches 400,000 with submission compliance at over 9%
  • Oil prices expected to remain low in 2016 with oil-related revenue estimated to decline to RM31.7 billion
  • GST revenue returned to benefit the people
  • Without GST and with the SST still in place, government revenue would decrease by RM21 billion
  • GST revenue at RM39 billion
  • Government prepared to forego GST revenue on several basic necessities
  • Seven measures to improve GST treatment with effect from Jan 1, 2016 including zero rating of controlled medicines and food items like soybean-based milk and organic-based milk for infants and children
  • Malaysian consumers to get rebates on mobile pre-paid cards equivalent to GST amount paid, effective Jan 1, 2016 to Dec 31, 2016
  • Taxable income band for highest tax rate to be raised from 25% to 26% for those with an income of between RM600,000 and RM1 million
  • Tax rate for those with an income above RM1 million to be raised from 25% to 28%