Ready for Malaysia’s Budget 2023?
Excited about Malaysia’s upcoming Budget 2023? Let us help you make the most of it!
The new budget is set to be retabled in Parliament on February 24, and it’s designed to address economic challenges in a balanced and sustainable way that benefits everyone, including those in the B40 group.
To give you an idea of what to expect, we’ve created a list that outlines the potential inclusions and exclusions in the upcoming budget.
This can help you stay informed and prepare for any changes that may impact you and your family.
What’s likely to be included?
More funds are likely to be allocated towards local farming in the form of targeted subsidies and initiatives to reduce the country’s reliance on imported food.
Targeted subsidies through cash assistance are expected to be provided for the B40 community.
There are proposals to increase voluntary contributions to the Employees Provident Fund (EPF), which is currently capped at RM60,000 per year.
Provisions to encourage the construction of more affordable rural houses under public housing programs may be introduced.
Knowledge & Innovation-based Investments:
Investments may be targeted towards improving the start-up environment, specifically by providing funding, developing talent, and offering tax incentives.
A new targeted fuel subsidy for the Bottom 40 (B40) and Middle 40 (M40) income groups, as well as small businesses, may be introduced.
Women Entrepreneurship Development:
Guidance and training courses may be introduced for women in need, particularly single mothers and those who have lost their source of income, to explore opportunities in entrepreneurship.
Special initiatives aim to educate and empower young people by increasing their political awareness and providing them with valuable skills that can lead to additional income or career opportunities.
What’s unlikely to be included?
There is no intention to reintroduce a goods and services tax (GST) or any other all-encompassing consumption tax i.e. a type of tax that is applied to all goods and services that are purchased by consumers.
There are no intentions to permit additional EPF withdrawals.
PTPTN Debt Cancellation:
There are no plans to introduce a debt cancellation program for individuals from the low-income and B40 groups who have borrowed from the National Higher Education Fund Corporation (PTPTN).