Budget 2020: What To Expect On Oct 11
Budget 2020 is around the corner and expectations are running high.
Set to be tabled on Oct 11 this year by Finance Minister YB Lim Guan Eng, Pakatan Harapan’s second budget is themed:
“Shared Prosperity: Sustainable And Inclusive Growth Towards High Income Economy”
This time around, the digital economy and SMEs seems to be on the radar but measures to uplift all segments of society is always a priority.
Through events, forums, talks and research, many parties have put forward their expectations from Budget 2020. While, the Finance Minister himself have given a glimpse of what to expect. Here’s a roundup of the talking points so far.
According to YB Lim Guan Eng at the 20th state DAP convention,
- The measures to be implemented in Budget 2020 will focus on developing the economy for mutual prosperity, for the benefit of all.
- Creation of jobs and aid for small businesses to overcome unemployment issues among youths.
- No increase in taxes including inheritance tax.
- Consider a request from the Negeri Sembilan government to set up a free trade zone in the Malaysia Vision Valley (MVV 2.0) new growth area.
Institute for Democracy and Economic Affairs (IDEAS) research team
In a public forum with experts, IDEAS shared some of its suggestions which are:
- Introduce a living wage tax credit, an employee equity scheme, capital gains tax and introduce a government divestment strategy.
Forum panellist, Professor Jomo Kwame Sundaram, who was a member of the Council of Elders and also Visiting Fellow at the Khazanah Research Institute, suggested focus towards:
- A prudent deficit budget
- Attention given to health, education and other social expenditure
- Called for a re-look at alleged corruption-riddled projects, such as the East Coast Rail Link (ECRL)
Setiawangsa MP Nik Nazmi Nik Ahmad of PKR called for:
- A viable and genuine “needs-based shared prosperity vision” for Malaysians.
According to RHB Research,
Following are sectors it identified as key focus areas:
- Pump-priming to spur the domestic economy, possibly through speeding up existing infrastructure projects.
Non-bank financial institution (NBFI):
- More clarity from Bank Negara Malaysia to address both foreign insurers’ ownership limit
- Next phase of de-tariffication for motor and fire insurance rates
- Fine-tuning of tax relief for life insurance premiums and takaful contributions.
- More incentives or financial assistance for the B40 and M40 group to purchase affordable housing.
- Review of current real property gains tax (RPGT) regime and pricing thresholds for foreign property purchasers on par with the weak local demand.
- In conjunction with Visit Malaysia Year 2020, budget allocations will be increased from RM100 million in 2019.
- Suspension of the departure levy implemented in September 2019 and the tourism tax on accommodations introduced in 2017.
- A contingency plan in the form of higher development expenditure to counter the slowdown from the US-China trade war. The plan to include an extension of the reinvestment allowance, grants and financing guarantees for small and medium enterprises, higher development expenditure to boost construction activity and higher social spending to aid the B40 group.
You can also tell the government your expectations in the upcoming Budget 2020. Visit http://belanjawan2020.treasury.gov.my/index.php/my/ and key in your expectations by October 6.
Keep a lookout on iMoney website as we are going to roll more Budget 2020 info your way!