Budget 2020: What’s In It For You?
Lower toll charges, more petrol subsidies and raising the salary cap for those eligible for overtime payments are among the highlights of Malaysia’s Budget 2020. And no, the Goods and Services Tax (GST) will not be re-introduced next year.
The theme for Belanjawan 2020 is Spur Growth and Success Towards Shared Prosperity, which is in line with the country’s aim of becoming a highly-skilled, high-income nation and achieving its Shared Prosperity Vision 2030.
At the press conference after the Budget announcement, Prime Minister Tun Dr Mahathir Mohamad said, many people will be happy with this year’s budget as almost everybody gets something.
The biggest winner is the Ministry of Education with a budget allocation of RM64.1 billion followed by the Ministry of Finance and Ministry of Health with RM37.8 billion and RM30.6 billion respectively.
There was plenty of good news in the government’s budget proposal for 2020 totalling RM297.02 billion. A big chunk of RM241.02 billion of it goes to the operating expenditure while the remainder RM56 billion is for the development expenditure.
Budget 2020 clearly outlines the government’s strategy on elevating the rakyat’s employability and financial well-being with initiatives focusing on continued investment in education, encouraging job creation and providing incentives for training, development and upskilling of the current Malaysian workforce.
If you have missed the announcement, here are the key highlights:
There were also plenty of incentives to create jobs under #MalaysiaKerja (Malaysians@Work) and many targeted incentives for areas under the economy that can generate growth like the special investment incentives packages worth up to RM1 billion a year for five years for local companies that can take their product or services worldwide.
On the local front, the government is also targeting big global players to invest in Malaysia, specifically Fortune 500 companies and “global unicorns” in the high tech, manufacturing, creative and economic sectors with a special investment incentives packages worth up to RM1 billion a year for five years.
Revising the RPGT for the disposal of properties, introducing the Rent-To-Own (RTO) and even crediting RM30 into the e-wallet of every Malaysian who are 18 and above and earn less than RM100,000 a year are among the measures that will directly impact many Malaysians personally.
Big ticket items like transportation, healthcare, housing also show plenty of winners. We’ve rounded up the key takeaways on those areas that directly affect our readers personally below.