Budget 2013 Highlights

*   Economic growth projected to expand 4.5 per cent to 5.5 per cent.

*  Nominal GDP expected to surpass RM1 trillion.

*   Federal Government’s revenue in 2013 is estimated to increase to RM208.6 billion.

*   Pivate sector investment is to increase to RM148.4 billion.

* RM251.6 billion allocated for the implementation of development projects, programmes and measures, with focus on the well-being of the rakyat and national development.

* RM201.9 billion is for Operating Expenditure while RM49.7 billion for Development Expenditure.

* RM58.6 billion allocated for Emoluments dan RM33.7 billion for Supplies and Services.

* RM3 billion to implement Entry Point Projects

* RM1 billion for Domestic Investment Strategic Fund under Malaysian Investment Development Authority to leverage on outsourcing opportunities and intensify technology acquisition by Malaysia-owned companies

* RM1 billion SME Development Fund under SME Bank

* SME Bank and Islamic Development Bank (IDB) to provide RM200 million to Halal Industry Fund to finance working capital of participating SMEs

* RM16 million a year group insurance scheme for registered hawkers and small businesses for coverage of up to RM5,000

* Perbadanan Nasional Bhd to provide soft loans of up to RM25,000 for licensees and RM500,000 for licensors under Business In Transformation programme

* Investment Tax Allowance of 100 per cent for a period of 10 years for qualified companies involved in refinery activities on petroleum products

* Global Incentive for Trading (GIFT) programme is enhanced with 100 per cent income tax exemption on statutory income for first three years of operation

*  Expenses for issuance of AgroSukuk given double deduction for a period of four years from year of assessment 2012 to 2015

* DanaInfra Nasional Bhd to issue retail bonds worth RM300 million by end-2012 to finance MERT development projects

* RM30 billion allocated to the economic sector for infrastructure, industrial, agriculture and rural development.

* RM11.1 billion allocated to the social sector including education and training, health welfare, housing and community development.

* RM4.6 billion allocated for the development of the Security Sector, RM2 billion General Administration and RM2 billion for Contigencies.

* The Government will continue to accelerate the implementation of the 12 National Key Economic Areas (NKEAs).

* RM3 billion allocated for the implementation of Entry Points Projects (EPPs), including RM1.5 billion for agriculture projects such as oil palm, rubber, high-value herbs and paddy.

* Additional expenses incurred in issuance of retail bonds and retail sukuk to be given double deduction for a period of four years from year of assessment 2012 to 2015

* Individual investors given stamp duty exemption on instruments relating to transactions of retail bonds and retail sukuk

* Securities Commission to introduce Graduate Representative Programme in  collaboration with private sector to train 1,000 graduates to meet needs of securities and derivatives industry

* Danajamin Nasional Bhd to get additional RM400 million for next two years, to multiply issuance value between RM4 billion and RM6 billion

* RM100 million to be provided to Capital Market Foundation through Capital Market Development Fund under the Securities Commission

* Allocation of RM75 million to increase the output of food and health products.

* For the plantation sector, RM432 million is allocated under the NKEA for oil palm replanting programmes.

* RM127 million is allocated for the development of high-value oleo derivatives to transform the downstream industry towards higher production of derivatives.

* Four new paddy granaries will be developed and expanded in Kota Belud, Batang Lupar, Rompin and Pekan. ith an expanditure of RM140 million, the four new paddy granaries with acreage of 19,000 hectares and involving 12,237 farmers are expected to produce 104,000 tonnes.

* RM230 million to be provided as incentive for fish landing as well as payment for living allowances for the fishermen. Currently, the Government provides a living allowance of RM200 per month, an incentive ranging from 10 to 20 sen per kilogramme and the introduction of Fishermen Insurance Scheme.

* RM2.4 billion is allocated to provide subsidies and incentives to assist farmers in reducing cost of production. The assistance comprises subsidies and incentives for paddy production including subsidies on paddy rice (RM480 million), paddy fertilisers (RM465 million); incentives to increase paddy yield (RM80 million), paddy production (RM563 million) and subsidies on price of rice (RM528 million) and high-quality paddy seeds (RM85 million).

* Introducing a Paddy Takaful Coverage Scheme to benefit 172,000 paddy farmers who own fields less than 10 hectares. The Government will initially allocate RM50 million for this scheme.

* RM41 million to be provided for the Azam Tani project to benefit 6,730 of the poors to increase their income.

* A sum of RM38.7 is allocated to the Ministry of Education for operating and development expenditure.

* An additional allocation of RM500 million to enhance teaching skills in core subjects such Bahasa Malaysia, English, Science and Mathematics through the Higher Order Thinking Skills approach.

* RM6 billion to be allocated under the Private Financing Initiatives (PFI2) to implement projects and programmes to ensure well-being of people and spur nation’s development, including refurbishment and maintenance of schools and health clinics; housing, water tank and flood mitigation projects; and provision of sports facilities

* RM1.9 billion to be allocated to build 123,000 affordable housing units in strategic locations, to be implemented by PR1MA, Syarikat Perumahan Nasional Bhd and Jabatan Perumahan Negara

* Real property gains tax (RPGT) from disposal of properties made within two years of date of purchase to be taxed at between 15 per cent and 10 per cent of disposal of property within a period of two to five years. For property disposed of after five years from the date of acquisition, RPGT is not applicable

* RM100 million to be allocated to Housing and Local Government Ministry to revive 30 abandoned housing projects, and tax incentives to private sector to encourage its involvement in reviving the projects

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