Budget 2010: "1Malaysia, Together We Prosper"

[Dashken]

Hmm... why no comment @ techarp.

I'm wondering... how many credit cards do you guys have? RM50 for each card... gone case man...

Direct Access - Visa & Master (RM100)
HSBC - Visa (RM50)
Maybank - Visa & Amex (RM100)

Oh God... RM250 per year???

Prime Minister Datuk Seri Najib Tun Razak has tabled Budget 2010 with the theme "1Malaysia, Together We Prosper". Totalling RM191.5 bil, he said it would be the foundation of a new economic model and precursor to the 10th Malaysia Plan.

These are the main highlights of the speech as per delivery.

* Time for country to move to an economy of innovations to face the challenges of the future

* GDP for 2009 expected to be -3%, better than previous projections of -4% to -5%
Prime minister Datuk Seri Najib Tun Razak - with Secretary General of Finance Tan Sri Wan Abdul Aziz Wan Abdullah, Finance Minister II Datuk Seri Ahmad Husni Hanadzlah, Deputy Finance Minister Datuk Chor Chee Heung and Datuk Dr Awang Adek Hussein - is ready with his briefcase containing the Budget 2010 speech outside the Finance Ministry's Office in Putrajaya Friday. - Starpic

* Focus of Budget 2010 will be on well-being of the people

* Three strategies:

- driving the country towards a high-income economy,

- ensuring holistic and sustainable development,

- focusing on the well-being of the rakyat.
Prime Minister Datuk Seri Najib Tun Razak tabling the 2010 budget at the Dewan Rakyat, Friday. - RAJA FAISAL HISHAN/The Star

* Government to make it easier for skilled/qualified people to get permanent residence status. Visa to be granted for family within 14 days.

* CSR Fund of RM100mil to be set up to carry out social programmes.

* Tax breaks for registration of patents and copyrights.

* Big scale factory outlets to be set up to boost tourism besides having major events like KL Grand Prix Fest, National Water Festival, Malaysia International Golf Exhibition and Rain Forest Eco-Challenges

* Taxpayers will get tax relief on broadband subscription fee of up to RM500 from 2010 to 2012. Civil servants can apply for computer loans up to a maximum of RM5,000 from the govt once in every 5 years.

* RM6bil for agriculture sector for irrigation of paddy fields, fish production, fruit farming, livestock farming infrastructure, training

* RM2bil subsidy for farmers and fishermen including subsidies for fertilisers, incentives for padi yields and allowances for fishermen

* RM9bil to finance infrastructure projects including road and bridges projects and rail, sea ports and airports facilities

* RM1.5bil fund to promote green technology by providing soft loans to companies that supply and use green technology

* RM200mil Creative Industry Fund to finance film, drama, music productions, animation, advertisements through Bank Simpanan Nasional

* RM30bil to be allocated to enhance primary and secondary school education nationwide

* Rewards for students who excel in studies:

- 30 National Scholarships for the creme de la creme of students, stictly based on merit

- Conversion of PTPTN loans to scholarships for students who graduate with 1st class honours degree, beginning from 2010,

- Offer of netbook package, including free broadband service, to university students for RM50 per month for 2 years.

* The Permata programme, which emphasises on early childcare and education, including the gifted child programme, to get RM100mil

* Insurance industry to be improved to meet market demand.

* Govt to clamp down on the abuses committed by Ah Longs by enforcing Anti-Money Laundering and Anti Terrorism Financing Act 2001. Moneylenders Act 1951 to be also reviewed.

* Allow 100% foreign equity participation in corporate finance and financial planning companies compared with the present requirement of at least 30% local shareholding.

* To ensure rapid development of financial services, the existing tax incentives to be extended to 2015.

* Among steps to combat corruption is to set up 14 Special Corruption Sessions Courts and 4 Special Corruption Appeal High Courts.

* Tax of 5% to be imposed on gains from the disposal of real property from Jan 1, 2010. Existing tax exemption will be retained for gifts between parent-child, husband-wife, grandparent-grandchild.

* To promote prudent spending, a service charge of RM50 a year to be imposed on each principal credit card and charge card; and RM25 a year on each supplementary card, effective from Jan 1, 2010.

* To ensure that fuel subsidies only benefit targeted groups, Govt will implement a fuel subsidy management system in early 2010, which will utilise the MyKad.

* All ministries and govt departments are required to provide day care and education centres for children of civil servants.

* The maximum income tax rate for individuals to be reduced to 26% from assessment year 2010. Personal relief increased to RM9,000.

* Police force to get RM1bil to improve its services in govt's efforts to reduce crime. Major measures include to increase police presence, including mobile police stations in 50 crime hotspots.

* To promote house ownership, Govt will launch a scheme that enables EPF contributors to utilise current and future savings in Account 2.

* Employees' EPF contribution to be increased to 11% again, on a voluntary basis, effective immediately. However, from Jan 1, 2011 employees' EPF contribution will revert to 11%.

* Personal relief for EPF and life insurance schemes to be increased to RM7,000.

Link - Budget 2010: "1Malaysia, Together We Prosper"

The 2010 Budget Speech (pdf file) -

List of Appendices (pdf file) - http://thestar.com.my/budget/attachment10.pdf

[zy]

WTF? I rather have a foreign credit card this way ;p

[Adrian Wong]

Sorry, been busy...

Sigh.. The RM 50 tax / charge on credit card is going to force many people to throw away most of their cards. I'm sure many people have multiple cards because each offers cash-back rebates or discounts only for certain companies/services.

I have 8 credit cards myself, but I never buy things with my cards unless I'm sure I can fully pay up at the end of the month. However, those who have a habit of overspending are unlikely to stop overspending even if they only have ONE credit card. So the RM 50 charge per card is really just a new revenue source for the government.

Just imagine... There are 11 million credit card holders in Malaysia. That's over half a BILLION ringgit (US$ 170 million) in extra revenue. If I keep all 8 credit cards, I would have to pay RM 400 every year!

On top of that, the government has just slapped a tax of RM 10,000 on all open APs. That means all imported cars (including Toyotas from Thailand, and reconditioned cars from Japan) will now cost RM 10,000 more than before!

And for property investors, our beloved government has brought back the Real Property Gain Tax (RPGT). Earlier, there were reports that it would be as high as 30% (according to the Finance Bill) but now they have "clarified" that they would issue a special order to limit it to "just 5%".

Unfortunately, the 5% tax applies even to ALL properties irrespective of how long you've had them. In the past, there is NO gain tax after 5 years. From next year onwards though, even a house that has been in your possession for the last 20 years will incur the 5% gain tax.

[Adrian Wong]

Ahh.. Now the bugger admits it's because the government needs the cash!!!

There are no immediate plans to revise the RM50 annual service tax on credit and charge cards, says Prime Minister Datuk Seri Najib Tun Razak.

Despite public complaints, Najib said it was too soon to talk about a revision as the matter was just recently announced in the 2010 Budget.

“Tunggulah dulu (We wait first). The Government also needs revenue. If we can’t hike up (the price of) anything, susah kita (it would be hard for us).

“Who is going to fund the nation’s development?”

Funny, didn't our "most esteemed" Prime Minister claim earlier that the move to charge RM 50 per credit card was to promote prudent spending???

Good of him to finally admit that it's just a way for the government to squeeze more money from the people.

BTW, I was just speaking to a financial consultant. He claims that the government is considering reinstating the ORIGINAL real property gain tax of up to 30% if the government's finances deteriorate. However, I believe they will only do this AFTER the next general elections in 2011/2012. To do that now would be political suicide.

[Brian]

Originally Posted by Adrian Wong

Ahh.. Now the bugger admits it's because the government needs the cash!!!



Funny, didn't our "most esteemed" Prime Minister claim earlier that the move to charge RM 50 per credit card was to promote prudent spending???

Good of him to finally admit that it's just a way for the government to squeeze more money from the people.

BTW, I was just speaking to a financial consultant. He claims that the government is considering reinstating the ORIGINAL real property gain tax of up to 30% if the government's finances deteriorate. However, I believe they will only do this AFTER the next general elections in 2011/2012. To do that now would be political suicide.

Good lah, they can't mask the money leaking out through corruption and our inefficient civil service anymore using the oil money. The more the taxation burden increases the more likely BN's going to get screwed if they don't change their ways.

[zy]

They should cut freaking cut their goverment spendings and trace where the hell the money went instead of stealing money from the citizens.

[Brian]

Originally Posted by zy

They should cut freaking cut their goverment spendings and trace where the hell the money went instead of stealing money from the citizens.

Not sure if I'm reading you right, but they could start by 'not stealing money from the citizens'?

[zy]

Originally Posted by Brian

Not sure if I'm reading you right, but they could start by 'not stealing money from the citizens'?

maybe i should put the word "more"

[Chai]

Most likely, they know where has the 'spending gone to, but reluctant to give up.

[Adrian Wong]

Year in, year out, corrupt folks in our government spend our tax dollars like there's no tomorrow.

RM 43,320 (US$ 13K) for retired models of Acer notebooks????

And what is the government doing?

Instead of firing the bastards, they are trying to eke more money out of us.

Instead of reducing the taxes for the poor and middle class, they cut tax for the TOP TIER for the second time in a row!!! Talk about a lack of common sense!