Cover Photo: Getty
Photo: Getty
1 / 1
With RM332.1 billion allocated for Budget 2022, Malaysia and its people’s livelihoods are expected to return to the pre-Covid-19 levels with new norms in place
Themed 'Keluarga Malaysia, Makmur Sejahtera', Budget 2022 was tabled today with a total allocation of RM332.1 billion, the largest ever for the country, surpassing Budget 2021's allocation of RM322.54 billion. This includes RM233.5 billion in administrative expenses, RM75.6 billion in development, RM23 billion for the Covid-19 fund, and RM2 billion for unexpected expenses.
The federal revenue is projected to achieve RM234 billion, or 5.9 per cent more than 2021, and Malaysia's economy is expected to grow by between 5.5 per cent and 6.5 per cent next year, up from this year’s estimated three to four per cent rise
Read more: HSBC Premier: Financing Your Different Life Stages
Announced by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, Budget 2022 is expected to aid Malaysia's recovery process to return the country and its economy to the pre-Covid-19 pandemic levels. Here's how Budget 2022 will impact you as an individual:
School and education
Education will be getting a big boost with the highest-ever Budget 2022 allocation: RM52.6 billion for the Education Ministry and RM14.5 billion for the Higher Education Ministry. This includes RM450 million in aid to be provided to three million students.
Tengku Zafrul also said that the government will offer discounts for the repayment of National Higher Education Fund Corporation (PTPTN) loans, which will come into effect this Nov 1 until April 30, 2022. A 15 per cent discount would be offered on the balance of the loan for those who wish to make a full settlement.
All things health
RM32.4 billion will be allocated for the Health Ministry, the second-largest after the Education Ministry, of which RM2 billion will be channelled to purchase vaccines and RM2 billion for additional Covid-19 expenses. The government will be procuring another 88 million doses of vaccines, which will be the third dose for those aged between 12 and 17.
RM25 million will be provided to help children who were made orphans by the Covid-19 pandemic.
Meanwhile, excise duty will be imposed on nicotine-based gel or liquid products for vaping and electronic cigarettes, as well as premix sugary drinks made from chocolate, malt, coffee, and tea.
See also: Philip Morris Malaysia's James Ryan Is Driving The Conversation On The Smoke-Free Movement
Jobs and employment
The government will provide RM4.8 billion to create job opportunities under the JaminKerja initiative, a job placement scheme aimed at putting 300,000 people to work. Employers, too, stand to gain from this: 20 per cent of the first six months' salary and 30 per cent of the following six months salary for hires making above RM1,500 will be subsidised.
The employees' nine per cent contribution rate to the Employees Provident Fund (EPF) will remain until June 2022 while income tax will be imposed on residents whose income in Malaysia is sourced from overseas, beginning Jan 1, 2022.
In line with living with Covid-19, companies and individuals may apply for tax deductions on expenses for Covid-19 booster shots.
Above Photo: Getty
Photo: Getty
1 / 1
Front and female
In the interest of women empowerment, it will be made mandatory for all publicly-listed companies (PLCs) to appoint at least one woman to their board of directors. RM5 million would also be allocated for the Women Leadership Foundation (Yayasan Kepimpinan Wanita) to encourage female participation in the economic sector.
Meanwhile, free sanitary pads will be provided every month to 130,000 female teenagers in the B40 group and RM11 million will be allocated as a subsidy for free mammogram tests for high-risk women and cervical cancer screenings.
Don't miss: How I Work It: The Tech CEO and Mother of Two Who Is in the Business of Parenting
Going places
RM1.6 billion has been allocated for the tourism industry to support post-pandemic recovery. RM600 million will be allocated under the Penjana Tourism Financing dan BPMB Rehabilitation Scheme while RM85mil will go towards a three-month special assistance for over 20,000 tourism operators.
To spur domestic tourism, the RM1,000 tax rebate for domestic tourism expenditure will be extended until 2022.
Mobility, sustainability
In view of the hit that battered the automotive sector due to the Covid-19 pandemic, the government will extend the 100 per cent sales tax exemption on completely knocked down (CKD, locally-assembled) passenger vehicles and 50 per cent on completely built-up (CBU, imported cars) including MPVs and SUVs for six months until June 30, 2022.
Electric vehicles (EV) will be given a 100 per cent exemption of import duty, excise duty, and road and sales tax. Tengku Zafrul said the decision was made in support of the development of the local EV industry and the potential of EVs to help reduce air pollution.
Additionally, an income tax relief of up to RM2,500 will be provided for the purchase, assembly, renting, and leasing of EVs, as well as subscription payments of EV charging facilities.
Above Photo: Getty
Photo: Getty
1 / 1
Lainey was the Digital Director of Tatler Malaysia. When not whiling away the hours watching documentaries, the latest K-drama, or reruns of Friends, she can be found indulging her wanderlust by stalking travel platforms or feeding her obsession with music. She loves animals, running, all things social media, a good conversation over coffee or soju or wine (often rambling on if nobody pulls the brakes on her), and is an avid fan of bursting-at-the-seams laughter.
