Budget 2023 Highlight: Keluarga Malaysia, Makmur Bersama

KUALA LUMPUR, Oct 7 (Bernama) -- Here are the highlights of Budget 2023 presented by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz in Parliament today.

Budget 2023, which is themed Keluarga Malaysia, Makmur Bersama is driven by the 3Rs - Responsive, Responsible and Reformist.

• Budget 2023 allocation increased to RM372.3 billion compared to RM332 billion for Budget 2022
• Budget 2023 allocates RM272.3 billion for Management Spending, RM95 billion for Development, RM5 billion under the COVID-19 Fund and RM2 billion as Contingency Savings - Tengku Zafrul
• The resident individual income tax rate is reduced by 2 percentage points
• The tax income range of RM250,000-RM400,000 will be combined with the RM400,000-RM600,000 range and be subject to a 25 percent tax rate
• The Securities Commission will introduce a special training programme for women's skill levels to increase the number of women eligible to be appointed as board members
• Government will make SOCSO's SKSPS contributions mandatory for all self-employed sectors in stages
• The total holding limit for ASB and ASB2 has been increased to RM300,000 compared to RM200,000 previously
• BSN will prepare easy loan funds, help B40 invest in ASB
• 100 per cent stamp duty exemption on the purchase of a house worth RM300,000 will give savings of RM6,500
• 75 per cent stamp duty exemption on the purchase of a RM750,000 house will give savings of RM15,000
• The MSME tax rate on taxable income for the first RM100,000 will be reduced from 17 per cent to 15 per cent from 2023
• RM10 billion in loan funds will be made available through Bank Negara to encourage the automation and digitisation of SMEs as well as support the food security agenda and the recovery of the tourism sector
• Government will continue the Rehabilitation and Support Through Equity Scheme or RESET and the Working Capital Scheme under Bank Pembangunan Malaysia Bhd with a total fund of RM1 billion
• Government proposes to expand the scope of existing tax incentives for individual investors in start-up companies through equity crowdfunding (ECF)
• A total of RM200 million is provided for incentive, promotion and marketing to strengthen the recovery of the tourism sector
• The 2023 fiscal deficit is projected to decrease to 5.5 per cent of GDP compared to 5.8 per cent in 2022
• The deficit level for 2023 to 2025 is expected to continue to decrease to an average of 4.4 per cent compared to GDP
• Government implementing the e-Invoice and Tax Identification Number (TIN) initiative in stages from 2023 to ensure a sustainable source of revenue
• Petronas plans to contribute RM2 billion to the Kumpulan Wang Amanah Negara (KWAN) in 2023
• The government proposes to extend the tax incentives for BioNexus companies for applications received until end-2024
• The government proposes to give Elaun Modal Dipercepatkan and exempt 100 per cent income tax on capital expenditure to drive productivity, effciency through automation
• A total of RM250 million is provided to support the implementation of high-impact PPP projects
• The Public Private Partnership Master Plan 2023-2032 will be launched to introduce a new PPP model
• The EPF will continue the development of Kwasa Damansara, creating more than 6,000 job opportunities with a total investment of RM3 billion until 2025
• GLCs, GLICs committed to invest up to RM50 billion for 2023
• The government proposes further tax incentives for the development of intellectual property until Dec 31, 2025
• Khazanah Nasional will invest RM1 bilion under Dana Impak in 2023
• MOF will smoothen the investment standards, ensure that the sustainability agenda is considered in the GLC investment process
• EKUINAS prepares to invest RM100 million in Dana Asas for bumiputera companies with a minimum investment value of RM10 million for each investment
• The government through MDEC will spearhead UTC's transformation efforts as a digital hub
• The government proposes the establishment of 2 new UTCs, to maintain the existing UTCs with an allocation of RM20 million
• RM10 million is provided to CREST to develop applications for the automotive industry
• An investment fund of more than RM1 billion will be established as a strategic approach to attract more high value-added investments
• The government is committed to reach the top 10 in the world as a competitive country by 2025
• RM20 million is provided as a matching grant for the development of medical device industry products
• Income tax incentives for local pharmaceutical product manufacturers are extended until the end of 2025
• The government will allocate RM100 million under the Domestic Investment Strategic Fund to support the development of local technology-based companies
• The government has proposed to introduce a special status for the Pengerang Petroleum Complex to incentivise chemical and petrochemical industry investment
• MRT 2 Phase 2 expected to start operating January 2023
• MRT3 Phase 1 expected to be completed by 2028 and Phase 2 in 2030
• Budget 2023 provides an allocation of RM95 billion for development expenditure