CoFfEE witH PUNithAN

• Travel allowance for commuting to work provided by employers be given full tax deduction, while the employees receiving such an allowance be given tax exemption of up to RM2,400 per year.

• Tax exemption be given to employees on:

Interest subsidies on housing, motor vehicles and education loans. The tax exemption will be limited to total loans up to RM300,000;

Mobile phones, as well as telephone and internet bills paid by the employer;

Staff discounts of up to RM1,000 a year on company traded goods;

Staff discounts on services rendered by the company, such as private schools providing free education to children of their employees; and

Childcare allowance of up to RM2,400 per year.

• Tax exemption on medical benefits provided by employers to include expenses on maternity and traditional medicine, namely acupuncture and ayurvedic.

• Effective Jan 1 2009, civil servants with a monthly household income of RM3,000 eligible for a subsidy of RM180 per month.

• A sum of RM35bil will be expended during the period 2009 to 2014 to improve public transportation.

• The existing LRT system in the Klang Valley will be extended by 30km, that is 15km respectively, for Kelana Jaya and Ampang lines. Upon completion in 2011, the extensions are expected to benefit 2.6 million residents in the Subang Jaya-USJ and Kinrara-Puchong areas, compared with 1.9 million currently.

• A new LRT line will be built along a 42km route from Kota Damansara to Cheras; to be completed in 2014.

• The commuter rail services of Keretapi Tanah Melayu Berhad (KTMB) will be upgraded. Rehabilitation works are being undertaken on the existing 20 Electric Multiple Units (EMUs) and are expected to be completed in 2009. An additional 13 new units of EMUs will be acquired and be operational by 2011.

• To reduce the operating costs of public transport operators:

government will provide a soft loan facility of RM3bil under the Public Transportation Fund, administered by Bank Pembangunan Malaysia Berhad (BPMB), to finance the acquisition of buses and rail assets; and

reduce toll charges by 50% for all buses, except at border entry points, namely Johor Causeway, Second Link and Bukit Kayu Hitam, for a period of two years, effective Sept 15 2008.

• Road tax will also be reduce to RM20 a year for all bus, taxi, car rental and limousine operators.

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Food Security

• Sum of RM5.6bil is provided under the National Food Security Policy, for the period 2008 to 2010. This allocation is to provide incentives to agriculture entrepreneurs to reduce production costs and encourage higher agriculture output.

• RM300mil allocated to increase fish landings. Of this, RM180mil is in the form of cost of living allowance to fishermen and fishing boat owners, as well as RM120mil as incentive for fish landings.

• RM1bil allocation as incentives for 220,000 padi farmers throughout the country to increase padi production.