Developing Quality Human Capital
- A sum of RM70mil is allocated in 2009 to train 5,600 nurses in training colleges under the Ministry of Health, with 2,000 in recognised private training colleges.
- To meet the need for new schools and replace dilapidated schools, 110 primary and 181 secondary schools will be built. In addition, to ensure that existing schools are well maintained, an allocation of RM615mil is provided.
- RM14.1bil to improve quality of learning at institutions of higher learning. Of this, RM8bil is for Operating Expenditure for public institutions of higher learning, RM627mil for polytechnics and community colleges as well as RM37mil for the Malaysian Qualification Agency.
“Budget 2009 is truly a budget for the poor. Never has there been so many goodies for the less fortunate. The tax incentives and rebates proposed will benefit all races and I applaud the Government’s political will in these measures. I'm also glad the Government has kept its promise to redevelop Tamil schools.”
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Generating Income Through Micro Credit
- RM160mil allocated to provide better education opportunities as well as improve health and basic amenities for the Orang Asli.
- A monthly allowance of RM150 to disabled who are unable to work. In addition, the monthly allowance for disabled students in special education schools, will also be increased from RM50 to RM150, while teaching assistants in these schools will be provided incentive payments of RM200 per month.
- In 2009, an allocation of RM330mil is provided to Jabatan Perumahan Negara to complete 4,400 units of Program Perumahan Rakyat (PPR) Disewa, 1,500 units of PPR Bersepadu and 600 units of PPR Dimiliki. In addition, Syarikat Perumahan Negara Berhad will build 33,000 low cost houses.
- For civil servants, tenure of new housing loans extended from 25 years to 30 years. They will also be provided housing loan facility for renovation works on houses not purchased through Government housing loan.
- For medium cost houses of up to RM250,000, a 50% stamp duty exemption is extended to the loan agreement on top of the 50% stamp duty exemption on the instrument of transfer.
- For companies contributing to charitable institutions, the limit of tax deduction be increased from 7% to 10% of aggregate income.
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Improving Public Amenities
- Allocation of RM3bil to intensify efforts to further develop Sabah and Sarawak for infrastructure projects, including 266 km of federal and rural roads, benefiting more than 550,000 residents.
- An allocation of RM3.3bil is provided for Sarawak to implement various projects, including the construction of 230 km of federal and rural roads, benefiting more than 350,000 residents.
“I welcome the RM420mil allocation to eradicate hardcore poverty in Sarawak through improving basic amenities such as electricity, water and rural roads. Improving welfare services and enhancing quality of life of the hardcore poor through education could help tackle poverty in Sarawak.”
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Culture of Excellence
- The highest marginal tax rate for individuals be reduced from 28% to 27%, effective the year of assessment 2009. In addition, the marginal tax rate of 13% will also be reduced to 12%, which will benefit the middle income group.
- Recruitment costs, such as payments to employment agencies and participation in job fairs, be tax deductible.
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Strengthening The Nation’s Resilience
- To encourage private sector activities, tax treatment on group relief be enhanced by allowing losses for the purpose of offsetting be increased from 50% to 70%.
- An additional RM300mil under the Strategic Investment Fund to further strengthen private investment in Iskandar Malaysia.
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Promoting Venture Capital Companies
- Venture capital companies that invest at least 30% of their funds in start-up, early stage financing or seed capital be eligible for a 5-year tax exemption.
