Financial Budget Malaysia 2010 Highlights

Our Prime Minister just read out the highlights of the 2010 Budget, themed "1Malaysia, Together We Prosper", as follows:

1. An allocation of RM191.5 billion, consisting of RM138.3 billion or 72.2 per cent (operating expenditure) and RM53.2 billion or 27.8 per cent (development expenditure).
Comment: I thought it should be 50%-50% for a developing country?

2. Special payment of RM500 in December 2009 to civil servants from Grade 41 to Grade 54 or its equivalent as well as those on mandatory retirement.
Comment: Consider as an increment for them?

3. Enhancement of tax incentives for healthcare service providers who offer services to foreign health tourists. Income tax exemption of 50 per cent on the value of increased exports will be increased to 100 per cent.
Comment: Good idea, it can create more competition in this industry.

4. Individual taxpayers will be given tax relief on broadband subscription fee up to RM500 a year from 2010 to 2012.
Comment: I love to hear this. I hope there is no term and condition apply.

5. Civil servants are eligible to apply for computer loans once in every three years as compared to once in every five years now.
Comment: So now civil servant will has more loan to pay monthly by changing the computer every 3 years?

6. Subsidies, incentives and assistance amounting to almost RM2 billions to safeguard the interest of farmers and fishermen.
Comment: I hope this budget won't end up become RM2 millions.

7. An allocation of RM9 billion to finance infrastructure projects, including construction of roads and bridges, water supply, sewerage services, rail facilities, ports and sea services as well as airport projects.
Comment: Can't we just focus on less things at one time with the limited budget?

Budget announcement is an important event to stimulate the country economy including stock market.

8. An additional allocation of RM20 million for small-scale Malaysian-Indian entrepreneurs under the Tabung Kumpulan Usaha Niaga (Tekun), on top of the existing RM15-million allocation.
Comment: Government trying to buy Indian's heart? I hope this will makes more Indian upgrade their standard of living.

9. Establishing a RM200-million Creative Industry Fund to finance activities, such as film and drama productions, music, animation, advertisements and local content development. Establishing "Tabung Kebajikan Penggiat Seni" to ensure the welfare of artistes.
Comment: Hmmm...will see.

10. An allocation of RM20 million for 20 schools to be identified as High Performance Schools (SBT) in 2010.
Comment: They will be the same in the end of the day. Why don't spend the budget to build more schools?

11. Awarding national scholarships to 30 "creme de la creme" students strictly based on merit. These scholarship recipients will further their education in world-renowned universities.
Comment: Why 30 only? What's the story behind? Will these top 30 students will be bond from working in the country after graduation?

12. Converting the National Higher Education Fund Corporation (PTPTN) loans to scholarships for students who graduate with first class honours degrees or equivalent beginning 2010.
Comment: Hmmm, this is a brilliant move.

13. Providing a 50 per cent discount on fares for long-distance services of Keretapi Tanah Melayu Berhad (KTMB) to students aged 13 and above beginning Jan 1, 2010.
Comment: I don't get it. To encourage student to go for traveling? Visit other places?

14. Offering a netbook package, including free broadband service, to 100,000 local university students for a start for RM50 per month for two years, effective Jan 1, 2010.
Comment: Hmm, attractive offer. How do our government select these 100,000 students? Based on races or result?

When it comes to budget year, why most citizens only focus on tax cut?

15. An allocation of RM100 million for the PERMATA Programme to implement various programmes which emphasize early childcare and education in an integrated and organised manner.
Comment: Okay, taking care of our future masters.

16. Micro insurance and Takaful coverage for small-scale businessmen which will benefit from coverage ranging from RM10,000 to RM20,000 with premium as low as RM20 per month.
Comment: More protection for SMB businessmen.

17. Establishment of 14 Special Corruption Sessions Courts and four Special Corruption Appeal High Courts.
Comment: Hope it will works out.

18. Imposing RM50 service tax on each principal credit card and charge card, including those issued free of charge, and a service tax of RM25 a year on each supplementary card effective Jan 1, 2010.
Comment: I think I will need to cancel my credit cardS and drill down to 1 card.

19. All ministries and government departments are required to provide day care and education centres for children. For this, an allocation of RNM200,000 will be made available for every ministry and government department to establish day care centres.
Comment: Okay, taking care of our future masters.

20. Reduction of the maximum individual income tax rate from 27 percent to 26 percent, effective from the year of assessment 2010.
Comment: Why set it at 27% at first? Are they deserve to pay less?

Apart from child and senior citizen care, government also pay attention to citizen's technology update.

21. Personal relief for individual tax payers to increase from RM8,000 to RM9,000 effective from the year of assessment 2010. This means that each individual tax payer will enjoy an increase of RM1,000 in disposable income.
Comment: What a good move.

22. About 50,000 hardcore poor households registered with eKasih and 4,000 Orang Asli households will be given assistance to achieve the target of zero hardcore poverty in 2010. An allocation of RM41 million will be provided to improve the income and quality of life of the Orang Asli community.
Comment: Okay, protection for the original residents.

23. An allocation of RM48 million to implement urban poverty eradication programmes, including welfare assistance and house rental payments. The Ministry of Federal Territories shall now be known as the Ministry of Federal Territories and Urban Wellbeing.
Comment: Hmmm, it might takes many years to work out.

24. The National Housing Department to provide 74,000 low-cost houses to be rented in 2010.
Comment: Okay, good news for low income earners.

25. EPF to launch a scheme that enables contributors to utilise current and future savings in Account 2 to enable them to obtain higher financing to buy higher value or additional houses.
Comment: Okay, more cash flow option for property investors.

26. An allocation of RM224 million to the disabled for the implementation of the Rehabilitation In The Community Programme and an allocation of RM174 million for senior citizens, including assistance as well as the construction and upgrading of two Rumah Seri Kenangan.
Comment: Okay, taking care of the senior residents.

27. Increasing the allowance rate from RM50 to RM150 a month for every disabled child enrolled in NGO-organised special schools effective Jan 1, 2010.
Comment: Okay, taking care of disabled people.

How about yourself? Have you done your personal financial budget 2010?

28. Establishment of 1Malaysia Retirement Scheme for the self-employed, such as taxi drivers, hawkers, farmers and fishermen, to be administered by the EPF.
Comment: Good for them.

29. Effective immediately, employees' EPF contribution will revert to 11 per cent on a voluntary basis.
Comment: Okay, just don't keep changing every year. It will be a mess.

30. Construction of 510 km of rural roads and 316 km of village roads with an allocation of RM857 million, including roads to be constructed in Kapit, Lawas and Simunjan in Sarawak as well as Kinabatangan, Kota Belud and Keningau in Sabah.
Comment: This has been announced earlier on. Please build quality roads, not the roads just look like a road.

Well, nothing surprise about our financial budget 2010, I'm not sure about other developing countries, but we will work hard together to implement our national target.

What do you think?
Cheers.