KUALA LUMPUR: The following is the essence of the 2010 Budget set out the Prime Minister, Datuk Seri Najib Razak, in the House of Commons today.
* The Malaysian economy is expected to grow 2-3 percent in 2010
* Mining is expected to increase 1.1 percent, manufacturing 1.7 percent, agriculture 2.5 percent, construction 3.2 percent and 3.6 percent.
* Private consumption grew 2.9 per cent while 3.4 per cent of private investment
* Income per capita rose 2.5 per cent to RM24, 661
* TNB will spend RM5 billion to implement the generation, transmission and distribution of electricity in 2010
* Public-private joint venture will encompass the complex immigration, customs and quarantine at the Bukit Kayu Hitam integrated, the construction of six campuses and centers UiTM Matrade.
* 1Malaysia Development Ltd (1MDB) will establish a corporate social responsibility funds amounting to RM100 million as initial fund the activities of the community.
* The Government will allocate RM899 million to boost the tourism industry.
* The government will increase tax incentives to providers of health care prkhidmatan offering health services to foreign tourists with the exception of income tax increased from 50 per cent of export earnings increased to 100 percent.
* Taxpayers are granted an exemption from individual income tax on broadband subscriptions up to RM500 per year from 2010 to 2012.
* Civil servants are allowed to borrow to buy a computer every three years to a maximum of RM5, 000 as compared to once every five years.
* Develop Halal Act to the Council of Islamic states.
* Incorporation Halal Industry Development Corporation (HDC) as the lead agency under Miti.
* Accelerate the Jakim Halal certification in collaboration with institutions antarabanga to obtain standard certification such as HACCP and GMP.
* Provide RM24 million to develop system products antipenyeludupan Halal products in three main entrances and the three major ports.
* Allocating RM137 million for upgrading and improving infrastructure and drainage in the rice bowl involving 180,000 farmers.
* Allocate RM70 million to implement Paya Peda Dam Project in the City to increase water supply capacity for Rice Irrigation Scheme in Besut.
* Allocate RM82 million for the modernization of the aquaculture industry and the implementation of entrepreneurial training scheme for animal aquaculture, with emphasis on seed production of fish and ornamental fish.
* RM149 million allocation for the agriculture industry to develop foods such as meats, vegetables, organic farming, herbal, seaweed and swallow nests.
* Allocation of RM58 million to develop basic infrastructure and establish farms for supply chain and goat meat production.
* Consortium Felda, Felcra and Risda will be established by the end of 2009, with paid-up capital of RM300 million to RM100 million each contributing agency.
* Government to provide subsidies, incentives and assistance amounting to RM2 billion for farmers and fishermen to protect their interests.
* Provision of RM9 billion to finance infrastructure projects, with RM4.7 billion for road and bridge projects, RM2.6 billion for water supply and sewerage services, RM899 million for the rail facilities, RM820 million for port and marine services as well as RM276 million to the project field fly.
* Integrating the SME fund 79 to 33 to facilitate access to financing SMEs. Will be coordinated by the SME Corp.
* Allocate RM350 million for SME Corp, a RM200 million soft loan to SMEs, RM100 million to increase capacity and balance penjenaman and promotion.
* Financial institutions approved the macro financing at an average of six days and delivery within four days.
* Allocate RM538 million for the implementation of SME programs to RM281 million to the state economic development corporation, RM200 million and RM57 million for Tekun to buy business premises, infrastructure and so on.
* RM149 million allocation for the agriculture industry to develop foods such as meats, vegetables, organic farming, herbal, seaweed and swallow nests.
* Allocation of RM58 million to develop basic infrastructure and establish farms for supply chain and goat meat production.
* Consortium Felda, Felcra and Risda will be established by the end of 2009, with paid-up capital of RM300 million to RM100 million each contributing agency.
* Government to provide subsidies, incentives and assistance amounting to RM2 billion for farmers and fishermen to protect their interests.
* Provision of RM9 billion to finance infrastructure projects, with RM4.7 billion for road and bridge projects, RM2.6 billion for water supply and sewerage services, RM899 million for the rail facilities, RM820 million for port and marine services as well as RM276 million to the project field fly.
* Integrating the SME fund 79 to 33 to facilitate access to financing SMEs. Will be coordinated by the SME Corp.
* Allocate RM350 million to RM200 million SME Corp with soft loans to SMEs, RM100 million to increase capacity and bankinya penjenaman and promotion.
* Financial institutions approved the macro financing at an average of six days and delivery within four days.
* Allocate RM538 million for the implementation of SME programs to RM281 million to the state economic development corporation, for RM200 million and RM57 million TEKUN to buy business premises, infrastructure and so on.
* Introduce the basic insurance and takaful scheme for motor insurance in the mid-2010.
* Expand coverage of micro-takaful and insurance to small businesses, with the benefit of protection from RM10, 000 to RM20, 000, at a premium as low as RM20 per month.
* The stock market will be liberalized to enhance efficiency.
* Liberalize commission sharing arrangement between stockbrokers and remisiers to allow flexible sharing of brokerage at a minimum rate of 40 per cent and the full liberalization of the partnership komisten effect January 1, 2011.
* Active participation of 100 per cent foreign equity in the financial planning and corporate finance.
* All listed companies will offer the e-dividend and share pemerokeran company provides e-payment options.
* The existing tax incentives for financial services, especially in Islamic finance, has been extended until 2015.
* 20 percent exemption from stamp duty on the development of Islamic financial instruments.
Exemption from tax to the level of bank profits dariapda operations overseas.
* The double deduction for expenses incurred to promote Malaysia as an international financial center.
* Deduction for expenses incurred for setting up Islamic stockbroking companies.
* Deduction for expenses incurred for the issuance of securities.
* The Government will encourage all banks and financial institutions that comply with sharia as of Bank and Bank Islam to offer the Ar-Rahnu scheme.
* The Government will ensure that regional development corridors were developed on schedule. So far 126 out of 195 projects in various stages of implementation planning. The planned investment of RM221 billion has overcome the Ninth Malaysia Plan spending target of RM145 billion.
* Government has allocated RM3.5 billion for basic facilities and infrastructure and training and socio-economic projects to support the implementation of private sector projects.
* The Government is now in the early stages of completing the review the implementation of Goods and Services Tax (GST). Rates will be deducting from the sales and service tax.
* Income tax for 2010 based on the income earned from 2009 will be allowed to be paid in installments within five years.
* Of five percent will be levied on profits from disposal of property effective Jan 1, 2010.
* RM50 service tax levied on all major credit cards and charge cards as well as RM25 a year for each additional card from January 1, 2010.
* RM100, 000 is charged for each AP to the AP card opens effect January 1, 2010. Part of the proceeds will be channeled to fund the development of Bumiputera in the automotive sector.
* To introduce the basic and takaful insurance scheme for motor insurance in the mid-2010.
* To expand the coverage of micro and takaful insurance for small business to benefit from the protection of RM10, 000 to RM20, 000 with a premium as low as RM20 per month.
* Stock market liberalized for efficiency.
* Allow 100 per cent foreign equity participation in corporate finance and financial planning.
* All companies listed will offer the e-dividend and stock broking companies providing e-payment options.
* Current tax incentives to develop the financial services, especially in Islamic finance, has been extended until 2015.
Exemption from stamp duty 20 preatus on Islamic financial instruments.
Exemption from tax on profits earned by banks operating overseas.
* Effective January 1, 2010, the government agreed to allow government agencies to maintain 50 per cent of rent received, while the remaining 50 percent entered in government procurement.
* The Government would like the fuel subsidy management system in early 2010.
* Government proposes that the maximum income tax rate reduced to 26 per cent from 27 per cent effective from year of assessment 2010.
* The maximum tax rate of cooperatives will be reduced to 26 percent while the tax rate for non-resident individuals will be reduced to 26 percent.
* Pengecualaian private cukan will be increased to RM9, 000 from RM8, 000 with effect from assessment year 2010.
* Government proposes that income tax for employees of Malaysia and foreigners to live and work in Iskandar Malaysia by 15 percent compared to a maximum 26 percent for the whole country.
* RM14.8 billion allocated for managing, developing and upgrading hospitals and clinics.
* The Government will publish 1Malaysia Sukuk worth RM3 billion.
* The Government will establish 1Malaysia Retirement Scheme managed by the EPF. - Bernama
