Finance Minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz today presented the 2023 Budget in the Dewan Rakyat with the theme “Malaysian Family, Prosperity Together”. The presentation of the 2023 Budget focuses on the government’s efforts in strengthening economic recovery efforts as well as preparations to protect the interests of the people in the face of economic instability, the possibility of a global recession next year and dealing with the impact of Covid-19.
7 Key Focuses of Budget 2023: Summary of Budget 2023
The government allocated as much as RM372.3 billion for Budget 2023 compared to the allocation of RM332.1 billion in last year’s budget with the 3R approach – responsive, responsible and reformist. The 2023 budget is designed to focus on four agendas, namely the well-being of the people, business continuity, economic prosperity and the efficiency of government services.
Budget 2023 is based on three priority areas – strengthening the momentum of economic recovery, strengthening economic resilience, and implementing comprehensive reforms in economic and social aspects for businesses, priority sectors and the country. Here are some of the main focuses of Budget 2023 for your reference:
Focus 1: Group B40
The 2023 budget will focus on efforts to protect the welfare of the people from the B40 group as follows:
- The Social Welfare Department (JKM) has provided various forms of monthly assistance to the poor such as Elderly Assistance, Child Assistance and Care Assistance for the Disabled and Homeless Chronic Patients;
- The plight of the poor is given priority with an allocation of RM2.5 billion in 2023;
- The electricity bill subsidy of up to RM40 is extended according to the Income Line Income (PGK) of Food ie households with an income of RM1,169 and below;
- Malaysian Family Assistance: RM2,500 one-off assistance to eligible households;
- Additional assistance of RM500 to single mothers or fathers with dependent children – single mothers or fathers are eligible to receive a maximum assistance of RM3,000;
- RM1 billion for the Malaysian Family Extreme Poverty Eradication Program.
Focus 2: Group M40
The 2023 budget also gives priority to middle-class households. The government is committed to increasing disposable income that can be used for the M40 group as follows:
- The resident individual income tax rate is reduced by two percentage points for taxable income between RM50,000 to RM100,000;
- The M40 e-Beginner initiative will be implemented which is an e-Wallet credit offer of RM100 to the M40 group with an annual income of less than RM100,000.
Focus 3: Women and Children
The government is also committed to giving emphasis to women and children. Here are some of the main focuses that need attention:
- The Anti-Sexual Harassment Tribunal will be established in 2023 to eradicate all forms of sexual harassment – The Anti-Sexual Harassment Tribunal will be established in 2023;
- To deal with mental health and domestic violence issues, the Local Social Support Center will be strengthened;
- The government will increase screening tests through subsidies for mammogram tests and cervical cancer screening programs for women with an allocation of RM11 million;
- RM235 million in funding to increase more business capacity among women and improve marketing strategies – BSN Semarak-Nita Scheme, Tekunita TEKUN, DanaNITA MARA, and Biz Lady Bank Rakyat.
- The Securities Commission will introduce a special training program to improve women’s skills, empower women’s role at the corporate leadership level;
- Encouraging women to return to work after a career break – exempting income tax on income received from assessment year 2023 to 2028;
- The government agreed to extend the tax relief until the assessment year 2024 of RM3,000 on the payment of registered TASKA and TADIKA fees.
Focus 4: Youth
In addition, the government also gives priority to the youth. Among the benefits announced in the presentation of the 2023 Budget are as follows:
- The government will provide employment incentives under SOCSO to employers who employ youth aged 18 to 30 who have been unemployed for more than three months;
- RM305 million is available as a special loan facility to encourage young business individuals to do business through SME Bank, TEKUN, MARA, BSN and Agrobank;
- The government agreed to bear the fees to obtain taxi, bus and e-hailing licenses under the MyPSV program and to bear the fees for the B2 class motorcycle license driving test specifically for the B40 group;
- e-Pemula will continue by increasing the amount of credit to RM200.
Focus 5: Social Protection
The following are among the benefits announced in the presentation of the 2023 Budget for aspects of social protection:
- The government will start making SKSPS contributions mandatory for all self-employed sectors, especially high-risk sectors in stages;
- EPF voluntary contribution limit will be increased from RM60,000 to RM100,000 per year – to encourage, the Government widens the scope of tax relief for life insurance premiums or life takaful contributions to cover voluntary contributions to EPF up to RM3,000;
- The total holding limit of Amanah Saham Bumiputera (ASB) and ASB2 was increased to RM300,000 compared to RM200,000.
Focus 6: Cost of Living
As for the cost of living, the following aspects are given attention:
- The government allocated more than RM55 billion specifically for subsidies, aid and incentives.
Focus 7: Home Ownership
The 2023 budget also focuses on home ownership. Among the things that can be used are as follows:
- To encourage first home ownership, stamp duty for homes worth RM500,000 and below is fully exempted until the end of 2025;
- The stamp duty payment exemption will be increased from 50 to 75 percent until December 31, 2023;
- Transfer of real estate ownership on the basis of love between families such as from husband to wife, father to child or grandfather to grandson is only subject to a stamp duty of RM10;
- Allocations for new construction and renovation of houses in rural areas will be increased, the ceiling rate of assistance for new construction of houses will also be increased;
- The People’s Housing Program (PPR) is provided with an allocation of RM367 million ringgit, while the People’s Friendly House Program involves the construction of 4,250 housing units with an allocation of RM358 million;
- The Housing Loan Guarantee Company (SJKP) provides Government guarantees on housing loans mainly to help borrowers without fixed income such as e-hailing workers.
Hopefully this sharing of the essence of Budget 2023 or Budget 2023 can be used as a guide by Malaysians. Also, if you have any questions related to personal accident insurance, visit the Qoala website for more info. Compare the prices and benefits of personal accident insurance from several available insurance companies and get the best and most comprehensive personal accident insurance coverage for your protection.