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Budget 2014: Highlights of PM's speech


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KUALA LUMPUR: Prime Minister Datuk Seri Najib Tun Razak is unveiling the 2014 Budget at Parliament. Follow The Star Online for highlights of the speech.

Highlights:

1. The theme for Budget: Strengthening Economic Resilience, Accelerating Transformation & Fulfilling Promises with 5 main thrusts.

- Thrust 1: Invigorating Economic Activity;

- Thrust 2: Strengthening Fiscal Management;

- Thrust 3: Inculcating Excellence in Human Capital.

- Thrust 4: Intensifying Urban and Rural Development;

- Thrust 5: Ensuring Well-Being of the Rakyat




2. For 2013, domestic economy is expected to expand between 4.5% and 5%. Growth supported by private investment, increasing 16.2% to estimated RM165bil.

3. Nett FDI was higher at RM18.2bil in 1st half of 2013, compared with RM15.9bil during the same period in 2012.

4. Private & public consumption expected to grow 7.4% and 7.3% respectively mainly supported by strong domestic economic activity.

5. Export of goods are expected to grow at 2.5%.

6. In 2014, construction sector is expected to grow at 9.6% and followed by services sector at 5.7%.

7. Unemployment rate for Budget 2014 is estimated at only 3.1% whereas inflation rate remains lowest at 2% to 3%.

8. The per capita income for 2014 is expected to reach RM34,126. That is 37% higher than RM24,879 in 2009.

9. We are confident of achieving the target per capita income of RM46,500 (USD15,000) in 2020.

10. It is even possible that we will achieve developed nation status much earlier than 2020.

11. Budget 2014 will allocate a total of RM264.2bil to implement programmes & projects for the rakyat’s well-being & development.

12. In 2014, the Federal Government revenue collection is estimated at RM224.1bil, an increase of RM4bil from 2013.

13. The Federal Government fiscal deficit will further decline from 4% of GDP in 2013 to 3.5% in 2014. This indicates the commitment towards fiscal consolidation to further strengthen the financial position of the nation.

14. Private investment is expected to reach RM189bil (17.9% GDP) in oil & gas, textile, transportation & property.

15. Public investment is expected to reach RM106bil in 2014 Budget.

Projects to be implemented: West Coast Expressway from Banting-Taiping (316KM); Double-tracking projects Ipoh-Padang Besar & Gemas-JB.

In the oil & gas sector, among projects to be undertaken by Petronas include the Sabah Ammonia Urea Project (SAMUR) in Sipitang. The integrated oil & gas production development project in Kebabangan, the regasification plant project in Lahad Datu, Sabah; and RAPID in Pengerang, Johor, which is the largest investment in Malaysia.

16. The government will continue to encourage investment in 5 regional economic corridors. As at 2012, RM124 billion investment realised. For the first 9 months of 2013, all regional corridors attracted committed committed investment of RM53.4 billion with 50% realised.

17. For 2014, the government will provide RM1.6 billion for development in the 5 regional corridors.

18.. The services sector is the key contributor to economic growth and has huge potential for further development.

19. Govt will launch Services Sector Blueprint in 2014 to outline strategies, measures & identifies potential subsectors.

20. Govt will formulate a Logistics Sector Master Plan to provide strategic direction for development of logistics infrastructure & supply chain.

21 RM1.2 billion allocated for operating and development expenditure in 2013 and 2014 to implement Visit Malaysia Year 2014 programmes, targeting 28 million tourists. To make Malaysia as the destination of choice, we will encourage investment to build new 4 and 5 star hotels.

24. The government has implemented the High-Speed Broadband (HSBB) project under the National Broadband Initiative. To expand coverage in major towns, we will implement 2nd phase of HSBB in collaboration with private sector involving RM1.8bil investment. This is expected to provide more coverage in urban areas, benefiting 2.8 million households. Internet speed will be increased to 10 Mbps.

25. For Sabah & Sarawak, to enhance the internet speed coverage, underwater cables will be laid over 3 years - RM850 million.

26. GST to be enforced 1 April 2015 at rate 6%. This is lowest in Asean. One-off payment of RM300 to BR1M when GST is implemented.

27. Tax deduction for companies that invest to acquire technology platform in bio-based industry. Exemption on import duty on R&D equipment for companies that invest in pilot plants for the purpose of pre-commercialisation in M’sia.

28. Government plans to increase its contribution in 1Malaysia Pension Scheme from 5% to 10%, or from a maximum of RM60 to RM120 per year; effective Jan 1, 2014 to end-2017.

29. 1Malaysia Entrepreneurs (1MeT) will be implemented to give the entrepreneurs exposure in business.

30. To encourage graduates to do business, RM50 million is allocated under Tabung Usahawan Siswazah.

31. The govt is committed to reducing the fiscal deficit gradually, will ensure Federal debt level remain low & not exceed 55% of GDP.

32. RM50 million allocated under Graduate Entrepreneurship Fund to provide soft loans of up to RM500,000 at 4% interest rate with a view to reducing graduate unemployment.

33. To encourage Minimum Wage Policy compliance, further tax deduction proposed with regard to the difference in the wages paid by employers in 2014.

34. RM100mil allocated for creation of Night Market Traders Entrepreneur Scheme; soft loans to carry 4% interest rate, with maximum loans of up to RM30,000.

35. Establishment of Integrity Management Unit in each ministry to enhance integrity; officers from Malaysia Anti-Corruption Commission to be represented in the unit.

36. Government to conduct audit on projects valued at more than RM100 million during their implementation phase.

37. To facilitate tax payers with employment income whose monthly tax deductions (MTD) have been made, it is proposed that they are not required to submit tax returns if satisfied their MTD is a final tax; proposal effective from assessment year 2014.

38. Subsidy programme to be gradually restructured; a portion of savings from restructuring to be distributed in the form of direct cash assistance with the other half to finance development projects.

http://www.thestar.com.my/News/Nation/2013/10/25/budget-2014-highlights-PM-speech.aspx