Budget 2023: Economy Driven Initiative Takes Centre Stage

Malaysia’s economy is expected to grow by 4% to 5% in 2023 after posting a growth rate of between 6.5% and 7% this year.

“Despite a softening world economic growth and trade activities, the economy is projected to grow between 4% and 5% in 2023, supported by steady domestic demand, a vibrant services sector, implementation of new and ongoing high multiplier infrastructure projects and sustained exports.

“The government will continue to monitor global developments as well as implement appropriate policies and reform initiatives to strengthen the economy and fiscal position to withstand potential external shocks, improve people’s livelihoods and enhance business resilience,” said the Economic Outlook for 2023.

In line with the projected growth, Budget 2023 has presented allocations to support the various sectors including the welfare of the people.
Salient points of the budget in terms of sum allocations include:

The MyStep programme will provide 50,000 jobs including 15,000 in the public sector and 35,000 in GLCs.

Total holding limit for ASB and ASB2 increased to RM300,000 compared to RM200,000 previously.

RM272.3bil allocated for management spending, RM95bil for development, RM5bil under the Covid-19 Fund and RM2bil as contingency savings.

The government may extend the statutory debt limit of 65 per cent of GDP in the medium term after the expiry of Act 830 on Dec 31, 2022.

RM50 million allocated for Cradle Fund.

RM472 million to improve rural electric infrastructure.

RM2.55 billion for Sabah and Sarawak.

RM80 million for Socso health screening programme.

RM80 million for the PEKA B40 programme.

The government has allocated RM305mil for youths under BSN and Mara to take loans of up to RM50,000 to start businesses. Over 10,000 youth expected to benefit.

Over 400 million in allocation for Nadma.

RM500 million to widen rivers in Kelantan.

RM2 billion to build retention ponds.

RM562 million to implement the Sabo dam project.

RM15 billion for flood mitigation initiatives.

Government sets aside RM10mil to subsidise the cost of obtaining Class B2 motorcycle licences through the Skim Tekum MobilePreneur programme.

The government will hold Keluarga Malaysia sales offering essential items at more affordable prices.

RM200 million to subsidise logistics costs for the distribution of essential goods.

RM45 billion Semarak Niaga funds for entrepreneurs.

One-off RM1 billion grants to all registered MSMEs and taxi drivers. To benefit one million recipients.

Petronas to contribute RM2 billion to the National Trust Fund (KWAN).

RM734 million for MySalam programme. This will benefit 1.5 million people from the B40 group.

RM10 million to support the made in Malaysia campaign.

RM15 million to support local franchises.

EPF to invest RM45 billion in the domestic market.

RM20 million to set up urban transformation centres (UTC).

RM50 million to boost Bumiputera commercial property ownership.

Tax incentives to attract investors.

RM330 million for electric vehicle (EV) infrastructure.

RM45bil for Semarak Niaga Keluarga Malaysia

Government to provide incentives for multi-national companies to establish operations in Malaysia.

Electric bill subsidy up to RM40 for those with income up to RM1,169.

Previous articleDefence Ministry Obtains Allocation Of RM17.4bil Under Budget 2023
Next articleHealth Ministry Receives RM36.1 Billion Under Budget 2023

LEAVE A REPLY

Please enter your comment!
Please enter your name here