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Malaysia Budget 2012 revealed

Last year our FDI growth was the strongest in Asia and in the first 6 months of this year have already reached RM21.2bil




- In 2012, private investment is forecast to climb 15.9%, supported by foreign and domestic investment



- GDP in the first 6 months of 2011 was 4.4%, driven by strong domestic consumption



- In 2011, the economy is forecast to grow by 5-5.5%



- Private and public investment are forecast to increase by 15.9% and 7%, supported by foreign investment, the ETP and 10MP



- In 2012, the service sector is expected to grow 6.5%, the construction sector 7% and GDP is forecast to be between 5 and 6%



- Budget 2012 allocates RM232.8bil for Government plans, including RM181.6bil for management and RM51.2bil for development



- RM29.8bil has been allocated for investment in infrastructure, industrial and rural development



- RM13.6bil has been allocated for the social sector, including education and training, welfare, housing and community development



- Total revenue for 2012 is forecast to increase 1.9% to RM186.9bil and the deficit to decrease to 4.7% of GDP from 5.4% in 2011



- The theme for Budget 2012 is “National Transformation Policy: Welfare for the Rakyat, Well-Being of the Nation”



- We will focus on accelerating investment and further liberalise 17 services sub-sectors, in places enabling 100% foreign equity.



- RP2 will be implemented in 2012, and it will be allocated RM98.4bil, to be split evenly between 2012 & 2013



- RP2 main projects will include the East Coast Highway from Jabor to T’ganu and road upgrades from Kota Marudu to Ranau



- RM18bil of the RM20bil PPP Facilitation Fund will be used for high impact projects, with RM2 billion for bumiputera entrepreneurs



- In 2012, the Government will allocate RM978mil to accelerate the development in five regional corridors



- The Treasury Management Centre will be established and offer incentives to develop M’sia as a competitive financial centre



- We will develop the Kuala Lumpur International Financial District, with incentives including income tax exemptions for firms



- Income tax exemptions for non-ringgit sukuk issuance and transactions will be extended for another 3 years



- To promote the development of Exchange Traded Funds products I-VCAP will provide RM200mil for Shariah-compliant ETFs



- Felda GVH will be listed on Bursa Malaysia by mid-2012 to raise funds for the company to become a global conglomerate. Felda settlers are expected to receive a windfall, and the amount will be announced before listing



- A RM2bil shariah-compliant SME Financing Fund managed by selected Islamic banks will be established in 2012



- A RM100mil SME Revitalisation Fund offering loans up to a maximum of RM1mil for entrepreneurs will be available from Jan 2012



- Full exemption of import duty and excise duty on hybrid cars and electric cars will continue to be given until 2013



- To promote tourism, the Langkawi Five Year Tourism Development Master Plan will be launched with an allocation of RM420mil



- The real property gains tax will be reviewed so it doesn’t jeopardise the ability of low- and middle-income groups to buy homes



- The Malaysia Healthcare Travel Council will be privatised to promote and develop Malaysia as a healthcare destination



- Budget focuses on developing human capital, creativity and innovation and 2012 will be the National Innovation Movement year



- The Govt has allocated RM100mil promote innovation including the 1Malaysia Award (C1PTA) for innovative student inventions



- To enable SMEs to commercialise research products a Commercialisation Innovation Fund totalling RM500mil will be established



- RM50.2bil will be allocated to the education sector so that it can continue to develop talented, creative and innovative people



- RM1bil will be provided through a special fund for the construction, improvement and maintenance of schools



- We will abolish payments for primary and secondary education, making these free for the first time in our history



- Private schools registered with the Education Ministry will be given incentives including an Investment Tax Allowance



- The Govt will give tax exemption for contributions to educational institutions and all places of worship



- To encourage private sector human capital development incentives including a double deduction on scholarships will be offered



- Budget 2012 introduces a Rural Transformation Programme, so that rural areas can attract private investment and create employment



- RM5bil to develop rural infrastructure, including RM1.8bil to the Rural Road Programme & Village-Link Road Project



- RM500mil to expand the programme to supply clean water to the rural community in Sabah



- RM400mil to upgrade the water supply infrastructure in selected Felda areas



- To provide greater access to bank services for the rural population, Bank Simpanan Nasional will appoint agents in rural areas



- RM90mil for the Orang Asli for basic necessities, including the expansion of the clean water supply project. For the Orang Asli affected by the landslides at Sungai Ruil, RM20mil is provided for their relocation to new homes



- 600,000 Govt pensioners will benefit from an additional annual pension increment of 2%



- Civil servants get pay rise between RM80 to RM320



- Govt will extend the compulsory retirement age from 58 to 60 years old to optimise civil servants’ contribution



- Civil servants will be offered tuition fee assistance for part-time studies, including 5,000 masters and 500 doctoral scholarships



- A special programme will be introduced for 175,000 army personnel who are not eligible for pensions



- RM3,000 will be given to ex-members of the special constable and auxiliary police as well as widows and widowers



- The Govt is mindful of the plight of the rakyat due to rising food prices and will take measures to address this



- The National Agro-Food Policy 2011-2020 will be launched and RM1.1bil allocated for the development of the agriculture sector



- In the spirit of “People First,” all subsidies, incentives and assistance totalling RM33.2bil will be continued



- 500,000 will benefit from KAR1SMA, which provides assistance to poor senior citizens and children and disabled people



- My First Home Scheme will be expanded to increase the limit of house prices from a maximum of RM220,000 to RM400,000



- Govt will identify areas in the vicinity of MRT, LRT and other public transport to be developed by PR1MA



- Govt will continue to implement the Program Perumahan Rakyat by building 75,000 units of affordable houses



- Govt will establish the Special Housing Fund for Fishermen to build and refurbish houses


Here is the posting from The Star Online (http://thestar.com.my/news/story.asp?file=/2011/10/7/nation/20111007162147&sec=nation)



Re-post first, talk about it later… and if you want to refer for Budget 2011, click here (http://blog.marccus.net/2010/10/malaysia-budget-2011-revealed/)


From : http://blog.marccus.net/2011/10/malaysia-budget-2012-revealed/

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