Malaysia Budget 2017 Full Speech & Highlights

Budget 2017 yesterday Oct 21, 2016 4pm unveiled by Malaysia’ PM as a “commitment budget” & not an “election budget”

malaysia-budget_2017

Budget 2017 Overall

  • Total budget 260.8b (+3.4% from 252.2b) – excluding 2b contingency fund
    • Operating Exp: 214.8b
    • Development Exp: 46.0b
  • Revenue 219.7b (+3% from 213.3b)
  • Budget deficit 40.3b (3% of GDP)

 

Taxes

  • GST not raised (30b collected so far since implementation 2015 Apr 1)
  • Taxpayers 2.1m vs total workforce 14.6m

 

Subsidies

  • Fuel 10b (toll, public transport, cooking gas)

 

Key Highlights – Income/Investment

  • BR1M Payout increase
    • Individual <2k: 450 (+50)
    • Household <3k: 1,200 (+150)
    • Household 3-4k: 900 (+100)
  • PRS Youth Incentive one-time increase from 500 to 1,000 (over 2 years of 1,000 investment)
  • More low-cost/affordable housing
  • 100% stamp duty exemption (previously 50%) for 1st time housebuyers property <300k (Jan 1, 2017 – Dec 31, 2018)
  • Property above 1m transfer stamp duty increased to 4% (+1%) after Jan 1, 2018
  • Civil servants: 500 bonus (retirees 250), loans improvement (housing, motorcycle, computer/smartphone), full pay study leave, child quarantine leave
  • Taxi drivers: individual permits, Iriz car purchase rebate 4k, loan 5k, UBER incentives, SOCSO

 

Key Highlights – Taxes/Expenses

  • 2.5k lifestyle tax relief (reading materials inc newspaper, PCs, sports equipment, gym membership combined category)
  • 1k tax relief breastfeeding equipment (claimable every 2 years starting from 2017 assessment)
  • 1k tax relief children aged 6 below in registered nurseries/pre-school
  • PTPTN loan discount (Oct 22, 2016 – Dec 31, 2017)
    • Full settlement: 15%
    • Min single payment 50% outstanding: 10%
    • Regular repayment salary deduction/direct debit: 10%

 

Key Highlights – Lifestyle/Health

  • Hospitals new/upgrade: Perlis, Kuching, Mukah, Jempol, Muar & Johor Bahru
  • Broadband speed doubled at no extra cost from Jan 1, 2017 (Govt unis targeted speed 100Gbps)
  • Free mammogram & HPV vaccination (30m allocation)

 

Key Highlights – Business/Tourism

  • Lower tax rate 18% (previously 19%) & incentives for SME businesses
  • eVisa scheme for South Asian & Balkan countries (Current: China, India, Nepal, Myanmar, Bangladesh)

 

Key Highlights – Other

  • Amendment to Bankruptcy Act 1967 to be more easily discharged from bankruptcy (social guarantors, chronic disease, elderly)

 

Budget 2017 Full Speech

 

BR1M Over the Years (Source: MalayMail)

BR1M

 

Budget 2017 at a glance (Source: MalaysiaKini)

budget-2017-glance

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