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16 Things to know about Malaysia’s #Budget2020

16 Things to know about Malaysia’s #Budget2020

Promises for the new year

Text: Ronn Tan

Image: Getty Images

Here are some of the highlights from Malaysian Finance Minister Lim Guan Eng’s Budget 2020 speech

 

1. A total of RM292 billion (5.6 percent lower than 2019) allocated for 2020 with RM241 billion for operational expenditure and RM56 billion for development.

 

2. E-sports allocation to increase by RM20 million due to high potential.

 

3. RM210 million to be expedited by government for digital infrastructure establishment in public buildings, such as schools.

 

4. One-time RM30 digital stimulus to be offered to qualified Malaysians above the age of 18 with annual income of less than RM100,000 to boost use of e-wallets.

 

5. MCMC to set aside RM250 million—provide broadband access via satellite technology to improve connectivity in rural Malaysia, especially Sabah and Sarawak.

 

6. Minimum wage proposed to be increased to RM1,200 in main cities.

 

7. Review of the Employment Act 1955 to include increasing maternity leave to 90 days from 2021, increasing overtime qualification for those earning up to RM4,000 a month, improving sexual harassments complaint system, and enforcing provisions against discrimination in jobs according to race, religion, or gender.

 

8. Increment from RM652 million in 2019 to RM735 million in 2020 allocated for maintenance of schools.

 

9. RM500 incentive to be given to fresh graduates on top of their salaries every month for two years with employers given RM300 each month throughout the same period.

 

10. RM500 incentive to be given to women aged between 30 and 50 years who return to workforce after at least a year.

 

11. Depending on sector, Malaysians replacing foreigners in low-skill jobs to get RM350 or RM500 every month for two years. During the same period, RM250 to be given to employers each month.

 

12. To meet the goals of Visit Malaysia Year 2020, RM1.1 billion to be set aside for the tourism and culture ministry.

 

13. Government has no intention to reintroduce the Goods and Services Tax (GST).

 

14. National Fiberisation and Connectivity Plan to utilise public-private partnership approach involving a total investment of RM21.6 billion.

 

15. Digital Service Tax will come into effect on 1 January 2020—affecting services such as Netflix and Spotify, digital advertising offered by Google, as well as digital software and games distribution companies such as Steam.

 

16. RM445 million to be allocated to improve access to financing, business premises preparation, and entrepreneurial training to support bumiputera entrepreneurship development.

 

You can read the whole Budget 2020 speech here.