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LGE tables Budget 2020

  • Finance Minister Lim Guan Eng tabled the 2020 Budget at the Dewan Rakyat today. Photo courtesy: Bernama
  • Finance Minister Lim Guan Eng tabled the 2020 Budget at the Dewan Rakyat today. Photo courtesy: Bernama
  • Finance Minister Lim Guan Eng tabled the 2020 Budget at the Dewan Rakyat today. Photo courtesy: Bernama

KUALA LUMPUR, Oct 11 (Bernama) -- Finance Minister Lim Guan Eng has started tabling Budget 2020 in the Dewan Rakyat.

Lim began his much awaited budget speech at 4.05 pm.

Prime Minister Tun Dr Mahathir Mohamad, Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail, Cabinet ministers and MPs were present to follow the budget presentation.

The budget presentation is being broadcast live by local TV stations.

Budget 2020, themed “Driving Growth and Equitable Outcomes Towards Shared Prosperity", is the second budget of the Pakatan Harapan government after taking over Putrajaya in May 2018.

The following are some of the highlights of the Budget:

- Government to allocate RM30 million for the production of glutinous rice in Langkawi.

- RM15 million allocation for independent Chinese high schools and RM50 million for Chinese primary schools.

- Manufacturing sector is expected to grow 4.1% by 2020, while construction sector is to grow 3.7%.

- RM735 million proposed for school maintenance and upgrading works.

- Education ministry to receive largest allocation of RM64.1 billion in 2020, from RM60.2 billion in 2019.

- The government proposes to increase minimum monthly wage to RM1,200 in major cities in 2020.

- Government to boost use of e-wallets, offering one-time RM30 digital stimulus to qualified Malaysians aged 18 and above with annual income less than RM100,000.

- Government to introduce 5G ecosystem development grant worth RM50 million.

- Total federal government debt and liability exposure estimated at RM1.17 trillion or 77.1% of GDP as at end-June 2019.

- The services sector is expected to expand by 6.1% in 2019 and 6.2% in 2020.

- Income tax exemption of up to 10 years to electrical and electronic (E&E) companies investing in selected knowledge-based services.

- Government has allocated up to RM1 billion worth of customized packaged investment incentives annually over five years to attract targeted Fortune 500 companies and global unicorns in high technology, manufacturing, creative and new economic sectors.

- A total of RM297bn or 18.4% of GDP will be allocated for Budget 2020, of which 81.1% or RM241bn is for operating expenditure and RM56bn for development expenditure.

- Port Klang to be made a regional maritime center and cargo logistics hub.

- Overall gross exports are expected to expand 1% in 2020 from anticipated improvement in global trade activities.

- Budget 2020 has four thrusts: driving economic growth in the new economy and digital era; investing in Malaysians, levelling up human capital; creating a united, inclusive and equitable society; and revitalization of public institutions and finances.

- Government revenue to fall 7.1% to RM244.5 billion.

- Government has no plans to reintroduce GST.

- H1 2019 inflation rate at 0.2%, compared to 1% and 3.7% for 2018 and 2017 respectively. Inflation is projected to expand 2% next year.

- Budgetary deficit to be increased from 3.0% to 3.2% of the GDP. The additional 2% deficit will be used on development expenditure to boost the national economy.

- Malaysia's economy is expected to grow 4.8% in 2020.

...More to come

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