KUALA LUMPUR: Themed “Developing Malaysia MADANI,” Budget 2023 focuses on 12 main initiatives based on three objectives, namely, driving an inclusive and sustainable economy, institutional reform and governance to restore confidence, and social justice to reduce imbalance.

This is the first budget tabled under the Unity Government led by Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister.

The earlier Budget 2023 was tabled by the previous government in October last year but could not be passed before Parliament was dissolved.

The following are some of the highlights of Budget 2023:

■ Budget 2023 involves an allocation of RM388.1 billion with RM289.1 billion for operating expenditure and RM99 billion for development expenditure, including RM2 billion as contingency savings.

■ MoF projects RM291.5 billion in government revenue for 2023, down slightly by 1% from last year.

■ Government proposes to introduce a luxury goods tax starting this year.

■ Government borrowings are expected to reach 12.2% of GDP, lower than the initial projection of 14%.

■ Government plans to impose excise duty on liquid or gel nicotine products for e-cigarettes and vaping devices.

■ Immediately re-tender six flood mitigation projects, including in Johor, Selangor and Kelantan. Disaster management preparedness: RM150 million for NADMA, RM50 million for Armed Forces, Bomba and RELA, RM20 million under Geran Pertubuhan Prihatin Komuniti to benefit 2,000 residents’ associations.

■ RM38 million for wildlife protection, such as tigers and elephants and their habitats.

■ To combat corruption, government plans to amend the Whistleblowers Protection Act.

■ Bankruptcy cases with debts of less than RM50,000 that meet the conditions will be discharged immediately from March 1.

■ A special team under the Royal Malaysia Police (PDRM) Criminal Investigation Department’s Sexual, Women and Child Investigations Division (D11) will be formed to curb child pornography activities.

■ RM100 million under the SME Grant Scheme to support business automation and digitalization activities.

■ RM10 million to strengthen the role of National Scam Response Center (NSRC) in combating online fraud and scams.

■ RM725 million for digital connectivity in 47 industrial areas and over 3,700 schools.

■ RM600 per month Socso hiring incentive for three months to employers hiring 17,000 graduates (especially TVET), as well as persons with disabilities, ex-convicts, homeless individuals and unemployed.

■ RM50 million in matching grants to encourage automation in plantation sector through use of robotics and Artificial Intelligence.

■ RM250 million for tourism promotional activities.

■ RM700 Special Aidilfitri Assistance for civil servants of Grade 56 and below, including those on contract basis, and RM350 for government pensioners.

■ RM30 million to improve public housing livability in Kuala Lumpur.

■ 20% discount on PTPTN loan repayments for three months starting March 1,

■ RM50 million to maintain UNESCO world heritage sites in Melaka and Penang.

■ RM64 billion in subsidies, aid and incentives to minimize cost of living.

■ Initiatives to eradicate poverty and the suffering of 130,000 people categorized as hardcore poor.

■ Government to contribute RM500 to EPF members aged between 40 and 54 with less than RM10,000 in their Account 1.

■ Income tax rate for individuals in the RM35,000 – RM100,000 income band will be lowered by two percentage points whiile those earning RM100,000 – RM1 million annually will pay 0.5 to two percentage points more.

■ RM50 million to maintain and repair non-Muslim houses of worship nationwide.

■ Health sector receives the second largest allocation of RM36.3 billion, up from RM32.4 billion last year.

■ 50,000 laptops for schools and educational institutions under the Ministry of Education.

■ RM10 billion loan fund readied by BNM for SMEs.

■ Cumulative investment value for GLCs estimated to reach RM50 billion.

■ GLCs including Khazanah and EPF can invest in innovative and high-growth local start-up companies to a value up to RM1.5 billion.

■ Stamp duty waiver for houses worth RM500,000 and below, and 75% stamp duty waiver for houses worth RM500,000 to RM1 million.