KUALA LUMPUR: Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim tabled the 2024 Budget in Dewan Rakyat this afternoon. 

The 2024 Budget is the highest in history, with RM393.8 billion set aside by the government, higher than the RM388.1 billion for Budget 2023.

RM303.8 billion will be set aside for operating expenditure and RM90 billion for development expenditure.

Debt service payments alone are expected to record RM46.1 billion or 15.2 percent of the 2024 revenue.

National debt and liabilities reach RM1.5 trillion or 82 percent to GDP.

The following are some of the highlights of the 2024 Budget:

– The government will start a high-tech industry area in Kerian in northern Perak for the development of a wider ecosystem for the electrical and electronic (E&E) cluster in the northern region.

– The government will provide allocation of 10% from New Industrial Master Plan’s (NIMP) total investments to drive NIMP’s mission with starting funds of RM200 million in 2024.

– Allocation for development for Sabah and Sarawak will be increased to RM6.6 billion and RM5.8 billion respectively.

– The National Scam Response Center (NSRC) has been allocated RM20 million, up from last year’s RM10 million. NSRC has responded to over 49,000 calls and frozen up to RM60 million in transactions.

– Bank Negara is developing the National Fraud Portal (NFP) expected to be completed mid-2024 to expedite detection, freezing, and repatriation of funds.

– The government aims to achieve a position within the top 20 for the Global Startup Ecosystem by 2030.

– Pengerang Integrated Petroleum Complex (PIPC) will be made a hub for the development of the chemical and petrochemical sector by providing a tax incentive package in the form of a special tax rate or investment tax allowance.

– RM100 million will be allocated for the maintenance of streetlights, including replacement with energy-efficient LED types.

– The government will increase the allocation to RM200,000 from the RM100,000 for 115 district engineers, with a total allocation of RM30 million.

– RM2.8 billion will be allocated for the maintenance of federal roads and bridges, with RM300 million specifically earmarked for contractors in categories G1 to G4.

– The government will allocate RM10 million to strengthen the capacity and measures of the Malaysia Competition Commission (MyCC) in controlling goods prices.

– The government plans to rationalize diesel subsidy in a phased manner.

– The government will continue to provide electricity bill rebates of up to RM40 per month to extremely poor households with an allocation of RM55 million.

– The government will continue to improve the targeted electricity subsidy approach according to the level of electricity consumption. This will help save more than RM4.6 billion from the projected electricity subsidy of RM20 billion.

– The government has spent RM3.8 billion for egg and chicken subsidies since February last year.

– Savings from targeted subsidies will be channeled directly to increase the allocation of Sumbangan Tunai Rahmah aid from RM8 billion to RM10 billion.

– Mandatory e-invoicing for taxpayers with annual income or sales exceeding RM100 million starting from August 1 next year.

– Micro-entrepreneurs and small traders will be provided with small loans totaling RM2.4 billion through agencies like Bank Negara Malaysia, Bank Simpanan Nasional and TEKUN.

– RM2.4 billion is allocated to build, maintain, repair quarters for civil servants, teachers, hospitals, police, armed forces, firefighters.

– The government plans to increase the service tax rate to 8.0 percent from 6.0 percent, not including services such as food and beverages, and telecommunications.

– 10 percent capital gains tax for disposal of unlisted shares by local companies.

…More to come