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KEMENTERIAN KEWANGAN B U D G E T 2 0 2 3 S P E E C H BUDGET 2023 SPEECH Budget 2023 Speech WJT23-0046 01.

Title Page BI.indd 1 26/02/2023 4:03 AM Copyright Reserved All rights reserved.
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E-mail: belanjawan2023@mof.gov.my Budget Speech is an annual publication released on the same day as the Annual Budget.

The 2023 edition is released on 24 February 2023.

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Title Page BI.indd 2 26/02/2023 4:03 AM budget 2023 speech Contents 2 3 7 7 11 13 16 21 21 27 33 34 36 36 38 43 50 59 60 63 preamble economic performance and challenges first pillar: inclusive and sustainable economic growth measure 1: fiscal sustainability measure 2: fulfilling the rakyat’s economic needs measure 3: facing disasters measure 4: achieving high impact investments second pillar: institutional reforms and good governance to restore confidence measure 5: public sector reform measure 6: empowering public-private partnership measure 7: prioritising the digital agenda measure 8: strengthening the role of government linked companies and agencies third pillar: combating inequality through social justice measure 9: eradicating hardcore poor measure 10: minimising cost of living measure 11: ensuring harmony and unity measure 12: providing quality basic amenities civil servants closing appendix i – TOUCHPOINTS BUDGET 2023 105 appendix ii – TAX MEASURES BUDGET 2023 WJT23-0046 01.
Title Page BI.indd 3 26/02/2023 4:03 AM iv WJT23-0046 01.

Title Page BI.indd 4 26/02/2023 4:03 AM budget 2023 speech Kindness and grace are essential in upholding social justice to ensure the well-being of ALL YAB Dato’ Seri Anwar Ibrahim PRIME MINISTER AND MINISTER OF FINANCE BUDGET 2023 SPEECH v WJT23-0046 01.
Title Page BI.indd 5 26/02/2023 4:03 AM This Belanjawan M A D A N I reﬂ ects the principles of accountability and pure value system that can address the current challenges including the highly uncertain global economic challenge YAB Dato’ Seri Anwar Ibrahim PRIME MINISTER AND MINISTER OF FINANCE vi BUDGET 2023 SPEECH WJT23-0046 01.

Title Page BI.indd 6 26/02/2023 4:03 AM WJT23-0046 01.
Title Page BI.indd 7 26/02/2023 4:03 AM vii budget 2023 speech THE ECONOMY 2023 in constant 2015 prices (share to total in %) Public Investment1 2.7% Exports of Services 4.9% Public Consumption 7.7% Private Investment1 9.5% DEMAND RM2,596,553 MILLION Exports of Goods 38.1% Private Consumption 37.1% Mining 3.8% Construction 2.2% Agriculture 3.9% Imports of Services 5.9% Services 36.0% Manufacturing 14.8% SUPPLY RM2,596,553 MILLION 1Includes change in stocks Source: Ministry of Finance, Malaysia Imports of Goods 33.4% viii BUDGET 2023 SPEECH WJT23-0046 01.
Title Page BI.indd 8 26/02/2023 4:03 AM THE FEDERAL GOVERNM ENT BUDGET 2023 WH E RE IT COMES F ROM Borrowings and Use of Government’s Assets 24.5% Income Tax 39.9% RM386,1401 MILLION Non-tax Revenue 19.0% Indirect Tax 14.0% DEVELOPMENT EXPENDITURE Security 3.0% Social 6.9% Other Direct Tax 2.6% General Administration 1.0% WH E R E IT GOES Emoluments 23.5% Economic 14.3% Others 5.8% RM386,1402 MILLION Subsidies and Social Assistance 15.2% Grants and Transfers to State Governments 2.1% Retirement Charges 8.0% Debt Service Charges 11.9% OPER ATIN G EXPENDITURE Supplies and Services 8.3% 1 Consists of revenue and borrowings 2 Excludes contingency reserves Source: Ministry of Finance, Malaysia BUDGET 2023 SPEECH ix WJT23-0046 01.
Title Page BI.indd 9 26/02/2023 4:03 AM WJT23-0046 01.
Title Page BI.indd 10 26/02/2023 4:03 AM Budget 2023 Speech by: YAB Dato’ Seri Anwar Ibrahim Prime Minister and Minister of Finance Introducing The Supply Bill (2023) In Dewan Rakyat Friday, 24 February 2023 Theme: Budget 2023: Building Malaysia Madani Dato’ Speaker Sir, I beg to move the Bill intituled “An Act to apply a sum from the Consolidated Fund for the service of the year 2023 and to appropriate that sum for the service of that year” be read a second time.

WJT23-0046 02.
Teks 1 BI .indd 1 26/02/2023 4:08 AM 1 budget 2023 speech Preamble Bismillahirahmanirahim Assalamualaikum Warahmatullahi Wabarakatuh and good afternoon.
1.
Allah decreed in Surah Yusuf, verse 55: ٌميِلَع ٌظيِفَح ىِ نِإ ۖ ِض ْرَ ْلْ ِنِئٓا َزَخ ٰىَلَع ٱ ىِنْلَع ْج َلاَق ٱ Nabi Yusuf said, “Put me in charge of the store-houses of the land (Egypt), for I am truly reliable and adept.” This story was recorded when the King of Egypt Raja Al-Aziz 2. was worried about the seven years of economic downturn that was forecasted for the land, after many years of prosperity.
ُبيِنُأ ِهْيَلِإ َو ُتْلاك َوَت ِهْيَلَع ۚ ِ اللَّ ْلْ ِب الَِّإ ٓىِقيِف ْوَت اَم َو ۚ ُتْعَطَتْس اَم َحٰـَلْص ِ ٱ ٱ الَِّإ ُدي ِرُأ ْنِإ ٱ According to the great scholar Muhammad al-Tahir Ibn Ashur, 3. this verse describes the situation when the Prophet Yusuf AS offered his service for the benefit of the ummah and the nation.

In an expected economic downturn, two major features 4. become prerequisite to the success of budget management.
First: Trustworthiness, honesty, transparency in savings and spending.

During this chaotic time, the question that needs to be raised is how many are stricken with poverty and impoverishment.

Are the funds channelled in the right manner to avoid leakages and wastage?

Second: Quick actions based on knowledge; will there be swift, smart and sensible actions in planning and organising the framework of the national budget.

5.
5.

Therefore, Budget 2023, which I formulate as Belanjawan MADANI, reflects the principle of accountability and pure value system that can confront the current challenges including the highly uncertain global economic challenge.

2 WJT23-0046 02.

Teks 1 BI .indd 2 26/02/2023 4:08 AM budget 2023 speech Economic Performance and Challenges 6.
After listening to the rakyat’s grievances and your booming voices in this August Hall, I choose to lay before you a Budget that presents the actual facts and figures and does not attempt to delude the rakyat with beguiling facts.

7.

Therefore, I will begin by laying out the facts and real challenges that strangles the economy and the challenges we and the country need to face.

Is there political will to make the necessary leap and changes that can drive growth and eradicate greed among those in power?
First: The Government inherited a high debt burden • The national debt is projected to reach RM1.2 trillion or more than 60% of GDP for the year 2023.

If debt and liabilities are calculated, it will reach RM1.5 trillion or 81% GDP.

This year’s debt service ratio is RM46 billion or 16% of revenue, which has exceeded the maximum threshold of 15% that has been practised all this while.

• The payment of RM46 bilion is only for the payment of interest and not to service the principal.
This August House needs to be reminded that the Government has been in deficit for the past 25 years and our debt has been on the rise.

We have borrowed to develop FELDA land; that should not be fretted.

But taking on loans to fund mega projects that have no benefit invites the question of whether we are betraying the trust given to us when the youths are then saddled with this debt.

3 WJT23-0046 02.
3 WJT23-0046 02.

Teks 1 BI .indd 3 26/02/2023 4:08 AM budget 2023 speech Second: Malaysia is experiencing a decline in governance • Corruption and embezzlement appear to have become systemic to the point of damaging the Government’s ability to govern effectively, tarnishing the country’s reputation.

As a result: o Malaysia’s Corruption Perception Index (CPI) 2022 ranking has plummeted to rank 61 when compared to rank 29 in 1998.
Transparency International Malaysia attributed this decline to a failure in curbing political corruption.

o The Auditor General’s report for 2020 and 2021 recorded leakage of almost RM3 billion, which covers loss of public money, wastage, and irregular payments.

For example, regarding the under collection of import duties for vehicles, the Government suffered a loss of RM72 million due to weak duty import collection processes.
o In addition, there exists leakages in the diesel subsidy implementation with almost RM10 billion worth of diesel subsidy estimated to being misappropriated last year.

o These are proof of the various transgressions that have badly impacted the country.

They must be stopped if we want this country to stride forward with strength and glory.

We are the ones who determine whether the country’s future will stagnate, surge, or subjugate.
Third: The country needs to navigate the global economic uncertainty • The inflation rate continues to see pressure against global commodity prices that are still too high, and the food supply chain disruption due to the Russia- Ukraine war.

4 WJT23-0046 02.

Teks 1 BI .indd 4 26/02/2023 4:08 AM budget 2023 speech • The International Monetary Fund (IMF) projects a slower global economic growth of 2.9% for 2023, compared to 3.4% in the previous year.
Global trade is also projected to slow down at a rate of 2.4%, compared to 5.4% in 2022.

• Malaysia’s 2022 GDP recorded a growth of 8.7% owing to the low base of 2021 GDP following the effects of COVID-19.

However, to portray a full picture of the country’s economic performance, it needs to be considered alongside the quarterly growth rates, which showed a decrease in the first quarter (3.8%), the second quarter (3.5%), the third quarter (1.9%), and the fourth quarter (-2.6%).
Fourth: Investments have not recovered to pre-pandemic levels • Malaysia recorded investments of RM297.5 billion last year, which was 9.4% lower compared to RM328.5 billion in 2019.

Malaysia’s position in the World Competitiveness Ranking by the International Institute for Management Development (IMD) has also fallen to rank 32.

We once were ranked 12 when investors had faith in our economic capabilities and the efficiency of our public service delivery.
Fifth: Economic challenges that affect the rakyat • Inflation rate in 2022 stood at 3.3% with a high food inflation rate of 5.8%.

The inflation rate this year is expected to remain the same.

However, this will rise if the global supply chain uncertainty is not resolved.

• The unemployment rate in 2022 was 3.6% compared to 3.3% pre-pandemic in 2019.

Youth unemployment rate for those aged 25 years and below is still above 10%.

Their average income is also low, around RM1,700 in 2021.

5 WJT23-0046 02.
5 WJT23-0046 02.

Teks 1 BI .indd 5 26/02/2023 4:08 AM budget 2023 speech 8.

The aforementioned are honest and clear snapshot of the economic situation that we inherited together.

Therefore, Belanjawan MADANI needs to have the capability to muster the strength and energy to forge a new direction.
Ergo, I would like to use this opportunity to call upon political 9. leaders, ministry leaders, civil servants, in addition to businesses and the ordinary citizens to believe that our country is capable to ِض ْرَ ْلْ ِنِئٓا َزَخ ٰىَلَع ٱ make that leap and be an example not only to our neighbouring countries in the region but the whole world too, and at the same time instil confidence among the Rakyat.
ٌميِلَع ٌظيِفَح ىِ ىِنْلَع ْج َلاَق ٱ نِإ ۖ 10.

Surah Hud, verse 88: As affirmed in the Al Quran, when Allah SWT proclaimed in ُبيِنُأ ِهْيَلِإ َو ُتْلاك َوَت ِهْيَلَع ۚ ِ اللَّ ْلْ ِب الَِّإ ٓىِقيِف ْوَت اَم َو ۚ ُتْعَطَتْس اَم َحٰـَلْص ِ ٱ ٱ I only intend to reform to the best of my ability.
My success comes only through Allah.

In Him I trust and to Him I turn.

الَِّإ ُدي ِرُأ ْنِإ ٱ 11.

We must admit that the culture of waste and corruption needs to be eradicated.

Therefore, I choose to present a Budget framework that is based on the spirit of reform to cultivate a new and fresh policy direction, thus burying the perception that we still tend to defend the status quo and the interests of the super-rich.

“The night has ended.


Put out the lamp in the narrow corner stained with soot.

A new morning dawns for everyone in the East, let its light illuminate our meaningful path.” (Rabindranath Tagore) 12.

The 2023 Budget will be the first step in laying the Malaysia MADANI Development framework.
Today’s presentation will focus on 12 main measures based on three pillars namely: First: Inclusive and sustainable economic growth Second: Institutional reforms and good governance to restore confidence Third: Combating inequality through social justice 6 WJT23-0046 02.

Teks 1 BI .indd 6 26/02/2023 4:08 AM budget 2023 speech I. Inclusive and Sustainable Economic Growth Measure 1: Fiscal Sustainability 13.

We are at a critical juncture in history.


This administration is determined, based on the principle of accountability, to manage the fiscal position including the debt issues and at the same time continue to support inclusive and sustainable economic growth.

First: Expansionary Fiscal Policy World Bank and Fitch analyses expect the country’s GDP to 14. grow by 4% in 2023, factoring in the challenging global economic outlook.
The Government projects a moderate economic growth 15. of around 4.5% based on a confidence of a strengthening domestic economy.

16.

In fact, taking into the account the efforts to implement improvements and reforms under this administration, I am confident that the country will exceed the projected GDP growth of 4.5%.
This will certainly be driven by the comprehensive measures in Budget 2023 that will drive stronger sustainable growth as well as renew international investors’ confidence to stimulate the national economy.

17.

The Government expects revenue collection for 2023 to total RM291.5 billion compared to RM294.4 billion last year.

This, however, does not consider additional revenue streams which will increase our yearly revenue to a higher level.

18.
18.

This administration takes an expansionary fiscal approach in an effort to support economic growth so that the spill over effects can be enjoyed by everyone.

19.

B u d g e t 2 0 2 3 w i l l a l l o c a t e R M 3 8 8 .

1 b i l l i o n w i t h RM289.1 billion for operating expenditure, RM99 billion for development expenditure, which includes RM2 billion as contingency savings.

7 WJT23-0046 02.

Teks 1 BI .indd 7 26/02/2023 4:08 AM budget 2023 speech 20.
In line with the expansionary fiscal policy, development expenditure will be increased to RM97 billion compared to RM71.6 billion last year.

This increase is to focus on programs to eradicate poverty as well as improve public infrastructure and rural facilities.

Through changed Government procurement processes, we will ensure that this additional expenditure is fully utilised for the 22.

Kerajaan bertekad untuk mencapai tahap defisit fiskal yang mampan dalam Rakyat’s interests.
jangka masa sederhana dengan sasaran 3.2 peratus kepada KDNK menjelang 2025 tertakluk pada pertumbuhan ekonomi yang terus kukuh.

Second: Managing Debt Levels 21.

Based on the principle of accountability, the Government will reduce the fiscal deficit in 2023 to 5% compared to 5.6% in 23.

Bagi mengekang peningkatan hutang, pinjaman baharu mestilah lebih 2022. rendah dan sebaik-baiknya untuk membiayai pembangunan yang membawa pulangan serta dampak langsung kepada rakyat.

22.
22.

The Government is determined to achieve a sustainable fiscal deficit in the medium term with a target of 3.2% of GDP by 2025 subject to continued strong economic growth.

24.

Rang Undang-undang Tanggungjawab Fiskal akan dibentangkan ke 23.

To curb the increase in debt, new loans must be lower and Parlimen pada tahun ini.

Ini untuk menjamin supaya kebijakan ekonomi itu lebih only for the purpose of development that bring benefit and impact to the Rakyat.
telus dan bertanggungjawab bagi mengelakkan sebarang kemungkinan berlakunya ketelanjuran berterusan pada masa mendatang.

24.

The Fiscal Responsibility Act will be presented to Parliament this year.

This Bill is to ensure greater transparency and accountable management of the economy to prevent any possibility of continued transgressions in the future.

Ketiga: Meningkatkan Hasil Negara Third: Expanding the Goverment Revenue Base 25.

Sebahagian firman Allah SWT daripada surah Al-Hasyr, ayat 7: 25.
Part of Allah SWT decree in surah Al-Hasyr, verse 7: ْمُكْن ِم ِءۤاَيِنْغَ ْلَّا َنْيَب ۢ ًةَل ْوُد َن ْوُكَي َلَّ ْيَك “...to the orphans, and to the needy, and to the wayfarer so that it may not merely circulate between the rich among you.” “....anak-anak yatim, orang-orang miskin dan untuk orang-orang yang dalam perjalanan, agar harta itu jangan hanya beredar di antara orang-orang kaya saja di antara kamu.

8 26.

Mengambil ibrah firman Allah SWT, Pentadbiran ini komited menegakkan keadilan sosial.
Pengagihan hasil yang adil tidak bermakna layanan sama rata, tetapi berasaskan keperluan.

WJT23-0046 02.

Teks 1 BI .indd 8 26/02/2023 4:08 AM 11 budget 2023 speech 26.

Taking lessons from this verse, the Government is committed to upholding social justice.

Fair revenue distribution does not mean equal treatment across the board but instead based on needs.

27.

The Department of Statistics reported that the top 20% group (T20) own 47% or nearly half of total household income.
Whereas from the angle of EPF savings, the T20 group owns 80% of total EPF savings.

28.

Considering that the income and wealth of the nation is concentrated amongst the elite and the super-wealthy, it would be reasonable for the distribution of national resources to prioritise the low- and middle-income groups.

29.
29.

The government will therefore take a progressive approach in the context of targeted subsidy or tax structure, to protect the less fortunate and seek the understanding of the more affluent rakyat to share the responsibility together.

30.

Among the measures that have been introduced include: • Distribution of ASB dividends that prioritises those in need.
87% of members with units held below RM30,000 were given a dividend of 5.1 cent per unit, while units held above RM30,000 received a distribution of 4.6 cent per unit.

• In addition, electricity tariffs have been maintained for all domestic users and SME businesses but increased for all large companies except for those in the food and agriculture sectors.

31.

The Government has no plans to implement wide based consumption taxes, such as Goods and Services Tax (GST).
Given the current situation where the majority of the rakyat are still struggling, food inflation exceeding 5%, and low wages, it is evident that now is not a suitable time to introduce and implement such a tax.

9 WJT23-0046 02.

Teks 1 BI .indd 9 26/02/2023 4:08 AM budget 2023 speech The Government is taking a more progressive approach as 32. a new step to expand the tax base to those with means.
• • The Government plans to introduce a Luxury Tax beginning this year with a certain limit according to the type of luxury good.

Among others include luxury watches and luxury fashion items.

In line with international best practices, the Government will study the introduction of a Capital Gains Tax for the disposal of unlisted shares by companies beginning 2024 at a lower rate.

The Government will hold consultation sessions with relevant parties to examine the details of this proposal.

33.
33.

The Government plans to impose an excise duty on liquid or gel products containing nicotine used for electronic cigarettes and vapes.

Although nicotine-containing vape products are still illegal under the law, in reality they are widely sold and estimated to be worth over RM2 billion.

It would be better if its use is regulated and taxed.

34.
34.

The Government supports the Generational Endgame (GEG) initiative and agrees that half of the excise duty collected from this will be reallocated to the Ministry of Health to improve the quality of health services.

35.

To reduce leakages, Government enforcement agencies in collaboration with the industry will intensify enforcements efforts to curb the leakage of proceeds and subsidies due to smuggling syndicates such as diesel, alcohol, and cigarettes.

36.
36.

The Inland Revenue Board (LHDN) and Royal Malaysian Customs Department ( JKDM) will reintroduce a voluntary disclosure programme.

Through this programme, a 100% penalty waiver will be granted for voluntary disclosures from 1 June 2023 to 31 May 2024.

10 WJT23-0046 02.

Teks 1 BI .indd 10 26/02/2023 4:08 AM budget 2023 speech 34.
Kerajaan menyokong ikhtiar Generational Endgame (GEG) dan bersetuju bahawa separuh daripada hasil duti eksais ini akan diperuntukkan semula kepada Kementerian Kesihatan sebagai usaha meningkatkan kualiti perkhidmatan kesihatan.

35.

Bagi mengurangkan ketirisan, usaha penguatkuasaan agensi Kerajaan akan terus dipergiat bersama-sama pihak industri bagi mengekang ketirisan hasil dan subsidi angkara sindiket penyeludupan seperti diesel, arak dan rokok.

36.
36.

Lembaga Hasil Dalam Negeri (LHDN) dan Jabatan Kastam Diraja Malaysia (JKDM) akan melaksanakan semula program pengakuan secara sukarela.

Melalui program ini, pengampunan ke atas penalti 100 peratus akan diberikan bagi pengakuan sukarela mulai 1 Jun 2023 hingga 31 Mei 2024.

Measure 2: Fulfilling The Rakyat’s Economic Needs Ikhtiar 2: Memenuhi Keperluan Ekonomi Rakyat Dato’ Speaker Sir, 37.

Saya kongsikan petikan dari surat Saidina Ali Abi Talib yang diutuskan 37.
I share an excerpt of the letter sent by Saidina Ali Abi Talib to the Governor candidate for Egypt, Malik Ashtar, as a lesson for kepada calon Gubernur Mesir Malik Ashtar sebagai pedoman kita bersama: all of us: لمتحم نارمعلا نإف هب مهسفنأ ةبيط هولمتحا دعب نم مهيلع هيف تلوع اذا ام روملأا نم ثدح امبرف ىلع ةلاولا سفنأ فارشلإ اهلهأ زوعي امنإو اهلهأ زاوعإ نم ضرلأا بارخ ىتؤي امنإو ،هتلمح ام ربعلاب مهعافتنا ةلقو ءاقبلاب مهنظ ءوسو عمجلا “...and the circumstances may so be that you may have to ask for their assistance, and they will bear it happily.
With their prosperity, they will certainly be able to bear whatever you load on it.

Yet the ruin of the land is caused by rulers who are bent feverishly on accumulating wealth at all costs” 14 38.

The Government is cognisant that there are still businesses that have been affected by the pandemic especially micro, small and medium enterprises (MSMEs).

Belanjawan MADANI will ensure local MSMEs are again competitive and able to increase their business capacity.
Various facilities including tax reduction and financing are made available to support these businesses.

First: Reduction in Tax Rate 39.

I am pleased to announce that the Government agrees that from assessment year 2023, the MSMEs’ rate on taxable income for the first RM150,000 will be reduced from 17% to 15%.

This reduction in tax rate is expected to provide savings of up to RM3,000 to 150,000 MSME taxpayers.

Second: Facilitating Hawkers and Small Traders 40.


I often emphasize the futility of having large buildings, while the plight of the rakyat living off small scale business are ignored.

The rakyat’s economy must be dignified, their needs met.

The nation 11 WJT23-0046 02.

Teks 1 BI .indd 11 26/02/2023 4:08 AM budget 2023 speech is already famous for its mega projects and landmarks, but I also want the nation to be known for small business facilities that are excellent, clean and visually appealing.

41.
41.

To manifest this intention, the Government will provide RM50 million to build and upgrade 3,000 stalls and kiosks as facilities for small hawkers at key locations across the country.

In addition, RM176 million will be provided to upgrade and 42. improve business premises and facilities among others those under MARA, DBKL, Perbadanan Usahawan Nasional Berhad (PUNB) and Urban Development Authority (UDA).

Third: Providing Financing and Guarantee Facilities 43.
Government agencies will continue to provide various financing facilities and guarantees for the benefit of MSMEs entrepreneurs with a total value of up to RM40 billion.

44.

Micro entrepreneurs and small businesses will be provided with access to financing through agencies such as Bank Negara Malaysia (BNM), BSN, and TEKUN with available fund totalling RM1.7 billion.

• Of that, RM300 million is specified to support micro businesses owned by women and youth entrepreneurs.
• BSN is providing more than RM1 billion with a focus on MSMEs and hawkers • TEKUN also provides RM330 million, including RM10 million to support youth from underprivileged background to generate income through business.

They will be given capital to venture into delivery services using motorcycles.

• The Government will also fund the driving test fee for B40 youth for class B2 motorcycle licences as well as taxi, buses, and e-hailing licences.

12 WJT23-0046 02.
12 WJT23-0046 02.

Teks 1 BI .indd 12 26/02/2023 4:08 AM budget 2023 speech 45.

F o r s m a l l a n d m e d i u m e n t e r p r i s e s ( S M E s ) , a l m o s t RM10 billion is provided by BNM, among others to reduce SMEs’ financial burden and to encourage their business development.

46.

Syarikat Jaminan Pembiayaan Perniagaan (SJPP) will guarantee up to RM20 billion in SME loans where key sectors such as high technology, agriculture, and manufacturing are provided with Government guarantee up to 90%.
Guarantees will also be expanded to financing by non-banking financial institutions such as credit leasing companies and cooperatives to specifically benefit small businesses.

Measure 3: Facing Disasters First: Readiness in Facing Disasters 47.

I have stressed that direct procurements done in haste without proper scrutiny will only waste the rakyat’s money especially in relation to the Flood Mitigation Projects.

Particularly when these projects are of utmost importance and will incur huge costs.
The reckless approval done by the past government has been cancelled and is currently under the investigation and action of the Malaysia Anti-Corruption Commission (MACC) and Attorney General Chamber.

48.

To ensure that the Flood Mitigation Projects really achieve their goals, projects that are rakyat centric and have high impact must go through the tender process to ensure the best value and provide savings to the Government.
For example, the country is expected to save RM2 billion 49. from the RM15 billion allocated previously for flood mitigation project.

Therefore, procurements must undergo the tender process.

This year, six flood mitigation projects will be retendered 50. without delay latest by June 2023, including: • Flood Mitigation Plan at Sungai Johor, Kota Tinggi, Johor; 13 WJT23-0046 02.
Teks 1 BI .indd 13 26/02/2023 4:08 AM budget 2023 speech • Construction of dual-function reservoirs for flood mitigation and to serve as a raw water storage at Sungai Rasau and Sungai Klang, Selangor; and • Sungai Golok Integrated River Basin Management Project Phase 3, Kelantan.

51.

The performance of our rescue team in Turkiye was outstanding and brought us pride.
We hope this achievement can be translated into better disaster management and disaster readiness at the kesiapsiagaan bencana di negara ini.

Sebagai persiapan mendepani sebarang national level.

As preparation for natural disasters: ancaman bencana:  NADMA disediakan 150 juta ringgit antara lainnya untuk keperluan aset, • NADMA will be provided with RM150 million among others for required assets, warning systems and disaster relief to affected rakyat.
sistem amaran dan bantuan bencana kepada rakyat yang terkesan.

 Angkatan Tentera Malaysia, Bomba dan RELA juga disediakan 50 juta • Malaysian Armed Forces, Fire and Rescue Department and RELA will also be provided RM50 million for asset ringgit bagi menyediakan peralatan dan aset untuk menghadapi bencana.

and equipment for natural disaster preparation.

 Peranan komuniti bencana.


Kerajaan menyediakan 20 juta ringgit di bawah Geran Pertubuhan turut diperkasa sebagai kumpulan awal ketika • The role of community will also be strengthened as they are amongst the first front liners when disasters occur.

The Government will allocate RM20 million under Pertubuhan Prihatin Komuniti Grant to benefit 2,000 resident associations.

Prihatin Komuniti untuk manfaat 2,000 persatuan penduduk.

Kedua: Amalan Hijau Second: Instilling Green Practices 52.
Allah SWT berfirman di dalam Surah Ar-Rum, ayat 41: Allah SWT decreed in Surah Ar-Rum, verse 41: 52.
َن ْوُع ِج ْرَي ْم ُهالَعَل ا ْوُل ِمَع ْيِذالا َضْعَب ْمُهَقْيِذُيِل ِساانلا ىِدْيَا ْتَبَسَك اَمِب ِر ْحَبْلا َو ِ رَبْلا ىِف ُداَسَفْلا َرَهَظ Corruption has spread on land and sea as a result of what people’s Telah tampak kerusakan di darat dan di laut disebabkan karena perbuatan hands have done; so that Allah may cause them to taste (the tangan manusia; Allah menghendaki agar mereka merasakan sebagian dari consequences of) some of their deeds and perhaps they might return (to the Right Path).
(akibat) perbuatan mereka, agar mereka kembali (ke jalan yang benar) Surah Ar-Rum (Verse 41) 53.

Kerasukan dan kegelojohan menggondol khazanah alam, pembalakan bermaharajalela, antara sebab terjadi bencana besar.

Di samping mengejar 14 pertumbuhan ekonomi, penting untuk kita mengadun sebuah mutu kehidupan yang mampan dan seimbang serta menjaga hubungan antara manusia dan alam.

WJT23-0046 02.

Teks 1 BI .indd 14 19 26/02/2023 4:08 AM budget 2023 speech 53.
Unbridled greed that plunders the earth’s riches and illegal logging are amongst the main culprits leading to major natural disasters.

Aside from pursuing economic development, it is important to shape a quality of life that is sustainable and balances the relationship between human and nature.

54.

The Administration’s promise is to join hands with all parties to protect the country’s natural treasure, towards a greener future for all.
This includes preserving nature’s biodiversity and forest management while at the same time reducing the State Government’s dependence on timber revenue.

• Ecological Fiscal Transfer for Biodiversity Conservation (EFT) allocation to State Governments will be increased to RM150 million per year compared to RM70 million last year.

EFT allocation to States will take into consideration new addition of gazetted protected areas including for tiger habitats and reforestation efforts of degraded areas.
• At the same time, RM38 million is allocated to protect wildlife such as tigers and elephants along with their forest habitats.

• The Government will increase the number of rangers who patrol these forest areas to 1,500 rangers with priority given to the local Orang Asli community as well as police and army veterans, through an allocation of RM50 million.

The Government will continue to encourage green practices 55. in business operations.
• BNM will provide up to RM2 billion financing facility to support sustainable technology startups and help SMEs implement low carbon practices.

• Khazanah will provide RM150 million to spur the development of environmentally friendly projects including supporting the carbon market and reforestation.

15 WJT23-0046 02.
15 WJT23-0046 02.

Teks 1 BI .indd 15 26/02/2023 4:08 AM budget 2023 speech • In addition, the Green Technology Financing Scheme (GTFS) will also be enhanced with the guarantee value increased to RM3 billion until 2025.

Measure 4: Achieving High Impact Investments First: Facilitating Investments It is worrying to note that the country’s innovation level is 56. still low while investment value has yet to recover to pre-pandemic levels.
New initiatives are needed to boost the ecosystem as well as attract more meaningful investments that will catalyse economic growth and job opportunities with respectable wage.

To stimulate investment in high-impact and high-technology 57. sectors, in line with the New Investment Policy: • Invest Malaysia Council and National Committee on Investment (NCI) will oversee the efforts to expedite approvals for high potential investment projects.
Meanwhile, PEMUDAH’s role will be empowered as a national unit to facilitate the investment climate and business landscape.

• The Government will improve the ease of doing business by reducing bureaucracy including incentivising Local Councils that facilitate the implementation of approved investments to ensure investment processes can be accelerated.

58.
58.

A Bank Negara Malaysia study shows that the benefits from foreign direct investments (FDI) have been narrowing following higher incentives against low value-added investments.

Malaysia has more than 100 types of incentives and more than 30 investment promotion agencies (IPAs).

With changes in global trends following technological advancements and climate change, an evolution of Malaysia’s incentives is needed to support economic activities.

16 WJT23-0046 02.
16 WJT23-0046 02.

Teks 1 BI .indd 16 26/02/2023 4:08 AM budget 2023 speech 59.

Advancing forward, the New Industrial Master Plan (NIMP) 2030 will be announced in the third quarter of 2023 to outline the future development of the industrial sector, focused on high quality activities and the employment of local talents.
• In line with the Plan, investment promotion agencies and investment incentives will be restructured towards tiered tax rates based on outcomes such as creating high-value jobs, embedding local firms into the supply chains, and creating new industrial clusters.

• Incentive monitoring for investments will also be strengthened to ensure the country and rakyat will fully reap the expected benefits from the investments.

60.
60.

Among the main issues facing foreign investors is the lack of local talent that enable them to invest and operate in Malaysia.

At the same time, we are providing scholarships to more than 1,000 engineering students every year to study in Japan, Korea, France, and Germany.

• To solve this, the Government will coordinate an international cooperation with foreign multinationals to provide internship opportunities in the students’ countries of study.
These students are also allowed to serve their scholarship bonds with the said companies.

Second: Investments in Key Sectors Malaysia has a huge potential in Electrical and Electronics 61.

(E&E) and aerospace sectors.

The Government therefore plans to: • Extend the tax incentive given to manufacturing companies that relocate to Malaysia and the tax rate of 15% for C-Suite until 2024 to attract companies that were affected by COVID-19 to operate in Malaysia; and 17 WJT23-0046 02.
Teks 1 BI .indd 17 26/02/2023 4:08 AM budget 2023 speech • Extend the income tax incentives and investment t a x a l l ow a n c e s f o r t h e a e ro s p a c e s e c t o r u n t i l 31 December 2025 to encourage the expansion of existing companies and attract new investments.

Bank Pembangunan Malaysia Berhad will allocate up to 62.
RM6 billion for strategic financing specifically to encourage the sustainable agenda and automation, aside from equity support and revolving working capital for high-potential companies that are still affected by COVID-19.

63.

The Government will mandate Tun Razak Exchange (TRX) as Malaysia’s global financial hub.

TRX needs to attract the global financial industry to become the main destination for high-value FDI that will strengthen our business ecosystem.

64.
64.

The Government also plans to boost the growth of Iskandar Malaysia in Johor through the introduction of special financial zone with a competitive incentive package to attract international investors and knowledge workers to be based in Malaysia.

To support and attract inbound investors, business owners as 65. well as tourists, the Government plans to expand and increase the capacity of Penang International Airport and Subang International Airport.
This expansion plan that will be led by MAHB is expected to translate into economic benefits at a much lower costs compared to the previous proposal to build a new airport in Kulim which was expected to cost RM7 billion.

Focus will also be given to support the development of 66.

Sanglang Port in Perlis to handle petroleum cargo and bulk cargo which will give value add to the Perlis local economy.
At the same time, the Government will build new coastal erosion structures between Kuala Sanglang, Perlis to Kuala Jerlun in Kubang Pasu, Kedah.

67.

To support the growth of international trade, the Government supports the proposal to develop a new mega-port in Carey Island by the private sector.

The project is expected to bolster Klang Port as a major shipping hub for the Asia Pacific region.

18 WJT23-0046 02.
18 WJT23-0046 02.

Teks 1 BI .indd 18 26/02/2023 4:08 AM budget 2023 speech Third: Economy and Islamic Finance 68.

Plenty of our family members used to save money under their pillows.

From there I realised the importance of an Islamic bank that operates on the principle of social justice, zero interest to convinve not only Muslims but also non-Muslims to invest and save in this banking system that is now used globally.

69.
69.

Alhamdulillah, Malaysia continues to lead the global Islamic finance sector since it was introduced four decades ago with the operationalisation of Bank Islam in 1983.

We also maintained our top ranking in the global sukuk market and lead in Islamic finance expertise.

70.

Despite these grand achievements, the Islamic finance sector has still not reached its full potential based on values to fulfil contemporary economic and social needs.
• Today’s Islamic finance ecosystem has yet to match the idealism of Islamic finance vanguards such as Professor Dr. Muhammad Nejatullah Siddiqi who emphasised the concept of justice and morality, in accordance to maqasid al-syariah.
He for example said, “More than anything else, Islamic banking and finance, a sub-culture of Islamic economics, has been a quest for justice and morality into the ordinary business of life.” • The late Sheikh Yusuf al-Qaradhawi during his visit to Malaysia in 2009 also expressed his interest that the implementation of Islamic finance to instead be drafted with new initiatives that are more impactful towards the rakyat’s socioeconomic growth based on social justice.
• Therefore, new initiatives are needed to empower the Islamic finance system by emphasising on the principle of driving growth, wider participation, and equitable wealth distribution, as well as not only focused on company and conglomerate profits.

19 WJT23-0046 02.
19 WJT23-0046 02.

Teks 1 BI .indd 19 26/02/2023 4:08 AM budget 2023 speech • This is clearly stated by Sir Ronald Cohen in his work Impact: Reshaping Capitalism to Drive Real Change that showcases successful companies that run on the basis of social impact and not purely on profit.

The Ministry of Finance, Bank Negara Malaysia and Securities 71.
Commission Malaysia continuously emphasise on improving Islamic financing offerings that are based on equity with risk-sharing concepts such as Mudarabah and Musyarakah.

72.

BNM has also introduced the Climate Risk Management and Scenario Analysis, Towards A Greener Financial System and Financial Inclusion Framework 2023-2026.

At the global level, the General Council for Islamic Banks and Financial Institutions (CIBAFI) have also published the Sustainability Guide for Islamic Financial Institutions.

73.
73.

With regards to EPF syariah savings, which has been introduced since 2017, syariah savings assets are currently invested alongside syariah compliant assets in conventional savings.

From 2024, syariah savings assets will be fully separated to give competitive returns to the 1.25 million members who own syariah accounts.

74.

In line with the MADANI framework, waqf method is one of the redistributive mechanisms that contribute to universal prosperity.
• The success of the Bank Islam Tower development in Kuala Lumpur’s golden triangle on the waqf of Ahmad Dawjee Dadabhoy, which is of high value, indicates the waqf sector’s real potential towards the development agenda.

• Similarly, Waqf Seetee Aisyah and Waqf Simpang Enam in Penang can be used as reference points in developing local socioeconomic centers.
• In fact, Wakaf FELDA proves that there is a paradigm shift on the part of settlers whereby they are no longer simply aid recipients but have started sharing their rizq 20 WJT23-0046 02.

Teks 1 BI .indd 20 26/02/2023 4:08 AM budget 2023 speech with the accumulated waqf exceeding RM27 million despite the waqf fund being recently launched in 2021.

75.

So far, only around 3,500 hectares or 12% of registered waqf land have been successfully developed.
Fresh efforts in developing waqf land and assets need to be continuously explored.

76.

I am pleased to inform that the Government has received a private commitment to establish Wakaf MADANI compirisng assets worth more than RM1 billion.

These assets, which comprise land, mosque, building, health and education facilities, will be optimised for the benefit of the poor, low income earners, and other vulnerable groups.

II.
II.

Institutional Reforms and Good Governance to Restore Confidence Measure 5: Public Sector Reform Dato’ Speaker Sir, 77.

I want to prove that there is a Malay who uses his power to protect and fight for the rakyat of this country.

I want to prove that a Muslim will be respected and trusted because his principles uphold justice and truth.
The Unity Government will resolutely implement institutional 78. reforms and good governance to eliminate the chances of creating systemic corruption and malpractices.

All Government agencies, including IRB, MACC, and the 79.

Royal Malaysian Police (RMP), are actively investigating corruption, including names linked to the Pandora Papers.

These agencies will also continue to probe extraordinary wealth to stop the ills of corruption from spreading.

21 WJT23-0046 02.
21 WJT23-0046 02.

Teks 1 BI .indd 21 26/02/2023 4:08 AM budget 2023 speech 80.

The rakyat is impatient for change; I too am impatient to implement reforms to ensure Government services are expedited, simplified, and transparent.

First: Transparency In Government Procurement 81.

Implementation of Government procurement for example, must be transparent and open, based on good governance practices.

There should be no waste of public money and flouting of laws using the direct negotiation method.

82.
82.

The fact is, the RM15 billion flood mitigation projects, the RM7 billion Janawibawa and other projects made through direct negotiations have been cancelled.

83.

Once some of them are retendered transparently, the country is expected to save up to RM3 billion.

These major savings can be reallocated for projects that benefit the rakyat.

84.

The Government in 2019 had proposed to table the Government Procurement Act in this August House, however it was postponed during the previous administration.
This Unity Government intends to expedite the tabling of this Act.

85.

All this while, there have been people who become suspicious, afraid, and feel pressured when asked to disclose information.

The Government intends to amend and table the Whistleblower Protection Act this year to provide protection to informants, in order to ensure that the effort to combat corruption and misconduct becomes effective.
Second: Accelerating Rakyat’s Infrastructure Projects It is unthinkable that the rakyat continues to face the 86. issue of dilapidated schools and clinics in this day.

I do not want this to persist.

If the project is delayed due to adherence to procedures, what is the point of being the Government if we cannot facilitate.

This needs to be resolved this year.

22 WJT23-0046 02.
22 WJT23-0046 02.

Teks 1 BI .indd 22 26/02/2023 4:08 AM budget 2023 speech • The Government aims to urgently repair 400 dilapidated clinics and 380 dilapidated schools with an allocation of RM1.2 billion.

• To expedite the project implementation, the quotation threshold for the procurement of repair works for dilapidated schools and clinics will be increased to RM1 million compared to RM500,000 previously, while procurement ballot be increased to RM200,000 from RM100,000 previously.

87.
87.

On the same topic, the issue of increasing road accidents must also be addressed immediately.

Especially if they are caused by weaknesses in Government procedures in resolving road safety issues.

• The Government is providing RM2.7 billion to maintain and upgrade Federal roads.

At the same time, a budget of RM300 million has been allocated exclusively for G1 to G4 contractors to carry out minor maintenance works.
• RM1.5 billion has been allocated for the upgrading and construction of inter-village roads and rural roads.

• On the issue of potholes, District Engineers’ service will be mobilised to expedite paving of federal roads in disrepair and other immediate repairs based on complaints received from the rakyat.

The Government will allocate RM100,000 for each district.

• RM50 million will be provided for the immediate installation of streetlights, particularly in areas which are accident-prone.
• The Government will increase the MARRIS grant to RM5.2 billion, which is meant for maintaining state roads.

The Federal Government has provided the flexibility of including the usage of MARRIS for the repair and replacement of roads, bridges, and drains that have been damaged by disasters.

23 WJT23-0046 02.

Teks 1 BI .indd 23 26/02/2023 4:08 AM budget 2023 speech Third: Encourage Innovation Among Ministries and Agencies 88.
We can no longer tolerate outdated work cultures, unreasonable regulations, and procedures that delay.

There are still many Government services that utilise agents, which has led to the systemic practice of corruption.

89.

Government services must be agile in adapting to technology and digital means to reduce bureaucracy.

A mindset shift is also required to enable the public service to better serve the rakyat, without being confined to each respective ministries or agencies.
• A Special Task Force on Agency Reform (STAR) chaired by the Chief Secretary to the Government has been established to drive this aspiration.

• Funds will be provided to implement pilot projects that can improve the delivery of Government services to the rakyat under STAR.

Successful ministries will be given full allocation for project implementation at the national level.
• To ensure effective cloud computing services in the public sector, MAMPU has taken a strategic step by upgrading the MyGovCloud service.

This service is able to function in a hybrid mode, combining public cloud services by cloud service providers appointed by the Government.

• The Government will ensure that more data centres can be set up in Malaysia by providing suitable tax incentives, security infrastructure, green energy facilities, and locations for these centres.
Fourth: Dealing with Rakyat’s Issues 90.

The issue of online fraud or scams have become critical.

In 2022 alone, more than 25,000 of such crimes were recorded with a loss of RM850 million.

Although the Government has established the National Scam Response Center (NSRC), there is a lack of consistent policy in managing this issue due to differing guidelines amongst 24 WJT23-0046 02.

Teks 1 BI .indd 24 26/02/2023 4:08 AM budget 2023 speech the banking institutions.
In order to strengthen the role of NSRC, a total of RM10 million will be allocated as an operational grant.

91.

Bank Negara will also enforce a kill switch policy to all banking institutions, to enable users to freeze their accounts immediately, including ATM cards, to prevent unauthorised use.

92.

People who are declared bankrupt are entitled to a second chance.
As of January, more than 260,000 bankruptcy cases have been recorded involving majority of Malay youths, who have the potential to contribute back to the national economy.

• The Government will amend the Insolvency Act 1967 in order for bankruptcy cases to be automatically discharged quickly.

• While waiting for the amendment of the Act, minor cases involving debts of less than RM50,000 that fulfil the criteria will be immediately discharged beginning 1 March 2023.
• The Government expects 130,000 rakyat to be released from their bankruptcy status with the passing of this amendment.

93.

Prisoners also deserve a new lease in life.

To ensure their succesful reintegration into society, prisoners will continue to receive adequate training through the Skill for Inmate Programme.
Employers are also encouraged to employ prisoners, including former residents of Henry Gurney School and JKM protection and rehabilitation institutions, and are eligible for additional tax deductions.

The Agro Penjara program, which involves prisoners in agricultural activities on a 70-hectare prison land, will be further strengthened with an allocation of RM10 million.

94.

The Unity Government is proactive about the safety of our society, especially women and children.
However, problems involving women and children are still at a worrying level.

25 WJT23-0046 02.

Teks 1 BI .indd 25 26/02/2023 4:08 AM budget 2023 speech • D11 of the Royal Malaysian Police will be more aggressive in investigating sexual abuse cases, women and children.

A special team under Unit D11 will be established exclusively to combat child pornography and will cooperate with various agencies to apprehend the perpetrators involved.
• The Ministry of Women, Family, and Community Development will also establish a Children Development Department under the Social Welfare Department to provide more comprehensive support to children.

Companies that provide consumer credit services such as 95. factoring companies and Buy Now Pay Later services need to be regulated to protect the rights of consumers.
To ensure fair treatment and protect the rights of the rakyat and businesses, the Government will task the Consumer Credit Act that is expected to be tabled this year, and establish a Consumer Credit Monitoring Board to regulate credit businesses.

To help the underprivileged in obtaining fair and 96. impartial representation, the Legal Aid Department will raise the eligibility limit for total legal aid from RM30,000 to RM50,000.
The scope of the Legal Aid Department will also be expanded to cover civil and Syariah cases.

Moving forward, the Government will study the policy to enact a special Act to provide free legal aid for criminal cases so that the underprivileged too have access to justice.

Fifth: Institutional Reform The Government is pursuing efforts to reform public service 97. institutions that are seen to have overlapping jurisdictions and almost similar functions.
This effort also includes the possibility of full independence and separation from remuneration for Federal Statutory Bodies that are self-sustaining.

This effort is important to reduce dependency on the Federal Government.

26 WJT23-0046 02.

Teks 1 BI .indd 26 26/02/2023 4:08 AM budget 2023 speech Streamlining Government bodies with similar functions aims 98. to make them more effective in carrying out their mandates.
• For example, the Government proposes the restructuring of Bumiputera investment institutions by streamlining Yayasan Pelaburan Bumiputera, Yayasan Amanah Hartanah Bumiputera as well as Yayasan Ekuiti Nasional in the near future.

• The Government is also studying the need to restructure all agencies that oversee and coordinate the startup and innovation ecosystem.
This is important to effectively coordinate efforts to develop local startup companies, from the seed stage to successful listing on Bursa Malaysia.

• One main agenda that should be paid attention to is that Government agencies should return to their raison d’etre.
A new holistic direction is necessary to examine the possibility of winding up any unprofitable subsidiary company that are not aligned with their original purpose of establishment, such as the setting up of travel agencies, security guards, and IT companies.

The Government is considering the possibility of prohibiting companies and federal statutory bodies from continuing such practices.
• A review needs to also be done on the remuneration package of chief executives and top management of companies and statutory bodies to a more reasonable rate.

Measure 6: Empowering Public-Private Partnership 99.

We must forge partnerships that leverage on each other’s strengths, where the Government facilitates, while the private sector drives economic growth, invests, and creates jobs.

27 WJT23-0046 02.
27 WJT23-0046 02.

Teks 1 BI .indd 27 26/02/2023 4:08 AM budget 2023 speech First: Insuring TVET Supports National Development 100.

Not only is youth unemployment high, in fact we are also trapped in an underemployment situation whereby people are not paid salaries that commensurate with their qualifications.

101.

The data indicates that 90% of TVET graduates get a job, but 90% earn a low income of only around RM2,000 per month.

This is despite the Government spending up to RM6.7 billion for TVET.
This is unacceptable and reforms must be implemented to ensure that 90% of TVET graduates receive a salary of more than RM2,000.

102.

An initiative that should be emulated is the collaboration between the Penang State Government and the Electrical & Electronic industry players that successfully provide jobs with respectable wages for TVET graduates.

Companies such as Intel, Motorola, and Inari have benefitted from the Penang Skills Development Centre to organise training programs based on their needs.
The Government intends to emulate and pilot this model 103. involving Federal TVET institutions with a target involvement of 50 companies, especially among GLCs.

• These leading companies will partially or fully manage the operations of TVET institutions such as community colleges, industrial training institutes (ILP), and National Youth Skills Institutes (IKBN) to provide training programmes that meet their needs.
For example: o PETRONAS to lead the oil & gas cluster in Pengerang, Kimanis, Batu Rakit, and Miri; o DRB Hicom for the automotive cluster in Pekan; o Sunway for the hospitality cluster; and o MRCB for the construction cluster.

28 WJT23-0046 02.

Teks 1 BI .indd 28 26/02/2023 4:08 AM budget 2023 speech • This reform can harness the Government resources more effectively to produce TVET graduates that are industry-ready.
Public-private partnership through new approach like this will continue to be explored for other areas or Government services.

104.

To strengthen industry cooperation, the National Dual Training Scheme (SLDN) was bolstered with an allocation of RM50 million to benefit more than 8,000 trainees.

The Academy in Factory programme will be carried out to provide on-the-job training opportunities to more than 50,000 trainees.
Second: Incentives to Provide Jobs with Meaningful Income The Government will continue to encourage the private 105. sector to pay higher wages.

• SOCSO will provide an incentive of RM600 monthly for three months as an addition to the salary offered to employers who hire TVET graduates.

This is estimated to help 17,000 graduates.

RM45 million is provided for this purpose.


• SOCSO will also provide incentives for employers to employ vulnerable groups such as persons with disabilities, ex-convicts, the homeless, and chronically unemployed for up to RM600 monthly for up to three months.

The Government also encourages the youth to improve 106. their capability and skills to earn a more meaningful salary.

• The Government will cover up to RM4,000 in training fees for gig workers to undergo micro credentials upskilling programme.
SOCSO also provides an allowance of RM300 for three months as a replacement income for active gig workers undergoing training programmes.

Overall, RM40 million is allocated to benefit 30,000 gig workers.

29 WJT23-0046 02.

Teks 1 BI .indd 29 26/02/2023 4:08 AM budget 2023 speech • The Human Resource Development Corporation (HRDCorp) with a fund of RM1 billion will be utilised to implement skills training programmes for employees of registered employers who have accumulated levies.
To help address youth unemployment, GLCs will offer 35,000 107. career opportunities to school leaver and graduates.

The palm oil sector suffered RM20 billion in revenue loss due 108. to policy that limits the employment of workers, especially foreign workers.

With the recent amnesty drive, this issue has been almost resolved without involving agents who take high profits.

109.

Most high-risk sectors are still reliant on foreign workers.
This is due to these sectors offering low wages and worker welfare is not the emphasised.

110.

Sime Darby Plantation’s experience has shown that, locals are willing to work in oil palm plantations if the salary is at least RM3,000 and there is an agile working environment, assisted by mechanisation and automation.

They target to employ 100% local workers by the end of 2027.
Therefore, the Government will provide RM50 million in 111. matching grants to encourage automation in the plantation sector through the use of robotics and Artificial Intelligence (AI) that can employ skilled local workers.

112.

Regarding the issue of the oil palm industry, we hold the anti-palm oil movement in contempt, which is still actively perpetrated by international NGOs.

It is important for us to act consistently to defend and expand the country’s palm industry market.
RM80 million is provided to improve the sustainability of the oil palm industry and intensify efforts to counter Anti-Palm Oil Campaigns.

30 WJT23-0046 02.

Teks 1 BI .indd 30 26/02/2023 4:08 AM budget 2023 speech Dato’ Speaker Sir, 113.

The Unity Government is sensitive to women’s needs especially those who have to stop working after their maternity leave to look after their children because the cost of childcare is high.
• To support women to return to work, SOCSO will amend its Act to allow for a grant equal to 80% of the insured employee’s salary.

It is estimated that over 130,000 women returning to work after childbirth will benefit from this grant, involving a total fund of RM290 million per year.

• I urge employers to play their role to establish childcare facilities within their offices.
The Government will also streamline the guidelines for childcare centres in the workplace, including permitting them to be set up on higher office floors.

• The government is proposing to extend the tax relief for childcare centres fees.

With this extension, employers are also encouraged to utilise the existing tax incentive on the cost of providing childcare centre in offices.
If the response is lacklustre, the Government will examine the need to mandate the establishment of such facilities to support working mothers.

• At the same time, the Government will facilitate the registration process and restart the legalisation program of unregistered nurseries and childcare centres nationwide.

A total of RM15 million is provided as a soft loan to help entrepreneurs.
• For civil servants, the Government will provide a monthly childcare fee subsidy of RM180 and raise the eligibility monthly income limit for eligible households from RM5,000 to RM7,000.

31 WJT23-0046 02.

Teks 1 BI .indd 31 26/02/2023 4:08 AM budget 2023 speech • To expand access to early childhood education, the Government will continue to build 80 KEMAS nurseries and childcare centres, including 13 new projects.

Third: Matching Fund to Boost the Tourism Sector 114.
Our country is rich with an abundance of natural treasures, mesmerising beaches, and diverse flora and fauna.

These advantages have the potential to generate significant income through tourism activities ion resort islands or heritage areas.

To boost this sector, the year 2025 has been announced as Visit Malaysia Year with a target of 23.5 million international tourist arrivals and projected revenue of up to RM76.8 billion.

115.
115.

The Government will allocate RM250 million to promote tourism including providing RM115 million matching grant fund to collaborate with the tourism and culture industry.

• These matching grants are, among others, to encourage tourism promotional activities and organisation of major events such as international sports and cultural events.

• These matching grants will also be used to promote charter flights to Malaysia.

116.
116.

In relation to tourism, traffic congestion has adversely impacted numerous prominent tourist destinations.

The Government will implement the following projects: • build new roads from Habu to Tanah Rata, Cameron Highlands with a cost of RM480 million.

• upgrade Jalan Tun Hamzah up to the intersection of Semabok Lebuh AMJ Central Melaka District with a cost of RM300 million; and 32 WJT23-0046 02.
Teks 1 BI .indd 32 26/02/2023 4:08 AM budget 2023 speech • Build Sungai Sepang road and bridge to connect Bukit Pelandok, Port Dickson and Sungai Pelek, Sepang with a project cost of RM160 million; and • Improve the highway facilities to Pengerang by constructing an overtaking lane on the Senai Desaru Expressway.
The Government also agreed to execute in phases the upgrading project of North-South Highway from Yong Peng Utara to Senai Utara – Fasa 1, Johor Bahru, from four to six lanes with the cost of RM525 million.

Measure 7: Prioritising The Digital Agenda First: Internet Connectivity for the People The rakyat have the right to stable Internet access, because 117. it has become a basic necessity in daily life.

118.
118.

The Government will accelerate the implementation of the JENDELA project as a national effort to provide access to the Internet.

For the year 2023, RM725 million is provided to implement digital connectivity projects at 47 industrial areas and around 3,700 schools.

The previous administration has spearheaded the 5G initiative 119. through Digital Nasional Berhad (DNB).

By the end of 2022, DNB had achieved 50% coverage of populated areas and is expected to reach 80% coverage by the end of 2023.
The Unity Government is now taking an approach where DNB is managed with transparency and inclusivity so that all the industry players will participate.

Ultimately, what is important is to achieve comprehensive 5G coverage at an affordable price for the rakyat.

Second: Digitalisation of Business 120.

Rakyat’s businesses should also quickly adapt to digital technology so that they can expand the market for their products and services.

33 WJT23-0046 02.
33 WJT23-0046 02.

Teks 1 BI .indd 33 26/02/2023 4:08 AM budget 2023 speech • The Government will strengthen the role of the Digital Economy Centre (PEDi) to help small entrepreneurs with ICT and e-commerce knowledge.

Before the end of 2023, the Government will ensure that there is at least one PEDi facility in each DUN (1DUN 1PEDi).

• To support business automation and digitalisation activities, a total of RM100 million is allocated under the SME Digitalisation Grant Scheme, which includes small hawkers.
A matching grant of up to RM5,000 will be paid to SMEs that subscribe to business digitalisation applications such as POS sales systems, accounting, or inventory management.

• A financing fund of RM1 billion is allocated under BNM to support MSMEs in automating their business processes and digitising their operations.

Measure 8: Strengthening the Role of Government Linked Companies and Agencies 121.

GLC and GLICs play a huge role as the driving force behind the country’s economy.
This year, the cumulative investment value of Government Linked Companies is estimated to reach RM50 billion.

The investment focus includes venture capital in highly innovative startup companies.

First: Highly Innovative Start-ups 122.

I had the opportunity to meet several high-growth innovative companies, some of which have successfully listed on Bursa Malaysia and penetrated the global market.
• To replicate this success, GLCs such as Khazanah and EPF will invest up to RM1.5 billion in innovative and high-growth local startup companies with investment value of RM1.5 billion.

34 WJT23-0046 02.

Teks 1 BI .indd 34 26/02/2023 4:08 AM budget 2023 speech • The Government plans to extend the tax deduction of up to RM1.5 million on expenses incurred for listings on the ACE and LEAP Markets until the year of assessment 2025.
The tax deduction is also expanded to include the cost of listing technology-based companies on Bursa Malaysia’s Main Market.

123.

Government agencies will continue to expand capital funding opportunities and attract local talents in highly innovative sectors.

• RM40 million is allocated under the Malaysia Coinvestment Fund (MyCIF) as a matching fund to support alternative funding methods.

This will make the available accumulated funds under MyCIF amount to RM300 million.
• The Securities Commission Malaysia will also facilitate the creation of more secondary markets for private market instruments to increase liquidity and enable better price discovery.

To encourage the listing of local high-growth technology companies, the Government will allow the issuance of dual-class shares.

Second: Corporate Social Responsibility 124.

GLC and GLIC companies also contribute to the implementation of various programmes for the welfare of the rakyat and the country.
These include: • a corporate social contribution of up to RM250 million to focus on helping the hardcore poor in every possible way, to improve their quality of life.

• In addition, to preserve our national heritage, Khazanah Nasional Berhad will lead the formation of the National Heritage Fund, which has an estimated cost of RM700 million and aims to attract private participation in restoring national heritage buildings.
This includes the redevelopment of Bangunan Sultan Abdul Samad and Carcosa Sri Negara, in collaboration with ThinkCity.

35 WJT23-0046 02.

Teks 1 BI .indd 35 26/02/2023 4:08 AM budget 2023 speech • ThinkCity will also work with DBKL to participate in efforts to give meaning to life in the city through beautification projects of focal locations, as well as raising the potential of historical and cultural assets.

RM30 million is also provided to increase the liveability of public housing in Kuala Lumpur.
• On the same matter, the Government will also channel an allocation of RM50 million each to the states of Melaka and Penang to continue to preserve world heritage sites recognised by UNESCO.

III.

Combating Inequality Through Social Justice This country longs for a Malaysia that respects and cares 125. for each other.

Kindness and grace are essential in upholding social justice to ensure the well-being of ALL the rakyat.
Measure 9: Eradicating Hardcore Poor First: Cash Assistance and Livelihood Initiatives 126.

The Government is determined to eradicate hardcore poverty.

About 130,000 hardcore poor rakyat, regardless of race, will be immediately helped to lift them out of poverty through more holistic measures.

127.

The Government will implement the People’s Income Initiative (IPR), which will focus on empowering the poor to increase their income potential.
A total of RM750 million is allocated to the Ministry of Economy in 2023 to make IPR successful.

128.

Several new approaches will be implemented to overcome the weaknesses of former practices, to increase the ability of hardcore poor households to earn an income, among others: 36 WJT23-0046 02.
Teks 1 BI .indd 36 26/02/2023 4:08 AM budget 2023 speech • Assistance and facilities to participants are no longer given in a single tranche but on a monthly basis and will be monitored for sale and lease back of equipment or employment subsidies for employers who employ hardcore poor participants.

• Participants involved in economic activities must meet the needs of the local community, especially the agricultural and food sectors, to ensure consistent market demand.
• This programme aims for the participants to earn between RM2,000 to RM2,500 within a 24-month monitoring period and, after that, enable them to generate their own income through the revenue obtained.

129.

For the same purpose, the Government is currently providing welfare aid worth RM2.5 billion to over 400,000 recipients.
To expedite data updates and ensure that no one is left out of receiving this aid, the Government will carry out a whitelisting of recipients of the Government monthly assistance between ICU and JKM in one database.

Second: Role of the State Governments 130.

Welcoming the efforts of the Federal Government, both the Premier of Sarawak and the Chief Minister of Sabah have agreed to use part of the petroleum revenue proceeds to Sarawak and Sabah for hardcore poverty-eradication programs.

131.
131.

In line with this, the Ministry of Finance will also allocate a portion of the Kelantan and Terengganu Wang Ehsan to be channelled directly and especially to help the poor.

132.

In support of the same goal, the Government has allocated RM30 million to support the efforts made by UNDP and the All Party Parliamentary Group Malaysia to enhance activities related to the Sustainable Development Goals (SDGs).

This includes RM10 million 37 WJT23-0046 02.


Teks 1 BI .indd 37 26/02/2023 4:08 AM budget 2023 speech for the community garden programme at the parliamentary level, which will help support the food security agenda.

Measure 10: Minimising Cost Of Living Since steering the country’s administration, the main issue 133. that has given attention is the rakyat’s cost of living.

This year the Government will provide up to RM64 billion through subsidies, assistance, and incentives.
A large amount of this fund is to minimise the cost of living through price control of essential goods, financial assistance, and providing services to the rakyat.

First: Payung Rahmah Concept 134.

In our efforts to deal with the increase in the costs of living, the Unity Government has introduced the Payung Rahmah Concept as the overarching pillar for its efforts to help the poor and vulnerable.

135.

One of such efforts is the Menu Rahmah initiative, which offers lunch and dinner sets at only RM5.
Alhamdulillah, it is expected that the Menu Rahmah initiative will continue to receive a positive response from entrepreneurs and the rakyat.

The Government is very grateful to all entrepreneurs who 136. contributed, even with a small profit, in supporting the rakyat.

May this serve as an example for all.

The Government also implemented the Jualan Rahmah, 137. which offers essential goods that are up to 30% cheaper than the market.
The Government will provide RM100 million to make this programme a success in each of the parliamentary constituencies.

138.

The Government will also increase the allocation from RM200 million to RM225 million to expand the essential goods distribution programme to 25 new zones including Paloh and Passin, Sarawak, Pasir Raja, Terengganu, and Kuala Krai, Kelantan.

38 WJT23-0046 02.

Teks 1 BI .indd 38 26/02/2023 4:08 AM budget 2023 speech Second: Rahmah Cash Assistance 139.
The Government has channelled cash assistance to the B40 group under the Sumbangan Tunai Rahmah (STR) Phase 1 program.

Several reforms have been considered so that affected households benefit more from STR, among others: • Households with a monthly income of less than RM2,500 is eligible to receive assistance of up to RM2,500, depending on the number of children.
• The Government will also provide an additional assistance of RM600 to STR recipients from the hardcore poor household based on the e-Kasih database.

This assistance will be channelled through food baskets or vouchers for essential items worth RM600.

• This means that families in the hardcore poor group are eligible to receive assistance up to a maximum of RM3,100.

140.

Overall, STR will help ease the burden of living costs for almost 9 million recipients with an allocation of nearly RM8 billion.
Although STR is associated with assistance to B40, considering the number of recipients, STR has benefited more than 60% of Malaysian adults.

141.

Finally, not forgetting the 2 million youths aged 18 to 20, the Government will offer an e-Tunai Belia Rahmah credit amounting RM200 with an allocation of RM400 million.

Third: Assistance for the Paddy Farmers and Rubber Smallholders 142.

People who earn income as paddy farmers, and smallholders will continue to be given appropriate assistance.
During the monsoon season, these poor rakyat struggle to earn a living due to the unpredictable weather conditions.

39 WJT23-0046 02.

Teks 1 BI .indd 39 26/02/2023 4:08 AM budget 2023 speech 143.

To the paddy farmers: • The Government will continue to channel various subsidies and incentives, including the price of rice, rice fertiliser, certified paddy seeds, and upland rice paddy fertilizer, with an allocation of RM1.6 billion.
• Cash assistance will also be given to paddy farmers amounting to RM200 per month for three months or per season involving 240,000 paddy farmers with an allocation of RM228 million.

• I would like to again express my gratitude and appreciation to BERNAS for their willingness to contribute funds to help poor paddy farmers.

This will certainly help with the paddy farmers basic needs.
In addition to the RM60 million contribution, BERNAS has also agreed to share the profits from rice imports by contributing 30% of their net profit to paddy farmers.
The Government is aware of the increased production costs 144. and the decrease in rubber prices which have become a burden to rubber smallholders: • In order to increase the minimum income of rubber smallholders, the Government agrees to increase the activation pricing level for the Rubber Production Incentive (IPG) from RM2.50 to RM2.70 per kilogram with an allocation of RM350 million.
• Through this increase, I urge the Malaysian Rubber Board (LGM) to streamline the process for claiming the incentive, particularly for smallholders who have to travel long distances to claim it.

This practice is no longer acceptable as it inconveniences the rakyat.

I want to see LGM and other relevant Agencies be more responsive on the field in managing the claims of smallholders, and take 40 WJT23-0046 02.
Teks 1 BI .indd 40 26/02/2023 4:08 AM budget 2023 speech proactive steps to facilitate the rakyat’s interactions with the Government.

• Furthermore, the Government also agrees to increase the Monsoon Season Aid from RM600 to RM800 for four months.

This can help ease the burden of 320,000 of smallholders with an allocation of RM256 million.
• To increase the demand for rubber and thus increase the income of smallholders, the Government will provide RM50 million to use Cuplump Modified Bitumen (CMB) for road maintenance, which is said to increase the road’s durability.

Fourth: M40 Disposable Income All this while, the B40 group has been given various forms 145. of aid while the middle-income group, M40, remained patient despite being tightly squeezed by the increase in the costs of living.
I am pleased to announce that the Government has agreed to increase the M40’s disposable income by reducing individual income tax rates which will benefit them more.

• Starting in 2023, the income tax rates for resident individual will be reduced by 2% for income ranges from RM35,000 to RM100,000.

• These reductions are expected to provide approximately 2.4 million taxpayers with excess disposable income of up to RM1,300, yearly.

As I have explained, the Government will take a progressive 146. approach.
While the M40 will benefit from a reduction in tax rates, the Government will raise tax rates for those with higher incomes between 0.5% and 2%, for income range of RM100,000 to RM1 million.

However, it is expected that fewer than 150,000 taxpayers will be affected by increased tax.

41 WJT23-0046 02.

Teks 1 BI .indd 41 26/02/2023 4:08 AM budget 2023 speech 147.
Through this approach, this step involves reducing the Government’s net tax revenue by up to RM900 million for the benefit of the rakyat, especially the M40 group.

Fifth: Food Security 148.

In facing the challenge of rising commodity prices and food supply disruptions, the agro-food sector needs to be revamped by prioritizing the sustainability of local food production through automation and digitalisation.
• BNM, for example, provides funds of up to RM1 billion under the Agrofood Financing Scheme to help agro-food entrepreneurs increase production productivity.

• In terms of training and guidance, MDEC will expand the organization of the Digital AgTech programme to train more smallholders to adapt to technology.

This initiative is expected to benefit 100 Regional Farmer Organizations nationwide with an allocation of RM10 million.
• To increase efficiency with the use of technology in the agricultural sector, the Government plans to provide Accelerated Capital Allowance and exempt 100% income tax on capital expenditure.

• At the same time, tax incentives for food production projects are extended until the end of 2025 with an expanded scope of incentives to include modern agricultural projects-based on Controlled Environment Agriculture.
• To ensure affordable and sustainable food supply, food production needs to be increased to a large and competitive scale.

Through government support, Farm Fresh has emerged as the leading producer of fresh milk in Malaysia.

Therefore, the Government will encourage large-scale private sector investment 42 WJT23-0046 02.

Teks 1 BI .indd 42 26/02/2023 4:08 AM budget 2023 speech in agriculture, including providing incentives, land, financing, and technology grants.

149.
149.

Only 1.2 million hectares of national land is used for food crops compared to 7 million hectares for palm oil and rubber crops.

• The Government proposes that FELDA, FELCRA, RISDA, and agencies under the Ministry of Agriculture and Food Security (MAFS) fertilize their idle lands with an area of up to 800 acres for food agriculture projects.
• The Ministry of Defence, LTAT and other companies will implement a project to improve domestic corn grain cultivation, with the aim of improving food security and providing job opportunities for military veterans.

LTAT has committed to providing 70 acres of plantation land for this project.

• The Government will also allocate RM30 million to collaborate with several State Governments to implement agro-food projects.

Measure 11: Ensuring Harmony And Unity 150.


The harmony and unity of our nation must always be preserved, regardless of region or race.

Social justice must be upheld to close the development gap among the States and income gap of the rakyat.

151.

Unity must remain important and intact, especially in our efforts to resolve the main issues plaguing the nation.

The issues faced by the rakyat, who struggle daily with the increased cost of living, are now being thoroughly tackled.
We are not trying to implement policies that are half-baked or that favour the elite group, but to ensure that the policies benefit all rakyat.

43 WJT23-0046 02.

Teks 1 BI .indd 43 26/02/2023 4:08 AM budget 2023 speech 152.

I would like to remind everyone to not ever try to fish in troubled waters by inciting racial hate.

This country will not allow this hateful sentiment to grow.
I assure you here that not only will the perpetrators be arrested, but also the purveyors who abuse the right to free expression.

153.
153.

Dalam sebuah hadith yang diriwayatkan Muslim, Nabi Muhammad SAW In a hadith narrated by Muslim, Prophet Muhamad (Peace 153. bersabda: Be Upon Him) said: اًثلَث اهلاق َنوُع ِ طَنَتُملا َكَلَه “Those who go to extremes are doomed,” he (prophet) said it “Telah binasa mereka yang melampau,” diulangnya (oleh Nabi) sebanyak tiga three times.” kali.” To celebrate diversity and bridge divides, a total of 154.

RM50 million has been allocated to support various programmes, 154.
Bagi meraikan kepelbagaian dan merapatkan jurang perbezaan, sejumlah including ‘Kembara Perpaduan Malaysia Madani’ and ‘Ini Warisan 50 juta ringgit disedia bagi menggerak pelbagai program antaranya Kembara Kita’.

These program will encompass various activities focused on Perpaduan Malaysia Madani dan Ini Warisan Kita.
Program ini akan promoting unity and social integration among communities, such menggerakkan pelbagai aktiviti perpaduan dan integrasi sosial antara komuniti as unity sports leagues, cultural competitions, festive celebrations, seperti liga sukan perpaduan, pertandingan kebudayaan, fiesta perayaan dan and culinary events.

citarasa menu.

To promote unity as well as acknowledge the role of parents, 155. communities, and NGOs in the development of school children, the 155.
Bagi memupuk perpaduan di samping mengangkat peranan ibu bapa, Government agrees to allocate RM20 million to implement the komuniti dan NGO dalam pembangunan anak-anak di sekolah, Kerajaan bersetuju ‘gotong-royong’ programme in all schools nationwide.

menyediakan 20 juta ringgit untuk melaksanakan program gotong-royong di semua sekolah seluruh Malaysia.

156.

In addition, an allocation of RM50 million is provided for the maintenance and repair work of non-Muslim houses of worship throughout the country.
156.

Selain itu, peruntukan 50 juta ringgit turut disediakan bagi penyelenggaraan dan baik pulih rumah ibadat bukan Islam seluruh negara.

First: Development of Sabah and Sarawak 157.

Sabah and Sarawak will continue to benefit greatly from the development allocation of RM 6.5 billion and RM5.6 billion respectively.

44 59 WJT23-0046 02.


Teks 1 BI .indd 44 26/02/2023 4:08 AM budget 2023 speech • These include the masterplan to develop towns bordering Kalimantan, Indonesia such as Kalabakan, Sabah as well as Ba’kelalan, Sarawak with a cost of RM1 billion as a step towards relocating the capital of Indonesia to Kalimantan.

158.

Furthermore, more than RM2.5 billion is provided to implement public infrastructure projects, primarily benefitting Sabah and Sarawak.
These projects include road and street lighting, as well as water and electricity supply.

159.

The Government is committed to continue and expedite the implementation of the Sabah Pan Borneo Highway and Sarawak-Sabah Link Road, which spans a distance of more than 1,000 kilometres with an estimated total cost of RM20 billion.

160.
160.

To ease the lives of rakyat living in the rural areas of Sabah and Sarawak, the Government will increase clinic facilities, banks and mobile courts with a total allocation of RM30 million.

161.

I have also previously announced the Government’s commitment to delegate approval authority for federal project procurement to the Technical Department in Sabah and Sarawak for amounts of up to RM50 million to expedite project implementation.
Last year, the Federal Government and Sabah State Government 162. reached an interim agreement for a special grant subject to the negotiations for a new formula.

The Administration is committed to improve the rate of the special grant compared to what was previously agreed and will expedite the negotiation for a new formula for Sabah and Sarawak.

For a long time since 1970s, Sarawak only received special grant of RM16 million per year.

The Government will increase the amount to at least RM300 million.
Second: Domestic Security and Defense 163.

National security will continue to be maintained to ensure peace and harmony.

Past weaknesses in procurement governance have affected the nation’s defence readiness.

The procurement 45 WJT23-0046 02.

Teks 1 BI .indd 45 26/02/2023 4:08 AM budget 2023 speech of LCS ships has costed more than RM6 billion, yet none have been completed.

Such transgressions cannot be repeated.


From now on, the use of middleman should be eliminated and all dealings should be conducted directly with the Government of relevant countries.

164.

For 2023, The Ministry of Home Affairs (KDN) and the Ministry of Defence (KEMENTAH) are allocated RM18.5 billion and RM17.7 billion respectively.

• The priority of this allocation is to maintain and purchase ATM assets to increase defence readiness with an allocation of around RM4.1 billion.
• To strengthen the country’s defence and maritime control capabilities, the Government will also procure Littoral Mission Ship (LMS) this year.

• Meanwhile, agencies under the KDN will be allocated c l o s e t o R M 1 b i l l i o n t o s t re n g t h e n d o m e s t i c security.

These include the procurement of over 2,100 units of Body Worn Camera for PDRM.

In addition, the Perak Contingent Police New Headquarter dan police quarters will be constructed with a total cost of RM450 million.
• The Government will increase 42 border control posts of PGA, Immigration, ESSCOM, and APMM to tighten the national border control in addition to maintaining all APMM ships and boats.

The welfare aspects of the national armed forces will 165. continue to be maintained.

• More than RM500 million will be allocated for the maintenance of the Rumah Keluarga Angkatan Tentera (RKAT) and renovation of residential quarters and institutions under KDN.

46 WJT23-0046 02.
46 WJT23-0046 02.

Teks 1 BI .indd 46 26/02/2023 4:08 AM budget 2023 speech • To help with the ownership of affordable housing for the Royal Armed Forces (ATM) in phases, the Government will build more than 7,000 units of affordable houses in Kuala Lumpur under the program Satu Anggota Satu Rumah (SASaR) Program.

• Under current rules, ATM members who quit the service or retire without a pension are required to fully settle their LPPSA loans.
Acknowledging the worries and burden that need to be borne, the Government has agreed for LPPSA to allow eligible ATM borrowers to continue repaying the loan balances as usual until fully settled.

This effort will enable 4,000 eligible LPPSA borrowers to restructure their loans and 700 retiring borrowers without pensions to continue repaying their loans as usual.

• The Government understands the challenges faced by ATM veterans who struggle to get a job after retirement.
I am determined to ensure that ATM veterans are provided with jobs and training facilities.

o This Administration will implement the ATM Veteran Second Career Programme in collaboration with LTAT.

Under this initiative, a total of 5,000 ATM veterans who are retiring this year will be offered job opportunities or enrolled in skills training for better income generation.
o To increase the skills of 1,250 veterans, the Veteran Affairs Department, together with other Government agencies, will offer five courses, including drone operation, cyber security and aircraft maintenance for three months.

Third: Syiar Islam 166.

The Government has provided allocation related to Islamic affairs totalling RM1.5 billion and we want the Islamic Institutions in this country to become a shining example of administrative 47 WJT23-0046 02.
Teks 1 BI .indd 47 26/02/2023 4:08 AM budget 2023 speech o Untuk meningkatkan kemahiran 1,250 orang veteran, Jabatan Hal Ehwal Veteran bersama-sama agensi Kerajaan lain akan menawarkan lima bidang kursus antaranya pengendalian dron, keselamatan siber dan penyelenggaraan pesawat selama tiga bulan.

Ketiga: Syiar Islam 166.


Kerajaan telah menyediakan peruntukan berkaitan hal ehwal Islam berjumlah 1.5 bilion ringgit dan kita mahu institusi Islam dalam negara Madani ini menjadi contoh terbaik dalam kecekapan pentadbiran.

Pengurusan paling berkesan yang boleh meningkatkan kefahaman sebenar mengenai Islam.

cekap harus dimulakan di sini, dan gedung ini mesti menjadi markas dakwah yang efficiency.
The most effective management should start here, and this place must become a powerful da’wah hub that promotes the true understanding of Islam.

167.

Selaras dengan ini, saya juga faham peranan besar yang dimainkan oleh imam dan bilal serta guru-guru dalam mengimarahkan fungsi masjid sepertimana 167.
In line with this, I also understand the crucial role played by imams, bilal and teachers in improving the function of the mosque as Allah SWT says in Surah At-Taubah, Verse 18: firman Allah SWT dalam Surah At-Taubah ayat-18: الَِّا َش ْخَي ْمَل َو َةو ٰك ازلا ىَتٰا َو َةو ٰل اصلا َماَقَا َو ِر ِخٰ َنْيِدَتْهُمْلا َن ِم ا ْوُن ْوُكاي ْنَا َكِٕى ْلَّا ِم ْوَيْلا َو ِ ٰلوُا ىٓ هللّٰاِب َنَمٰا ْنَم ِ ٰسَعَف َ ه� ه� َد ِج ٰسَم ُرُمْعَي اَمانِا The mosques of Allah are only to be maintained by those who believe Sesungguhnya yang memakmurkan masjid Allah hanyalah orang-orang yang in Allah and the Last Day and establish prayer and give zakah and do not fear except Allah, for it is expected that those will be of the beriman kepada Allah dan hari kemudian, serta (tetap) melaksanakan salat, [rightly] guided.
menunaikan zakat dan tidak takut (kepada apa pun) kecuali kepada Allah.

Maka mudah-mudahan mereka termasuk orang-orang yang mendapat petunjuk.

In appreciation of their services and efforts, the Government 168. agrees to: • increase the allowance of 35,000 KAFA teachers by RM100 to RM1,100 with an additional allocation of more than RM40 million; and 64 • provide a special payment of RM600 to Imam, Bilal, Tok Siak, Noja, Marbut, KAFA teachers, and Takmir teachers.
A total of 70,000 people will receive this payment, which involves an allocation of more than RM40 million.

Fourth: Sports and Culture Sports 169.

Certainly, sports and culture play a crucial role in the spiritual development of society.

Beyond being a platform for competition, they also serve as powerful tools for promoting diversity among the rakyat of various races and religions.

48 WJT23-0046 02.

Teks 1 BI .indd 48 26/02/2023 4:08 AM budget 2023 speech ۤ 170.
This Administration will focus on unity programmes that are based on universal virtues.

Priority is given to sports, culture, and arts programmes at both school and community levels by ensuring the involvement of youth and different types of schools.

A total of RM20 million is allocated for the program.

171.
171.

To ensure the success of these programs, the Government will provide a matching grant of RM50 million to encourage private sector’s sponsorship of sports, particularly sports that promote unity, national-level sport tournaments, and sports reality programmes.

172.

With regard to national athletes, the Government will continue to enhance the training programmes and sports facilities to benefit all athletes including para-athletes with a total allocation of RM324 million.
This allocation will be used to develop a comprehensive sports ecosystem, from talent search to podium events; as well as to maintain and upgrade sports facilities throughout the country.

173.

The Government has also agreed to provide tax deduction of up to 10% of aggregate income for individuals or companies that contribute to non-profit organizations that implement sports development programme at the grassroots level.
To maintain and protect the welfare of national athletes, a 174. fund of RM5 million is provided to the National Athlete Welfare Foundation (YAKEB) starting 2023.

At the same time, the Government has also proposed a tax deduction for employers who hire former national athletes.

Cultural Arts, Creative Works and Language The Government continues to support the efforts of creative 175. artists in promoting arts and culture.
RM102 million has been allocated as Digital Content Fund to encourage the marketing of local art and drive the production of more creative works.

49 WJT23-0046 02.

Teks 1 BI .indd 49 26/02/2023 4:08 AM budget 2023 speech 176.

The Government proposes a tax deduction for contributions made to the Tabung Komuniti Filem and National Film Development under FINAS.

In addition, import duty and sales tax exemptions will be given on studio and filming production equipment.
Cultural activities play a major role in creating a united and 177. respectful madani society.

It is also crucial to enrich the diverse art that we have inherited over time.

The Government will provide an allocation of RM25 million to stimulate cultural and artistic activities at the community level.

178.
178.

The cultural empowerment begins with the reading culture that cultivates an interest in classical literature and works of art that encompass the knowledge and heritage of the Malay, Islamic, and Western worlds.

The Government supports efforts to enrich and translate great works such as the works of Imam Al-Ghazali, the originator of Maqasid syariah, Abu Ishaq al-Shatibi, Sheikh Daud Abdullah al-Fatani, and Nuruddin Ali ar-Raniri, as well as the thinker, writer, and philosopher Muhammad Iqbal.

179.
179.

Dewan Bahasa dan Pustaka, together with the Institut Terjemahan & Buku Malaysia (ITBM) and Yayasan Karyawan, have been mandated to intensify translation activities and make them popular reading materials.

High quality publishing by local writers will also be increased.

A total allocation of RM20 million is provided for this purpose.

180.
180.

On 27 January 2023, I announced that we will print 1 million copies of the Al-Quran as a symbol of wisdom and maturity, in response to recent attacks against Islam, such as the burning the Al-Quran in Sweden.

For this purpose, RM10 million will be made to Yayasan Restu for the immediate distribution of 20,000 copies of Al-Quran translation in Swedish, as well as other major foreign languages.

Measure 12: Providing Quality Basic Amenities 181.


When it comes to the rakyat’s well-being, what needs to be enhanced is the effort to improve essential services, such as public transportation, education, healthcare, and housing.

50 WJT23-0046 02.

Teks 1 BI .indd 50 26/02/2023 4:08 AM budget 2023 speech 182.
Through the Federal Grant to the State Governments based on Tahap Pembangunan Ekonomi, Infrastruktur dan Kesejahteraan Hidup (TAHAP), this year the Government has agreed to increase the amount to RM400 million compared to RM330 million last year.

This grant can be especially helpful for less developed states, including Kedah and Perlis.

183.
183.

In a related matter, I want to touch on the issue of allocation to the Members of Parliament as some parties try to question why it needs to be reduced, as it seems to ignore the welfare of the rakyat.

I want to stress here that such assumption is totally wrong.

The approach is not important, whether the allocation is channelled through the state government or the Members of Parliament, as the value remains the same.

What is more important is that it gets into the hands of the rakyat.
First: Transportation 184.

Rail and bus transportation services are recognised as important and of great benefit, especially for urban communities to commute to work.

• Under Prasarana, the Government will continue the My50 monthly pass initiative, which benefits around 180,000 commuters.

• Prasarana will also pilot the introduction of myBAS50 Unlimited Travel Pass to benefit the rakyat of Johor Bahru who use the stage bus service under the SBST Programme.
• The Government will also provide RM150 million to expand the implementation of the SBST Programme to Malacca town, Kuching, and Kota Kinabalu.

185.

Regarding the MRT3 Project, the cost was originally estimated at RM68 billion in 2018.

Last year, the project procurement process started and the cost was estimated at RM50 billion.

The Government will now review the details of the project to ensure the best value 51 WJT23-0046 02.
Teks 1 BI .indd 51 26/02/2023 4:08 AM budget 2023 speech for money and is confident of achieving additional savings to bring the total cost to under RM45 billion.

This effort is in line with governance reforms to reduce procurement costs to achieve savings that can be redistributed for the benefit of the rakyat.

Air service is the primary mode of transportation for the 186. rakyat of Sabah dan Sarawak living in rural areas.
• The Government will provide RM209 million to subsidise air transportation for this group.

• In addition, wheelchair ramp facilities at seven airports in Sabah and Sarawak will benefit thousands of wheelchair users who use MASWings.

Second: Education 187.

Za’ba comprehensively analysed that the destitution of a nation’s fate with regards to poverty is divided into four categories, namely, poverty in terms of intellect, material possessions, ambition, and knowledge.

188.
188.

The Ministry of Education will continue to receive the highest allocation of RM55.2 billion compared to RM52.6 billion in 2022.

• A total of RM2.3 billion is provided to ensure that all schools have the best infrastructure and learning facilities for children.

o This covers RM920 million for the upgrading of buildings and infrastructure in 380 dilapidated schools, primarily in Sabah and Sarawak through a special procurement process for urgency.
o RM900 million allocation is also provided for maintenance works for all types of national schools, religious schools, and vernacular schools.

52 WJT23-0046 02.

Teks 1 BI .indd 52 26/02/2023 4:08 AM budget 2023 speech o In addition, schools with special needs students will have disabled–friendly facilities.

o The Government will also construct an open hall to provide a comfortable place for children to gather.

189.
189.

A total of seven new schools will be built with a cost of RM560 million, including SK Paya Dusun in Terengganu, SMK Denai Alam in Selangor, SMK Nabalu in Sabah and SMK Dudong in Sarawak.

190.

To cover the cost of providing nutritious food to students, the rate for cooked meals under Rancangan Makanan Tambahan (RMT) has been increased from RM625 million to RM777 million this year, which will benefit 700,000 students.
• In addition, the allocation for the Ministry of Education’s Preschool Food Programme has increased from RM89 million to RM108 million to benefit more than 240,000 MOE preschool students.

• Monitoring will be done on food providers to ensure that the food provided is of good quality and nutritious.

191.

The role of teachers is critical in holistically educating children.
In line with the current trend of modernisation, teachers’ teaching and learning equipment need to quickly adapt to the digital technology.

Hence, for the year 2023, the Government will supply MOE schools and educational institutions with 50,000 laptops, Insya-Allah.

Dato’ Speaker Sir, I often emphasise the importance of a culture of knowledge 192. and intellectualism.
One lesson learnt is from the report on the deterioration of higher education in the United States entitled ‘A Nation at Risk: The Imperative for Educational Reform’.

It expressed concerns about the level of intellectual, moral, and spiritual strength among Americans.

53 WJT23-0046 02.

Teks 1 BI .indd 53 26/02/2023 4:08 AM budget 2023 speech For 2023, the Ministry of Higher Education will be allocated 193.

RM15.3 billion compared to RM14.5 billion in 2022.


• Among them, RM436 million is provided to repair infrastructure and replace outdated equipment that are no longer economical at Public Institutions of Higher Learning.

• RM35 million is also provided as fund to improve the internet connectivity in higher education institutions in Malaysia under the Malaysian Research and Education Network (MYREN).

194.
194.

Regarding R&D activities which are recognised as important, a total of RM428 million is provided to implement R&D activities under the Ministry of Higher Education and the Ministry of Science, Technology, and Innovation.

• Among them is an additional allocation of RM50 million for MOHE to promote translational R&D that is more beneficial to solving community and industry issues.

• In addition, MOSTI is also provided with RM15 million R&D grants specifically for the production of national vaccines.
195.

In relation to PTPTN loans, the Government agrees to offer a discount up to 20% on PTPTN loan repayments for a period of three months starting from 1 March 2023.

196.

In order to ease the financial burden of affected borrowers, the Government agrees to defer repayment for a period of 6 months to borrowers with a monthly income of RM1,800 and below.

Applications for this postponement can be made starting from 1 March 2023.

54 WJT23-0046 02.
54 WJT23-0046 02.

Teks 1 BI .indd 54 26/02/2023 4:08 AM budget 2023 speech Third: Healthcare 197.

The Ministry of Health received the second largest allocation of RM36.3 billion compared to RM32.4 billion last year.

The main components of this allocation involve procurement of medicines, reagents, vaccines, and consumables, and include an allocation of RM3 billion to offer permanent and contract appointments to over 1,500 medical officers, dentists, and pharmacists.
Regarding the issue of overcrowding in public health 198. facilities, several measures will be undertaken.

• The nation’s health capacity will be optimised by outsourcing patients from overcrowded hospitals to other hospitals, including university hospitals, military hospitals and to private hospitals.

• The Government will introduce the Madani Healthcare Scheme specifically for the poor to get health treatment at private clinics as implemented by the Selangor Government.
A total of RM120 million is provided for this purpose.

• The Government proposes that charitable hospitals registered as Company Limited by Guarantee be given income tax exemption equivalent to the amount of charitable expenditure incurred.

Donors will also be given a tax deduction of up to 10%.

• To reduce overcrowding at Melaka Hospital, the Government will build a women and children’s block with a capacity of 476 beds at a cost of almost RM700 million.
• The Government will also start preliminary work to upgrade 26 hospitals including the expansion of Kuala Kangsar Hospital, Perak; Jelebu, Negeri Sembilan, as well as Pontian Hospital, Johor that is now near a century old.

55 WJT23-0046 02.

Teks 1 BI .indd 55 26/02/2023 4:08 AM budget 2023 speech 199.

Since 2019, the Government has introduced the Peduli Kesihatan Scheme (PEKA B40) to provide health check-up or special early screening for the B40 group.
The Government will allocate RM80 million to enhance this Scheme by including diabetes screenings.

Starting from the assessment year 2023, the tax relief 200. limit for medical treatment expenditures will be raised from RM8,000 to RM10,000.

In addition, the scope of this relief will also be expanded to cover the cost of intervention treatment for children with developmental disabilities such as Autism, Down Syndrome, and Specific Learning Disabilities.

Fourth: Housing 201.


People’s Housing Project (PPR) has been implemented for decades to benefit the low-income rakyat.

Collaborative endeavour of the Unity Government is now directed towards ensuring the PPR environment is more humane with facilities that benefit the community.

• The Ministry of Local Government Development is provided with an allocation of RM50 million to ensure a safe environment in PPRs with the priority of replacing dilapidated elevators.
To expedite the procurement process, the quotation limit for lift repairs and maintenance procurement is increased from RM500,000 to RM1.2 million; • RM15 million is allocated to support NGOs’ efforts in providing remedial classes for children who are falling behind in their studies; • RM30 million is also allocated to intensify rakyat’s economic activities, for instance, food businesses using the Cloud Kitchen platform under the supervision of Yayasan Hasanah; and • To provide free internet access at 56 selected PPRs.
56 WJT23-0046 02.

Teks 1 BI .indd 56 26/02/2023 4:08 AM budget 2023 speech 202.

Several new PPR projects are currently being developed involving an allocation of RM367 million to benefit 12,400 potential new residents.

In addition, the Rumah Mesra Rakyat program under SPNB also involves the construction of 4,250 housing units with an allocation of RM358 million.

203.
203.

Syarikat Jaminan Kredit Perumahan (SJKP) all this while has been providing Government Guarantees to assist borrowers who do not have a fixed income.

In 2023, the SJKP is ready to guarantee up to RM5 billion in loan value to benefit 20,000 borrowers.

204.
204.

To further encourage home ownership, the Government will continue to exempt stamp duty for first-time home ownership, with a full exemption of stamp duty for homes valued at RM500,000 and below, and a 75% exemption for homes valued more than RM500,000 to RM1 million.

Fifth: Social Protection 205.

Currently, young people who work as gig riders are exposed to the risk of road accidents, and even worse if they have no job protection.
The Government is determined to improve the sustainability of the social safety system by making it mandatory for all self- employed workers to gradually contribute to the Self-Employment Social Security Scheme (SKSPS).

This is to protect them from any unwanted incidents.

Social protection facilities must continue to be given attention.

In relation to that, during the transition period, the 206.
Government will bear 80% of the SOCSO contribution value to reduce the burden and to encourage self-employed workers to make contribution to the Self-Employment SOSCO Scheme, RM100 million is allocated to benefit the self-employed individuals.

207.

To encourage voluntary savings for retirement, the Government intends to expand the scope of tax relief for life insurance premiums or takaful contributions to include voluntary contributions to EPF of up to RM3,000.

57 WJT23-0046 02.
57 WJT23-0046 02.

Teks 1 BI .indd 57 26/02/2023 4:08 AM budget 2023 speech 208.

To encourage more self-employed individuals to save in EPF, the Government is increasing the value of the i-Saraan matching contribution to RM300 compared to RM250 previously.

RM30 million is allocated to benefit more than 100,000 contributors.

209.

The Government supports the increase in equity ownership among Bumiputeras.
The individual investment limit for Amanah Saham Bumiputera (ASB) and Amanah Saham Bumiputera 2 (ASB2) will be increased to RM300,000, from RM200,000 previously.

The administration has also agreed to increase the size of the Amanah Saham Malaysia (ASM) fund by RM5 billion.

Finally, regarding the issue of EPF savings.

After the country 210. was hit by the COVID-19 pandemic, the rakyat had to sacrifice their retirement savings several times to meet their daily needs during the pandemic.
Now, as people gradually rebuild their lives, most of them use their income to sustain their current lives while their retirement savings are still low.

211.

The Government is committed to assisting the rakyat in rebuilding their retirement savings to ensure that the existing savings will be sufficient to finance their retirement days.

For members aged between 40 to 54 years old with 212.
EPF savings of less than RM10,000, the Government agreed to contribute an additional RM500 to their EPF Account 1 savings.

This programme will benefit nearly 2 million EPF members involving an allocation of nearly RM1 billion.

213.

At the same time, the Government hopes rakyat who have sufficient retirement savings will continue to contribute so that all contributors can benefit.

58 WJT23-0046 02.
58 WJT23-0046 02.

Teks 1 BI .indd 58 26/02/2023 4:08 AM budget 2023 speech Civil Servants Dato’ Speaker Sir, Continuing from the Prime Minister’s briefing session in 214.

Parliament after my visit to Turkiye, the Government agreed to provide a special allowance of RM100 per day to all members of the national search and rescue team involved in missions in Turkiye and Syria.

This allowance is a sign of the Government’s appreciation for the great service provided on behalf of humanity.

215.
215.

Following the increase of the maximum replacement leave (GCR) from 160 to 180 days, this administration intends to continue the proposal to increase the maximum early redemption of GCR up to 50%, equivalent to a maximum of 90 days.

This effort is hoped to assist civil servants in need.

216.

Governments may alternate, national leaders often change, but civil servants, as the backbone of the Government, remain loyal in upholding the nation’s trust.
In line with Malaysia Madani’s direction, civil servants need to bring about change, implement reforms with the ultimate goal of delivering the best service to the rakyat and the country.

217.

As we enter the month of Ramadan and to appreciate the services and sacrifices of civil servants, the Government agreed to channel Aidilfitri Special Financial Assistance of RM700 to all civil servants who are Grade 56 and below, including contract appointments.
Additionally, RM350 will be given to the Government retirees.

Insya-Allah, payment is expected to be made in April 2023.

WJT23-0046 02.

Teks 1 BI .indd 59 26/02/2023 4:08 AM 59 budget 2023 speech Closing Dato’ Speaker Sir, As a conclusion to Budget 2023, it is emphasized that the 218.

Unity Government is committed to fulfilling the rakyat’s mandate to achieve economic prosperity in the country.

Indeed, the COVID-19 outbreak has passed, and the economy 219. is now recovering.
However, we should not be complacent in facing other upcoming challenges.

Sustainable economic development is essential as a future-proofing element that is ready to serve as a shield against any potential risks that may arise.

220.

Our responsibility is significant, requiring us to combine all of our strength and energy to move forward in unison and achieve the objectives of MADANI Development.
Leaders, in particular, can no longer afford to comfortably continue with the wrong practices inherited from the past.

A significant shift must be forged.

A shift towards combating corruption that deprives people of the opportunity to enjoy a more meaningful life, towards good governance that reflects our principles in spending, which leads to empowerment and socio-economic mobility for all segments of society.

221.
221.

Even if there are different political views, let’s not let those differences prevent us from making meaningful changes.

If we compete, we shouldn’t race to the bottom but should focus on the principle of fastabiqul khairat, that is, to be competitive in doing good deeds.

60 WJT23-0046 02.

Teks 1 BI .indd 60 26/02/2023 4:08 AM budget 2023 speech 222.
Akhirul kalam, saya sudahi ucapan saya dengan firman Allah SWT di dalam Surah An-Nisa, ayat 58: 222. in Surah An-Nisa, verse 58: In conclusion, I end my speech with the words of Allah SWT اَّمِعِن َ َّللَّٱ َّنِإ ۚ ِلْدَعْلٱِب ۟اوُمُك ْحَت نَأ ِساَّنلٱ َنْيَب مُت ْمَكَح اَذِإ َو اَهِلْهَأ ٰٓ ْلأٱ ۟اوُّدَؤُت نَأ ْمُك ُرُمْأَي َ َّللَّٱ َّنِإ ٥٨ ري ِصَب ا ًۢ ا ًۭ عي ِمَس َناَك َ ٰىَلِإ ِتٰـَنٰـَمَ َّللَّٱ َّنِإ ۗ ٰٓۦِهِب مُكُظِعَي “Indeed, Allah commands you to render trusts to whom they are Sesungguhnya Allah menyuruh kamu supaya menyerahkan segala jenis amanah due and when you judge between people to judge with justice.
Excellent is that which Allah instructs you.

Indeed, Allah is ever kepada ahlinya (yang berhak menerimanya), dan apabila kamu menjalankan Hearing and Seeing.” hukum di antara manusia, (Allah menyuruh) kamu menghukum dengan adil.

Sesungguhnya Allah dengan (suruhanNya) itu memberi pengajaran yang sebaik- With that, (Wassalamualaikum Warahmatullahi Wabarakatuh.)

baiknya kepada kamu.

Sesungguhnya Allah sentiasa Mendengar, lagi sentiasa Dato’ Speaker Sir, I beg to propose.

Melihat.
Melihat.

Sekian, Wassalamualaikum Warahmatullahi Wabarakatuh.

Dato’ Yang di-Pertua, saya mohon mencadang.

82 61 WJT23-0046 02.

Teks 1 BI .indd 61 26/02/2023 4:08 AM budget 2023 speech WJT23-0046 02.

Teks 1 BI .indd 62 26/02/2023 4:08 AM Appendix I Touchpoints Budget 2023 WJT23-0046 03.

TOUCHPOINT BI 1.indd 63 26/02/2023 4:20 AM “An incredible amount of strength and energy are needed to ensure the MADANI Development agenda is successful.
Leaders can no longer be comfortable continuing the wrong practices.

A major shift is a must.
A shift towards a norm of fighting corruption that has denied the rakyat a meaningful life, towards good governance that reflects a principle in spending that leads to the empowerment and socioeconomic mobility for all layers of the rakyat” YAB DATO’ SERI ANWAR IBRAHIM PRIME MINISTER AND FINANCE MINISTER BELANJAWAN 2023 PILLARS D M Mampan A Aman Makmur (Kesejahteraan) Daya Cipta A Amanah (Keyakinan) N Nilai Hormat I Ihsan First Inclusive and Sustainable Economic Growth Second Restoring Confidence in Institutions and Governance Third Combating Inequality Through Social Justice MAIN MEASURES Fiscal Sustainability Fulfilling the Rakyat’s Economic Needs Readiness in Facing Disasters Achieving High Impact Investments Public Sector Reform Empowering Public-Private Partnership Prioritising Digital Agenda Strengthening the Role of Government-Linked Companies and Agencies Eradicating Hardcore Poor Minimising Cost of Living Ensuring Harmony and Unity Providing Quality Basic Amenities BUDGET 2023 TOUCHPOINTS 65 WJT23-0046 03.
TOUCHPOINT BI 1.indd 65 26/02/2023 4:20 AM In a glance... Belanjawan 2023 Theme Membangun Malaysia Madani RM291.5 bil Estimated Revenue RM289.1 bil Operating Expenditure RM99 bil Development Expenditure (includes RM2 bil as contingency savings) “The Government is committed to upholding social justice.

Fair revenue distribution does not mean equal treatment across the board but instead based on needs” ECONOMIC PERFORMANCE Fiscal Deficit: 5% GDP: ~4.5% 66 BUDGET 2023 TOUCHPOINTS WJT23-0046 03.
TOUCHPOINT BI 1.indd 66 26/02/2023 4:20 AM Inclusive and Sustainable ECONOMIC GROWTH Measure 1: Fiscal Sustainability 1.

2.

3.
Expansionary Fiscal Policy • Projected Malaysia GDP growth of 4.5% • Expected revenue collection of RM291.5 b • Total allocation of RM388.1 b (Operating Expenditure: RM289.1 b; Development Expenditure: RM99b, (including contingency reserves of RM2 b)) Managing Debt Levels • Fiscal deficit of 2023 is projected to decline to 5% of GDP, compared to 5.6% in 2022 • Fiscal deficit is targeted at 3.2% of GDP by 2025 Fiscal Responsibility Act (FRA) • Fiscal Responsibility Bill will be tabled in Parliament in 2023 • To ensure macroeconomic stability, debt management, sustainable budgeting and fiscal risk management 4.
To Increase the Revenue Collection Introduce the Luxury Tax • • Study the introduction of Capital Gain Tax for unlisted shares by • • • companies in 2024 Introduce the global minimum effective tax rate under Pillar 2 of the BEPS Action Plan 1 Tax Challenges Arising from Digitalisation and implement the Qualified Domestic Minimum Top-up Tax (QDMTT) Impose an excise duty on liquid or gel products containing nicotine used for electronic cigarettes and vapes Intensify enforcement efforts to curb the leakage of proceeds and subsidies due to smuggling syndicates such as diesel, alcohol, and cigarettes BUDGET 2023 TOUCHPOINTS 67 • The voluntary disclosure program by JKDM and LHDN will offer a 100% penalty waiver for voluntary disclosure made from 1 June 2023 until 31 May 2024 Measure 2: Fulfilling the Rakyat’s Economic Needs 1.
2.

3.

4.
Reduction in Tax Rate • MSMEs' rate on taxable income for the first RM150,000 will be reduced from 17% to 15% Facilitating Hawkers and Small Traders • Build and upgrade MyKiosk@KPKT stalls and kiosks across the country (RM50 j) • Upgrade MARA’s business premises and facilities as well as increasing number of businesses (project cost RM5 m) • MARA's Program Transformasi Premis Usahawan Luar Bandar (TRENT) (project cost RM32.8 m) • Provide strategic business space for SME entrepreneurs and hawkers under the Malaysia Entrepreneur Hub Program by UDA (RM30 m) • Upgrade food courts, markets and tamu market under the supervision of PBTs nationwide (RM28.6 m) • Business premises under Dewan Bandaraya Kuala Lumpur (DBKL) (RM30 m) • Assistance for Bumiputera property ownership in prime locations and rental strategies for Bumiputera entrepreneurs by Perbadanan Usahawan Nasional Berhad (PUNB) (RM50 m) Extension of stamp duty exemption for restructuring or rescheduling of loan/financing agreements executed from 1 January 2023 to 31 December 2024 Financing and Guarantee Facilities • Various MSME financing facilities, including direct loans, alternative financing, and guarantees (RM40 b) 68 BUDGET 2023 TOUCHPOINTS Microcredit Scheme Agency Program/ Scheme Fund Size (RM mil) Terms of Financing Micro Kasih Scheme 600 BSN Skim Mikro Kasih Penjaja 350 Other Micro Credit Schemes Various Microcredit Schemes Micro Enterprises Facility (MEF) 200 330 200 i-TEKAD 4 TEKUN BNM • Financing Rate: 0% f o r first 6 months, 4% thereafter • Size: Up to RM50,000 • Tenure: up to 5.5 years • Moratorium: 6 months • Financing Rate: 0% for first 6 months, 4% thereafter • Size: Up to RM20,000 • Tenure: Up to 5.5 years • Moratorium: 6 months • Financing Rate: 4% • Size: Up to RM150,000 • Tenure: Up to 5 years • Financing Rate: 3-4% • Size: Up to RM100,000 • Tenure: Up to 10 years • Financing Rate: to be determined by financial institutions • Size: MSMEs (including part-time workers (gig workers) on digital platforms and self-employed workers): Up to
 RM50,000 • Tenure: up to 5 years • Starting Capital: Matching Grant • Microfinance under MEF • Rate, size, tenure: to be determined by financial institutions BUDGET 2023 TOUCHPOINTS 69 Bank Negara Malaysia Funds for MSMEs Total funds available: RM9.7 b from RM32.4 b • This includes additional funds of RM300 mil for HTG, RM500 mil for AF and RM500 mil for ADF under Budget 2023 Fund Size Program/ (RM mil) Scheme Terms of Financing Agency • • • 500 Financing Rate: up to 3.5% per annum (including guarantee fee) Size: up to RM500,000 for SME and up to RM75,000 for micro Tenure: up to 7 years (including moratorium period) • Moratorium: at least 6 months Targeted Relief and Recovery Facility (TRRF) Low Carbon Transition Facility (LCTF) 1,000 • • • • • • • • • • • • Financing Rate: up to 5% per annum (including guarantee fee) Size: up to RM10 mil Tenure: up to 10 years Financing Rate: up to 3.5% per annum (not inclusive of guarantee to 5% per annum fee); up (including guarantee fee); no profit rate limit for equity investments Size: up to RM5 mil Tenure: up to 10 years Financing Rate: up to 3.75% per annum (including guarantee fee) Size: up to RM5 mil Tenure: up to 8 years Financing Rate: up to 4% per annum (including guarantee fee) Size: up to RM3 mil Tenure: up to 10 years BNM Business Recapitalisation Facility (BRF) 1,000 Agrofood Facility (AF) SME Automation and Digitalisation Facility (ADF) 1,000 1,000 70 BUDGET 2023 TOUCHPOINTS Agency Program/ Scheme Fund Size (RM mil) Terms of Financing PENJANA Tourism Financing (PTF) 500 All Economy Sectors Facility (AES) 3,200 High Tech and Green Facility (HTG) 1,000 BNM Disaster Relief Facility (DRF) 300 • • • • • • • • • • • Financing Rate: up to 3.5% per annum (including guarantee fee) Size: up to RM500,000 for SME and up to RM75,000 for micro Tenure: up to 7 years (including moratorium period) Financing Rate: up to 7% per annum (including guarantee fee) Size: up to RM5 mil Tenure: up to 5 years Financing Rate: up to 3.5% per annum
 (not inclusive guarantee fee); up to 5% per annum (including guarantee fee) Size: up to RM10 mil Tenure: up to 10 years Financing Rate: up to 3.5% per annum (including guarantee fee) Size: up to RM700,000 for SME and up to RM150,000 for micro Tenure: up to 7 years (including moratorium period) Note: *Balance of RM200 mil will be allocated to Micro Entrepreneur Financing SME Financing Facilities Agency Program/Scheme Fund Size (RM mil) Terms of Financing TERAJU Various Financing Programmes 135 • Not applicable PUNB Various Financing Programmes 200 • Financing Rate: 0% for the first 6 months, 5.0%- 8.0% thereafter • Size: up to RM10 mil • Tenure: up to 7 years • Moratorium: 6months BUDGET 2023 TOUCHPOINTS 71 Agency Program/Scheme Fund Size (RM mil) Terms of Financing MARA Various Financing Programmes 80 Agrofood Financing Fund 550 Agrobank Agrofood Value Chain Modernisation Programme 60 Bank Rakyat BR Plus: i-Biz Lady 100 MIDF Various Financing Programmes 51.5 EXIM Bank Exporter Development Incentive Scheme (SIP2) 1,000 • Financing Rate: 0% to 6% • Size: up to RM1 mil • Tenure: up to 10 years • Financing Rate: 0% for the first 6 months, 3.0% thereafter • Size: up to RM5 mil • Tenure: up to 10 years • Moratorium: 6 months • Financing Rate 3.5% • Size: up to RM1 mil • Tenure: up to 10 years • Moratorium: 12 months based on eligibility • Financing Rate: BFR + 0% (excluding guarantee fee) • Size: up to RM1 mil • Tenure: up to 7 years • Financing Rate: 2-5% • Size: up to RM10 mil • Tenure: up to 20 years • Financing Rate: COF - Subsidy 1.5% • Size: up to RM10 mil • Tenure: up to 7 years SME Bank Social Enterprise Funding Scheme 20 • Financing Rate: 4% • Size: up to RM500,000 • Tenure: up to 7 years 72 BUDGET 2023 TOUCHPOINTS Agency Program/Scheme Fund Size (RM mil) Terms of Financing IBS Promotion Fund (IBS 2.0) 165 Young Entrepreneur Fund (YEF) 2.0 90 SME Recapitalisation Fund 600 SME Bank Jaguh Serantau 165 Bumiputera MSME Sustainability Fund Dana Pemadanan Automasi
 (PEMERKASA Matching Grant) 160 160 Juara Lestari Scheme 1 • Financing Rate: based on risk • Size: up to RM10 mil • Tenure: up to 15 years • Financing Rate: 5% for the first 7 years, 6.5% thereafter • Size: up to RM1 mil • Tenure: up to 10 years • Dividend rate: 6% • Size: up to RM5 mil • Tenure: up to 5 years • Financing Rate: based on risk • Size: up to RM20 mil • Tenure: up to 20 years • Financing Rate: 5% • Size: up to RM750,000 • Tenure: up to 7 years • Moratorium: 6 months • Financing Rate: 4-5% • Size: up to RM3 mil • Tenure: up to 10 years • Size: up to RM25,000 • Tenure: up to 12 months Sustainability Incentive Scheme 10 • Not applicable Malaysia Cooperative Societies Comission Co-operative Societies Commission Revolving Fund 100 • To be confirmed BUDGET 2023 TOUCHPOINTS 73 Guarantee Financing Scheme for Businesses 1.
Green Technology Financing Scheme (GTFS 4.0) (RM3 b) 2.
Syarikat Jaminan Pembiayaan Perniagaan (SJPP)’s guarantee will be extended to financing by non-banking financial institutions (RM20 b) • Credit financing companies (RM1 b) • Co-operative and others (RM500 mil) SJPP Guarantee All Sectors Focus Sectors* Guarantee Coverage Up to 80% Up to 90% Financing limit Up to RM20 mil Up to RM30 mil Guarantee Fee Up to 1% per annum 0.5%-0.75% per annum Tenure Up to 10 years Up to 10 years *Refer to manufacturing, agriculture, tourism and high technology sectors.

3.
Entrepreneurship Program • Various entrepreneurship schemes under Companies Commission of Malaysia (SSM) o 1 OKU 1 Business Scheme – Free SSM license registration and renewal for OKU, limited to 1 business only Skim Pendaftaran Perniagaan Prihatin (SPPP) – Free business registration for B40 entrepreneurs and IPT full-time students Free registration for SSM Biz Trust is extended until 31 December 2023 o o • Institut Keusahawanan Malaysia (INSKEN) entrepreneurship training and mentoring program (RM10 m) • Business Exports Program for 50 potential SME Bumiputera entrepreneurs (RM4 m) • Business Development Program via Co-operative 2.0 under Malaysia Co-operative Societies Commission (SKM) (RM5 m) • SME Capability and Competitiveness Performance Improvement Program (RM5 m) • Professional Training and Education for Growing Entrepreneur (PROTÉGÉ) (RM5 m) • Various Entrepreneurship Program by SME Corp (RM88.0 m) Tunas Usahawan Belia Bumiputera (TUBE) (RM10 m) o o Micro Entrepreneur Business Development Program (RM5 m) o Strategic industry improvement programs and high-performance companies (PRESTIGE) (RM3 m) 74 BUDGET 2023 TOUCHPOINTS SME Competitiveness Rating for Enhancement (RM1 m) Inclusive SME Ecosystem (I-SEE) (RM1 m) o o o MSME Capacity and Capability Improvement Scheme (RM25 m) o Galakan Eksport Bumiputera (GEB) Program (RM10 m) o o Bumiputera Enterprise Enhancement Program 2.0 (RM30 m) SMEs Go Global (RM3 m) • Various Franchise Entrepreneurship Program (RM21.5 m) Vendor Capacity Development Program 2.0 (RM5 m) Vendor Research and Commercialisation Grants 2.0 (RM10 m) Capacity development program for halal industry entrepreneurs (RM1.5 m) o o o o Halal product capacity development program (RM1.5 m) Innovation and halal technology program (RM2.5 m) o Program Pengantarabangsaan Usahawan Halal (RM1 m) o • Halal industry development along with Malaysia Services and Halal Go Global program (RM10 m) • Tanjung Manis Halal Hub Center Development Project in Sarawak Corridor of Renewable Energy (SCORE) (RM59 m) Measure 3: Facing Disasters 1.
Readiness in Facing Disasters • Procurement of PDRM disaster tents and post-flood operational equipment (RM11 m) • Procurement of equipment and assets under the Ministry of Defence (KEMENTAH) (RM10 m) • Procurement of equipment and disaster assets under Bomba (RM34.5m) • National Disaster Fund (RM100 m) • Strengthen the functions of National Disaster Management Agency (NADMA) (RM50 j) • Flood Hazard Control and Signaling Plan (RM93.2 m) • Disaster management related to Geology (RM24.1 m) • Pertubuhan Prihatin Komuniti Grant (GPPK) in empowering the role of the community associations in facing disasters (RM20 m) 2.
Flood Mitigation • Out of RM15 b approved for flood mitigation, RM2 b is expected to be saved after cancelling the approval of direct negotiation • Six flood mitigation projects will be re-tendered as soon as possible, no later than June 2023, including: o Flood Mitigation Plan in Sungai Johor, Kota Tinggi, Johor BUDGET 2023 TOUCHPOINTS 75 o o Construction of a dual-purpose reservoir for flood mitigation and raw water supply in Sungai Rasau and Sungai Klang, Selangor Integrated River Basin Development of Golok River Phase 3, Kelantan • Upgrade urban infrastructure and drainage (RM117.7 m) • Maintenance of flood reservoirs under PBT (RM100 m) • Drainage and Sewer Maintenance involves contractors G1-G4 under PBT (RM30 m) 3.
Special Allowance of RM100 per day for Rescue Missions in Turkiye (RM1m) 4.
Green Practices • Ecological Fiscal Transfer for Biodiversity Conservation (EFT) including the gazetting of new protected areas and the replanting of trees in degraded areas (RM150 m) • Malayan Tigers, Elephants and other Wildlife Species Protection • Program (RM38 m) Increasing the number of rangers who guard the forest to 1,500 people nationwide, prioritising Orang Asli, military veterans and police (RM50m) • Mesra Alam River Drainage Management Plan (RM68.8 m) • Repair, clean, maintain and treat rivers and Manual Saliran Mesra Alam infrastructure (RM140.4 m) • Environmental Regulation (RM86.9 m) • Putrajaya Green City initiative through waste separation and recycling initiatives to catalyze circular economy (RM30 m) • Precise Technology Management and Agricultural Sustainability (RM9.4m) • SDG Localisation: Zero Waste Community Development Among Selected PPR Communities (RM1.3 m) • Green Technology Project (RM3.2 m) • Ecotourism Program (RM1.5 m) • Tax exemptions on the issuance costs of SRI-linked Sukuk approved or lodged with the Securities Commission from the permitted or assessment year 2023 to the assessment year 2027 5. Financing Facility BNM • High Tech and Green Facility (RM1 b) • Low Carbon Transition Facility (RM1 b) 6.
Dana Impak Khazanah Nasional (RM150 m) • Environmentally friendly development project includes supporting carbon markets and the restoration of degraded forests 76 BUDGET 2023 TOUCHPOINTS 7.

Green Technology Financing Scheme (GTFS) (RM3 b) Guarantee value increases to RM3 b until 2025 Financing scope is extended specifically to the EV sector with a guarantee by government up to 60% • • • Waste management sector’s financing guarantee will be increased up to 80% 8.
Sustainable Development Financing Scheme – Bank Pembangunan Malaysia Berhad (BPMB) (RM1 b) 9.

Study and enhance the Green Investment Tax Allowance (GITA) Package and Green Income Tax Exemption (GITE) 10.

GENTARI Initiatives • • Solar panels installation at Government and commercial facilities by 2024 500 units of EV charging facilities throughout the country 11.
TNB Initiatives • • Solar rooftop installation at Government buildings in Putrajaya (RM75m) Installation of EV charging facilities at 70 key locations (RM90 m) 12.
Tax incentives to support EV adoption • • • • • Full import duty exemption on components for locally assembled EV until 31 December 2027 Full excise duty and sales tax exemption on locally assembled CKD EV until 31 December 2027 Full import duty and excise duty exemption on imported CBU EV until 31 December 2025 Income tax exemption of 100% on statutory income of EV charging equipment manufacturers from the year of assessment 2023 to the year of assessment 2032 and the Investment Tax Allowance of 100% for a period of 5 years Tax deductions for companies that rent EVs with a maximum amount of eligible rental amount limited to no more than 300,000 Measure 4: Achieving High Impact Investments 1.
Facilitating Investment • Invest Malaysia Council and National Committee on Investment (NCI) will oversee the efforts to expedite approvals of high-potential investment projects • PEMUDAH empowered as a unit to facilitate the investment climate and business environment • Establishment of the New Industrial Master Plan (NIMP) 2030 BUDGET 2023 TOUCHPOINTS 77 o o The investment promotion agency and tax incentives will be restructured based on outcomes – High-value jobs, local firms in supply chain and the establishment of new industrial clusters Strengthen monitoring on investments that receive incentives to guarantee expected benefits 2.
Investment in Key Sectors • Extension of the current tax incentives and a 15% tax rate for C-Suite executives in companies that make new strategic investments • Pioneer Status with income tax exemption and Investment Tax Allowance to companies that carry out ship building and repair activities • Income tax exemption and Investment Tax Allowance for aerospace sector • Tun Razak Exchange (TRX) as Malaysia’s global financial hub • Special Financial Zone in Iskandar Malaysia with a competitive incentive package • Expansion and capability enhancement project of Penang International Airport and Subang International Airport • Development support of Sanglang Port, Perlis and build new coastal erosion structures between Kuala Sanglang, Perlis to Kuala Jerlun in Kubang Pasu, Kedah • Bank Pembangunan Malaysia Berhad strategic financing to promote sustainable agenda and automation (RM6 b) • Development of the main port on Pulau Carey, Klang by private sector 78 BUDGET 2023 TOUCHPOINTS BPMB Strategic Financing Type Program/ Scheme Fund Size (RM mil) Terms of Financing Tourism Infrastructure Scheme Maritime & Logistic Scheme National Development Scheme Sustainable Development Scheme Industrial Digitization Transformation Scheme Rehabilitation and Support through Equity (RESET) Modal Kerja Scheme* Matching Funding Platform Financing Subsidy* Loan/ equity financing 1,000 800 • Financing Rate: 1,000 1,000 1,000 500 500 Government: COF + Margin – Subsidy 1.5% Commercial: BFR + Margin – Subsidy 1.5%, Sukuk/Bon: Guarantee Fee– Subsidy 1.5% • Size: Up to RM100 m • Tenure: Up to 5-20 years • Financing Rate: 8-15% IRR • Size: RM5 m – RM20 m • Tenure: Up to 3 years • Financing Rate: 5% • Size: minimum RM5 m • Tenure: Up to 3 years 100 • Will be finalized Note: *Extend to 2025 3.
Economy and Islamic Finance • Starting in 2024, EPF syariah savings assets will be fully separated to provide competitive returns to 1.25 m members who own syariah accounts 4.

Waqf Land Development • The Government has received commitments from the private sector with assets worth over RM1 b, including land, mosques, health and education facilities BUDGET 2023 TOUCHPOINTS 79 INSTITUTIONAL REFORMS AND GOOD GOVERNANCE TO RESTORE CONFIDENCE Measure 5: Public Sector Reform 1.
Transparency in Government Procurement • Delegate the approval authority for Government procurement to the respective Pegawai Pengawal of Ministries and Departments to improve the effectiveness of procurement processes and level of accountability in line with the concept of 'Let Managers Manage' • Enact the Government Procurement Act • Amend Whistleblower Protection Act to combat corruption and misconduct 2.
Accelerating Public Infrastructure Projects • Dilapidated Schools and Clinics o o o o Increase the procurement quotation limit from RM500,000 to RM1 m and ballot procurement from RM100,000 to RM200,000 Supply procurement must be carried out entirely by the main contractor through the appointed panel contractor Exemption for the Ministry of Education and the Ministry of Health from the use of the IBS model and the requirement to obtain the technical department services Establishing a special team to accelerate the repair projects of school/ dilapidated school and clinics (400 dilapidated clinics, 380 schools) - Repair of dilapidated school in Semenanjung, Sabah and Sarawak (RM920.4 m) - Repair of dilapidated clinics and hospitals (RM340 m) • Road Safety o Services from District Engineers to expedite road paving of federal roads and other immediate repairs (RM20 m) o Minor maintenance works for federal roads by G1 to G4 contractors (RM300 m) 80 BUDGET 2023 TOUCHPOINTS o o o o Immediate installation of street lights at accident-prone areas (RM50 m) Cost of operating and maintaining village street lights and new street lights installation in rural areas (RM123 m) Rural roads and inter-village roads projects (RM1.5 b) o Expanding the scope of MARRIS to allow for the repair and replacement of bridges and drains Increase MARRIS allocation for the maintenance of the state roads (RM5.2 b) o Upgrading and maintaining the paved and unpaved federal roads (RM1 b) Repairing, replacing and upgrading roads and bridges (RM1.7 b) o o Upgrade of roads and paths (RM1.56 m) o Slope repair throughout Malaysia (RM317.5 m) 3.
Encourage Ministries and Agencies to Innovate • Upgrade public sector cloud computing services through MyGovCloud, which operates on a hybrid basis • Establish key performance indices (KPI) for all ministries and departments based on the MADANI framework • Research grants and equipment procurement under the national vaccine development program (RM56 m) • Various research by Ministries (RM366 m) • • Malaysia Research & Education Network (MYREN) (RM35 m) Innovation program across ministries (RM68 m) 4.
Dealing with Rakyat’s Issues • Strengthening the role of the National Scam Response Centre (NSRC) in handling online fraud or scams (RM10 m) • Enforcement of ‘kill switch’ policy by BNM • Amendment of Insolvency Act 1967 to automatically discharged minor bankruptcy cases (RM2 m) • While pending the pass of the Act, debts of less than RM50,000 will be discharged beginning from 1 March 2023 • Enactment of the Consumer Credit Act and establish the Consumer Credit Monitoring Board to regulate companies such as licensed moneylenders, pawnbrokers and Buy Now Pay Later credit providers Increasing the eligibility limit for full legal aid assistance from the Legal Aid Department from RM30,000 to RM50,000 • • Expanded scope of the Legal Aid Department to cover civil and sharia cases • A study to enact special Act to provide free legal aid • Expanding the operation of Mobile Courts to manage court cases particularly in rural Sabah and Sarawak (RM12 m) BUDGET 2023 TOUCHPOINTS 81 • Strengthening the Children’s Sexual Crimes Court (RM3 m) 5.
Institutional Reform • Reform and streamline Government agencies and institutions that are seen to have overlapping authority and almost similar functions o Fully exempt and separate remuneration of self-sustaining Federal Statutory Bodies Restructuring of Bumiputera investment institutions by combining Yayasan Pelaburan Bumiputera, Yayasan Amanah Hartanah Bumiputera as well as Yayasan Ekuiti Nasional o o Merge agencies that regulate and coordinate the startup and innovation ecosystem • Establishment of the Special Task Force on Agency Reform (STAR) chaired by the Chief Secretary to the Government to lead public delivery system to best serve the rakyat without being confined to each respective ministries or agencies o Fund for pilot project implementation • Performance Acceleration Coordination Unit (PACU) is responsible for planning, implementing, monitoring and evaluating MADANI programs by Government • Propose to prohibit GLCs and Federal Statutory Bodies from engaging in activities that are not aligned with their original mandate of establishment • A review on the remuneration package of Chief Executives and top management of GLCs and statutory bodies Measure 6: Empowering Public-Private Partnership 1.
Partnership with Industry for TVET implementation • 90% TVET graduates earn <RM2,00 monthly.
Reforms must be implemented to ensure 90% TVET graduates earn >RM2,000 monthly • The partial or full management of TVET institution operations, including the Institut Kemahiran Belia Negara (IKBN), community colleges, and Institut Latihan Perindustrian (ILP), by 50 selected companies • The National Dual Training System (SLDN) which benefits over 8 thousand trainees (RM50 m) • Academy in Factory Program (RM5.3 m) o On-the-job training at the factory o Targeting more than 50 thousand trainees a year 82 BUDGET 2023 TOUCHPOINTS 2.
Incentives to Provide Jobs with Meaningful Income • Encouraging the palm oil sector to emulate Sime Darby Plantation by local workers with a minimum salary of RM3,000 employing monthly and through improving mechanization and automation, including the use of robotics and artificial intelligence the working environment • Encourages automation in the plantation sector through the use of robotics and artificial intelligence - AI that can employ skilled local workers o Matching grant to implement pilot project with oil palm companies o (RM50 m) Impose a higher levy rate to companies with high numbers of foreign workers, additional levy collection will be used to support employers in financing automation initiatives • 35 thousand career opportunities for youth, TVET graduates, vulnerable groups and veterans by GLCs • Skills training under HRD Corp (RM1 b) o o Training to increase productivity and income opportunities Benefits 800 thousand workers • Capital Market Graduate Program (RM30 m) o o Collaboration between the Securities Commission (SC) and the Capital Market Development Fund Increase the marketability of 9 thousand graduates in capital market • Formulation of Gig Workers Policy to protect the rights and welfare of gig workers • Encourage the private sector to pay higher wages o o Incentives by SOCSO to employers who employ TVET graduates for RM600 monthly for three months as an addition to the salary offered (RM45 m) Incentives by SOCSO for employers who employ vulnerable groups such as persons with disabilities, ex-convicts, the homeless, and chronically unemployed for up to RM600 monthly for up to 3 months (RM100 m) • Encouraging youth to enhance their abilities and skills (RM60 m) o Microcredentials upskilling program for gig workers through provision of up to RM4,000 training fees and RM300 allowance for 3 months as a replacement income for gig workers undergoing training programs (RM40 m) Training fees of up to RM2,500 to 30 thousand gig workers for microcredential trainings o BUDGET 2023 TOUCHPOINTS 83 • Mobility assistance for job seekers o o RM500 to job seekers who find employment outside of their state of residence RM1,000 to job seekers who find employment and involve long- distance migration from Sabah or Sarawak to the Peninsular and vice versa 3.
Programs to Boost the Tourism Sector • Allocation to promote tourism (RM 250 m) • Matching grant of up to RM115 m to collaborate with the tourism and culture industry • Malaysia Airport Holdings Berhad and international airlines collaborative efforts to promote chartered flights to Malaysia (RM40m) • Special tax deductions for limited hoteliers on eligible craft products purchased from local craft entrepreneurs amounting to RM150,000 and above, from 1 January 2023 to 31 December 2025 • Reduce traffic congestion that affects tourist destination.
among others: o Build new roads from Habu to Tanah Rata, Cameron Highlands (project cost of RM480 m) o o Upgrade Jalan Tun Hamzah up to the intersection of Semabok Lebuh AMJ Central Melaka District (project cost of RM300 m) Build Sungai Sepang road and bridge to connect Bukit Pelandok, Port Dickson and Sungai Pelek, Sepang (project cost of RM160 m) Improve to Pengerang by constructing an overtaking lane on the Senai Desaru Expressway the highway network facilities o o Upgrading project of North-South Highway at Senai Utara-Sedenak, Johor Bahru from 4 to 6 lanes (project cost of RM525 m) Measure 7: Prioritising the Digital Agenda 1.
Internet Connectivity for the Rakyat • • • Accelerating the implementation of Jalinan Digital Negara project (JENDELA) Rural internet project (matching grant of RM25 m by TNB) (RM50 m) National Fiberisation & Connectivity Plan (NFCP) (RM700 m) 2.
Digitalisation of Business • 1DUN 1PEDi Program involving at least one PEDi in each DUN before end of 2023 and the role of the Digital Economy Center (PEDi) will be strengthened to help small entrepreneurs with ICT and e-commerce knowledge • Matching grant of up to RM5,000 under the SME Digitalisation Grant Scheme (RM100 m) – SMEs (RM90 m); small hawkers (RM10 m) • Automation and Digital facilities for SMEs (ADF) by BNM (RM1b) 84 BUDGET 2023 TOUCHPOINTS 3. e-commerce (RM53.5 m) • eTRADE 2.0 (RM1.5 m) • Automation and Digitalisation: MARA’s Business Digitalisation Program (RM5 m) • e-commerce ecosystem preparation program (RM15 m) • e-commerce adoption program (RM12 m) 4.
Automation and Digitalisation: Digital Agriculture - DE AgTech (RM10 m) 5.

MSME Digitalisation Industrial Digitalisation Transformation Scheme (RM1 b) • e-Trans Phase II (RM6 m) • Second Chance Fund (RM20 m) • • Sustainability and Green Business Financing Scheme (SGBF) (RM16.5 m) • Research Incentive Scheme for Entrepreneurship (RISE) (RM5 m) • MSC Malaysia Special Incentive (MCI) (RM20 m) • MSME Digitalisation Transformation Program (RM1.2 m) 6.
Cybersecurity • Advanced cyber technology security assessment and testing capabilities development (CENTREACT) (RM15 m) • Malaysian cybersecurity empowerment program for SMEs (RM8 m) • Digital security and privacy certification (RM8 m) • Strengthening, monitoring, detection and reporting of cyber threats (RM8 m) • PPKS public sector cyber security assessment program implementation plan (RM0.5 m) • Strengthening cyber forensic systems capabilities (RM15 m) • Malaysia as a global data center hub (RM15 m) • Development of Modul Etika Siber Nasional (ESN) at school level and Cyber Ethics Readiness Index application (CERI) (RM4 m) 7.
Funds and Grants • Khazanah National Dana Impak for digitisation and high technology field, to focus on supporting startups and local human capital (RM250m) • DE Rantau (RM10 m) • Technology Innovation Globalization Fund (TIG) (RM15 m) • Digital Content Fund to intensify the marketing of local art products and encourage the production of more creative works (RM102 m) BUDGET 2023 TOUCHPOINTS 85 8.
Human Capital • Empower Human Capital Creative Industry 2.0 (RM3 m) • Digital Freelancer and GIG Workers Training Program (RM3 m) • Digital Economy Human Capital Development (RM15 m) Measure 8: Strengthening the Role of Government-Linked Companies and Agencies 1.

Cumulative investment value of Government Linked Companies (RM50 b) 2.

Investment in local startups by GLIC such as Khazanah and EPF (RM1.5 b) 3.

Investment by GLC in food security projects (RM1.3 b) 4.
Tax deduction of up to RM1.5 m for listing expenses on the ACE or LEAP market extended up to the assessment year 2025 5.

Expand tax deduction to include the cost of listing technology-based companies on Bursa Malaysia Main Market 6.
Expand capital funding opportunities and attract local talents in highly innovative sectors • Malaysia Coinvestment Fund (MyCIF) Matching Fund by SC (RM40 m) • Facilitate the creation of more secondary markets for private market instruments • Allow the issuance of dual-class shares and guideline will be issued by the SC • Venture Capital Fund through MAVCAP, Kumpulan Modal Perdana and Ekuinas (RM136 m) • Cradle Fund (RM50 m) 7.
Corporate Social Responsibility by GLC and GLIC • Corporate social contribution for the hardcore poor (RM250 m) • Kuala Lumpur Green Belt and Heritage – to lead the effort to redevelop heritage buildings such as Sultan Abdul Samad Building and Carcosa Sri Negara • Establishment of National Heritage Fund by Khazanah Nasional Berhad (RM700 m) • Local – focused gentrification projects to raise the potential of historical and cultural assets by ThinkCity and to increase the habitability of public housing in Kuala Lumpur (RM30 m) • To preserve world heritage sites recognised by UNESCO at the states of Melaka and Penang (RM50 m) 86 BUDGET 2023 TOUCHPOINTS Combating Inequality through SOCIAL JUSTICE Measure 9: Eradicating Hardcore Poor 1.
Cash Assistance and People’s Income Initiative Implementing People’s Income Initiative (IPR) (RM750 m) • • Monthly assistance for hardcore poor under the Social Welfare Department (RM400 m) • Whitelisting of recipients is expedited for the Government monthly assistance by combining the efforts and databases of e-Kasih ICU and JKM 2.
Role of the State Governments • Sabah and Sarawak to use part of the petroleum revenue proceeds for hardcore poverty-eradicating programs • Kelantan and Terengganu Wang Ehsan will be channelled to help the poor 3.

UNDP (RM10 m) and the All Party Parliamentary Group Malaysia (APPGM) (RM20 m) includes the community garden program 4.

Rural development projects and poverty eradication programs (RM3.9 b) Measure 10: Minimising Cost of Living 1.
Government will provide up to RM64 b through subsidies, assistance and incentives 2.
Payung Rahmah Concept • Rahmah Menu Campaign with lunch and dinner sets at RM5 • Jualan Rahmah offers essential goods that are up to 30% cheaper than the market price involving 222 parliamentary constituency (RM100 m) BUDGET 2023 TOUCHPOINTS 87 • Community Drumming Program’s allocation increased by RM25 m to RM225 m o Subsidise the cost of transportation and distribution for basic necessities namely rice, cooking oil, liquefied petroleum gas, petrol and diesel Expand the essential goods distribution program to 25 new zones including Paloh and Passin, Sarawak; Pasir Raja, Terengganu, and Kuala Krai, Kelantan • Cooking Oil Stabilisation Scheme (COSS) program and upgrading the eCOSS system (RM502 m) • Price Standardisation Program in Sabah, Sarawak and Labuan (RM40m) • RM200 e-Tunai Belia Rahmah credit to 2 million youth aged 18 to 20 (RM400 m) 3.
Rahmah Cash Assistance (STR) benefiting almost 9 millon recipients through an allocation of almost RM8 b • Improvements: o New category: Households with more than 5 children.
o Special assistance for single senior citizens (RM600) and single (RM350) Bakul Rahmah Assistance consists of basic items such as rice, sugar, cooking oil, flour, condensed milk, mihun and eggs or voucher worth RM100 every month for a period of 6 months to each head of the hardcore poor household o o • Family classified as the hardcore poor are eligible to receive assistance up to a maximum of RM3,100 Basic Rate Household No.
of Recipients <RM2,500 RM2,501 – RM5,000 Special Assistance Single Senior Citizen Single (<60 tahun) Additional Rate Hardcore Poor 3.3 m 0.9 m 1.1 m 3.4 m 0.4 m Number of Children 1-2 RM1,500 RM750 3-4 RM2,000 RM1,000 0 RM1,000 RM500 ≥5 RM2,500 RM1,250 RM600 RM350 RM600 4.
Aid for Paddy Farmers and Rubber Smallholders • Subsidy and incentives on the price of rice, rice fertilizer, upland rice paddy fertilizer (RM1.6 b) • Cash assistance of RM200 per month for 3 months to paddy farmers (RM228 m) 88 BUDGET 2023 TOUCHPOINTS o Benefits 240,000 paddy farmers.
• BERNAS o o RM60 m contribution to help poor paddy farmers To share 30% of their net profit from rice imports to paddy farmers • Rubber Production Incentive (IPG) – activation pricing level is increased from RM2.50 to RM2.70 per kilogram (RM350 m) • Smallholder Rubber Cultivation Area Development Program (RM315.5m) Rubber tree replanting Benefits 380,000 rubber smallholders • Monsoon Season Aid (RM256 m) o o The rate increased from RM600 to RM800 for 4 months (November, December, January and February) Benefit 320,000 rubber smallholders • Cuplump Modified Bitumen (CMB) for road maintenance (RM50 m) • Fishermen productivity improvement program and fishermen facility project (RM18.3 m) • Continuation of the Rubber Industry Transformation Project (TARGET) (RM15 m) • Allocation to FELDA, FELCRA and RISDA (RM2.6 b) 5.
M40 Disposable Income Income tax rates reduction (RM900 m) Income tax rate revision for 3 chargeable income bands • • • Benefits approximately 2.4 million taxpayers with excess disposable • income of up to RM1,300 per year Individuals earning between RM100,000 to RM1 million will be subject to a tax rate increase ranging from 0.5% to 2%.

However, under the restructuring of this tax rate, only those with an income of more than RM230,000 will pay higher tax, which involves less than 150,000 taxpayers.
Taxable Income Tax Rate RM35,001 – RM50,000 RM50,001 – RM70,000 RM70,001 – RM100,000 RM100,001 – RM250,000 RM250,001 – RM400,000 RM400,001 – RM600,000 RM600,001 – RM1,000,000 8% to 6% 13% to 11% 21% to 19% 24% to 25% 24.5% to 25% 25% to 26% 26% to 28% BUDGET 2023 TOUCHPOINTS 89 6.
Food Security • BNM’s Agrofood Financing Scheme (AF) offers loans of up to RM5 m at a rate of 3.75%, which includes guarantee fees, with a repayment period of up to 8 years (RM1 b) • Co-operative Societies Commission Revolving Fund for basic necessities supply, empowerment of co-operative supply chains, business development programs by the Malaysian Cooperative Commission (RM100 m) • Accelerated Capital Allowance claim and income tax exemption of 100% on qualifying capital expenditure for equipment automation o o o Scope of automation includes the adaptation of Industry 4.0 elements; Targeted to the manufacturing, services, and agriculture sectors; and The limit of capital expenditure is coordinated and increased up to RM10 m • Precision Farming and agricultural sustainability (RM9.4 m) • Integrated Agriculture Development Areas (IADA) by the Perak Agriculture Department (RM17.3 m) • Agricultural pilot project: High Value Herbal Product Research Scheme Grant (RM21.4 m) • Rubber Cluster Planting Project (Sabah) – Phase 2 (RM50 m) • Program Pembangunan Semula Hasil Baharu (RM40 m) o o Supplementary sources of income through short-term food crops and livestocks Benefit 4,000 farmers • Oil palm plantations o Malaysian Sustainable Palm Oil Certification Program (MSPO) for Independent Oil Palm Smallholders (RM40 m) o MSPO Incentives (RM30 m) o Intensify the efforts to promote and counter anti-palm oil campaigns at the global level (RM10 m) • The implementation of multi-tiered levy for foreign workers and additional levy proceeds to employers who undertake automation initiative.
• Latex Production Incentives and development of a more efficient latex supply business model (RM23.4 m) • Cocoa Development Program (RM22.6 m) • Domestic corn grain farming involves 70 acres of LTAT’s land 7.
Tax Incentives • Tax incentives for food production projects is expanded to include agricultural projects based on Controlled Environment Agriculture and the incentives application period is extended 90 BUDGET 2023 TOUCHPOINTS • Income tax exemption rate on statutory income of BioNexus status company be increased to 100% and the incentives application period is extended 8.
Accelerated Capital Allowance and income tax exemption for chicken farmers who adopt the closed coop system from assessment year 2023 to assessment year 2025 9.

Idle lands of up to 800 acres owned by FELDA, FELCRA, RISDA, and other Ministry of Agriculture and Food Security (MAFS) agencies will be used for food agriculture projects 10.

Collaborations with several State Governments to implement agrofood projects (RM30 m) 11.

Upgrade irrigation and drainage (RM126.8 m) 12.


Investment Fund and Financing by Agrobank • Agrofood Financing Fund – Working capital financing facilities for agricultural SMEs (RM550 m) • Agrofood Value Chain Modernisation Programme (RM60 m) 13.

Khazanah Nasional Berhad’s Dana Impak – Increasing the income and productivity of smallholders (RM200 m) 14.

Modernization and Empowerment of the Pineapple Industry (RM29 m) 15.
Incentives to farmers for integrated crop pest management (IPM) and GAP certification –non-chemical pesticide free (RM5 m) 16.

MAFS will pioneer a sustainable agriculture project that utilises organic fertilizers (RM5 m) Measure 11: Ensuring Harmony and Unity 1.
Development of Sabah and Sarawak • Benefit greatly from development allocation - Sabah (RM6.5 b) and Sarawak (RM5.6 b) • Accelerate the implementation of Sabah Pan Borneo highway and Sarawak- Sabah Link Road (RM20 b) • Develop towns bordering Kalimantan, Indonesia (RM1 b) • Implement public infrastructure projects, including projects for road, street lighting, water and electricity supply (RM2.6 b) Increase clinic facilities, bank and mobile courts (RM30 m) • • Expedite the implementation of projects by delegating approval authority for Federal project procurement to the Technical Department in Sabah and Sarawak up to RM50 m 2.
Home Affairs & Defence – The Ministry of Home Affairs (KDN) (RM18.5 b) and KEMENTAH (RM17.7 b) BUDGET 2023 TOUCHPOINTS 91 • To enhance the country’s level of defence and maritime control, the Government agreed to approve the acquisition of 3 Littoral Mission Ships (LMS) at a cost of RM2.4 b • Maintaining and purchasing ATM assets (RM4.1 b) • Sabah, Sarawak & Semenanjung Border Control Development (RM1.1b) • Additional 36 PGA police border control posts, 3 Immigration posts and 3 ESSCOM posts • Procurement of over 2,100 units of Body Worn Camera for PDRM • Construction of Perak Contingent Police New Headquarter and police quarters (RM450 m) • Maintainence of Rumah Keluarga Angkatan Tentera (RKAT) (RM317 m) • Build more than 7,000 affordable housing under the Satu Anggota Satu Rumah Program in KL • Repair the residential quarters and institutions under PDRM (RM232m) • Empower local communities for border control (RM20 m) • Uniform assistance for Uniform Bodies (RM7.9 m) • Second Career Program for ATM veterans through collaboration with LTAT involves a guarantee for 5,000 retired ATM veterans this year to be matched with jobs or given skills training to generate income • The Veteran Affair Department together with other Government agencies to offer 5 courses, including drone operation, cyber security, and aircraft maintenance of 3 months • Maintanence of prison facilities (RM18.5 m) • Program Menyemai Kasih Rakyat (MEKAR) (RM5 m) 3.
Syiar Islam • Allocation related to Islamic affairs (RM1.5 b) • Repair rakyat Islamic school, Tahfiz school and registered pondok • institutions (RM150 m) Increase allowance for 35,000 KAFA teachers by RM100 to RM1,100 (RM40 m) • RM600 special payment to iman, bilal, tok siak, noja, marbut, KAFA teachers and takmir teachers (RM40 m) 4.
Sports and Culture Sports • Matching grant to encourage private sector’s sponsorship of sports, that promote unity, national-level sport particularly sports tournaments and sports reality programmes (RM50 m) 92 BUDGET 2023 TOUCHPOINTS • Funds to improve training programs and sports facilities (RM324 m) o Develop a comprehensive sports ecosystem from talent search to podium events o Maintenance and upgrading of sports facilities throughout the country • Support sports events such as Agenda Nasional Malaysia Sihat, National Sports Day and Jelajah Fit Malaysia (RM25 m) • Organizing leisure and healthy lifestyle Fit@Komuniti Projek Perumahan Rakyat involves various age groups (RM1.5 m) • Funds for the National Athlete Welfare Foundation (YAKEB) starting 2023 (RM5 m) • Tax deduction of up to 10% of aggregate income for individuals or companies that contribute to non-profit organizations that implement sports development programme at the grassroots level.
Cultural Arts, Creative Works and Language • Tax deductions for contributions made to the Tabung Komuniti Filem and National Film Development under FINAS • Exemption from import duty and sales tax on studio and filming production equipment • Translation of Masterpieces and high-quality publications by Dewan Bahasa dan Pustaka (RM20 j) • Print 1 mil copies of the Al-Quran by Yayasan Restu (RM10m) 5.
Unity • Various Unity Programs (RM10 m) • Ini Warisan Kita (RM10 m) • Nusa Citra @ Muzium (RM5 m) • Funds to stimulate cultural and artistic activities at the community level (RM25 m) • Gotong-royong Program in schools nationwide (RM20 m) 6.
Community and Religion • Monthly allowance for imams, KAFA teachers and Takmir teachers (RM724.2 m) • RM600 one-off special payment to 70 thousand KAFA teachers, Takmir teachers, imams, bilals, siak, Noja and Marbut (RM40 m) • Allowance to the Head of the Kampung Baru (RM12.8 m) • Rukun Tetangga Grant (RM50 m) • Maintenance and repair of non-Muslim houses of worship nationwide (RM50 m) BUDGET 2023 TOUCHPOINTS 93 Measure 12: Providing Quality Basic Amenities 1.
Federal Grant to the State Governments based on Tahap Pembangunan Ekonomi, Infrastruktur dan Kesejahteraan Hidup (TAHAP) allocation increased by RM70 m (RM400 m) 2.
Transportation sector • My50 monthly pass initiative to benefit around 180,000 commuters (RM115 m) Introduction of MYBAS50 Unlimited Travel Pass to benefit the Rakyat of Johor Bahru who use the stage bus service under the Stage Bus Service Transformation Program (SBST) • • Transformation Fund Program and stage bus service transformation (RM230 m) • Expand the implementation of the SBST Program including Malacca town, Kuching, Kota Kinabalu and Kuala Terengganu (Phase 2) (RM150m) • Wheelchair ramp facilities at 7 airports in Sabah and Sarawak and benefit 2,300 wheelchair users who fly with MASWings (RM0.75 m) • Review the details and costs of the Mass Rapid Transit 3 (MRT3) Project • Air transportation subsidy for Sabahan and Sarawakian (RM209 m) • Subsidy for operating cost of less economical train services in the eastern region (RM33 m) • New ferry between Pekan Pengkalan Kubor and Pekan Takbai, Narathiwat, Thailand (RM9 m) • Free driver’s license test fee for B2 class motorcycles, taxi, bus and e- hailing licenses fee (RM4.7 j) • Expansion and review of excise duty and sales tax exemption on sale/transfer /private use/disposal of individually owned taxis and hired cars 3.
Education – Allocation for Ministry of Education (2023: RM55.2 b; 2022: RM52.6 b) • Conducive and safe school learning space (RM2.3 b) School maintenance and repair work (RM900 m) o o Upgrade buildings and infrastructure in 380 dilapidated schools, o primarily in Sabah and Sarawak (RM920 m) Replace worn-out dormitory and classroom furniture and equipment • Construction of seven new schools (RM560 m) o o o o o SMK Nabalu, Sabah SMK Dudong, Sarawak SK Paya Dusun, Terengganu SK Cyberjaya 2, Selangor SMK Denai Alam, Selangor 94 BUDGET 2023 TOUCHPOINTS • SMK Johan Setia, Selangor SK Setia Alam 2, Selangor o o Increase the rate of Rancangan Makanan Tambahan (RMT) from RM2.50 to RM3.50 (Peninsular Malaysia) and from RM3.00 to RM4.00 (Sabah and Sarawak) which benefits 700,000 students, increased from RM625 m to RM777 m • The rate of Bantuan Makan Prasekolah (BMP) under the Ministry of Education has been raised from RM2 to RM3 for Peninsular Malaysia and from RM2.25 to RM3.25 for Sabah, Sarawak, and Labuan (RM108m) • Supply 50,000 laptops to MOE’s schools and educational institutions (RM38 m) • RM10 stamp duty is extended to cover educational loan/scholarship agreements for employment for all levels in educational and training institutions completed from 1 June 2023 • Extension of tax relief of up to RM3,000 for sending children to TASKA or TADIKA until assessment year 2024 4.
Higher Education Sector – Allocation for Ministry of Higher Education (2023: RM15.3 b; 2022: RM14.5 b) • Repair infrastructure and replace outdated equipment that is no longer economical at IPTAs (RM436 m) • Fund to improve the internet connectivity in higher education institutions in Malaysia under the Malaysian Research & Education Network program (MYREN) (RM35 m) • Promote R&D activities under the Ministry of Higher Education and the Ministry of Science, Technology and Innovation (MOSTI) (RM428 m) o o Additional allocation for MOHE to promote translational R&D that is more beneficial to solving community and industry issues (RM50m) R&D grants specifically for the production of national vaccines to MOSTI (RM15 m) • Educational facilities for Bumiputera children (RM6.6 b) o o Through Majlis Amanah Rakyat (MARA), Yayasan Peneraju and Universiti Teknologi MARA Access professional fields loans and opportunities to education to pursue • Upgrade and maintain public university facilities (RM300 m) • Government will coordinate with MNCs to provide internship opportunities and students are allowed to serve their scholarship bonds with the said companies • Standardization of stamp duty rates for education loan agreements BUDGET 2023 TOUCHPOINTS 95 o RM10 for educational loan agreement at certificate or professional level as charged to diploma students and above • PTPTN o Discount up to 20% on PTPTN loan repayments for a period of three months starting from 1 March 2023 o Defer repayment for a period of 6 months to borrowers with a monthly income of RM1,800 and below.
Applications for this postponement can be made starting from 1 March 2023.

• Agenda to empower TVET through 7 main Ministries (RM6.7 b) • Skills Development Fund Corporation (PTPK) (RM180 m) 5.
Healthcare – Allocation for Ministry of Health (2023: RM36.3 b; 2022: RM32.4 b) • Medicines, reagents, vaccines and consumables procurements (RM4.9b) • New permanent and contract appointments for over 1,500 medical officers, dentists, and pharmacists (RM3 b) • Procurement of generators to 10 hospitals (RM10 m) • Procurement procedures for public infrastructure o o Replacement of obsolete medical equipment (RM100 m) Procurement and maintenance of medical equipment in all Government clinics under the Medical Equipment Enhancement Tenure (MEET) – QMSSB (RM160 m) • Mobile Health Clinics o Mobile health clinics with an extension to cancer screening - Teaching Hospital (RM10 m) o Dental (RM10.6 m) • Madani Medical Scheme and Health Card for the B40 Group (RM120m) • Peduli Kesihatan Scheme for the B40 group (PEKA B40) including diabetes screenings (RM80 m) • Rare Disease o o Allocation for rare disease treatment cost (RM25 m) Establish Trust Account for Rare Disease Treatment - Tax deduction equals to the amount of contribution to the fund • Mammogram subsidy and Cervical Cancer Screening Program (RM11.5m) • Pilot project for cervical cancer screening using a new method (PCR) under the ROSE Foundation in collaboration with the University of Malaya and the University of Malaysia Sarawak.
• Construction of women and children’s block with a capacity of 476 beds to reduce overcrowding at Melaka Hospital (RM700 m) 96 BUDGET 2023 TOUCHPOINTS • Upgrading of 26 hospitals including expansion of o o o Kuala Kangsar Hospital, Perak Jelebu Hospital, Negeri Sembilan Pontian Hospital, Johor • Tax relief limit on medical treatment expenditure is increased from RM8,000 to RM10,000 from assessment year 2023 o The scope of relief also covers rehabilitation treatment costs for learning disabilities such as Autism, Down children with Syndrome, and Specific Learning Disabilities, up to a limit of RM4k • Procurement of 10 units of 3D denture printing machines to reduce the frequency of a patient’s visit to Government dental clinics from 5 times to only 2 times (RM10 m) • The implementation of diagnostic studies and clinical trials of cervical and colon cancer through the use of artesunate to the University of Malaya towards production of affordable medicine and treatment for all (RM5 m) • Establishment of a National Centre of Excellence for Mental Health (NCEMH) (RM34.5 m) • Mental health wellness improvement program through MyMYNDA • Import duty exemption and sales tax on nicotine replacement therapy • Charitable hospitals registered as Company Limited by Guarantee be given income tax exemption equivalent to the amount of charitable expenditure incurred • Tax deduction of up to 10% of aggregate income to the donor to charitable hospitals 6.
Housing Sector • Public Housing Maintenance o WPKL Low Cost Public Housing Maintenance (RM200 m) o Malaysian Housing Maintenance Fund (TPPM) (RM44.4 m) o State Low Cost Public Housing Maintenance (PPP) (RM46 m) o Upgrading and maintenance work of Kampung Baru Cina (RM25 m) o Maintenance work of PPR Lift (RM50 m) - Quotation limit for elevator maintenance and repair work has been raised to RM1.2 million instead of RM500,000 o Free internet access in 56 selected PPRs • Stamp duty exemption for first-time home ownership o o Full stamp duty exemption for houses valued at RM500,000 and below until the end of 2025 The stamp duty exemption rate will be increased from 50% to 75% for houses valued from RM500,001 to RM1 m until 31 December 2023 • Program Perumahan Rakyat and Program Perumahan Rakyat Disewa (RM389.5 m) BUDGET 2023 TOUCHPOINTS 97 • Mesra Rakyat Housing Program (RM358 m) • Malaysia Public Housing Project (RM463 m) o Construction of 23k units • Renovate rural houses (RM460.2 m) o o Increase in the ceiling price of new home building assistance from RM56,000 to RM66,000 per unit (Peninsular Malaysia) and from RM68,000 to RM79,000 per unit (Sabah, Sarawak and Labuan).
Increase in the ceiling price of home repair assistance from RM13,000 to RM15,000 per unit (Peninsular Malaysia) and from RM15,000 to RM17,000 per unit (Sabah, Sarawak and Labuan).
• Collaborative projects with civil society/NGOs through matching Rural Water Project (RM15 m) Rural Electrification Project (RM15 m) grants (RM100 m) o o o Health and Nutrition Screening Project (RM10 m) o o o o Education Project (RM15 m) Income-generating Project (RM30 m) Conservation of Flora and Fauna Project (RM5 m) Social Enterprise Development Program (RM10 m) • Duty stamp on the instruments of transfer of property by way of love and affection be fully exempted, limited to the first RM1 million of the property’s value and given 50% remission on the stamp duty imposed.
For instrument of transfer of property executed from 1 April 2023.

• Syarikat Jaminan Kredit Perumahan (SJKP) - The value of the guarantee is increased up to RM5 b with the following improvements: Guarantee Terms Guarantee Limit Tiered Guarantee Fees 7.
Social Protection Up to RM500,000 • • 0.25% per annum up to RM300,000 and 0.5% per annum for amounts exceeding RM300,000 up to RM500,000 • The Government will require all its own employees to contribute under Self-Employment Social Security Scheme (SKSPS) in stages and will also apply to platform providers who have operating licences under MOT and KKD.
• SOCSO o 80% of the SOCSO contribution value will be borne by the Government to protect and to encourage self-employed to contribute (RM100 m) - benefit more than 500 thousand employees o Grant of 80% of the insured employee’s salary to support women to return to work (RM292 m) to benefit more than 130 thousand women 98 BUDGET 2023 TOUCHPOINTS o SOCSO Health Screening Program on matching grant basis (RM70 m) o TVET apprenticeship & Graduate Employment Program (RM50m) o Career Building Program for informal gig workers (RM60 m) o MYFutureJobs, Satellite Centre and Career Fairs at UTC nationwide o (RM10 m) Creation of additional protection through LINDUNG+ Program - Collaboration with private insurance providers - Provides additional social security protection plans beyond the scope of protection under SOCSO such as income protection above RM5,000, medical treatment as well as protection for chronic diseases that are not considered infirmities • KWSP o Review of tax relief for mandatory/voluntary contributions to approved schemes/EPF and life insurance premiums or life takaful or additional voluntary contributions to EPF Raise the EPF voluntary contribution limit from RM60k to RM100k Extension of i-Saraan in 2023 (RM30 m) - The Government contributes 15% on top of voluntary contributions - Limited to maximum RM300 per year - Benefit more than 100 thousand contributors Scope of tax relief for life insurance premiums or life takaful contributions is expanded to include voluntary contributions to EPF up to RM3,000 o o o o Government’s Contribution to EPF Account 1 (RM1 b) - The Government will contribute RM500 to EPF members aged between 40 to 54 years old with EPF saving of less than RM10,000 - Benefits almost 2 million EPF members 8.
Increase the maximum investment limit of Amanah Saham Bumiputera (ASB) and ASB2 from RM200k to RM300k 9.

Increase the size of Amanah Saham Malaysia (ASM) fund to RM5 b 10.

Enhance Program Menyemai Kasih Rakyat (MEKAR) (RM5 m) 11.
Civil servants • Maintain the proposal to increase the early redemption of GCR up to 50%, equivalent to a maximum of 90 days • Aidilfitri Special Financial Assistance of RM700 to all civil servants Grade 56 and below, including contract appointments • Aidilfitri Special Financial Assistance of RM350 to Government pensioners • Childcare fee subsidy of RM180 per month and eligibility limit increased from RM5,000 to RM7,000 BUDGET 2023 TOUCHPOINTS 99 12.
Key Communities • Women and Children o Gender Focal Team will be established in each Ministry and Agency to ensure that budget preparation is formulated based on gender’s need o Women leadership - Special training program by the SC to enhance skills, identify and increase the number of qualified women to be appointed as Board Members Local Social Support Center (RM8.3 m) o o Women Empowerment: Implementation of the Sexual Harassment Act through the establishment of a Tribunal and Advocacy Program (RM10 m) Training and Professional Certification for Postnatal Maternal Caregivers – MamaCare (RM5 m) 2-Year Exit Policy Program that will benefit 300 women entrepreneurs (RM1 m) o o o Women Business Financing Fund (RM235 m) Agency Program/ Scheme Fund Size (RM m) Financing Terms BSN Mikro Kasih: MikroNita 100 Financing rate: 4% Size: Up to RM50,000 Tenure: Up to 5.5 years (including moratorium for the first 6 months) TEKUN Tekunita 20 MARA DanaNITA 15 Bank Rakyat BR Plus: i-Biz Lady 100 Financing rate: 4% Size: Up to RM100,000 Tenure: Up to 10 years Financing rate: 3.5% Size: Up to RM150,000 Tenure: Up to 10 years Financing rate: BFR + 0% Size: Up to RM1 m Tenure: Up to 7 years o Diversion Program: Community-Based Rehabilitation for Juvenile o Offenders (RM1 m) Establish a Children Development Department under JKM to provide more comprehensive support services to children Children Financial Assistance (RM1.8 m) o o Operating grant for Rumah Tunas Harapan (RTH) (RM1.6 m) o Operating grant for Jawatankuasa Kebajikan Kanak-Kanak (PKKK) (RM0.6 m) o Operating grant for Child Protection Teams (PPKK) (RM0.7 m) 100 BUDGET 2023 TOUCHPOINTS o Operating grant for Children Activity Center (PAKK) (RM1.8 m) o o o Community childcare centres subsidy (RM0.5 m) Private childcare centres fee assistance subsidy (RM3.2 m) Subsidy for childcare fees for households with a per capita income of less than RM800 who send their children to registered childcare centres (RM3.6 m) The Government encourages employers to provide childcare facilities
 in their offices by streamlining the guidelines for childcare centres Extension of tax incentives for childcare allowances and the cost of setting up childcare centres in the workplace Facilitate the registration process and start the legalization program of unregistered nurseries and childcare centres nationwide (RM15 m) Build 80 KEMAS nurseries and childcare centres, including 13 new projects Exemption of excise duty on infant and children’s formula milk to ensure reasonable prices in the market Community Feeding Program specifically for Orang Asli’s children to address malnutrition problem (RM3 m) o o o o o o • Senior Citizens o o Socioeconomic Assistance for Senior Citizens and Senior Citizens Financial Assistance (RM900 m) Implementation of Senior Citizens Activity Centres (PAWE) and Older Person Care Unit (UPWE) (RM8.7 m) o Operating grant for private care institutions for senior citizens, children and persons with disabilities handled by NGOs (RM21.2m) • Orang Asli Allocation for Orang Asli (RM305 m) o o Orang Asli commercial replanting project (RM15 m) - Involves 19 areas of rubber and oil palm plantations and skill training - Benefits 2,100 Orang Asli, including those in Kemaman, Terengganu; Bera, Pahang; and Gua Musang, Kelantan o Orang Asli Entrepreneurship Development Program (RM2 m) - Business equipment assistance and entrepreneurship guidance for 550 Orang Asli o Sponsorship of at least 10 Orang Asli children by Yayasan under a Government-Linked Investment Companies to study abroad • Persons with Disabilities o Assistance for persons with disabilities (RM1 b) - Allowance for disabled workers (RM542 m) BUDGET 2023 TOUCHPOINTS 101 - Allowance for persons with disabilities who are incapable of work (RM346 m) - Assistance for carers of bed-ridden disabled and chronically ill (BPKT) (RM170 m) o o o o o o Financial Assistance for Persons with Disabilities (RM0.63 m) Special Allowance for Children in Community-based Rehabilitation Centers (PDK) (RM109 m) 1 OKU 1
 Business Scheme is enhanced through fee exemption for registration and business license renewals with SSM Free fare for train services for persons with disabilities and students from Standard 1 to Form 6 (RM4 m) Special incentives for the establishment of 50 new nurseries for the disabled compared to the existing 13 nurseries (RM5 m) Supply of teaching equipment and improvement of facilities in schools with special needs (RM20 m) • Veterans o o Strategic collaboration among LTAT, MAFS & KEMENTAH for the Grain Corn Agriculture Pilot Project Reskilling & Upskilling Program for ATM Veterans by the Department of Veteran Affairs (JHEV) in collaboration with the Department of Skills Development (JPK) & MYTVET Malaysia Association (RM5 m) Second Career Program for ATM Veterans with LTAT and government linked companies Special relaxation of veteran housing loans repayment under LPPSA • Prisoners o o o Empowerment of Community Rehabilitation Program - Expansion of Agropenjara initiative (RM10 m) o Health Examination for Detained Persons (OKT) by Private Medical Practitioners (RM10 m) 102 BUDGET 2023 TOUCHPOINTS