Monthly Archives: October 2009

Losses could be as much as RM28 billion a year!

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The Government could be losing billions of ringgit every year through excessive payments for contracts and procurements for a wide range of things ranging from water tunnels to IT contracts and purchase of computers.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah acknowledged that the amount is a lot but could not give an exact figure.

Estimates based on government spending indicate that if one assumes overpayment on contracts is just 20%, then the losses could come up to as much as RM28 billion a year.

News excerpt from StarProbe

Highlights of Malaysia 2010 Budget “1Malaysia, Together We Prosper”

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Prime Minister Datuk Seri Najib Tun Razak has tabled Budget 2010 with the theme “1Malaysia, Together We Prosper”. Totalling RM191.5 bil, he said it would be the foundation of a new economic model and precursor to the 10th Malaysia Plan.

These are the main highlights of the speech as per delivery.

  • Time for country to move to an economy of innovations to face the challenges of the future
  • GDP for 2009 expected to be -3%, better than previous projections of -4% to -5%
  • Focus of Budget 2010 will be on well-being of the people
  • Three strategies:
    • driving the country towards a high-income economy,
    • ensuring holistic and sustainable development,
    • focusing on the well-being of the rakyat.
  • Government to make it easier for skilled/qualified people to get permanent residence status. Visa to be granted for family within 14 days.
  • CSR Fund of RM100mil to be set up to carry out social programmes.
  • Tax breaks for registration of patents and copyrights.
  • Big scale factory outlets to be set up to boost tourism besides having major events like KL Grand Prix Fest, National Water Festival, Malaysia International Golf Exhibition and Rain Forest Eco-Challenges
  • Taxpayers will get tax relief on broadband subscription fee of up to RM500 from 2010 to 2012. Civil servants can apply for computer loans up to a maximum of RM5,000 from the govt once in every 5 years.
  • RM6bil for agriculture sector for irrigation of paddy fields, fish production, fruit farming, livestock farming infrastructure, training
  • RM2bil subsidy for farmers and fishermen including subsidies for fertilisers, incentives for padi yields and allowances for fishermen
  • RM9bil to finance infrastructure projects including road and bridges projects and rail, sea ports and airports facilities
  • RM1.5bil fund to promote green technology by providing soft loans to companies that supply and use green technology
  • RM200mil Creative Industry Fund to finance film, drama, music productions, animation, advertisements through Bank Simpanan Nasional
  • RM30bil to be allocated to enhance primary and secondary school education nationwide
  • Rewards for students who excel in studies:
    • 30 National Scholarships for the creme de la creme of students, stictly based on merit
    • Conversion of PTPTN loans to scholarships for students who graduate with 1st class honours degree, beginning from 2010,
    • Offer of netbook package, including free broadband service, to university students for RM50 per month for 2 years.
  • The Permata programme, which emphasises on early childcare and education, including the gifted child programme, to get RM100mil
  • Insurance industry to be improved to meet market demand.
  • Govt to clamp down on the abuses committed by Ah Longs by enforcing Anti-Money Laundering and Anti Terrorism Financing Act 2001. Moneylenders Act 1951 to be also reviewed.
  • Allow 100% foreign equity participation in corporate finance and financial planning companies compared with the present requirement of at least 30% local shareholding.
  • To ensure rapid development of financial services, the existing tax incentives to be extended to 2015.
  • Among steps to combat corruption is to set up 14 Special Corruption Sessions Courts and 4 Special Corruption Appeal High Courts.
  • Tax of 5% to be imposed on gains from the disposal of real property from Jan 1, 2010. Existing tax exemption will be retained for gifts between parent-child, husband-wife, grandparent-grandchild.
  • To promote prudent spending, a service charge of RM50 a year to be imposed on each principal credit card and charge card; and RM25 a year on each supplementary card, effective from Jan 1, 2010.
  • To ensure that fuel subsidies only benefit targeted groups, Govt will implement a fuel subsidy management system in early 2010, which will utilise the MyKad.
  • All ministries and govt departments are required to provide day care and education centres for children of civil servants.
  • The maximum income tax rate for individuals to be reduced to 26% from assessment year 2010. Personal relief increased to RM9,000.
  • Police force to get RM1bil to improve its services in govt’s efforts to reduce crime. Major measures include to increase police presence, including mobile police stations in 50 crime hotspots.
  • To promote house ownership, Govt will launch a scheme that enables EPF contributors to utilise current and future savings in Account 2.
  • Employees’ EPF contribution to be increased to 11% again, on a voluntary basis, effective immediately. However, from Jan 1, 2011 employees’ EPF contribution will revert to 11%.
  • Personal relief for EPF and life insurance schemes to be increased to RM7,000.

Source: TheStar

PM invites public to give ideas for budget 2010

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KUALA LUMPUR: Prime Minister Datuk Seri Najib Tun Razak has invited Malaysians to give ideas and suggestions for the 2010 Budget that he will table in parliament on Oct 23.

“Encouraged by the many responses and comments I have received previously via this website, once again I seek your compact suggestions this week on what measures or incentives may be included in the budget.

“Suggestions should be specific and focus on how we can move to become a high level income nation and also relate to the six NKRAs (National Key Result Areas),” Najib said in his blog www.1malaysia.com.my.

The 2010 Budget is Najib’s maiden budget since becoming the country’s sixth prime minister on April 3 this year.

On Malaysia’s economy, Najib, who is the finance minister, said, “we have come a long way from our agricultural and commodity-driven years, resulting in the dynamic upper middle-in-come economy of today.”

Despite having successfully weathered difficulties, such as the 1997 Asian economic crisis, and having proven that the economy was resilient in the current global financial crisis, “much work remains before we can call ourselves a fully developed nation by 2020,” Najib said.

He said to achieve the Vision 2020, Malaysia must both become a high income economy, as defined by the World Bank, and attain a higher human development index score “reflecting our status as a developed nation.”

“We have no option but to transform our economic activities in the right sub-sectors of our economy to catapult our nation to become a high level income nation,” he said.

He stressed that “transformation must entail leaving our comfort zone behind once more as we seek to become more competitive.”

He said the changes that Malaysia might have to confront included the need to adapt to external economic demand patterns, integrate further within the region and adjust the country’s domestic structure.

“This exquisite balance is required to ensure that all Malaysians benefit,” he said, adding that the government must play its role in facilitating private economic growth through the implementation of further institutional reforms. – Bernama

Source: TheStar