Tuesday 23 Apr 2024
main news image

Read the full Budget 2022 speech here

Here are some of the key takeaways of Budget 2022.

• RM332.1 billion allocated under Budget 2022, the highest allocation compared with previous budgets

• RM233.5 billion allocated for operating expenditure under Budget 2022

• RM75.6 billion allocated for development expenditure under Budget 2022

• Govt introduces Bantuan Keluarga Malaysia worth RM8.2 billion, to benefit 9.6 million recipients

• Govt to introduce excise duty on liquid, gel-based vaping e-liquids

• RM32.4 billion set aside for Health Ministry, second largest allocation after Education Ministry, with RM2 billion for vaccination expenses and RM2 billion for supplies

• Education Ministry receives the highest allocation in Budget 2022 amounting to RM52.6 billion

• Ministry of Higher Education receives RM14.5 billion allocation in Budget 2022

• Special RM2,500 tax relief for purchase of handphones, computers and tablets

• JaminKerja initiatives to create 600,000 job opportunities with RM4.8 billion allocation

• PTPTN borrowers to get 10-15% discounts, depending on chosen repayment option

• Tax deductions of RM2,000 to RM7,000 for upskilling courses

• RM11.4 billion allocation for Bumiputera empowerment

• Govt to introduce excise duty on chocolate or cocoa, malt, coffee, and tea-based premix drinks containing sugar

• RM150 Early Schooling Assistance for each student; total allocation of RM450 million to benefit 3 million students

• RM400 million allocation for Supplementary Meal Plan (RMT) to ensure students get adequate daily nutrition

• Govt, through the Securities Commission Malaysia, to make it compulsory for public-listed companies to have at least one female director on their boards

• Contracts of 10,000 medical, dental and pharmaceutical officers to be extended from two to four years

• 80,000 job placements in public sector, GLCs to be continued via MySTEP initiative

• eStart cashless transaction scheme to be introduced, which will see one-off RM150 deposited into e-wallets of those aged between 18 and 20

• Govt to fully bear cost of motor vehicle licences for the disabled (OKU)

• Income tax exemptions for winners of eligible e-sports championships

• Tax relief for cost of medical expenses/consultation involving registered psychiatrists, clinical psychologists, counsellors

• EPF to extend reduced minimum contribution rate of 9% until June 2022

• Govt to extend 100% sales tax waiver on CKD passenger vehicles and 50% sales tax exemption on CBU passenger vehicles, including MPVs and SUVs, until June 30, 2022

• Employers to get tax relief and exemptions on cost of boosters shots

• Govt to allocate RM2 billion under housing credit guarantee scheme to assist those without steady income, such as gig economy workers, to purchase homes

• Daily milk program for poor students to be continued with RM400 million allocation

• Real property gains tax removed for house sales from sixth year onwards

• Govt to continue supporting equity crowdfunding and peer-to-peer financing with RM80 million allocation in matching grants under Malaysia Co-Investment Fund, in addition to Bank Pembangunan Malaysia Bhd's RM100 million investment

• Matching grant of RM100 million for Bumiputera SMEs to explore aerospace industry

• SMEs allowed to postpone income tax instalments for six months until June 30, 2022

• Special tax exemption for building/commercial unit owners who give at least 30% rental discount

• RM100 million for smart automation matching grants to benefit 200 manufacturing and services companies

• 600,000 undergraduates from B40 families to get one tablet each, involving allocation of RM450 million

• Govt allocates RM2 billion to continue wage subsidy programme targeting 300,000 workers

• Targeted wage subsidies for employers in tourism industry who have seen their income reduced by at least 30%

• RM85 million for special assistance to over 20,000 registered tour operators

• Income tax exemptions for organisers of artistic and cultural activities, as well as sports competitions and international-level recreational activities, to be extended until 2025

• RM250 million allocated for Shop Malaysia Online and Go-eCommerce Onboarding

• Govt to provide full exemption on import, excise duties and sales tax for electric vehicles

• RM1.7 billion in subsidies, incentives for farming and fisheries industries, including RM1.5 billion in subsidies for seeds and fertiliser

• Bursa to launch Voluntary Carbon Market as voluntary platform for carbon credit trading between green asset owners and other entities

• Windfall profit levy threshold for crude palm oil prices to be increased from RM2,500 per tonne to RM3,000 per tonne for Peninsular Malaysia and from RM3,000 per tonne to RM3,500 per tonne for Sabah and Sarawak. The tax rate for Sabah and Sarawak will also be raised to 3%, in line with the rate in Peninsular Malaysia, when prices exceed the threshold.

• Bank Negara to allocate RM1 billion towards assisting SMEs in adopting sustainable and low-carbon practices

• Govt to issue ringgit-denominated sustainable sukuk of up to RM10 billion, to finance eligible social or nature-friendly projects

• RM700 million allocated to enhance digital connectivity in 47 industrial areas and 630 schools, especially those in rural areas

• SME Digitalisation Grant Scheme to be increased to RM200 million in 2022, with RM50 million for Bumiputera micro entrepreneurs in rural areas

• RM20 million to be allocated to each state for projects related to food security, tourism, and nature conservation

• 1.3 million civil servants Grade 56 and below to get RM700 special financial aid each; 1 million govt retirees to get RM350 each, altogether to involve RM1.3 billion allocation

• Govt to introduce Cukai Makmur, a special tax on a one-off basis to companies generating high profits. The first RM100 million in taxable earnings will be taxed at 24% while the remainder will be taxed at 33% for the tax assessment year of 2022.

• Sales tax to be imposed on low-value items sourced overseas that are sold by online sellers and sent to Malaysia via air courier

• Services tax to be imposed on delivery services provided by service providers including e-commerce platforms, except for food and beverage deliveries and logistics services

• Govt to allocate RM6.6 billion for various initiatives under relevant ministries and agencies to strengthen and enhance technical and vocational education and training (TVET). RM200 million is also allocated for programmes such as the National Dual Training System and industrial certification programmes.

• Income tax exemption of up to RM3,000 for nursery and kindergarten fees

• Govt announces RM3 billion Injection into pandemic-hit listed companies, RM2 billion for companies with gearing issues


      Text Size