Wednesday, December 7, 2022

Malaysia’s New Policies And Initiatives That Will Take Effect In 2022

NewsMalaysia's New Policies And Initiatives That Will Take Effect In 2022

It’s officially 2022 now and this is the time that most people will jot down their new year goals and live towards their aim!

Nonetheless, it is the same for our government and after several rounds of debates in the Dewan Rakyat, the government has come up with several new policies for 2022 and here’s how they affect you.

Curbing Covid-19

Covid-19 remains a challenge for governments worldwide and it is the same for Malaysia. In an effort to curb the Covid-19 spread, the Health Ministry (KKM) has made the booster shot compulsory. Those who did not receive their booster shots will risk losing their ‘fully vaccinated’ status on MySejahtera.

Nonetheless, here’s a guide for those who wanted to register themselves for the booster shot.

Source: Reuters

Going Digital

The government has embarked on its digital pathway and more efforts are being used to digitalise our economy. The government had encouraged the use of e-Wallets or cashless transactions and will fully implement it across all government service departments and institutions.

Besides, online passport renewal will be fully applied next year. As such, all passport renewals can now be done by simply visiting the Immigration Bureau website.

In addition, there will be upgrades to our toll booth where the radio frequency identification (RFID) system will be implemented at the North-South Highway tolls from Juru to Skudai starting 15 January. However, Touch ‘n Go and SmartTAG will still be around in 2022 until the authorities gradually phase it out by the end of 2023.

The government will also be introducing a new national biometric registry called National Digital Identity (NDID) system.

Tax-related matters

Under Budget 2022, the government has introduced several new initiatives to enhance tax collection. First of all, all Malaysian citizens over 18 will be given a Tax Identification Number (TIN) to expand the tax base.

As for Malaysians who earn foreign income, they were supposed to be taxed starting 1 January if they remit their money back into Malaysia. However, the finance ministry had on 30 December 2021 announced that the tax exemption on foreign-sourced income will be extended till 31 December 2026. However, business partnership in Malaysia will still be subject to foreign source income (FSI) taxation.

The government had also imposed a 33% corporate tax on companies with revenues of more than RM100 million and 24% on companies with revenues less than RM100 million.

Meanwhile, the government had imposed excise duty on sugar-sweetened beverages includes chocolate/cocoa, malt, mixed coffee and tea, and liquid or gel products containing nicotine in e-cigarettes.

As for tax rebates listed in the 2022 Budget, those who purchase, install or rent electric vehicles or pay for their charging facilities can receive a personal income tax deduction of up to RM2,500. Commercial real estate landlords who provide tenants with a minimum 30% rent discount  between January and June 2022, they can enjoy special tax exemptions. Additionally, the Real Property Gains Tax (RPGT) for Malaysians and permanent residents will be abolished for those who dispose of residential property in the 6th year of ownership and beyond.

Source: The Rakyat Post

Environmental policies

Malaysia has implement several initiatives to reduce the use of plastics since 2018. These will continue into 2022, with housing and local governments plan to implement a single-use plastic bag charging policy involving 154 local authorities from January.

Apart from that, the Sepang City Council is planning to reduce carbon emissions with their autonomous trackless trams otherwise known as the automated rapid transit (ART) system.

The pilot programme will run in Cyberjaya for a period of 3 months starting January 2022. It can accommodate up to 307 passengers and has a speed of 70km/hr.

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