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Tuesday, November 29, 2022

Budget 2023 highlights and what’s in for you

Social NewsBudget 2023 highlights and what's in for you

On 7 October, the Ministry of Finance presented the Budget 2023 for the upcoming year in Parliament. The budget was themed “Keluarga Malaysia, Makmur Bersama” and will focus on four key areas — people, business, economy and government.

Under this RM372.3 billion budget, several initiatives were introduced to address the concerns surrounding rising inflation rates and cost of living, improving employment opportunities, enhancing the competitiveness of SMEs and restoring the country’s still-recovering tourism sector, as well as encouraging automation and digitisation efforts.

The Budget 2023 is an increase of RM40.2 billion over the previous year’s budget of RM332.1 billion. Out of which, RM272.3 billion was allocated for operational expenditures, RM95 billion for development, RM5 billion for the National COVID Fund, and RM2 billion goes into reserve for unexpected expenditure.

Highlights of Budget 2023 and how they may benefit you


1. Bantuan Keluarga Malaysia (BKM)

B40 families with household income of less than RM2,500 a month and have 5 or more children are entitled to Bantuan Keluarga Malaysia (BKM) assistance of up to RM2,500.

On the other hand, families with household income of less than RM2,500 with one to four kids are entitled to between RM1,000 and RM2,000.

Meanwhile, single parents will also receive RM3,000 in cash assistance and this is RM500 more compared to previous years.

2. Reduced tax rate

Those earning between RM50,001 to RM100,000 will see their personal income tax reduced by 2% from 13% to 11%.

Meanwhile, Malaysians earning between RM70,001 and RM100,000 yearly will see their tax rate drop from 21% to 19%.

In addition, micro SME operators to receive 2% tax reduction.

3. Women initiative

Women returning to the workforce from their career break will be given tax exemption of up 6 years.

This initiative would encourage them to return to the work force.

Apart from that, the government has allocated RM11 million to encourage Malaysian women to go for breast cancer and cervical cancer screening. The screening will use a new PCR technology that was pioneered by ROSE Foundation and University Malaya.

4. eWallet and eCommerce

RM800 million will go towards providing those in the M40 category with RM100 e-wallet credit, aiming to promote cashless transactions.

RM400 million will go towards the continuation of the e-Pemula scheme, estimated to benefit 2 million youths between the ages of 18 to 20. Under this initiative, Malaysian youths will receive RM200 in e-wallet credit.

5. PTPTN

Students who pay back their PTPTN loans between 1 November 2022 and 30 April 2023 in will be entitled to a 20% discount.

Meanwhile, those who settle at least 50% of their loans will receive a discount of 15%. 

Also, PTPTN students who graduate with first-class honours will be fully exempted from their loans.

6. Vouchers and discounts on domestic tourism expenses

The government has encouraged Malaysians to travel within the country. As such, it will be allocating RM25 million in the form of vouchers, rebates, and discounts to boost domestic tourism, valuing up to RM100.

The discounts and vouchers can also be used on handicrafts and artworks.

7. Study local initiative

Under this initiative, the government has allocated RM3.8 billion for scholarships and study loans, aiming to encourage students to pursue their studies at local universities.

The JPA-sponsored living allowance for students and officers would be standardised and increased by RM100 per month for all levels of study, bringing the JPA living allowance to between RM700 and RM900 per month.

At the same time, MARA and PETRONAS students’ living allowances will also be increased, but it was not specified how much.

8. Combat domestic violence and mental health issues

The government has allocated RM8 million to assist local social support centres that help Malaysians who have undergone domestic violence and suffered from mental health disorders.

Besides, the government will continue to work with local non-governmental organistations (NGO), such as PS The Children, to give support to domestic violence victims.

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