Summary of Malaysia Budget 2010 (3rd Strategy)

3rd Strategy: Focusing on Well-Being of Rakyat (Citizens)
1) Preventing Crime

-RM3.7bil allocated to increase efficiency of security force.

-Total RM1bil provided to improve PDRM services.

-RM1.9bil will be provided to armed forces.

-Another RM622mil will be provided for Malaysia Maritime Enforcement Agency.

2) Improving Income and Quality of Life of the Rakyat

2.1) Eradicating Hardcore Poverty

-Distribute Federal Welfare assistance on the 1st day of each month.

-Continue the “Skim Program Lonjakan Mega” with an allocation of RM141mil which will benefit 5000 families.

2.2) Assisting the Poor and Vulnerable Groups

-Continue the SPKR with an allocation of RM180mil.

-Provide skills training and entrepreneurship programs to more than 3000 women.

2.3) Establishing “Kedai Desa” (Rural shops)

-RM30mil will be allocated to UDA Holdings Bhd to build 300 units of shops in nationwide rural area.

2.4) Eradicating Urban Poverty

-RM48mil allocated to implement related programs.

2.5) Increasing Home Ownership

-More than 44000 low cost houses will be sold at a price of between RM21500-RM35000 per unit by DBKL and JPN, besides; JPN also will provide 74000 low cost houses to be rented in 2010. Priority will be given to the low and middle income groups for the above programs.

-RM200mil will be allocated under Ministry of Housing and Local Government to extending appropriate financial assistance to rehabilitate low and medium cost houses.

-The Government will launch a scheme that enables EPF contributors to utilize current and future savings in Account 2 to obtain houses.

2.6) Expanding Public Health Facilities

-RM14.8bil allocated to manage, build and upgrade hospitals and clinics. Besides, Government will also allocate RM10mil to expand 50 community clinic services in selected urban areas.

2.7) Enhancing Social Safety Net

a) RM224mil allocate to the disabled. And also RM174mil provided for the senior citizens.

b) Allocate a sum of RM15mil to assist poor patients and purchase medical equipments.

c) A total RM3.3mil provided, which increase the allowance rate from RM50-RM150 a month for every disabled children enrolled in NGO-organized special schools.

2.8) 1Malaysia Sukuk

The Government will issue 1Malaysia Sukuk (Syariah-Based Government Saving Bond) of total RM3bil, offered to all Malaysians aged 21 and above, with min investment of RM1000 and max RM50000, maturity period of 3 years with 5% annual return rate paid quarterly.

2.9) 1Malaysian Retirement Scheme

-Government will establish the above scheme which administered by EPF for those who self-employed and without fixed income.

-For every RM100 contribution, the Government will contribute 5% subject to max RM60 per annum, which is an addition to the existing dividend paid by EPF. This contribution is only for a 5 year period and contributors may withdraw the savings at age 55.

2.10) EPF contributions

-EPF contributions will be increase to 11% on voluntarily basis and effective immediately. And will revert to 11% starting from 1 Jan 2011.

-Government proposes the existing personal tax relief of RM6000 be increases up to RM7000 for EPF contribution and life insurance premiums.

2.11) Developing Wakaf Properties

RM20mil will be provided for this particular purpose.


3) Strengthening Infrastructure in Rural and Remote Areas.

-In 2010, a sum of RM2.3bil will be allocated to:

a) RM857mil for construction of both rural and village roads

b) Priority will be given to the soil stabilizer in the construction of rural roads, where appropriate.

c) RM530mil allocated to supply water and RM825mil allocated to supply electricity.

d) Provision of RM88mil to implement 5356 social amenity projects.

-Government will spend RM41mil to improve the income and quality of life of the Orang Asli Community.


4) Improving Public Transport

a) Accelerate formation and operation of SPAD as a single authority to monitor and enforce service standards as well as provide a long term plan for public transport and expected to be operational in 2010.

b) Acquire 8 new EMUs and refurbish 9 EMUs by KTMB.

c) Acquire 35 units of LRT trains by SPNB.

d) Construct covered walkways linking LRT stations to nearby activity centers.

e) Expand special lanes and increase the number of buses in KL. And 4 new hubs will be constructed in Penang.

f) Fast-Track construction of the Integrated Transport Terminal in Gombak.

g) Implement dedicated lanes for buses on underutilized expressways and modify Touch’n’Go lanes at toll booths.



Glossary

PDRM: Polis Diraja Malaysia (Royal Malaysia Police)

SPKR: Skim Pembangunan Kesejahteraan Rakyat

DBKL: Kuala Lumpur City Hall

JPN: National Housing Department

NGO: Non Government Organization.

SPAD: Public Land Transport Commission

EMUs: Electric Multiple Units

KTMB: Keretapi Tanah Melayu Bhd

SPNB: Syarikat Prasarana Negara Berhad

*Adapted from Malaysia 2010 Budget Speech by Prime Minister Najib