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2012 Budget Business Highlights

By Friday October 7th, 2011 No Comments

KUALA LUMPUR, Oct 7 (Bernama) — Following are the highlights of the Budget 2012 for business presented by the Prime Minster Datuk Seri Najib Tun Razak here Friday.

* GDP projected to grow five to six per cent 2012 (2011:5-5.5 per cent)

* RM232.8 billion set aside to implement all government development plans

* Government revenue to increase to RM186.9 billion in 2012 from RM183.4 billion in 2011

* Budget deficit to improve to 4.7 per cent of GDP from 5.4 per cent in 2011

* Government to liberalise 17 services sub-sectors in 2012, including private hospital services, medical and dental specialist services, engineering, accounting and taxation, legal services, allowing up to 100 per cent foreign equity participation in selected sub-sectors.

* Second rolling plan to be allocated RM98.4 billion with RM49.2 billion each for 2012 and 2013.

* Government allocates RM2.5 billion for Facilitation fund, of which RM300 million is for Bumiputera entrepreneurs.

* Government allocates RM978 million to accelerate development in five regional corridors.

* 70 per cent income tax exemption for five years proposed for MNCs to establish treasury management services in Malaysia.

* Witholding tax exemption on interest payment on borrowings and stamp duty exemption on loan and service agreements for MNCs.

* Income tax exemption of 100 per cent for a period of 10 years, as well as stamp duty exemption on loans and service agreements for Kuala Lumpur International Financial District (KLIFD) status companies.

* Industrial building allowance and accelerated capital allowance and income tax exemption of 70 per cent for a period of five years for property developers in KLIFD.

* Tax deduction on expenses incurred for sukuk wakala to be given for a 3-year period from 2012.

* Income tax exemption for non-ringgit sukuk issuance and transaction extended for another 3 years until 2014.

* Valuecap Sdn Bhd to provide RM200 million as seed monies for syariah-compliant Exchange Traded Funds

* Felda Global Ventures Holding to be listed on Bursa Malaysia by mid-2012 to raise funds and emerge as a global conglomerate

* Government to extend the concessionary tax rate of 10 per cent on dividends of non-corporate institutional and individual investors in real estate investment trusts for five years from 2012 to 2016

* A syariah-compliant SME Financing Fund totalling RM2 billion to be managed by selected Islamic banks by 2012

* Government to provide RM100 million for the SME Revitalisation Fund which will managed by SME Bank and will be available from January 2012

* Government to establish an SME Emergency Fund amounting to RM10 million to assist small and medium enterprises affected by natural disasters

* Removal of import duty and excise duty on hybrid cars and electric cars will be extended until 2013

* The Langkawi Five Year Tourism Development Master Plan will be launched with an allocation of RM420 million

* Government proposes hotel operators in Peninsular Malaysia, investing in new four and five star hotels, be given Pioneer Status with income tax exemption of 70 per cent or Investment Tax Allowance of 60 per cent for five years.

* Real property gains tax rate to be reviewed

* Syariah-compliant Commercialisation Innovation Fund totalling RM500 mln to be set up

* Industrial design services be given Pioneer Status with income tax exemption of 70 per cent for 5 years

* RM1.1 billion to be allocated in 2012 for the development of agriculture

* Government proposes to increase the limit of house prices under the My First Home Scheme from a maximum of RM220,000 to RM400,000 beginning January 2012

* Under the 1Malaysia People’s Housing (PR1MA) a total of 7,700 houses will be built in Cyberjaya, Putra Heights, Seremban, Damansara and Bukit Raja in 2012

* 100 per cent stamp duty exemption on loan instruments for the purchase of houses under the PR1MA

* RM443 million allocated for the construction of 8,000 units for sale and 7,000 units to be rented under the Program Perumahan Rakyat

* Government to allocate RM200 million as subsidy for 10,000 units of houses to be built by Syarikat Perumahan Negara Bhd. Each house costing RM65,000, will be sold for RM45,000 with the government subsidising the remaining RM20,000

* RM40 million allocated for the restoration and maintenance of public and private low cost housing

* Government to allocate RM63 million in 2012 to rehabilitate 1,270 abandoned houses

* Government to introduce Skim Amanah Rakyat 1Malaysia for households with income below RM3,000 per month. Participants can apply for RM5,000 loan with a repayment period of five years

* MARA will provide financing to qualified corporate personnel to purchase equity as well as acquire companies based on the management buyout concept

* RM200 million allocated for the development of Bumiputera entrepreneurs and contractors through the Ministry of Rural and Regional Development

* Government proposes allocation for TEKUN to be increased to RM300 million

* Amanah Ikhtiar Malaysia will provide RM2.1 billion for micro financing to entrepreneurs, particularly for women. From this, RM100 million will be for Malaysian Indian entrepreneurs and another RM100 million for Chinese entrepreneurs

* Micro financing loan instruments to be exempted from stamp duty

* MyCreative Venture Capital to be established with an initial fund of RM200 million

* RM200 million allocated for skills training for youth through the Strategic Action for Youth programme

* Government allocates RM15 million to build an additional 150 futsal courts to achieve the ‘One Court for One Mukim’ target

* RM50 million allocated to build football fields with artificial turfs, equipped with floodlights, at 30 selected locations nationwide

* Government to provide additional RM30 million to train young potential athletes to compete and succeed in international sports competition

Source : Bernama

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