Budget 2011 Highlights

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* A mixed development project including affordable houses to be developed at a cost of RM10 billion in Sungai Buloh and is expected to be completed by 2025.

* Another landmark project “Warisan Merdeka” which includes a 100-storey tower, the tallest in Malaysia, at a cost of RM5 billion to be completed by 2015.

* Development of large-scale integrated Aquaculture Zones in Pitas, Sungai Telaga and Sungai Padas in Sabah as well as Batang Ai and Tanjung Manis in Sarawak with an allocation of RM252 million.

* Allocation of RM135 million for basic infrastructure to encourage farmers participation in high value agriculture activities including swiftlet nests.

* Extension of income tax deduction incentive for investors and income tax exemption for companies undertaking food production activities until 2015.

* RM85 million to provide infrastructure facilities to facilitate construction of hotels and resorts in remote areas with the potential to attract tourists.

* RM50 million to construct several shaded walkways in the KLCC-Bukit Bintang vicinity.

* Development of world’s first integrated eco-nature resort at a cost of RM3 billion by Nexus Karambunai in Sabah to commence next year.

* Abolishing of import duty on 300 goods preferred by tourists and locals, at 5 to 30 per cent, to promote Malaysia as a shopping heaven in Asia.

* RM119 million for the development of local content creation, hosting local content and unlocking new channels for content.

* Exemption of sales tax on all types of mobile phones.

* RM850 million for infrastructure support to accelerate corridor and regional development.

* RM411 million for research, development and commercialisation activity to be the platform for enhancing value-added activities across economic sectors.

* Establishment of a Special Innovation Unit (UNIK) under the Prime Minister’s Department with an allocation of RM71 million for next year to commercialise R&D findings by universities and research institutions.

* RM200 million for the purchase of creative products such as high quality, locally-produced films, dramas and documentaries.

* Rate of service tax to be increased from five to six per cent.

* Service tax to be imposed on paid television broadcasting services.

* Strengthening the revenue collection system by increasing enforcement and audit as well as coverage on all parties that should be paying taxes.

* Restructuring and strengthening of education and training with the sum of RM29.3 billion allocated for Education Ministry, RM10.2 billion (Higher Education Ministry) and RM627 million (Human Resource Ministry).

* Establishment of Talent Corporation under the Prime Minister’s Office in early 2011 to develop an expert workforce database as well as collaborate closely with talent networks globally.

* RM212 billion is proposed for the 2011 Budget which is 2.8 per cent higher than the allocation for 2010.

* Of this, RM162.8 billion is for Operating Expenditure and RM49.2 billion for Development Expenditure.

* Under the Operating Expenditure, RM45.6 billion is allocated for Emoluments, RM28.2 billion for Supplies and Services, RM86.4 billion is allocated to Fixed Charges and Grants.

* RM1.4 billion for the Purchase of Assets while RM1.2 billion for Other Expenditures.

* As for Development Expenditure, RM28.3 billion is allocated to the economic sector for infrastructure, industrial, agricultural and rural development.

* RM15.5 billion allocated to the social sector, including education and training, health, welfare, housing and community development.

* RM4.4 billion for development of the Security Sector, RM955 million for General Administration and RM2 billion Contigencies.

* Federal Government revenue collection is estimated to increase 2.3 per cent to RM165.8 billion in 2011 compared with RM162.1 billion in 2010.

* The Federal Government deficit for 2011 is expected to further decline to 5.4 per cent of GDP, compared with 5.6 per cent in 2010.

* For the Ministry of Education, a sum of RM6.4 billion is allocated for Development Expenditure to build and upgrade schools, hostels, facilities and equipment as well as uphold the status of the teaching profession.

* RM213 million is allocated to reward high performance schools as well as for the remuneration of Principals, Head Teachers and Excellent Teachers.

* The Government will increase pre-school enrolment rate to a targeted 72 per cent by end 2011 through additional 1,700 clases, strengthen the curriculum as well as appoint 800 pre-school graduate teachers.

* The Government also allocates RM111 million for PERMATA programme including the construction of the second phase of Sekolah PERMATA Pintar school complex, 32 PERMATA Children Centres (PAPN) and financing operations of 52 completed PAPNs.

* RM250 million allocated for Development Expenditure for religious schools, Chinese-type schools, Tamil national schools, missionary schools and Government-assisted schools nationwide.

* Recognising the importance of Islamic education, the Government will provide assistance per capita for primary and secondary rakyat religious schools with an allocation of RM95 million.

* To provide competent and quality teachers and instructors to better guide and educate students, the Government allocates RM576 million in the form of scholarships for those wishing to further their studies.

* RM213 million is allocated to enhance proficiency in Bahasa Malaysia, strengthen the English language as well as streamline the standard curriculum for primary schools.

* The Government will recruit 375 native-speaking teachers including from the United Kingdom and Australia to further enhance teaching of English.

* The number of PhD qualified academic staff will be increased to 75 per cent in research universities and to 60 per cent in other public institutions of higher learning with an allocation of RM20 million.

* Excise duty exemption be increased from 50 per cent to 100 per cent on national vehicles purchased by the disable.

* Existing tax relief of up to a maximum of RM5,000 be extended to cover other expenses such as day care centre, cost incurred to employ caretakers for parents and other daily needs such as diapers.

* Stamp duty exemption of 50 per cent be given on loan agreement instruments to finance first-time purchase of houses.

* Full import duty and 50 per cent excise duty exemption was granted to franchise holders of hybrid cars.

* Implementation of 1Malaysia Training Programme by Community Colleges, National Youth Training Institutes, Giat Mara and Industrial Training Institutes to commence in January 2011 with an allocation of RM500 million.

* The establishment of National Wage Consultation Council as the main platform for wage determination.

* The establishment of 1Malaysia Youth Fund with an allocation of RM20 million.

* Monthly allowance for KAFA teachers will be increased to RM800 compared with RM500 currently.

* Increase in monthly allowance for the Chairman of JKKK and JKKP, Tok Batin, Chairman of JKKK Orang Asli and Chairman of Kampung Baru to RM800 compared with RM450 currently.

* Increase in meeting attending allowance to all comittee members from RM30 to RM50.

* Special Financial Assistance amounting to RM500 to be provided to all civil servants from Grade 54 and below, including contract officers and retirees.

* The abolishment of the Competency Level Assessment or PTK to be replaced with a more suitable evaluation system by June 2011.

* Extension of services of Pegawai Khidmat Singkat for an additional period of one year from December 2010.

* Raising the amount of loan from RM10,000 to RM20,000 for additional works on low-cost houses for Support Group Two.

* Raising the maximum loan eligibility to RM450,000 compared with RM360,000 currently, effective January 1, 2011.

* Increasing the rate for Funeral Arrangement Assistance to RM3,000.

* Allowing flexibility to self-determine fully-paid maternity leave not exceeding 90 days from the current 60 days subject to a total of 300 days of maternity leave throughout the tenure of service.

* Introduction of ‘Skim Rumah Pertamaku’ which will provide a guarantee on down payment of 10 per cent for houses below RM220,000 for first-time house buyers.

* To assist estate workers to own low-cost houses through a scheme managed by BSN.

* Construction and repair of 12,000 houses nationwide particularly in Sabah and Sarawak with an allocation of RM300 million.

* Establishment of a ‘1Malaysia Smart Consumer’ portal.

* Introduction of the Distribution of Essential Goods programme to standardise prices across areas.

* Introduction of the Retail Shop Transformation Programme, Automotive Workshop and Community Market projects.

* The launch of a Private Pension Fund in 2011.

* The launch of Bumiputera Property Trust Foundation with the size of RM1 billion and syariah-compliant.

* To assist children particularly those from the low-income group to excel academically, the 1MDB will provide multi-vitamins for primary school students.

* Rebate of electricity bill payment for monthly consumption of below RM20 will be continued.

* The toll rates in four highways owned by PLUS Expressway Berhad will not be raised for the next five years effective immediately.

* A review of the current minimum bankcruptcy limit of RM30,000.

* The application for Permanent Resident status may be submitted after five years of residence.

* Providing four buses for Mobile Clinic.

* Formulating a new development model for Orang Asli.

* JHEOA will be restructured and strengthened as Jabatan Kemajuan Orang Asli. — Bernama