PUTRAJAYA: The unveiling of Budget 2013 continues to spearhead the Economic Transformation Programme (ETP) by providing a framework that provides the impetus needed to achieve the nation’s transformation agenda of becoming a high-income nation by 2020.
“I believe this budget has many positive elements. It is economically expansionary in terms of spurring GDP growth. It provides a good balance between economic and social needs of the Rakyat, covering many different segments of the population,” said Datuk Sri Idris Jala, Minister in the Prime Minister’s Department and chief executive officer of the Performance Enhancement and Delivery Unit (Pemandu) in a recent press release.
The 12 National Key Economic Areas will continue to be driven by foreign and domestic direct investments. Within Budget 2013, the government supports the successful implementation of several entry point projects with an allocation of RM3billion.
Amongst others, these projects include RM1.5 billion for agriculture projects such as oil palm, rubber, high-value herbs and paddy RM500 million will be allocated for the River of Life project for the beautification of the Klang River RM300 million is provided for the improvement water supply and sewage system.
“In order to increase participation of the private sector in the Oil, Gas and Energy NKEA, we are pleased with the provision of special tax and non-tax incentives specifically the 100 per centincome tax exemption for a period of ten years. In addition, companies within the Global Incentive for Trading (GIFT) programme will stand to benefit from the 100 per cent income tax exemption for the first three years of operations,” highlighted Pemandu in a press release.
Under the Tourism NKEA, tour operators that manage at least 750 foreign tourists or 1,500 local tourists a year will enjoy income tax exemption for three years.
Within the Agriculture NKEA, RM30 million has been allocated for agricultural development programmes which include amongst others, the high-technology applications in fruit and vegetable production, the supply of high-quality seedlings, and the improvement of agricultural training institutions.
“Existing paddy granaries will be further strengthened through an integrated and systematic paddy management system. Additionally, four new paddy granaries will be developed and expanded in Kota Belud, Batang Lupar, Rompin and Pekan (19,000 ha), costing RM140 million,” it added.
The allocation of RM432 million for the replanting of oil palm together with RM127 million for the development of high-value oleo derivatives to transform the downstream industry are further incentives for the Palm Oil and Rubber NKEA.
To encourage the issuance of AgroSukuk within the Financial Services NKEA, expenses for the issuance of AgroSukuk will be given a double deduction for a period of four years effective from year of assessment.
To finance MRT development projects and encourage retail participation in bonds, DanaInfra Nasional will issue retail bonds worth RM300 million by the end of 2012.
There will also be a provision of double deduction of retail bonds and retail sukuk for a period of four years effective from year of assessment 2012 to 2015.
To encourage the development of business trusts, the transfer of any business, asset and real property at the early stage of its establishment will be given stamp duty and real property gains tax exemptions.
Looking at Strategic Reform Initiatives (SRIs), Pemandu said it was further encouraged to see strong commitment by the government to promote the Human Capital Development SRI through the allocation of RM3.7 billion to train students in technical and vocational fields.
“One example is the introduction of the Graduate Representative Programme by Securities Commission aimed to increase the number of professionals to support growth of the capital market. This programme will be implemented in collaboration with the private sector to train 1,000 graduates,” it highlighted.
“Within the Narrowing Disparity SRI, the Working Capital Guarantee Scheme is extended to 31 December 2013 to help High-Performing Bumiputera (TERAS) companies increase its shareholders fund eligibility from RM10 million to RM20 million.”