KUALA LUMPUR, Malaysia - BUDGET 2015 shows a clear shift
from broad-based subsidies to direct assistance that has been the cornerstone
of Prime Minister Datuk Seri Najib Razak’s Economic Transformation Programme
(ETP).
There were no big surprises in the budget, which is the last
for the 10th Malaysia Plan (10MP).
In May next year, Najib will unveil the 11th Malaysia Plan,
which is the last five-year plan before Malaysia hits high-income nation status
by 2020. But in Budget 2015, what is evident is the number of direct subsidies
given to various groups of lower and lower-middle income households, a move to
ease the burden of this group of people.
Topping the list is the 1Malaysia People’s Aid (BR1M), which
has been increased almost 50% to RM950 from RM650 for those households with a
monthly income of RM3,000 and below. For those with monthly incomes of between RM3,000 and RM4,000, BR1M would be increased to RM750 from RM450.
On a smaller scale, assistance is channelled to rubber
smallholders, who get a one-off special payment of RM500 to help overcome the
low price of the commodity, fishermen to get monthly living allowances of RM250
or RM300 depending on location and a monthly allowance of RM200 for coastal
fishermen.
To enable more people to buy their first home and reduce the
cost of buying a house, the 50% stamp duty exemption will be extended to Dec
31, 2016 while the purchase limit will be increased to RM500,000 from
RM400,000.
Furthermore, for those purchasing their first home via the
Skim Rumah Pertamaku, the ceiling price has been raised to RM500,000 and the
age of borrowers raised to 40 from 35.
Conspicuously missing was the
announcement of large-scale projects that used to be a feature in previous
budgets under the ETP.
Conspicuously missing was the
announcement of large-scale projects that used to be a feature in previous
budgets under the ETP.
Among the few announced were the RM9bil LRT 3 and the
RM23bil Second MRT Line. But both these projects were already on the drawing
board.
- The only element missing was the amount that the Government will set aside for implementation.
The much talked about Pan Borneo Highway, straddling Sabah
and Sarawak, that has been mentioned since two years ago will finally take off next
year at a cost of RM27bil.
Given that Budget 2015 is the final budget of the 10MP,
Najib mentioned in his speech that a new approach known as the Malaysian
National Development Strategy (MyNDS) is being formulated. This would underpin
the 11th Malaysia Plan, to be launched next May.
Until then, the nation will have to go through this period
of transformation.
Source: The Star
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