Budget 2013, 'The People's Budget'

Below are the highlights of the 2013 Budget tabled by Prime Minister and Finance Minister Datuk Seri Najib Tun Razak. The tabling of the Budget 2013 themed "Prospering The Nation, Enhancing Well-Being of the Rakyat: A Promise Fullfilled" was done at the Dewan Rakyat on Sept 28, 2012.

Total budget: RM251.6 billion

For Operating Expenditure: RM201.9 billion

• RM58.6 billion allocated for Emoluments dan RM33.7 billion for Supplies and Services.

For Development Expenditure: RM49.7 billion

• RM30 billion allocated to the economic sector for infrastructure, industrial, agriculture and rural development.

• RM11.1 billion allocated to the social sector including education and training, health welfare, housing and community development.

BOOSTING INVESTMENT

• To accelerate the implementation of the 12 National Key Economic Areas (NKEAs).

• RM500 million allocated for the River of Life project for the beautification of the Klang River, RM300 million is provided for replacement of water pipelines and sewage to improve water supply and sewage system.

HEALTH

• A total of 1.4 million of Socso members to undertake free health screening in government hospitals or Socso's panel clinics.

• RM19.3 billion to be provided for health services. RM20 million is allocated to set an addition 70 1Malaysia clinics, which include cholesterol and glucose test as well as urine test.

HOUSING

• Under the My First Home Scheme, the income limit for individual loans is increased from RM3,000 to RM5,000 per month;

• Husband and wife can take a joint loan of up to RM10,000 per month;

• The ceiling price of property to purchase is RM400,000.

• RM1.9 billion is allocated to build 123,000 affordable housing units in strategic locations, with initiative to be implemented by Syarikat Perumahan Negara Berhad (SPNB), Perumahan Rakyat 1Malaysia (PR1MA) and National Housing Department.

TOURISM

• Income tax exemption extended for three years for tour operators who bring in at least 750 foreign tourists or handle 1,500 local tourists a year.

• RM358 million allocation to intensify tourism industry in conjunction with Visit Malaysia Year 2013/2014.

SECURITY/ CRIME

• RM4.6 billion allocated for the development of the security sector, RM2 billion for general administration and RM2 billion for contingencies.

• RM591 million for efforts to reduce crime rates including increasing the number of police personnel, establish a Motorcycle Patrolling Unit, increase the number of Police Volunteer Reserve and install additional CCTV cameras.

• Resident associations to receive RM10,000 grant to promote patrolling activities in neighbourhoods, RM39 million to finance Kawasan Rukun Tetangga activities and RM90 million to provide uniforms to 300,000 active members of People's Volunteer Corp (RELA).

• RM276 million allocation for Malaysian Anti-Corruption Commission to combat corruption and increase an additional of 150 posts annually to reach a total of 5,000 personnel.

AGRICULTURE

• RM3 billion allocated for the implementation of Entry Points Projects (EPPs), including RM1.5 billion for agriculture projects such as oil palm, rubber, high-value herbs and paddy.

• RM5.8 bilion allocated to the Agriculture and Agro-Based Industry Ministry for food security.

• RM30 million allocated for agricultural development programmes, including high-technology applications in fruit and vegetable production, increase the supply of high-quality seedlings, price stabilisation through direct selling from farms, establishment of fish markets for the rakyat as well as improving agricultural training institutions.

• Four new paddy granaries will be developed and expanded in Kota Belud, Batang Lupar, Rompin and Pekan. With an expanditure of RM140 million, the four new paddy granaries with acreage of 19,000 hectares and involving 12,237 farmers are expected to produce 104,000 tonnes.

• RM2.4 billion is allocated to provide subsidies and incentives to assist farmers in reducing production cost. The assistance comprises subsidies and incentives for paddy production including subsidies on paddy rice (RM480 million), paddy fertilisers (RM465 million); incentives to increase paddy yield (RM80 million), paddy production (RM563 million) and subsidies on price of rice (RM528 million) and high-quality paddy seeds (RM85 million).

• Introducing a Paddy Takaful Coverage Scheme to benefit 172,000 paddy farmers who own fields less than 10 hectares. The Government will initially allocate RM50 million for this scheme.

• RM41 million to be provided for the Azam Tani project to benefit 6,730 of the poors to increase their income.

• RM230 million to be provided as incentive for fish landing and also living allowances for the fishermen. Currently, the Government provides a living allowance of RM200 per month, an incentive ranging from 10 to 20 sen per kg and the introduction of Fishermen Insurance Scheme.

• For the plantation sector, RM432 million is allocated under the NKEA for oil palm replanting programmes.

• Subsidy on sugar will be reduced by 20 sen per kg, effective Sept 29, 2012 and an allocation of RM1.5 billion to stabilise the prices of cooking oil in the market.

EDUCATION

• RM38.7b allocated to the Education Ministry for operating and development expenditure.

• An additional RM500 allocation million to enhance teaching skills in core subjects such Bahasa Malaysia, English, Science and Mathematics through the Higher Order Thinking Skills approach.

• An additional of RM1 billion under the Special Fund for the Building Improvement and Maintenance of Schools to refurbish school buildings, maintenance, purchase of school equipments and construction of additional blocks.

• RM1.2 billion will be allocated for pre-education to Jabatan Kemajuan Masyarakat, Education, Permata and National Unity and Integration Department. A further RM380 million allocated to the Education Ministry for placement of kindergarten teachers.

• A launching grant of RM10,000 to assist operator of Early Childhood Care and Education (ECCE) private centres in opening new high quality pre-schools.

• To implement a pilot project of pre-school for disabled chidren (TASKA OKU) in six categories of Down Syndrome, autism, blind or partially sighted, hearing and speaking disabilities, physical disability and learning difficulties.

• RM3.7b allocation to train students in technical and vocational fields.

• RM200 million to establish a Graduate Employability Taskforce to strengthen the employability of graduates.

• RM50 million to train 3,200 Malaysian Indian students in the estates.

• School bus operators will be given assistance of RM10,000 cash rebate and 2 per cent interest rate subsidy on full loans for the purchase of new buses to replace buses that have exceed 25 years with new 12 to 18-seater buses.

• A maximum insurance coverage of RM100,000 in the event of accidents, total and permanent disability and death for all school children who travel by school buses with permits.

CIVIL SERVANTS

• Increase of pension payments from RM720 to RM820 starting from Jan 1, 2012.

• The entry requirement for the Malaysian Armed Forces officers has been raised to Bachelor's Degree with Honours while for servicemen, minimum entry is raised to SPM and diploma.

• A one-off payment of RM1,000 to assist former members of the armed forces who have opted for early retirement, served less than 21 years.

• Housing Loan Division of the Finance Ministry will be restructured and commercial banks to be appointed to manage new housing loans for government servants, effective January 2013, while the processing fee is fixed at RM100 for each application regardless of the loan amount.

• Additional one month bonus for civil servants, which will be disbursed in two payments in December 2012 and January 2013. A payment of RM500 will also be given to government retirees.

STUDENTS/ YOUTH

• 20 percent discount will be given to those who make full PTPTN loan payment within a year effective from Oct 1, 2012 until Sept 30, 2013 while a 10 per cent discount per annum will be given to those with consistent repayment.

• A one-off rebate of RM200 will be provided for the purchase of one unit of 3G smartphone for youths aged between 21 to 30 years.

• RM2.6 billion is allocated to help students from low-income families, which include hostel meal assistance programme, Food Supplement Programme, purchase of text books and assistance for payments of additional school fees.

• Schooling Assistance of RM100 to 5.4 million primary and secondary students, to commence January 2013.

• The 1Malaysia Book Voucher programme will be increased from RM200 to RM250 to all higher learning institutions and pre-university students.

WOMEN

• RM50 million is allocated for the development of women, family and community. This includes training 500 women as board members under the Women Directors' Programme, to improved the Single Mother Skills Incubator Programme, to provide a grant of RM1,000 for the Get Malaysian Business Online Programme and free mammogram examination.

WELFARE/ SERVICES

• The processing fee of a five-year passport to be reduced by 50 percent from RM300 to RM150 for senior citizens and children aged 12 and below.

• RM1.2 billion is allocated for the 1Malaysia Welfare Programme (KAR1SMA) for senior citizens, children and disabled workers as well as for chronic illnesses.

• RM400 million is allocated to Akhiri Zaman Miskin (1AZAM) programme to benefit 58,330 participants opportunities to generate income.

• The Government will provide six additional Anjung Singgah centres and establish five Anjung Kasih in Sibu, Miri, Temerloh, Seremban and Ipoh Hospitals.

• To give out second round of Bantuan Rakyat 1Malaysia (BR1M). The assistance will be extended to single, unmarried individuals aged 21 and above and earning not more than RM2,000 a month, with an amount RM250.

• RM386 million is allocated to open 57 Kedai Rakyat 1Malaysia and to bear the cost of delivering products from Peninsula to Sabah, Sarawak and Labuan.

• An additional allocation of RM20 million is provided to the National Legal Aid Foundation.

• To facilitate hajj pilgrimage, EPF contributors will be allowed to withdraw their savings in Account 2 to meet hajj cost, with a maximum withdrawal of up to RM3,000.

• 100 1Malaysia Internet Centres will be established from 2013 to 2015 with an allocation of RM150 million.

SKILLS/ TRAINING

• RM738 million is allocated for the Youth and Sports development. An allocation of RM15 million will be provided to prepare athletes for international sporting events, RM50 million for four years under the Road to Rio programme.

• RM50 million is allocated to establish a New Entrepreneur Foundation to assist young ICT entrepreneurs and another RM50 million to set up Young Entrepreneur Fund.

RURAL/ URBAN TRANSFORMATION

• A National Strategic Coordination Unit to be established to ensure coordination between Rural Transformation Programme (RTP) and Urban Transformation Programme (UTP).

• Six Urban Transformation Centre will be set up Alor Setar, Kuantan, Ipoh, Johor Baharu, Kota Kinabalu and Kuching, while five Rural Transformation Centre to be set up at Melaka, Johor, Pahang, Sabah and Sarawak.

• RM4.5 billion is allocated to implement various rural infrastructure development and projects, including to develop 441 kilometres rural roads and village link road projects, to develop rural utility infrastructure, to finance Program Desa Lestari, to implement economic development for the Orang Asli community, and to supply water tanks for rainwater harvesting in the interiors of Sabah and Sarawak.