Revised 2016 Budget
Eleven recalibrated measures announced.
– 1. EPF contributions by employees to be reduced by 3%. This is expected to increase private sector spending by RM8bil.
– 2. Tax relief of up to RM2,000 to those with income RM8,000 a month or lower. Two million taxpayers to benefit.
– 3. To reduce cost of living, Govt to liberalise APs for agricultural products including coffee beans and meats.
– 4. Domestic Trade, Cooperatives and Consumerism Ministry ordered to increase enforcement and action against unethical traders.
– 5. 30% of contributions to the human resource development fund to be utilised for skills training, including those who are unemployed.
– 6. MyBeras programme to be introduced until Dec 2016. Each hardcore poor family will be given 20kg of rice every month.
– 7. The Government will update the management system of foreign workers, with levies clustered into two categories, not including foreign maids.
– 8. Government will exercise prudent spending on supplies and services and to continue with grant rationalisation.
– 9. Development budget to focus on projects and programmes that place the people first, have high multiplier effect and reduce imports.
– 10. Development financial institutions and Government venture capital funds to increase allocations by RM6bil for benefit of start-ups and SMEs.
– 11. GLCs urged to implement initiatives to reduce the income gap between senior management and workers, to be monitored by the Economic Planning Unit.