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Related topics: | Key Data | Budget & Plan| Budget 2000 |
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1.
I propose a sum of 91.05 billion ringgit be allocated for Budget
2001, an increase of 16.7 per cent compared with the original estimate for
the year 2000. Out of this, a sum of 62.21 billion ringgit or 68.3 per
cent will be allocated for Operating Expenditure while a sum of 28.84
billion ringgit or 31.7 per cent is allocated for Development Expenditure.
3.
A sum of 32.14 billion ringgit from the Operating Expenditure is
allocated for Grants and Fixed Payments.
It includes debt service charges, payment of pensions and
gratuities and contributions to statutory funds. An amount of 16.92
billion ringgit is for Emolument, 10.08 billion ringgit for Services and
Supplies, 1.15 billion ringgit for the purchase of office equipment and
facilities and 1.93 billion ringgit for other expenditure, including tax
refunds.
4.
A sum of 10.935 billion ringgit or 37.9 per cent is set aside for
the continuation of the social agenda to implement projects in education
and training, health, welfare and community development as well as
projects for youth and sports. In addition, a sum of 9.429 billion ringgit
or 32.7 per cent is set aside to continue the implementation of projects
in the economic sector, involving infrastructure, agriculture, industry,
supply of electricity and water and also rural development. In addition, a
sum of 3.158 billion ringgit or 11 per cent is allocated for the
development of the security sector and 3.315 billion ringgit or 11.5 per
cent is for the general services sector. |
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Continuing the Economic Agenda Agriculture
Sector
1.
Although the Government has provided several incentives to increase
the nation’s agricultural output, expenditure on imports of food remains
high at about 11 billion ringgit last year.
In the last Budget, the Government provided various incentives to
large plantation companies to venture into the production of food. Unfortunately, not even a single plantation company took up
the opportunity as private sector companies still lack confidence in the
potential profits that can be derived from investments in the food
industry.
2.
To promote investment in this sector, incentives have to be further
improved. I propose that investments by companies in their wholly owned
subsidiaries for purpose of food production be allowed as deductions
equivalent to the amount invested against their statutory income.
As an alternative, losses incurred by these subsidiary companies
are allowed to be deducted from the income of the holding company.
Besides this, companies involved in food production are allowed
full exemption from income tax for a period of 10 years, commencing from
the first year the companies record profits. Returns
from the agriculture sector may not be as lucrative in comparison to
returns from other sectors. Nevertheless,
large companies should be bold to venture into this field as the
agriculture sector has potential if integrated cultivation is undertaken
on a large scale, using modern technology.
In an effort to improve the efficiency of distribution of food
products, I propose that companies which provide cold chain facilities, be
given Pioneer Status for a period of five years or Investment Tax
Allowance of 60 per cent.
3.
The third National Agriculture Policy has identified several
positive measures aimed at developing a modern, commercial and
technology-intensive agriculture sector, covering packaging, marketing and
distribution. To further
develop the sector, the Government has provided an allocation of 2.4
billion ringgit in year 2001. Of
this, a total of 84 million ringgit has been set aside to develop 18,400
hectares of Permanent Food Production Parks.
These Parks will be set aside as permanent agriculture
production zones that can be leased at low rates to entrepreneurs in
agriculture and private sector operators.
These projects will be joint ventures between the Federal and State
Governments and, to date, six memoranda of understanding have been signed
with the State Governments of Perlis, Kedah, Kelantan, Johor, Malacca and
Sarawak. |
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Developing the Tourism Industry
1.
The Government is aware that the tourism industry is among the
important sectors in generating economic growth and foreign exchange. Various programmes have been implemented to accelerate the
development of this sector, including providing longer weekends, holding
exhibitions, fairs and expos and promoting Malaysia as a shopping
destination, in addition to sponsoring the Formula One race to attract
international sports enthusiasts. The
Government has also provided facilities and improved tourist products,
including sports and eco-tourism. Each
rakyat must, therefore, continue to be more creative and strive to
attract more tourists by promoting the richness of our culture and art, in
addition to making the nation an attractive tourist destination.
We welcome all tourists but we remain concerned about the acts of a
few that could tarnish the nation’s good name.
An estimated 10 million foreign tourists will visit Malaysia in
year 2001 compared with 8.5 million this year.
To attract more foreign tourists, the Government will provide
sufficient allocation to undertake more effective promotions, in addition
to providing better facilities for tourists. |
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1.
E-village is also being developed in an area covering 240 hectares,
representing phase one of the project.
This project is being implemented by the private sector and is
aimed at promoting a creative multimedia industry, including the filming
industry as well as other multimedia-related activities.
E-village will offer state-of-the-art facilities. It is also aimed
at attracting international film producers to Malaysia. To date, a film producer in animations from India has signed
a technical and marketing agreement with E-village. I also hope that local film producers will make greater use
of E-village for their productions so that the quality of local films will
be enhanced and capable of competing in world markets. |
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Developing World-Class Infrastructure Facilities
1.
The Government will continue to place importance in the development
of infrastructure. A sum of 4.729 billion ringgit will be provided for the
development of infrastructure, including projects in the construction of
roads and bridges, railways, ports and airports.
Of the total, 3.07 billion ringgit will be for the construction of
roads and bridges while 591 million ringgit will be for maintenance of 15
thousand kilometers of Federal roads. Among the main road projects that
will be constructed and continued are the East Coast Highway, Merotai and
Kalabakan and Jalan Betong and Kayu Malam. |
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1.
To continue the agenda for development of Bumiputera,
the Government has set aside a total of 1.5 billion ringgit for the
Ministry of Entrepreneur Development to be channelled to MARA, Handicraft
Corporation as well as the State Economic Development Corporations. Attention will be given to programmes in the training and
development of entrepreneurs, construction and purchase of business
premises, business loans, skills and technical training as well as the
sponsorship of students, both domestically and overseas.
2.
A more integrated approach is being planned to nurture a larger
number of Bumiputera
entrepreneurs to venture and compete in a greater variety of businesses.
Several programmes like Franchise, Vendor, Small and Medium-scale
Enterprises (SMEs), State Skills Development Centres and the provision of
business premises will be reviewed to improve its effectiveness in
accelerating the development of a Bumiputera
Commercial and Industrial Community.
To date, the achievement of Bumiputera
in business activities is still low.
As such, I urge Bumiputera
to change and be more positive in their attitudes and work harder as well
as be committed in exploiting the opportunities in schemes provided by the
Government. |
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1.
A skilled, efficient and knowledgeable labour force is a
prerequisite towards achieving developed nation status.
In this regard, the Government continues to place emphasis on the
supply of skilled manpower so that we are equipped to face the challenges
associated with an era of rapid changes in ICT and the move towards a
knowledge-based economy. For
this purpose, a sum of 1.2 billion ringgit is provided to build 14
Industrial Training Institutes and four Advanced Technology Training
Centres as well as increase the Skills Development Loan Fund.
All these training institutions are expected to be completed in
year 2001 and will cater for 17 thousand trainees annually.
The Fund with an allocation of 140 million ringgit will cater for
16,000 trainees. In addition,
10 National Youth Skills Development Institutes will be completed with a
capacity to train 8,950 students annually in various skills.
In addition, MARA Giat Centres and Skills Development Institutes
will expand their capacity to train an additional 30,370 students in year
2001. 2.
It is appropriate that the private sector enhances its role in the
development of human resources. For
this purpose, I propose that companies which provide scholarships to
students at local institutions
of higher learning be given income tax deduction.
In addition, tax relief presently given
to individuals for expenses incurred on education be increased from two
thousand ringgit to five
thousand ringgit. The
present scope of eligible courses will also be widened to include ICT.
In addition, EPF contributors who intend to further their own
education will be allowed to withdraw their contributions.
4.
Teaching and learning methods must be improved in line with
developments in an era of new technology and knowledge-based economy.
The school curriculum as well as textbooks are being reviewed in
tandem with current developments and needs.
In this connection, the Government is also studying the possibility
of students using the E-book to reduce the number of books that they need
to bring to school.
5.
For the purpose of expanding the educational facilities available
in preparation for entry into universities, the Government will establish
five new matriculation colleges in Johor, Perak, Pahang, Selangor and
Kedah. For the purpose of
providing more educational institutions in the technical field, the
Government will also establish three new polytechnics in Mersing, Penang
and Miri.
6.
For the public institutions of higher learning (IPTA), a sum of 3.5
billion ringgit is provided in year 2001.
Four new universities will be built in Malacca, Negeri Sembilan,
Pahang and Perlis. The
curriculum and subjects in institutions of higher learning are being
reviewed to ensure that students acquire sufficient and appropriate
knowledge to fulfil the needs of a K-economy work force.
In addition, the Government will continue to provide loan
assistance to students who cannot afford to continue their education in
IPTA and in local Private Institutions of Higher Learning (IPTS).
For this purpose, the Government has allocated a total of 1.3
billion ringgit to the National Higher Education Fund for the provision of
education loans to more than 125 thousand diploma and degree students
under the IPTA and IPTS. This
reflects the Government’s commitment in meeting the aspirations
of rakyat in education. |
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Small and Medium-Scale Enterprises
1.
The role of SMEs is very important in generating economic
activities through increasing
output to meet domestic demand as well as reducing reliance on imports.
SMEs will also serve as incubators for traders and entrepreneurs to start
business in industries and subsequently develop as catalysts in enabling
Malaysia to achieve industrialised nation status by the year 2020. |
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1.
Our success today in developing the nation is the result of the
strong support and unwavering commitment of the civil servants, including
the security forces, in particular the police and army.
In appreciation of their contribution and sacrifice, the Government
increased the salaries of civil servants as well as several allowances,
including the housing allowances for selected categories.
Civil servants need to be more efficient and dedicated in their
work, in addition to being prepared to work longer hours to ensure that
all policies and programmes are implemented expeditiously and efficiently.
2.
The last time we reviewed the Government housing loan eligibility
rates was in 1993. The
Government is aware that house prices have since increased.
I would like to propose, therefore, that rates for housing loan
eligibility for civil servants be increased from between 35 thousand
ringgit and 200 thousand ringgit to between 40 thousand ringgit and 300
thousand ringgit. Similarly, the current car loan eligibility rates were last
reviewed in 1996. I propose,
therefore, that the rates for car loan eligibility for civil servants be
increased from between 23 thousand ringgit and 45 thousand ringgit to
between 45 thousand ringgit and 60 thousand ringgit.
3.
I would also like to propose an increase in the lowest pensions for
civil servants who have served for more than 25 years from 180 ringgit to
280 ringgit per month. This
increase will also be given to members of the Malaysian Armed Forces who
have served not less than 21 years. This
new rate will benefit a total of 9,149 pensioners.
4.
In the 2000 Budget, the Government allowed civil servants placed
under the pensionable scheme to withdraw all their EPF contributions
before turning 55 years. This was, however, not extended to civil service retirees who
took optional retirement. As
they have served the Government, it is, therefore, appropriate that
optional retirees be also allowed to withdraw their contributions to EPF. 5. In appreciation of the services of doctors who undergo a longer period of study and training compared with other professions, I propose that the critical allowance be increased from five per cent of their salary or a minimum of 116 ringgit per month to a fixed rate of 500 ringgit per month. For headmasters and principals of primary and secondary schools, a total of 4,976 presently receive an allowance of between 60 ringgit and 100 ringgit a month. However, a total of 3,749 headmasters and principals do not receive this benefit. I propose that this allowance be given to all headmasters and principals of schools and the rate be increased to 100 ringgit per month for primary schools and 150 ringgit for secondary schools.
6.
For
members of the Malaysian Armed Forces, I propose that the rate for cash
meal allowances be increased by between 62 per cent to 133 per cent. The
ration allowance for the Police Force will also be adjusted accordingly.
The allowance for Boys of the Royal Military College is also increased
from 35 ringgit to a flat rate of 70 ringgit per month while the monthly
allowance of Apprentices of the Army Electrical and Mechanical Engineering
School is increased by between 62 per cent to 100 per cent.
In addition, uniform
and equipment allowance of 200 ringgit is given to Boys of the Royal
Military College, Apprentice Trade Schools and Army Apprentice once during
the duration of their study. 7. For the Fire Services, the rate of incentive payments is increased from 110 ringgit to 140 ringgit per month for those working twenty-four hours and from 27 ringgit 50 sen to 90 ringgit per month for those working for twelve hours regardless of grade. For members of the Royal Customs and Excise Department and the Anti-Smuggling Unit, the incentive payment is increased from between 70 ringgit and 219 ringgit to 300 ringgit, regardless of grade.
8.
I propose that members of the police force be given an allowance in
the form of an incentive allowance of 100 ringgit a month for those deemed
qualified by the Department, such as investigating officers who have to
work long hours to complete their tasks. |
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Increasing the Effectiveness of Enforcement
1.
Given greater linkages
between domestic business and economic activities with external
developments as well as international trade and capital flows, business
and industry participants require a more predictable institutional
environment in which to operate. Such an institutional framework must
encompass all areas, including enforcement of laws, regulations and legal
processes. It will provide
more opportunities for trade and investment and contribute to increasing
investor confidence. In this regard, 224 million ringgit is set aside to
upgrade judicial and legal institutions, including providing computer
facilities for expediting the processing of legal cases.
2.
It is through this Honourable House that we have been provided with
various laws covering almost all aspects of our lives aimed at ensuring
the well being of rakyat and the
nation. These laws encompass
crime, gambling, drugs, corruption, price controls, customs, immigration,
road transport as well as laws regarding morality.
However, we have only recently been shaken by the disclosure that
several thousand illegal driving licences have been issued and several
cases of misuse of power have occurred in implementing the law.
What is the purpose of legislating laws when enforcement is not
effective and what is the meaning of enforcement when those empowered to
enforce the law abuse it?
3.
Every responsibility and task that is assigned must be undertaken
with sincerity and to the best of one’s ability.
We need to inculcate a culture of integrity, including honesty,
responsibility and the need to strive above self-interest, greed and the
pursuance of luxuries beyond our means.
The Government takes a very serious view of corruption in society
as it can become self-destructive if not eradicated.
The Government will not compromise in its efforts to wipe out
corruption at all levels, be it in the public or private sectors.
To overcome the problem of corruption, enforcement of the relevant
laws will be further enhanced. In
this connection, the Government will provide an allocation of 61.4 million
ringgit to the Anti-Corruption Agency. |
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Rationalising Tax Administration
1.
From time to time, the Government strives to improve tax
administration to ensure efficiency and equity.
For this purpose, I propose to rationalise the imposition
of service tax on all telecommunication services except internet,
golfing and golf driving range facilities, public houses selling liquor
and on forwarding agents.
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