Oct 13, 2011

Budget 2012 - How it affects you

Parliamentarians
- Allowances and benefits for members of parliament will be revised.

EPF contributors

- EPF contributions by employers will increase from 12 per cent to 13 per cent for those earning less than RM5,000 a month.



Army personnel
- RM50 million to assist army personnel, who served less than 21 years and are not eligible for pensions, to find jobs and venture into business.
- RM500 million under the Army Care programme to upgrade and maintain army camps and quarters nationwide.

Taxi drivers
- 100 per cent excise duty and sales tax exemptions on the purchase of new locally-made taxis.

- Exemption from payment of excise duty and sales tax on taxis sold or transferred ownership after seven years.

- Abolition of road tax on all individually owned budget taxis.
- Interest rate subsidy of two per cent on full loan to purchase new locallymade
taxis.

- Assistance of RM3,000 for the disposal of old taxis more than seven years old but less than 10 years old. For taxis that are 10 years old and more, RM1,000 assistance will be given for the purchase of new locallymade cars for a period of two years beginning 2012.

Stage, mini and school bus operators
- Soft loans with an interest rate of four per cent to purchase or refurbish
buses.

Pilgrims
- Muslims planning to perform the haj but don’t have sufficient funds can now have the EPF ring-fence RM1,300 from their Account II to enable them to register for the pilgrimage.

Low-income group
- One-off assistance of RM500 to households with a monthly income of RM3,000 and below.

- Skim Amanah Rakyat 1Malaysia (SARA 1) savings scheme of a RM5,000 loan with a repayment period of five years, for those earning less than RM3,000 a month.

Expatriates
- They can withdraw their EPF contributions to buy a house.

The poor and disabled
- Poor senior citizens to get RM300 a month under the Karisma programme.

- Children from poor families will be given RM100 per month with a maximum of RM450 per month.

- The disabled to get allowance of between RM150 and RM300 per
month.

Orang Asli
- RM90 million allocation for expansion of clean water projects and income generating programmes.

- RM20 million for relocation to new housing areas for the Orang Asli people affected by the Sungai Ruil landslide.

Hoteliers
- Pioneer status for those investing in new four or five-star properties in Peninsular Malaysia with income tax exemption of 70 per cent or Investment Tax allowance of 60 per cent, for five years.

Accused Persons
- Every individual charged in court will be given free legal aid by the National Legal Aid Foundation.

Pensioners- RM500 assistance to be paid in December.

- Effective 2013, there will be an annual pension increment of
two per cent.

Ex-Policemen
- One-off payment of RM3,000 to 48,000 ex-members and widows of special constables and auxiliary police who served in protecting the country during the emergency. This includes home guards, special constables, extra police constables, auxiliary police, women auxiliary police, women special constables and jungle scouts.

Civil Servants
- Introduction of the New Civil Service Remuneration Scheme (SBPA).

- An exit policy for underperforming civil servants and for those who opt to leave the service.

- Improvement of salary through a single-tier structure with additional
increments to enable civil servants to continue receiving annual increments over a longer period.

- The annual increment of civil servants to be increased to between RM80 and RM320 according to the grade.

- Civil servants who opt for the SBPA to receive annual increments of between seven per cent and 13 per cent.

- 5,000 master’s scholarships and 500 doctoral scholarships will be offered to eligible civil servants, including teachers.

- An additional bonus of half month salary with a minimum payment of RM500 to be paid together with the December salary this year.

- Compulsory retirement age to be extended from 58 to 60 years.

Women
- Free immunisation against the Human Papilloma Virus, which costs RM150 for three injections, to women nationwide.

- RM10 million allocation for advanced management programmes for women and
training programmes to encourage women professionals to return to work.

- Amanah Ikhtiar Malaysia (Aim) to provide RM2.1 billion micro financing to entrepreneurs, especially women.

- A hospital dedicated to women and children will be built in Kuala Lumpur at a cost of RM700 million. The maternity block in Hospital Putrajaya will also be improved.

- Senior citizens (aged 60 and above) will be entitled to free outpatient
registration fees in all public hospitals and health clinics, including 1Malaysia clinics and dental clinics.

Government Contract Staff
- 4,300 employees who have completed their contracts with Department of Special Affairs (Jasa), Ministry of Information, Communications and Culture and Jabatan Kemajuan Masyarakat (Kemas), and Ministry of Rural and Regional Development will
be provided a special one-off payment of RM3,000.

Professionals
- A RM100 million Professional Services Fund to encourage professionals such as
lawyers, doctors and accountants to set up firms in small towns. Soft loans
will be made available from BSN.

Doctors
- A flexible schedule will be introduced with an average of 60 working hours a week for housemen, with a special Flexible Working Allowance of RM600 a
month.

- Medical officers and specialists will get an increase in overnight on-call allowance of between RM30 and RM80.

Parents
- Fees for co-curricular activities, internal test papers, Malaysian School Sports Council and insurance premiums to be abolished from next year.

Youths
- Cipta 1Malaysia Award (Cipta) to recognise the most innovative inventions of students and youth at the national level. This programme will be carried out by nongovernmental organisations with the cooperation of the Ministry of
Science, Technology and Innovation.

- A RM200 million allocation for skills training for youths who do not complete their schooling.

- RM15 million for an additional 150 futsal courts to achieve “One Court One Mukim Target”. An additional RM50 million to build football fields with artificial turfs, equipped with floodlights at 30 selected locations nationwide.

- RM30 million to train young potential athletes so they are competitive at international levels in sports such as football, badminton, squash, bowling, diving, archery and cycling.

Teachers
- Time-based promotion under New Civil Service Remuneration Scheme.

- Graduate teachers will achieve grade 44 on eighth year of service and grade 48 on 16th year of service.

- non-graduate teachers will be promoted from grade 29 to 32 within eight years.

- 20,000 places for diploma teachers to pursue undergraduate studies.

Students
- A one-off payment of RM100 schooling assistance each for all primary and secondary students from Year 1 to Form 5 from low and middle-income groups.

- A one-off RM200 book voucher for all Malaysian students in public and private local institutions of higher learning, matriculation and Form 6.

Rubber smallholders
- 20,000 smallholders to benefit from a RM140 million allocation to Risda for planting and rubber re-planting.

Agropreneurs
- RM300 million for the Commercial Agriculture Fund to increase the
number and income of agropreneurs.

- RM14 million for contract farming programmes to benefit 4,500 agropreneurs.

Fishermen
- RM300 million Special Housing Fund for Fishermen to build and refurbish their houses with basic infrastructure.

Housing
1. The real property gains tax to be reviewed. For properties held and disposed:

- Within two years, the RPGT is 10 per cent.

- Within two years and up to five years, the RPGT is five per cent.

-After five years the property is not subject to RPGT.

2. To increase the limit of house prices under the My First Home Scheme from a maximum of RM220,000 to RM400,000.

3. To develop plots of governmentowned land around Sungai Besi and Sungai Buloh under the 1Malaysia People’s Housing (Prima).

4. To identify areas in the vicinity of MRT, LRT and other public transport system for housing projects under Prima.

5. Open balloting system for the distribution of housing units.

6. This year, 1,880 houses to be built in Putrajaya and Bandar Tun Razak.

7. Next year, 7,700 houses to be built in Cyberjaya, Putra heights, Seremban, Damansara and Bukit Raja.

8. 100 per cent stamp duty exemption on housing loans.

9. Shariah-compliant financing scheme for houses costing RM600,000 and below.

10. To build 75,000 units of affordable houses under Programme Perumahan Rakyat. RM443 million allocated for the construction of 8,000 units for sale and 7,000 units to be rented next year.

11. 10,000 houses to be built under the Rumah Mesra Rakyat (RMR) programme. Government to allocate RM200 million to subsidise houses costing RM65,000 to be sold for RM45,000.

12. RM63 million to rehabilitate 1,270 abandoned houses and RM40 million for restoration and maintenance of public and private low-cost housing

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