Budget 2010 - 1Malaysia, Together We Prosper - Malaysiakini

Oct 23, 2009


Budget 2010's three-pronged strategy - driving the nation towards a high-income economy, ensuring holistic and sustainable development and focusing on the well-being of the people.

GDP for 2009 is expected to be -3%, better than the earlier estimation of -4% to -5%.

The total expenditure allocated is RM191.5 billion, which is 11.2 percent less that what was allocated last year (RM215.7 billion).

Of this, the proposed operating expenditure is RM138.3 billion and development expenditure is RM53.2 billion.

The government's income meanwhile has shrunk 8.4 percent to RM148.4 billion (RM162.1 billion in 2009).

The budget deficit is proposed to be reduced to 5.6 percent from 7.4 percent last year.

Salient points of Najib's speech:

* Malaysia economy to grow 2-3 percent in 2010

* Mining to grow 1.1 percent, manufacturing sector 1.7 percent, agriculture 2.5 percent, construction 3.2 percent and service 3.6 percent.

* Private consumption expand 2.9 percent while private investment 3.4 percent.

* Per capita income to increase by 2.5 percent to RM24,661.

* TNB to spend RM5 billion to implement electricity generation, transmission and distribution projects in 2010.

* Public-private collaborations to include an integrated immigration, customs and quarantine complex in Bukit Kayu Hitam, construction of six UiTM campuses and the development of Matrade centre.

* 1Malaysia Development Bhd (1MDB) will establish a corporate social responsibility fund totalling RM100 million as a start to finance community activities.

* Government to allocate RM899 million to intensify tourism industry.

* Government to enhance tax incentives for healthcare service providers who offer services to foreign health tourists with income tax exemptions of 100 percent on the value of increased exports from 50 percent previously.

* Individual taxpayers to be given tax relief on broadband subscription fee up to RM500 a year from 2010 to 2012.

* Civil servants are eligible to apply for computer loans once in every three years and up to a maximum of RM5,000 from the government once in every five years.

* Formulate Halal Act in collaboration with State Islamic Religious Councils.

* To corporatise the Halal Industry Development Corporation as an agency under Ministry of International Trade and Industry.

* Intensify halal certification by the Islamic Development Department of Malaysia (Jakim) by collaborating with international institutions to obtain standards certification such as HACCP and GMP.

* To provide RM24 million to develop halal products anti-smuggling system at three entry points and three main ports.

* Allocate RM137 million to upgrade and improve drainage and irrigation infrastructures in paddy fields involving 180,000 farmers.

* To provide RM70 million to build the Paya Peda Dam Project in Terengganu to increase water supply capacity to paddy irrigation scheme in Besut.

* Allocate RM82 million to modernise aquaculture industry and conduct entrepreneurship training scheme for aquaculture breeders with focus on production of fish fry and ornamental fish.

* RM149 million allocation to develop food farming industry such as fruits, vegetables, organic farming, herbs, seaweeds and swiftlet nests.

* RM58 million to develop basic infrastructures for livestock farms and establish supply chains for beef and mutton production.

* A consortium comprising Felda, Felcra and Risda will be established by the end of 2009, with a paid-up capital of RM300 million and with each agency contributing RM100 million.

* Government to provide subsidies, incentives and assistance amounting to some RM2 billion to farmers and fishermen to safeguard their interests.

* Government to allocate RM9 billion to finance infrastructure projects, with RM4.7 billion for road and bridge projects, RM2.6 billion for water supply and sewerage services, RM899 million for rail facilities, RM820 million for ports and sea services and RM276 milliion for airport projects.

* To consolidate 79 SME funds to 33 to simplify access to SME financing to be coordinated by SME Corp.

* To allocate RM350 million to SME Corp, with RM200 million set aside for SME soft loans, RM100 million for capacity enhancement and the balance for branding and promotion.

* Financial institutions to approve micro-financing in six days and disbursement in four days.

* To allocate RM538 million for implementation of various SME programmes, with RM281 million to state economic development corporations, RM200 million to Tekun and RM57 million for purchase of business premises and infrastructures.

* Government to sanction RM20 million to intensify green awareness activities and practise environment-friendly lifestyle.

* Develop Putrajaya and Cyberjaya as pioneer townships in GreenTechnology as a showcase for the development of other townships.

* Establish a RM1.5 billion fund to promote green technology, with a maximum RM50 million financing for suppliers and RM10 million for consumer companies.

* Applications for financing through the National Green Technology Centre to commence on Jan 1, 2010 and 140 companies are to benefit.

* Building owners obtaining GBI Certificates from tomorrow until Dec 31, 2014 are to be given income tax exemption equivalent to additional capital expenditure.

* Stamp duty exemption to buyers of buildings with GBI Certificates from tomorrow till Dec 31, 2014.

* Simplify permanent residency (PR) applications for those who possess high talents, expatriates will be issued visas within 14 days while male expatriates who marry locals will be automatically conferred PR status.

* Government will ensure that the five regional corridors - launched during former premier Abdullah Ahmad Badawi's tenure - will be developed according to schedule.

* To ensure fuel subsidies only benefit targeted groups, the government will implement a fuel subsidiy management system in early 2010. This is a more people-friendly system utilising MyKad and the existing infrastructure.

* There will be no more free credit cards which are currently being used extensively. The number increased from more than two million in 1997 to 11 million as of August 2009, excluding 285,000 charge cards. To promote prudent spending a service tax of RM50 a year will be imposed on each principal credit card and charge card, including those issued free of charge.

* There will also be service tax of RM25 a year imposed on each supplementary card.

* RM3.7 billion set aside to beef up the security forces, including providing modern and sophisticated equipment for the relevant agencies.

* Target set to reduce crime index by five percent, including street crimes such as snatch theft and robberies by 20 percent by the end of 2010. Among the measures that will be taken is to increase police presence by providing stations in 50 crime hotspots.

* Open Approved Permit (AP) holders to be charged RM10,000 for each AP given. The new ruling will come into effect on Jan 1 next year.

* Government committee to achieve target of zero hardcore poverty in 2010. Five thousand poor households registered with eKasih and 4,000 Orang Asli households to receive aid. Skills training programmes and income generating programmes will be provided. Federal welfare assistance to be distributed on the 1st of each month.

* RM141 million to be allocated for 'Program Lonjakan Mega' scheme to alleviate 5,600 families from hardcore poverty.

* Double deduction on expenditure incurred in promoting Malaysia as an international financial centre.

* Deduction on expenditure incurred to set up islamic stockbroking companies.

* Deduction on expenditure incurred on the issuance of Islamic securities.

* Government to encourage all syariah-compliant financial and banking institutions such as Bank Muamalat and Bank Islam to offer Ar-Rahnu scheme.

* Government to ensure regional corridors be developed according to schedule.

Todate 126 of 195 planned projects are at various stages of implementation. Planned investments totalling RM221 billion have exceeded the 9MP target of RM145 billion.

* Government to allocate RM3.5 billion for infrastructure and basic amenities and training programmes and socio-economic projects to support implementation of private sector projects.

* Government is in the final stage of completing a study on imposing Goods and Services Tax (GST). The rate will be lower than the current sales and service tax.

* Income tax for 2010 based on income derived from 2009 will be allowed to be paid in instalments in five years.

* A five per cent tax to be imposed on gains from disposal of real property from Jan 1, 2010.

* A RM50 service tax to be imposed on each principal credit card and charge card and RM25 a year on each supplementary card from Jan 1, 2010.

* RM100,000 to be imposed for each AP to open AP holders effective Jan 1, 2010.

A portion of the collection will be channelled to the Bumiputera development fund in the automotive sector.

* To introduce a basic insurance and takaful scheme for motor insurance protection by mid-2010.

* To expand micro insurance and takaful coverage for small-scale businessmen to benefit from coverage ranging from RM10,000 to RM20,000 with a premium as low as RM20 per month.

* Stock market to be further liberalised to enhance efficiency.

* Liberalise commission-sharing arrangements between stockbrokers and remisiers by allowing flexible brokerage sharing at a minimum rate of 40 per cent for remisiers and to have commission-sharing fully liberalised effective January 1, 2011.

* Allowing 100 per cent foreign equity participation in corporate finance and financial planning companies.

* All public-listed companies to offer e-Dividend and stockbroking companies to provide e-Payment options.

* Current tax incentives to develop financial services, particularly Islamic finance, extended to 2015.

* Twenty per cent stamp duty exemption on Islamic financing instruments.

* Tax exemption on banking profits derived from overseas operations.

* Effective Jan 1 2010, government agrees to allow agencies to retain 50 per cent of rentals received while the remaining 50 per cent will be remitted to the government as revenue.

* The Government will implement fuel subsidy management system in early 2010.

* The Government proposes the maximum income tax rate to be further reduced to 26 per cent from 27 per cent effective from the 2010 year of assessment.

* Maximum tax rate for cooperatives will be reduced to 26 per cent while the fixed tax rate for non-resident individuals will be cut to 26 per cent.

* Personal tax relief will be increased to RM9,000 from RM8,000 effective from the 2010 year of assessment.

* The Government also proposes income tax on employment income of Malaysians and foreign knowledge workers residing and working in Iskandar Malaysia be imposed at 15 per cent compared with the maximum 26 per cent for the rest of the country.

* Government to launch a scheme in January 2010 that enables EPFcontributors to utilise current and future savings in Account 2 to promote house ownership.

* RM14.8 billion is allocated to manage, build and upgrade hospitals and clinics.

* The Government will issue 1Malaysia Sukuk totalling RM3 billion.

* The Government will establish the 1Malaysia Retirement Scheme to be administrated by EPF.

Wildlife authorities in war against tiger poachers - Star

Oct 10, 2009 By IVAN LOH

ivanloh@thestar.com.my

IPOH: The Perak Wildlife and National Parks Department (Perhilitan) has uncovered and destroyed 47 snares meant for tigers near the Royal Belum rainforest this year alone.

State Perhilitan director Shabrina Shariff said the traps were found during its anti-poaching initiative Ops Jerat conducted since early this year.

“The latest was the trap that snared a tiger near the Royal Belum forest reserve on Saturday,” said Shabrina.

A five-year-old 120kg tiger was caught in a snare near the Royal Belum rainforest, seriously injuring a right limb. It is currently being treated at the Malacca Zoo.

“There could also be more traps that we have yet to find in the forest,” Shabrina said.

Shabrina said anti-poaching operations are carried out three times a month and 24 in total have been conducted along the East-West highway near the Royal Belum rainforest.

“Up to October, we have arrested five people for possessing snares,” said Shabrina, adding that two men from Kelantan were also arrested early this year for buying tiger parts in Grik.

“We recovered tiger skulls, bones, fangs and claws from them and are still discussing with the state public prosecutor office for action to be taken against them,” she said, adding that there are currently only between 30 and 40 tigers left in Royal Belum rainforest.

Shabrina said Perhilitan would continue to search and destroy snares.

“We will also put up cameras at tiger hotspots, while our officers will go undercover to obtain more information on poachers,” she said.

WWF species conservation manager Reuben Clements said tiger poaching activities were rampant based upon the number of traps found and tiger parts recovered.

“The Federal Government needs to set up anti-poaching task force to secure key tiger-populated area in the long run,” he said, adding that the Royal Belum rainforest was among three priority areas identified in the National Tiger Action Plan.

Wildlife trade monitoring network Traffic South-East Asia regional acting director Chris R. Shepherd said Malaysia still has a healthy number of tigers.

“That just means that poachers are going to turn their sights on Malaysia,” Shepherd said.

“The population of all tiger species in South-East Asia has dropped, which is already a blow to conservation efforts,” he said, adding that South-East Asian countries should work together to save the tiger from extinction.

He said heavier fines should be imposed to prevent poaching and the illegal trading of tiger parts, and urged the public to play their part by reporting poaching activities.

Noose tightens around tiger poachers - Star

Oct 10, 2009

IPOH: This year alone, the Perak Wildlife and National Parks Depart-ment (Perhilitan) uncovered and destroyed 47 tiger traps near the Royal Belum Rainforest Reserve.

State Perhilitan director Shabrina Shariff said the traps were found during the anti-poaching Ops Jerat that began early this year.

“The latest trap was the one that snared a tiger near the reserve on Saturday,” said Shabrina.

A five-year-old 120kg tiger had one of its limbs seriously injured by the wire trap and is being treated at the Malacca Zoo.

“There could be more traps that we have yet to find in the forest,” she said.

Shabrina said 24 Ops Jerat checks had been conducted along the East-West Highway near the rainforest.

“As of October, we arrested five people for possessing snares,” she said.

She said two men from Kelantan were also arrested early this year for buying tiger parts in Grik.

Shabrina said Perhilitan would continue to search and destroy the snares.

“We will also put up cameras at tiger hotspots and have officers going undercover to obtain more information on poachers,” she said.

There are currently between 30 to 40 tigers left in the Belum rainforest reserve.

Meanwhile, WWF species conservation manager Reuben Clements said the Federal Government needed to set up an anti-poaching task force to secure key tiger-populated areas in the long run.

Perak government appoints Professor Sukor Kasim as adviser - NST

Oct 7, 2009

IPOH: Universiti Sains Malaysia's (USM) microcredit expert Professor Sukor Kasim will be appointed adviser and consultant to the Perak government in its bid to narrow income disparities in the state.

Menteri Besar Datuk Seri Dr Zambry Abdul Kadir said the appointment was important to enable the government to come up with the best approach to address this problem and poverty, especially hardcore poverty.

"We want them (experts) to come and be part of us, to advise us on the best mechanism and best policy to implement because many programmes had been announced before but nothing much had been done.

"Some of the announcements were mere announcements or populist moves to draw public support," he told reporters after chairing the State Executive Council meeting, here, Wednesday.


Asked on the duration of the appointment, Zambry said the state government would discuss it with Sukor and disclosed that the former Amanah Ikhtiar Malaysia (AIM) managing director had in principle agreed to be adviser and consultant to the Perak government.

Zambry said the state government would set aside a special allocation in the 2010 state budget to be tabled at the next state assembly sitting to address the stark income disparity problem.

He said the 2010 state budget would also include measures to make Perak a business-friendly and high-income state.

"Besides that, there will also be programmes for capacity building which, among others, are aimed at eradicating poverty, as well as programmes for the youths."

The state assembly sitting should be held by November the latest since the last one in May. - BERNAMA

Health warning on traditional medicine capsule - Star

Oct 6, 2009 By DHARMENDER SINGH

PUTRAJAYA: The Health Ministry has advised the public against buying and using Senna Plus Capsule 400mg after the Drug Control Authority (DCA) cancelled the registration of the traditional product.

The DCA said the capsule (labelled MAL06100616TC) contains a scheduled poison.

The ministry’s Pharmacy Services senior director Eisah Abdul Rahman said the DCA had cancelled the registration of the product following the detection of the scheduled poison Sibutramine, which is not allowed for use in traditional products.

The product registration holder for the Senna Plus Capsule 400mg is Winson Health Product Marketing and the manufacturer is TST Packaging Sdn Bhd, she said.

She said there were certain products containing Sibutramine that were registered with the DCA but these had been evaluated for their safety, efficacy and quality.

Furthermore, those products can only be supplied by doctors or obtained from pharmacies with a prescription.

“The public should not use traditional products containing the scheduled poison without consulting a doctor because its use without proper diagnosis and monitoring could cause serious adverse events such as high-blood pressure and other cardio-vascular effects.

“The products can have detrimental effects on consumers in the high-risk category,” she said in a statement issued Tuesday.

Eisah said the ministry was also calling on anyone possessing the product to immediately cease its sale, distribution or use.

She said possession for sale of the product was an offence under the Controlled Drugs and Cosmetics Regulations 1984, which carries a fine of up to RM25,000, three years’ jail or both for the first offence, and a fine of up to RM50,000, five years’ jail or both for subsequent offences.

Companies face a fine of up to RM50,000 for the first offence and a maximum fine of RM100,000 for subsequent offences, she said.

Safety team formed to inspect pre-war buildings - Star

Oct 6, 2009 BY CHAN LI LEEN

IPOH: The Ipoh City Council is setting up a surveillance team to inspect pre-war and colonial buildings, in the wake of the recent collapse of the buildings at Fair Park here.

State executive councillor Datuk Dr Mah Hang Soon said the team would conduct checks upon receiving complaints from the public or requests from owners to have their premises looked at.

Ground zero: Motorists driving past the site where a row of pre-war buildings collapsed along Jalan Kamaruddin Isa in Fair Park on Friday.

The team will comprise experts from the council and the Public Works Department (PWD), he added.

According to Dr Mah, the local government authority had the jurisdiction to issue notices to owners under Section 83 of the Drainage and Buildings Act 1974 to check their buildings.

“Action can be taken against those who refuse to comply. We will do it for the safety of the public,” he told reporters yesterday after attending a preliminary meeting into the collapse of the buildings at the demolition site.

In the 9.30pm incident on Friday, two passengers in a car were killed while another was injured when a row of pre-war buildings on Jalan Kamaruddin Isa collapsed onto the vehicle.

The buildings were being demolished to make way for eight units of three-storey shoplots.

While the opinion of experts was needed to decide whether a particular building was structurally sound, there were telltale signs as to how safe a building was, said Dr Mah.

“Cracks, tears and leaning of walls are all telltale signs. I urge the public to report to us or least to keep us informed when they come across buildings in such a state,’’ he said, adding that the public could call the council’s hotline at 05-2551515.

He added that the first job for the team was to inspect the two rows of buildings along Jalan Gopeng in Sungai Raia.

On the meeting, Dr Mah said building forensics officers from the PWD and the Department of Safety and Health would hold further meetings before coming up with a detailed report on the collapse.

Stop-work order issued after shophouses collapse - Star

Oct 4, 2009

IPOH: A temporary stop-work order has been issued against the owner of the two-storey pre-war shophouses which collapsed on Friday during demolition work, killing two men.

Housing and Local Government Minister Datuk Seri Kong Cho Ha said the Ipoh City Council had also been instructed to prepare a preliminary report on the matter to be submitted to the ministry by tomorrow.

“We want to find out whether precautionary measures were taken during the demolition work,” he told reporters here yesterday after visiting the site.

He added that the Public Works Department, police, Fire and Rescue Department and the Occupational Safety and Health Department (DOSH) would also be asked to prepare reports.

The statements of eyewitnesses and workers at the site would also be taken to assist in investigations.

“Action will be taken if the consultant was found to be negligent in using the wrong method to demolish the buildings,” he said.

The building in Jalan Kamaruddin Isa in Fair Park here was being demolished to make way for a row of three-storey shophouses. In the 9.30pm incident, two passengers in a Perodua Viva were killed when the building collapsed on the vehicle.

The deceased were identified as Zairi Mohd Sabri, 25, and Firdaus Mohd Norzila, 23.

The driver, Abdil Kudus Ismail, 21, was discharged after receiving outpatient treatment at the Hospital Raja Permaisuri Bainun here.

Fatal disaster strikes during dinner outing - Star

Oct 4, 2009

IPOH: He slowed down his car because the traffic light in front of him was turning red.

Moments later, computer technician Abdil Kudus Ismail, 21, felt a sharp pain on his face and back.

“When I turned to my friends, I could not see them as they were already buried under the rubble of a building which collapsed on my car.

“I could only feel Zairi (Mohd Sabri), who was seated in the front passenger seat, holding on tightly to my hand,” he said at Zairi’s house at Taman Harmoni in Rapat Setia here yesterday.

Sympathy offering: Perak Mentri Besar Datuk Seri Dr Zambry Abd Kadir and Perak executive councillor Datuk Dr Mah Hang Soon (left) visiting Abdil Kudus at the Ipoh Hospital intensive care unit Saturday.

Abdil Kudus, who was trying to hold back his tears, added that he quickly used his right elbow to break the car window before crawling out to seek help.

“But when I returned to check on my friends, I could only see their lifeless hands,” he said, adding that the image would haunt him forever.

Abdil Kudus was recounting the harrowing experience when pre-war shophouses collapsed on his car on Friday.

His friends Zairi, 25, and Firdaus Mohd Norzila, 23, died on the spot.

Abdil Kudus said they were on their way to Dataran DBI for dinner when it happened.

Zairi’s mother Zaitun Ahmad, 43, said the last she spoke to her eldest son was 15 minutes before the incident.

“I refused to believe it when a policeman called to inform me of the incident, as I had just spoken to him on the phone,” said the mother of 11.

She added that Zairi had gone out with his friends to help her buy tickets for a trip to Kuala Lumpur yesterday.

Meanwhile, Firdaus’ father Mohd Norzila Abd Rahman said he was contemplating taking legal action over his son’s death.

“There were not enough safety measures at the site where the buildings were being demolished,” said the lorry driver.

The two victims were buried at the Tanah Perkuburan Islam Rapat Setia here.

Crackdown on leasees - Star

Oct 4, 2009 By IVAN LOH

THE Ipoh City Council will terminate the rental agreement of those found to be renting out their low-cost flat units, said Datuk Bandar Datuk Roshidi Hashim.

“The council will start issuing vacate notices from this month. The retracted units will then be leased out immediately to those who need them.

“We have received numerous complaints of leasees renting out their units to others,” he said after chairing the council’s full board meeting on Thursday.

Roshidi also lambasted the selfish leasees who failed to return their keys to the council after they vacated their units.

“The flats are meant for the poor and for those who cannot afford their own home,” he said.

The city council currently owns the Buntong Harmoni, Kinta Heights and Waller Court flats charging rental of between RM80 and RM140 monthly.

On a unrelated matter, Roshidi denied talks that the city council had increased the quit rent of several new housing estates.

”The city council has not increased the quit rent in Ipoh for the past 15 years,” he said, adding that the city council did not have the power to raise the quit rent.

He was responding to newspaper reports that residents in several housing areas in Ipoh were shocked with the hike in quit rent.

Roshidi explained that quit rent in new housing estates was adjusted accordingly in line with the value of property.

”All these while, the residents have been paying quit rent at empty land rates.

“Those who are not happy with the quit rent imposed on them should present their argument to the council within a month.” he said.

He also noted that as of October, the city council had identified about 10,300 people who had not been paying their quit rent.

Consortium To Improve Bus Service In Ipoh

IPOH, Oct 2 (Bernama) -- A consortium involving the three existing bus companies will be set up by year end to standardise the bus services in the city and overcome the problem of old buses.

State Public Service and Consumerism Committee chairman Datuk Dr Mah Hang Soon said Friday the new schedules involving 300 buses were expected to start on Nov 1.

He said the Ipoh City Council had also been directed to conduct a study on the old and dilapidated bus stops with a view to building new ones for the comfort of commuters.

The state government was also considering implementing special bus lanes in the city to overcome traffic jams when the consortium took over, he said.

-- BERNAMA