Find out the highlights & Summary of Budget 2015 Malaysia announced by Prime Minister Datuk Seri Najib Tun Razak on 10th October 2014.

Budget 2015 Highlights:

Bantuan Rakyat 1Malaysia (BR1M 2015):

• BR1M increase from RM650 to RM950.
• The assistance is for households with a monthly income of RM3,000 and below. It will be disbursed in three instalments of RM300 each to be paid in January and May with the balance of RM350 from September 2015.
• For households with a monthly income between RM3,000 and RM4,000, the Government will increase BR1M from RM450 to RM750. This assistance will be disbursed in three instalments that is RM200 to be paid in January and May while the balance of RM350 from September 2015.
• For single individuals aged 21 and above and with a monthly incomenot exceeding RM2,000, BR1M will be increased from RM300 to RM350 a year. This assistance will be disbursed early next year.
• Government will replace the group takaful insurance or i-BR1M withFamily Bereavement Scheme. The new scheme will entitle the next of kin of BR1M recipients to receive RM1,000 effective for a year.

Infrastructure Projects:

• 59-km Sungai Besi – Ulu Klang Expressway (SUKE)
• 276-km West Coast Expressway from Taiping to Banting
• 47-km Damansara – Shah Alam Highway (DASH)
• 36-km Eastern Klang Valley Expressway (EKVE)
• 56-km Second MRT Line from Selayang to Putrajaya
• LRT 3 Project, linking Bandar Utama to Shah Alam and Klang
• 1,663-km Pan Borneo Highway

Government Service Tax (GST):

• RON 95 petrol, Diesel and LPG exempted from GST
• Other GST-Exemptions:

(i) All types of fruits whether local or imported;
(ii) White bread and wholemeal bread;
(iii) Coffee powder, tea dust and cocoa powder;
(iv) Yellow mee, kuey teow, laksa and meehoon;
(v) The National Essential Medicine covering almost 2,900 medicine brands. These medicines are used to treat 30 types of diseases including heart failure, diabetes, hypertension, cancer and fertility treatment;
(vi) Reading materials such as children’s coloring books, exercise and reference books, text books, dictionaries and religious books; and
(vii) Newspapers.

Income Tax:

• Individual income tax rates will be reduced by 1 to 3 percentage points. With this measure, 300,000 individual taxpayers will no longer pay income tax.
• Tax payers with family and income of RM4,000 per month will not have tax liability.
• The current maximum tax rate at 26% will be reduced to 24%, 24.5% and 25%.

Education:

• Tabung Pendidikan Tinggi Nasional (PTPTN): 10% rebate is given to borrowers who continuously make repayments for 12 months until 31 December 2015. An additional 20% discount will be offered to borrowers who make lump sum repayments from today until 31 March 2015.
• Talent Corp will provide RM30 million for Industry Academia Collaboration programme where universities, Government entities and industries will collaborate to develop the curriculum for the internship programmes and industrial training.
• Higher Education: Entry into IPTAs the minimum MUET band will be increased according to the field of study, for example:
  (a) Arts and Social Science courses – Band 2
  (b) Science, Technology, Engineering and Mathematics (STEM) courses – Band 3
  (c) Law and Medical courses – Band 4
• 1Malaysia Book Voucher (BB1M 2015): RM250 for the purpose of purchasing reference books and instruments.
• RM100 each will be given to all primary and secondary school students.

Houses:

• Build 80,000 units under the 1Malaysia People’s Housing Programme (PR1MA). Rent-To-Own Scheme will be introduced specifically for individuals who are unable to obtain bank financing;
• National Housing Department (JPN) to build 26,000 units under the People’s Housing Programme (PPR)
• Syarikat Perumahan Negara Berhad (SPNB) to build 12,000 units of Rumah Mesra Rakyat (RMR) and 5,000 units of Rumah Idaman Rakyat.
• Civil Servants: Increase in the minimum eligibility for housing loans from RM80,000 to RM120,000 and the maximum eligibility limit from RM450,000 to RM600,000. In addition, the processing fee for housing loan application of RM100 is abolished. Both proposals will take effect on 1 January 2015.
• 1Malaysia Civil Servants’ Housing or PPA1M: Reducing the minimum price of houses currently at RM150,000 to RM90,000 per unit with a minimum floor area of 850 square feet;
• Improve Skim Rumah Pertamaku under the purview of Cagamas by raising the ceiling price to RM500,000 in line with the stamp duty exemption. In addition, the age of borrowers to qualify for the scheme will be increased from 35 to 40 years.
• Youth Housing Scheme: offers a funding limit for a first home not exceeding RM500,000 for married youth aged between 25 and 40 years with household income not exceeding RM10,000. The maximum loan period is 35 years. Under the scheme, the Government will provide monthly financial assistance of RM200 to borrowers for the first two years to reduce the burden of monthly installments. The Government will also give a 50% stamp duty exemption on the instrument of transfer agreements and loan agreements.

Healthcare:

• Build two hospitals namely Hospital Dungun in Terengganu andHospital Seri Iskandar in Perak. Another 20 Health Clinics and four dental clinics, including health clinics in Kuala Lipis, Pahang and dental clinic in Kluang, Johor will be built
• Establish an additional 30 1Malaysia clinics, bringing the total to 290 clinics nationwide and build a health clinic in Cyberjaya

Civil Servants Bonus:

• Half-month bonus with a minimum payment of RM500 to be paid in January 2015. Government pensioners will also receive special financial assistance of RM250.

Source: http://www.hokangtao.com/2014/10/budget-2015-malaysia-highlights-bajet.html