2014 Budget highlights
Publish date: Fri, 25 Oct 2013, 05:14 PM
* The domestic economy is projected to grow at a stronger pace of between 5.0 per cent to 5.5 per cent.
* The unemployment rate is estimated at 3.1 per cent while the inflation rate will remain low at between two per cent and three per cent.
* Goods exports are expected to grow 2.5 per cent due to improving external demand while on the supply side, the
construction sector is expected to grow 9.6 per cent.
* The per capita income for 2014 is expected to reach RM34,126 compared with RM24,879 in 2009, an increase of 37 per cent over six years.
* It is even possible that Malaysia will achieve developed nation status much earlier than 2020.
* The 2014 Budget allocates a total of RM264.2 billion to implement programmes and projects.
* Of this amount, RM217.7 billion is for operating expenditure and RM46.5 billion for development expenditure.
* In 2014, the Federal government revenue collection is estimated at RM224.1 billion, an increase of RM4 billion from 2013.
* The Federal government's fiscal deficit will further decline from four per cent of GDP in 2013 to 3.5 per cent in 2014.
* Private investment is expected to increase further to RM189 billion or 17.9 per cent of GDP, particularly in oil and gas, textile industry, transport equipment and real estate development.
* Public investment is estimated to reach RM106 billion.
* Projects to be implemented include 316-kilometre West Coast Expressway from Banting to Taiping as well as double-tracking projects from Ipoh to Padang Besar and later from Gemas to Johor Baru.
* Projects undertaken by Petronas include Sabah Ammonia Urea Project in Sipitang; integrated oil and gas production development project, Kebabangan; regasification plant project, Lahad Datu; and RAPID, Pengerang.
* The Government allocates RM1.6 billion for development in the five regional corridors.
* Agropolitan project and oil palm-based industries to be implemented in Sabah Development Corridor, Samalaju Industrial Park and Halal hub in Sarawak Regional Corridor.
* Services Sector Blueprint to be launched next year.
* Logistics Sector Master Plan and National Aviation Policy to be formulated.
* RM3 billion in soft loans under the Maritime Development Fund through Bank Pembangunan Malaysia.
* To replace existing air traffic control and management system in Subang, a new air traffic management centre costing RM700 million will be built at KLIA.
* Kota Kinabalu, Sandakan, Miri, Sibu and Mukah airports to be upgraded with RM312 million allocation.
* Passenger terminals in Langkawi International Airport and Kuantan Airport to be upgraded.
* Second phase of HSBB project to be implemented in collaboration with private sector involving RM1.8 billion investment.
* Internet speed to be increased to 10 Mbps.
* To increase Internet coverage in rural areas, 1,000 telecommunications transmission towers to be built over next 3 years, with a RM1.5 billion investment.
* To increase Internet access in Sabah and Sarawak, new underwater cables will be laid within 3 years, at a cost of RM850 million.
* Bank Negara Malaysia to lead in formulating the Netting Act to protect enforcement rights of "close-out netting" under the financial contract.
* Environmental, Social and Governance Index (ESG) to be introduced.
* Securities Commission to introduce Framework of Socially Responsible Sukuk Instrument.
* To establish a SRI Fund to be invested in listed companies.
* Valuecap to allocate RM1 billion to invest in companies that score high on the Environmental, Social and Governance Index Index.
* National Entrepreneur Development Office to be established to plan and coordinate all activities related to entrepreneurship.
* RM50 million allocation for Malaysian Global Innovation and Creativity Centre (MaGIC).
* Committed 1Malaysia Entrepreneurs (1MeT) to be given further guidance at MaGIC.
* Government targets 5,000 young entrepreneurs to be trained yearly.
* Malaysia to host 5th Global Social Business Summit on November 7-9, 2013.
* RM50 million to reduce graduate unemployment under Graduate Entrepreneurship Fund to be managed by SME Bank.
* The Fund will provide soft loans of up to RM500,000 at interest rate of four per cent.
* RM120 million for an integrated package to increase innovation and productivity of SMEs.
* Some incentives under Green Lane Policy programme to be extended until December 31, 2017.
* Difference in minimum wages paid by employers for the period of January 1, 2014 to December 31, 2014 to be given further tax deduction.
* RM100 million to create Night Market Traders Entrepreneur Scheme under Bank Simpanan Nasional.
* Ministry of Health, Ministry of International Trade and Industry, and Ministry of Finance to undergo performance evaluation based on Outcome-Based Budgeting (OBB).
* To conduct audit on projects valued at more than RM100 million.
* Monthly Tax Deduction as Final Tax, effective from 2014 assessment year.
* To set up Implementation and Coordination Unit, with Prime Minister's Department to lead the initiative to avoid duplication in welfare assistance provision.
* Sales tax and service tax to be abolished, to be replaced by Goods and Services Tax (GST) effective April 1, 2015.
* GST rate is fixed at six per cent.
* GST will not be imposed on piped water and first 200 units of electricity per month for domestic consumers.
* Transportation services such as bus, train, LRT, taxi, ferry, boat, highway tolls as well as education and health services are exempted from GST.
-- Bernama
* The unemployment rate is estimated at 3.1 per cent while the inflation rate will remain low at between two per cent and three per cent.
* Goods exports are expected to grow 2.5 per cent due to improving external demand while on the supply side, the
construction sector is expected to grow 9.6 per cent.
* The per capita income for 2014 is expected to reach RM34,126 compared with RM24,879 in 2009, an increase of 37 per cent over six years.
* It is even possible that Malaysia will achieve developed nation status much earlier than 2020.
* The 2014 Budget allocates a total of RM264.2 billion to implement programmes and projects.
* Of this amount, RM217.7 billion is for operating expenditure and RM46.5 billion for development expenditure.
* In 2014, the Federal government revenue collection is estimated at RM224.1 billion, an increase of RM4 billion from 2013.
* The Federal government's fiscal deficit will further decline from four per cent of GDP in 2013 to 3.5 per cent in 2014.
* Private investment is expected to increase further to RM189 billion or 17.9 per cent of GDP, particularly in oil and gas, textile industry, transport equipment and real estate development.
* Public investment is estimated to reach RM106 billion.
* Projects to be implemented include 316-kilometre West Coast Expressway from Banting to Taiping as well as double-tracking projects from Ipoh to Padang Besar and later from Gemas to Johor Baru.
* Projects undertaken by Petronas include Sabah Ammonia Urea Project in Sipitang; integrated oil and gas production development project, Kebabangan; regasification plant project, Lahad Datu; and RAPID, Pengerang.
* The Government allocates RM1.6 billion for development in the five regional corridors.
* Agropolitan project and oil palm-based industries to be implemented in Sabah Development Corridor, Samalaju Industrial Park and Halal hub in Sarawak Regional Corridor.
* Services Sector Blueprint to be launched next year.
* Logistics Sector Master Plan and National Aviation Policy to be formulated.
* RM3 billion in soft loans under the Maritime Development Fund through Bank Pembangunan Malaysia.
* To replace existing air traffic control and management system in Subang, a new air traffic management centre costing RM700 million will be built at KLIA.
* Kota Kinabalu, Sandakan, Miri, Sibu and Mukah airports to be upgraded with RM312 million allocation.
* Passenger terminals in Langkawi International Airport and Kuantan Airport to be upgraded.
* Second phase of HSBB project to be implemented in collaboration with private sector involving RM1.8 billion investment.
* Internet speed to be increased to 10 Mbps.
* To increase Internet coverage in rural areas, 1,000 telecommunications transmission towers to be built over next 3 years, with a RM1.5 billion investment.
* To increase Internet access in Sabah and Sarawak, new underwater cables will be laid within 3 years, at a cost of RM850 million.
* Bank Negara Malaysia to lead in formulating the Netting Act to protect enforcement rights of "close-out netting" under the financial contract.
* Environmental, Social and Governance Index (ESG) to be introduced.
* Securities Commission to introduce Framework of Socially Responsible Sukuk Instrument.
* To establish a SRI Fund to be invested in listed companies.
* Valuecap to allocate RM1 billion to invest in companies that score high on the Environmental, Social and Governance Index Index.
* National Entrepreneur Development Office to be established to plan and coordinate all activities related to entrepreneurship.
* RM50 million allocation for Malaysian Global Innovation and Creativity Centre (MaGIC).
* Committed 1Malaysia Entrepreneurs (1MeT) to be given further guidance at MaGIC.
* Government targets 5,000 young entrepreneurs to be trained yearly.
* Malaysia to host 5th Global Social Business Summit on November 7-9, 2013.
* RM50 million to reduce graduate unemployment under Graduate Entrepreneurship Fund to be managed by SME Bank.
* The Fund will provide soft loans of up to RM500,000 at interest rate of four per cent.
* RM120 million for an integrated package to increase innovation and productivity of SMEs.
* Some incentives under Green Lane Policy programme to be extended until December 31, 2017.
* Difference in minimum wages paid by employers for the period of January 1, 2014 to December 31, 2014 to be given further tax deduction.
* RM100 million to create Night Market Traders Entrepreneur Scheme under Bank Simpanan Nasional.
* Ministry of Health, Ministry of International Trade and Industry, and Ministry of Finance to undergo performance evaluation based on Outcome-Based Budgeting (OBB).
* To conduct audit on projects valued at more than RM100 million.
* Monthly Tax Deduction as Final Tax, effective from 2014 assessment year.
* To set up Implementation and Coordination Unit, with Prime Minister's Department to lead the initiative to avoid duplication in welfare assistance provision.
* Sales tax and service tax to be abolished, to be replaced by Goods and Services Tax (GST) effective April 1, 2015.
* GST rate is fixed at six per cent.
* GST will not be imposed on piped water and first 200 units of electricity per month for domestic consumers.
* Transportation services such as bus, train, LRT, taxi, ferry, boat, highway tolls as well as education and health services are exempted from GST.
-- Bernama
Discussions
3 people like this. Showing 11 of 11 comments
which property stock are impact by budget, RGPT and DBIS ? UOA and what else?
2013-10-26 10:45
i think UOA not affected much. Because they are build more office units. Those who build residences house will affected a lot.
2013-10-26 10:49
Budget 2014: Oil and gas sector likely to continue vital role
THE oil and gas sector will continue to play an important role in the economy next year.
Private investment in sectors which include oil and gas is expected to increase further to RM189bil, or 17.9% of GDP.
Public investment is estimated to reach RM106bil.
In the oil and gas sector, among projects to be undertaken by Petronas include the Sabah Ammonia Urea Project (Samur) in Sipitang; the integrated oil and gas production development project in Kebabangan; the regasification plant project in Lahad Datu, Sabah; and Petronas’ Refinery and Petrochemicals Integrated Development or RAPID in Pengerang, Johor, which is the largest investment in Malaysia.
Petronas has a five-year RM300bil capital expenditure plan to reverse declining production.
The national oil company said in June that it would have to play catch-up after having spent only RM72bil, or 24%, of that amount between 2011 and January this year.
“Petronas’ five-year RM300bil capex should keep the excitement level high in a sector that is a major revenue earner,” CIMB Research said earlier this year.
An analyst concurs saying: “With the amount of ongoing oil and gas activity, there will be a continuous flow of jobs which will contribute to a robust sector.”
26/10/2013 10:13
2013-10-26 10:53
SANG-JERO, i know o & g is black gold in the stock..which is the best? pantech you strongly recommend?
2013-10-26 10:58
1Bull...Yes Pantech....My rationale...Bullish TA & FA....I would strong ly suggest that you read RHB & Kenanga report prior to making any decision...Also please read Ooi Tek Bee and user 932 comments on Pantech threads for TA opinion....cheers and Good Luck...
2013-10-26 11:03
sang jero, i will wait for T4 and buy pantech. hope can earn some money for Christmas celebration
2013-10-26 11:07
Mok4444...Good Luck in your investment...Pantech is one good stock...Superb TA/FA....cheers
2013-10-26 11:14
Much better to collect the school textbooks from any students who do not need them anymore and recycle free to those who need it.
May not be popular because no money is involved.
I have met students at the book shop trying to sell me their RM250 book voucher for RM200 cash. The bookshop is only paying them RM50.
2013-10-26 11:33
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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Nothing on improving the environment, waste disposal and recycling, traffic congestion parking woes, air pollution etc etc.
2013-10-26 09:58