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Budget 2021 highlights for the rakyat. Smile?

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silver and gold coins

This is the budget 2021 highlights for the rakyat. It means what I personally think will be money into the pockets of the people and the spending will become a multiplier effect to the economy. Please understand that no measures taken should be on BLANKET basis because if we give money to people who still have money, that money will be kept into the bank and that’s the end of any multiplier effect to the economy.

Someone also mentioned that the stamp duty exemption for property purchase should be extended to the secondary market as well. Actually, this is not such an easy decision to balance. Stamp duty exemption meant the government will lose the revenue but if they do this for the primary property market, then it can stimulate the construction sector and this will create multiplier effects to the economy. The focus is now on how to move the economy again.

budget 2021 highlights
Photo by Vincent Gerbouin on Pexels.com

Here are the budget 2021 highlights: (If you like the full one, there’s one at FreeMalaysiaToday.com)

Allowances for civil service

  • Increase of allowance from RM6 to RM8 an hour for 1,900 volunteer firefighters
  • One-off payment of RM500 for 40,000 recipients of the Pingat Jasa Pahlawan Negara
  • Special RM600 for civil servants Grade 56 and below
  • For retired civil servants and veterans with no pension, the government will provide RM300 special aid

Wage Subsidy

Government to allocate RM1.5 billion to extend wage subsidy programmes for another three months, particularly in the tourism sector

Kwasa Damansara

EPF will proceed with Kwasa Damansara development (GDV of RM50 billion over 20 years). This is expected to generate 100,000 jobs.

Important catalysts

Rapid Transit System (JB – SG) and MRT Line 3 in Klang Valley will CONTINUE

High Speed Rail (HSR) will CONTINUE (if Singapore agrees yeah)

RM3.8 billion for bridges and roads in several states in Malaysia

The Industry which needs help: Tourism (just need to be ready when it comes back)

  • RM50 million for retraining programmes for 8,000 airline staff
  • 500 jobs for Orang Asli and local communities to become tour guides in all national parks
  • RM50 million for the maintenance and restoration of tourism facilities nationwide
  • RM35 million for the Malaysia Healthcare Travel Council
  • Special RM1,000 grant for traders, taxi drivers, e-hailing drivers and tour guides in Sabah
  • Human Resource Development Fund levy exemptions for companies in the tourism sector and those still affected by Covid-19 for six months

My30 Unlimited travel pass expands to Penang and Kuantan Pahang. (what is My30?. Earlier article here)

Property Market (mostly targeted at first-time home buyers)

  • Stamp duty exemption for first homes up to RM500,000
  • RM1.2 billion for the provision of homes for low-income house buyers
  • RM500 million for 14,000 PPR units
  • RM315 million for 3,000 Rumah Mesra Rakyat
  • RM125 million to repair dilapidated low-cost homes
  • RM310 million for civil service homes
  • Government to work with selected financial institutions for a rent-to-own scheme involving 5,000 PR1MA homes

Fresh Graduate Internship Programme

  • RM1,000 per month for three months for employers who hire fresh graduates for apprenticeship programmes

Tax exemptions (means more money back into the economy)

  • 1% decrease in income tax for those earning between RM50,001 to RM70,000 per year
  • Further tax exemption for companies who hire senior citizens
  • Tax exemption for disabled spouse increased from RM3,500 to RM5,000
  • Extension of tax exemptions for companies who hire former convicts and drug addicts

EPF related

  • Contribution for employees reduced from 11% to 9% for 12 months beginning January 2021
  • RM3,000 tax exemptions for contributors to private retirement schemes
  • EPF to allow contributors to withdraw from Account 2 to purchase insurance
  • Government to allow contributors to withdraw RM500 a month from their EPF Account 1 for 12 months from January 2021

Bantuan Sara Hidup

  • To be renamed Bantuan Prihatin Rakyat, with RM6 billion allocated to benefit 8.1 million people
  • Households earning less than RM2,500 will receive RM1,200 to RM1,800, depending on the number of children they have
  • Households earning between RM2,501 to RM4,000 will receive between RM800 to RM1,200, depending on the number of children they have
  • Households earning between RM4,001 to RM5,000 will receive between RM500 to RM750, depending on the number of children they have
  • Single individuals earning RM2,500 and below will receive RM350. Age limit for this is also lowered to 21 years

— end of budget 2021 highlights — (Full budget 2021 highlights, do drop by FreeMalaysiaToday.com)

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Next suggested article: What’s in Budget 2021 for the property market? More than 4 items

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