December 27, 2009

KUALA LUMPUR, Dec 27 (Bernama) — The 2010 Budget presented in October espoused the government’s commitment in improving the well-being of the people by providing huge allocations for education, agriculture, infrastructures and health.

With the recovery of the economic downturn in sight, the goodies that come along with the budget are much awaited by the people.

Presenting his first Budget speech after taking over as Prime Minister and Finance Minister, Datuk Seri Najib Tun Razak announced a proposed increase in personal income tax relief from RM8,000 to RM9,000.

He also proposed that the maximum income tax rate (income band of RM100,000 and above) be reduced from the current 27 per cent to 26 per cent starting next year.

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

The prime minister also said that to strengthen information communication technology (ICT), the government would expedite the implementation of High Speed Broadband at a total cost of RM11.3 billion, of which RM2.4 billion was from the government and RM8.9 billion from Telekom Malaysia.

To encourage computer ownership, civil servants will be allowed to apply for computer loans once in every three years compared to one in every five years now, with the quantum of the loans at a maximum of RM5,000.

The government will give a 50 per cent discount on fares for Keretapi Tanah Melayu Berhad (KTMB) long-distance services to students, especially those from low income families.

A notebook computer package, including free broadband will be offered to university students, for RM50 a month for two years from next year.

For a start, the package would be offered by Telekom Malaysia to 100,000 local university students, effective Jan 1.

The government will award National Scholarships to 30 creme de la creme students strictly based on merit and the scholarship recipients will further their education in world renowned universities.

The National Higher Education Fund Corporation (PTPTN) loans will be converted to scholarships for students, who graduated with first class honours degree or equivalent, beginning next year.

In line with the objective to develop high quality human capital, the government will allocate RM30 billion for primary and secondary education, which would benefit 5.5 million students nationwide.

In efforts to increase home ownership, the government will launch a scheme that enable Employees Provident Fund (EPF) contributors to utilise current and future savings in Account 2 in January.

On the government’s commitment in striving to achieve zero hardcore poverty next year, the government will also implement various programmes to assist the poor and vulnerable groups to reduce the poverty rate from 3.6 percent in 2007 to 2.8 percent in 2010.

About 50,000 hardcore poor households registered with eKasih and 4,000 Orang Asli households will be given a monthly federal aid.

The government will allocate RM10 million to expand community clinic services, to be known as 1Malaysia Clinic, in urban areas similar to clinics in rural areas by renting shops.

Fifty 1Malaysia community clinics will begin operation next month to provide basic health treatment for urban residents and they will be opened from 10am to 10pm daily.

The allowance rate for disabled children in special schools for the disabled conducted by non-government organisations (NGO) will be increased from RM50 to RM150 monthly from January.

An allocation of RM3.3 million will be provided, which would benefit almost 4,000 disabled children nationwide.

The government will also allocate RM2 billion in subsidies, incentives and aid to safeguard the interest of farmers and fishermen.

They include RM400 million in rice price subsidy, RM220 million in rice subsidy and RM300 million in padi fertilizers subsidy in efforts to increase padi output while RM170 million will be spent to provide cost of living allowance to fishermen.

(Source: Bernama)