Teks Ucapan Perdana Menteri Budget 2013
http://www.treasury.gov.my/
THE 2013 BUDGET SPEECH By
YAB DATO’ SRI MOHD NAJIB TUN HAJI ABDUL RAZAK PRIME MINISTER AND MINISTER OF FINANCE
INTRODUCING THE SUPPLY BILL (2013)
IN THE DEWAN RAKYAT FRIDAY, 28 SEPTEMBER 2012
“PROSPERING THE NATION, ENHANCING WELL-BEING OF THE RAKYAT: A PROMISE FULFILLED”
I beg to move the Bill intituled “An Act to apply a sum from the Consolidated Fund for the service of the year 2013 and to appropriate that sum for the service of that year” be read a second time.
INTRODUCTION
I begin the 2013 Budget speech by reciting the holy kalimah Bismillahirrahmanirrahim and by reciting a verse from Surah Al-Baqarah, which was revealed in Madinah:
“And everyone has a direction to which he should turn, therefore hasten to (do) good works; wherever you are, Allah will bring you all together (for judgement); surely Allah has power over all things.”
1. I am here in this august House on a Friday evening to table the Government’s Budget, the fifth since holding office of the Minister of Finance Malaysia in 2008. Praise be on Allah SWT, for with His Blessings and through the collective efforts of my colleagues in the administration and the support of the members of Parliament, civil servants and all Malaysians, our beloved country has been successfully shielded from the adverse effects of the global financial crisis. In fact, the economy is on a sustainable growth trajectory towards transforming into a high-income and developed economy, while, the well-being of the rakyat continues to be improved.
2. Indeed, the 2013 Budget continues the excellent tradition of the Barisan Nasional in prospering the country and improving the well-being of the rakyat. This is a manifestation of a promise fulfilled. Since the last 55 years, Malaysians have placed their trust in the same government at every stage of the nation’s development. We thank you for your trust. We have never betrayed the people. Instead, we have repaid the trust given to us manifold.
3. This Government has never promised the moon, the stars or the galaxy. We have never painted a pretty picture based on wishful thinking. As a responsible Government, we continue to speak the truth even though it may be unpleasant. We have never misled to the rakyat with tall tales. On the other hand, we have always offered solutions and provided good leadership to every problem faced by the rakyat.
4. It is proven beyond doubt that the Malaysian economy is centred on the rakyat. It is the outcome of the vision and aspiration of the rakyat. It is a testimony of the hard work of the rakyat. The economy is the contribution of the rakyat in urban and rural areas, professionals as well as blue-collar workers, farmers, labourers, farmers, smallholders, fishermen, teachers, lecturers and artistes. The economy is supported by civil servants and entrepreneurs. Above all, the economy is managed carefully and prudently by a Government which places the well-being of the rakyat as its ultimate objective. This is the formula for the success of Malaysia.
5. Managing a complex multiracial country like Malaysia is not easy. It requires sincerity and intelligence because Malaysians are a discerning lot. In fact, the rakyat has given the mandate to the same Government 12 times since 1959, indicating that this Government has done the right thing.
6. The trust that exists between the rakyat and the Government cannot be broken no matter how strong the lies. In this regard, the Budget that I am tabling is in appreciation of all Malaysians who have placed their trust in us all this while.
2012 ECONOMIC PERFORMANCE AND 2013 PROSPECTS
7. The Government remains committed to ensuring the nation’s economic growth continues to flourish despite uncertainties and challenges in the global economy. The nation’s strong economic fundamentals, supported by an accommodative monetary policy have placed the economy on the right path. In the first half of 2012, the economy expanded 5.1% mainly supported by robust private investment and consumption. In tandem with improved investor confidence in Malaysia as a major investment destination, net inflows of foreign direct investment (FDI) amounted to RM13.6 billion.
8. For 2012, despite moderate global economic growth and trade, the Malaysian economy is estimated to expand strongly between 4.5% and 5%. Growth will be driven by private investment at 11.7% to RM127.9 billion. The performance far exceeds the total investment in 2009 at RM81 billion. The trend reflects the growing vibrancy in domestic investment, particularly with the implementation of projects under the Economic Transformation Programme (ETP). This will support the construction sector to surge 15.5% in 2012 from 4.6% in 2011.
9. The strong domestic economic environment also boosted the encouraging performance of the stock market. This was reflected in the increase of the FTSE Bursa Malaysia KLCI to reach a record high of 1,654.11 points on 4 September 2012. Market capitalisation increased 44% from RM999 billion as at end-2009 to RM1.43 trillion on 4 September 2012. Per capita income increased to almost RM31,000 in 2012 compared with RM25,000 in 2009. The international reserves position remains strong at RM432.2 billion on 14 September 2012, sufficient to finance 9.5 months of retained imports and is 3.9 times the short-term external debt.
10. In 2013, based on the prospects of an improved global economy, the Malaysian economy is forecast to expand strongly between 4.5% and 5.5%. For the first time, the nation’s nominal Gross Domestic Product (GDP) is expected to exceed RM1 trillion. The higher growth is supported by private investment and consumption at 13.3% and 5.7%, respectively. The construction sector is expected to increase 11.2% followed by the services sector at 5.6%.
2013 BUDGET ALLOCATION
11. The 2013 Budget will allocate RM251.6 billion for the implementation of development projects, programmes and measures, with focus on the well-being of the rakyat and national development. Of this amount, RM201.9 billion is for Operating Expenditure while RM49.7 billion, for Development Expenditure.
12. Under Operating Expenditure, RM58.6 billion is allocated for Emoluments and RM33.7 billion is allocated for Supplies and Services. Meanwhile, RM107.3 billion is allocated for Fixed Charges and Grants, while RM1.1 billion is provided for the Purchase of Assets. The remaining RM1.2 billion is for Other Expenditures.
13. As for Development Expenditure, RM30 billion is allocated to the economic sector for infrastructure, industrial, agriculture and rural development. A total of RM11.1 billion is allocated to the social sector including education and training, health, welfare, housing and community development. In addition, RM4.6 billion is allocated for the development of the Security Sector, RM2 billion for General Administration and RM2 billion for Contingencies.
14. In 2013, the Federal Government revenue collection is estimated at RM208.6 billion compared with RM207.2 billion in 2012. Taking into account the estimated revenue and expenditure, the Federal Government fiscal deficit will further decline to 4% of GDP in 2013 from 4.5% in 2012. This reflects the Government’s commitment to continue reducing the fiscal deficit to a lower level.
2013 BUDGET FOCUS
15. The 2013 Budget will focus on improving the quality of life of the rakyat, ensuring sustainable economic growth, spending prudently and reducing the fiscal deficit with the overall objective of prioritising the well-being of the rakyat. The Government will ensure that the rakyat enjoys excellent services and obtains maximum benefits from the implementation of development projects and programmes. The 2013 Budget is, therefore, designed based on the theme “PROSPERING THE NATION, ENHANCING WELL-BEING OF THE RAKYAT: A PROMISE FULFILLED”, with focus on five key areas.
FIRST FOCUS: BOOSTING INVESTMENT ACTIVITY
16. Malaysia’s economic growth will continue to be driven by foreign and domestic direct investment. In the first half of 2012, private investment rose to RM75.3 billion compared with RM59.8 billion during the same period of 2011. This trend is expected to continue in 2013 with private investment increasing to RM148.4 billion.
17. The Government will continue to accelerate the implementation of the 12 National Key Economic Areas (NKEAs). In 2013, a sum of RM3 billion is allocated for the implementation of entry point projects (EPPs). This includes RM1.5 billion for agriculture projects such as oil palm, rubber, high-value herbs and paddy. A total of RM500 million will be allocated for the River of Life project for the beautification of the Klang River. Meanwhile, an additional RM300 million is provided for replacement of water pipelines and sewage to improve water supply and sewage system.
Promoting Domestic Investment
18. To encourage domestic investment and accelerate the participation of Malaysian companies in the global supply chain, the Government has established the Domestic Investment Strategic Fund worth RM1 billion under the Malaysian Investment Development Authority (MIDA). The fund aims to leverage outsourcing activities and acquisition of technology by Malaysian companies. Additionally, the Government has reintroduced the incentive for the acquisition of foreign companies and a special tax rate to encourage local service providers to merge into bigger entities.
Intensifying Small and Medium Enterprises
19. Small and medium enterprises (SMEs) have played an important role in supporting the nation’s economic transformation. To accelerate the growth of SME and the expansion of industrial areas nationwide, a fund of RM1 billion will be provided under the SME Development Scheme to be managed by the SME Bank.
The measure will facilitate SMEs’ access to financing to further develop their businesses.
20. This is in line with the recently launched SME Masterplan (2012 – 2020), which will be the game-changer in accelerating SME growth through innovation and productivity. The Masterplan outlines the implementation of 32 initiatives including six high-impact programmes (HIP) with an allocation of RM30 million.
21. To further promote the halal industry, the Government is committed to developing high-impact halal products for export. In this regard, the SME Bank with the cooperation of the Islamic Development Bank (IDB) will provide RM200 million to the Halal Industry Fund to finance the working capital of participating SMEs.
22. Currently, there are 1.5 million hawkers and small businesses operating traditionally, and without fixed income. Recognising their constraints, particularly in the event of injury, disability and death, the Government proposes a group insurance coverage scheme for hawkers and owners of small businesses registered with the Companies Commission of Malaysia. The scheme will provide maximum coverage of up to RM5,000. For the first time, the Government will finance this Scheme with an allocation of RM16 million a year.
23. In addition, Perbadanan Nasional Berhad (PNS) will introduce the Business in Transformation programme to support efforts to modernise the operations of hawkers and small businesses to higher standards and competitiveness through the licensing or franchising model. The programme will provide guidance and advisory services on new business concepts such as mobile shops, kiosks and online businesses. For this, PNS will provide soft loans to hawkers and small businesses of up to RM25,000 for licensees and RM500,000 for licensors.
Malaysia as Oil and Gas Hub
24. We are blessed with valuable mineral resources, such as oil and natural gas. The Government aims to transform Malaysia from a producer to a global integrated trading hub for oil and gas.
25. Therefore, the Government has undertaken several strategic measures to enhance the nation’s capability, particularly in providing an ecosystem to support the development of the chain of refining, storage and trading. To support the participation of private operators in the development of the oil and gas industry, various special tax incentives and non-tax incentives have been provided. These include the cost of land acquisition and financial assistance as a tipping point for public-private partnership projects, 100% income tax exemption for a period of ten years, exemption of withholding tax and exemption of stamp duty.
26. For investment in the refinery activities on petroleum products, Investment Tax Allowance of 100% for the period of 10 years will be provided to qualified companies. In this regard, various investment totalling USD20 billion in oil and gas projects have been implemented in 2012. These projects include the PETRONAS Refinery and Petrochemical Integrated Development (RAPID), oil and gas storage Terminal in Johor, Regasification Plant in Melaka as well as oil and gas terminal in Sipitang, Sabah.
27. The Government also launched the Global Incentive for Trading (GIFT) programme in 2011 with tax incentive at the rate of 3%. In line with the global demand for liquefied natural gas (LNG) which is expected to reach 400 million tonnes a year in 2025, the GIFT programme will be enhanced with a 100% income tax exemption on statutory income for the first 3 years of operations for LNG trading companies. Commodity trading approved under GIFT will be extended to include other commodities such as agriculture, refined raw materials, base minerals and chemicals.
Intensifying Tourism Sector
28. The tourism industry is one of the key economic growth sectors, contributing almost 12% to GDP. Total revenue generated from the tourism sector is estimated to increase to RM62 billion in 2012. In conjunction with Visit Malaysia Year 2013/2014, the Government has allocated RM358 million under development expenditure, an increase of 42%, to target 26.8 million tourist arrivals. In addition, for tour operators who bring in at least 750 foreign tourists or handle 1,500 local tourists a year, the Government proposes that the income tax exemption be extended for 3 years.
Enhancing Agricultural Activity
29. The Government continues to give priority to the agriculture sector to enhance the national income and ensure food security. For this, a sum of RM5.8 billion is allocated to the Ministry of Agriculture and Agro-Based Industry.
30. The Government will also allocate RM30 million for agricultural development programmes, including high-technology applications in fruit and vegetable production, increase the supply of high-quality seedlings, price stabilisation through direct selling from farms, establishment of fish markets for the rakyat as well as improving agricultural training institutions. The Government will also allocate RM75 million to increase the output of food and health products.
31. For the plantation subsector, RM432 million is allocated under the NKEA for oil palm replanting programmes. The initiative will increase the annual oil palm yield to 26.2 tonnes per hectare in 2020 compared with 21 tonnes per hectare currently. In addition, RM127 million is allocated for the development of high-value oleo derivatives to transform the downstream industry towards higher production of derivatives.
Sustaining Food Security
32. To ensure food security, existing paddy granaries will be strengthened through an integrated and systematic paddy management system. Additionally, four new paddy granaries will be developed and expanded in Kota Belud, Batang Lupar, Rompin and Pekan. Currently, the 389,000 hectares of cultivated paddy granaries are able to produce up to 1.8 million tonnes. With an expenditure of RM140 million, the four new paddy granaries with acreage of 19,000 hectares and involving 12,237 farmers are expected to produce 104 tonnes.
Safeguarding the Farmers and Fishermen
33. The Government appreciates the contribution of fishermen and will ensure that their socio-economic status and income are enhanced. Currently, the Government provides a living allowance of RM200 per month, benefiting 55,000 registered fishermen. The Government also provides an incentive ranging from RM0.10 to RM0.20 per kilogramme to encourage fish landings at licensed jetties nationwide.
34. The Government has introduced the Fishermen Insurance Scheme with a maximum coverage of RM100,000. To continue providing these benefits, the Government will allocate RM230 million in 2013 as an incentive for fish landing as well as payment of living allowances for the fishermen. In addition, the allocation of RM300 million provided in the 2012 Budget for the building and refurbishment of fishermen’s houses are currently underway.
35. The Government will continue to provide subsidies and incentives amounting to RM2.4 billion to assist farmers in reducing cost of production. The assistance comprises subsidies and incentives for paddy production including subsidies on paddy price (RM480 million) and paddy fertilisers (RM465 million); incentives to increase paddy yield (RM80 million) and paddy production (RM563 million); and
subsidies on price of rice (RM528 million) and high-quality paddy seeds (RM85 million).
36. In line with the Government’s commitment to safeguard the rakyat’s welfare, particularly paddy farmers, the Government will introduce for the first time a Paddy Takaful Coverage Scheme (SPTP). The scheme is expected to benefit 172,000 paddy farmers who own fields less than 10 hectares. Total compensation to be received by each farmer is estimated at RM13,000. The Government will initially allocate RM50 million for this scheme.
37. The Government will continue the AZAM Tani project which was introduced in 2011. The programme has successfully lifted 1,234 families out of poverty and increased their average income between RM200 and RM2,000 per month. Several participants of this programme have also successfully increased their income to more than RM10,000 per month. To further strengthen this initiative, RM41 million will be provided to benefit 6,730 participants.
Stimulating the Capital and Financial Markets
38. The Malaysian capital market has expanded rapidly despite uncertainties in the global economy. Malaysia also continues to dominate sukuk issuance accounting for 71% or RM171 billion of the total global sukuk issuance in the first seven months of 2012. This is proven by the single largest sukuk issuance by PLUS Berhad worth RM30.6 billion.
39. In addition, the fund management and unit trust industry registered a strong growth in the first half of 2012 with managed assets increasing to RM451.9 billion and a net asset value of RM277.8 billion.
40. In 2012, the domestic equity market registered a strong growth with Initial Public Offerings (IPOs) worth RM17.4 billion. This reflected a sharp increase of 162% compared with 2011. History was created when two out of the three largest global IPOs were raised domestically, namely Felda Global Ventures Holdings Berhad (FGVH) with an issuance of RM9.9 billion and IHH Healthcare Berhad with RM6.3 billion. In addition, ASTRO which will be listed in October 2012, is expected to be the largest issuance.
41. To further stimulate the capital and equity market, the Securities Commission (SC) will provide a framework on the issuance of AgroSukuk for companies engaged in the agriculture sector, following the successful listing of FGVH. Through instruments such as the AgroSukuk, capital can be raised to finance agricultural companies and agro-based industries. To encourage the issuance of AgroSukuk, the Government proposes that expenses for the issuance of AgroSukuk be given a double deduction for a period of four years effective from year of assessment 2012 to 2015.
42. Apart from institutional investors, the Government also encourages retail investors to participate in the capital market. For this purpose, the SC has formulated a framework for retail bond and sukuk issuances to enable investors to acquire stakes in the bond and sukuk markets. For a start, DanaInfra Nasional Berhad will issue retail bonds worth RM300 million by end-2012 to finance MRT development projects.
43. To encourage companies to issue retail bonds and retail sukuk, the Government proposes that additional expenses incurred in the issuance of retail bonds and retail sukuk be given a double deduction for a period of four years effective from year of assessment 2012 to 2015. At the same time, individual investors are also given stamp duty exemption on instruments relating to the transactions of retail bonds and retail sukuk.
44. To ensure an effective and holistic promotion of the Malaysian capital market internationally, the SC will establish a Capital Market Promotion Centre. The centre will adopt an integrated approach across various segments in the capital market and provide consistent initiatives to position Malaysia as a centre of investment and fund raising.
45. The SC will introduce the Graduate Representative Programme to increase the supply of professionals to support growth of the capital market. The programme will be implemented in collaboration with the private sector to train 1,000 graduates to meet the needs of the securities and derivatives industry.
Promoting Business Trust
46. Business operations through trust entities have certain advantages, particularly in enhancing their ability to obtain financial resources based on assets owned. In this regard, the Government has amended the Capital Market and Services Act 2007 to provide an option for carrying out business operations through a new structure, known as a business trust.
47. In line with this, the Government proposes a business trust be given the same tax treatment as a company. To encourage the development of business trusts, it is proposed that the transfer of any business, asset and real property to a business trust be given stamp duty exemption and real property gains tax exemption at the early stage of the establishment of a business trust.
48. The Government has established Danajamin Nasional Berhad (Danajamin) to provide guarantee facilities to viable companies to obtain funds from the bond market at a reasonable cost. Danajamin has approved guarantees totalling RM9.3 billion to 30 companies, resulting in the issuance of bonds and sukuk worth RM4.2 billion. This has enabled companies to generate economic activities in various sectors, including real estate, infrastructure, plantation, oil and gas, construction, manufacturing and aviation.
49. To provide companies with greater access to the capital market, the Government will allocate an additional RM400 million to Danajamin for the next two years. The additional fund will multiply the issuance value between RM4 billion and RM6 billion.
50. The Government has also announced the establishment of the Capital Market Foundation as a concerted effort towards increasing the competency and capability of companies to compete in a more dynamic capital market. The Foundation focuses on three main areas, namely SME development; promotion and support of innovative products; and human capital development. For this, RM100 million will be provided to the Foundation through the Capital Market Development Fund under the SC.
51. As an initiative to promote Malaysia as an international financial hub and to attract FDI, the Government launched the Tun Razak Exchange (TRX) on 30 July 2012 with a gross development value of RM26 billion. TRX will provide new investment opportunities by connecting the business community with the global market. TRX is expected to attract 250 international financial services companies and offer 40,000 knowledge and skilled job opportunities.
Corporate Wakaf
52. To encourage major international financial institutions to make Kuala Lumpur a preferred investment centre, income tax exemption for 10 years for TRX-status companies, stamp duty exemption, industrial building allowance and accelerated capital allowance for TRX Marquee-status companies as well as tax exemption for property developers are being provided. The development of TRX is on schedule. Meanwhile, the realignment of existing utilities on the TRX site is well underway and is expected to be completed in October 2012.
53. The Government recognises the State Islamic Religious Council as the sole trustee for all wakaf and wakaf funds in respective states. Wakaf institutions in Malaysia not only focus on land development but also on corporate wakaf in the form of cash, shares and other financial instruments. In line with this, the Malaysian Wakaf Foundation under the Department of Awqaf, Zakat and Hajj (JAWHAR) will be responsible to formulate the Corporate Wakaf master plan, taking into consideration the State Islamic Religious Council legislative structure. The master plan will be the platform for the development of Corporate Wakaf in Malaysia.
Developing Bumiputera Entrepreneurs
54. The Government is committed to ensuring Bumiputera companies are able to compete on a level playing field in acquiring ownership of large companies, creating high-income employment as well as investing in key economic sectors. In 2010, Bumiputera equity increased to 23% compared with 22% in 2008. One of the measures is to increase participation of Bumiputera companies in the first alignment of the MRT project. The participation of Bumiputera companies in high-impact projects such as MRT will further enhance the capability and expertise of local Bumiputera companies. A sum of RM9 billion or 43% of the total infrastructure cost of the MRT project has been allocated to Bumiputera companies.
55. Efforts will also be undertaken to assist Bumiputera SMEs to expand and increase their equity holdings in the economic sector. In line with this, the SME Bank will provide RM1 billion to the Bumiputera Financing Fund. The fund will assist local SMEs to finance the acquisition of GLC subsidiaries engaged in non-core activities. To date, two GLCs have identified their potential subsidiaries for divestment to Bumiputera investors.
56. The Government has also introduced a fund worth RM10 billion under the Working Capital Guarantee Scheme for SMEs to facilitate access to working capital. The scheme guarantees up to a maximum of RM2.5 million to qualified companies. Currently, RM900 million is still available for Bumiputera companies under this scheme. To attract more Bumiputera companies to benefit from this scheme, the Government will extend the duration of this scheme until 31 December 2013, expand this scheme to High-Performing Bumiputera (TERAS) companies and increase the companies’ shareholders fund eligibility from RM10 million to RM20 million.
57. Small-scale entrepreneurs, particularly Bumiputera entrepreneurs lack quick and easy access to loan facilities. With the establishment of Tabung Ekonomi Kumpulan Usaha Niaga (TEKUN), these entrepreneurs are capable of commencing and developing their businesses. To date, TEKUN has extended loans totalling RM2.24 billion to 224,175 entrepreneurs nationwide, including a total of RM34.5 million to 4,212 Malaysian-Indian entrepreneurs under Skim Pembangunan Usahawan Masyarakat India. In 2013, the Government provides an allocation of RM350 million to TEKUN including RM50 million to the Malaysian Indian community.
SECOND FOCUS: STRENGTHENING EDUCATION AND TRAINING
Malaysia Education Blueprint 2013 – 2025
58. Since independence, the Government has promoted education as the main agenda of the nation. The Government is aware that investment in education and training is a pre-requisite for prosperity of the country and the well-being of the rakyat. In this respect, large allocations have been provided annually. In 2013, the allocation for education and training accounts for 21% of the total budget. However, the outcomes are not commensurate with the investment made. Thus, on 11 September 2012, the Ministry of Education launched the Malaysia Education Blueprint 2013 – 2025 Preliminary Report to ensure the national education system is capable of optimising the potential of each Malaysian child.
59. In the 2013 Budget, a sum of RM38.7 billion is allocated to the Ministry of Education (MOE) for operating and development expenditure.
60. Measures to increase the competency and quality of teachers are critical to support the success of the education system. Thus, in addition to the allocation of RM38.7 billion to MOE, the Government will allocate another RM500 million to enhance teaching skills in core subjects such as Bahasa Malaysia, English, Science and Mathematics through the Higher Order Thinking Skills approach. The allocation includes the establishment of an Education Delivery Unit to monitor and evaluate the effectiveness of the transformation plan.
61. In the 2012 Budget, the Government allocated RM1 billion under the Special Fund for the Building, Improvement and Maintenance of Schools, particularly to cater for immediate needs to refurbish school buildings, maintenance, purchase of school equipment and construction of additional blocks. I am pleased to announce an additional RM1 billion to this Special Fund. Of this amount, RM400 million will be channelled to national schools; RM100 million to national-type Chinese schools; RM100 million to national-type Tamil schools; RM100 million to mission schools; RM100 million to Government-assisted religious schools; RM100 million to boarding schools; and RM100 million to Maktab Rendah Sains MARA.
Strengthening the Role of Pre-Schools
62. In early childhood education, the quality of pre-school education is critical to equip children with basic education. For this, RM1.2 billion will be allocated for pre- school education to Jabatan Kemajuan Masyarakat, MOE, PERMATA and Department of National Unity and Integration. In addition, RM380 million will be allocated to the MOE for placement of kindergarten teachers.
63. High quality pre-school and childcare services are imperative to ensure children receive proper care while nurturing foster positive mental development. For this the Government proposes the following incentives:
First: Launching grant of RM10,000 to assist operators of Early Childhood Care and Education (ECCE) private centres in opening new high quality pre-schools. It is estimated that 1,000 new private ECCE centres will benefit from this initiative; Second: A double deduction on the allowance or subsidies provided to the employees and expenses for the maintenance of childcare centres be given to the employers;
Third: Income tax exemption for 5 years and industrial building allowance at the rate of 10% a year be given to operators of pre-school and private childcare centres; and
Fourth: Income tax exemption for 5 years and industrial building allowance at the rate of 10% a year be given to operators of private pre-schools.
64. Currently, there are many disabled children from low-income families who do not receive early education due to lack of pre-schools for disabled children (TASKA OKU). For this, the Government will implement a pilot project for TASKA OKU in six categories of disabled children, namely down syndrome, autism, blind or partially sighted, hearing and speaking disabilities, physical disability and learning difficulties.
Skills and Training
65. Moving on to the issue of knowledgeable, creative and innovative human capital, training programmes will be developed to hone new skills in line with future needs of industry in a high-income and developed economy. For this purpose, RM3.7 billion will be allocated in 2013 to train students in technical and vocational fields.
66. Every year about 180,000 students graduate with diplomas and degrees from institutions of higher learning. To assist unemployed graduates, the Government will launch the Graduate Employability Blueprint by end-2012. The Blueprint will focus on strengthening the employability of graduates. In this regard, the Government will establish the Graduate Employability Taskforce with an allocation of RM200 million.
67. The Government has implemented the 1Malaysia Training Scheme Programme, also known as SL1M, to increase employability of graduates through soft skills training and on-the-job-training in private companies through double deduction on expenses incurred by the companies. This incentive is effective from 1 June 2012 until 31 December 2016.
68. The Government will allocate RM440 million to the Skills Development Fund Corporation (PTPK), to provide loans for trainees to undergo skills training. This measure will benefit nearly 40,000 trainees undertaking the Malaysia Skill Certificate Level One to Five. The Government will allocate RM366 million to upgrade as well as purchase equipment for Industrial Training Institutes and National Youth Vocational Institutes (IKBN).
69. In line with the objective to transform the country’s key industries towards high technology, innovation and high income, various skills training programmes will be implemented. Towards this, focus will be given to create a professional and talented workforce in selected industries, including oil and gas, shipping, ICT, creative and biotechnology. In 2013, about 5,000 trainees are expected to enrol in these programmes. Additionally, PETRONAS will utilise IKBN in Pengerang, Johor to train 300 youths for the oil and gas sector by end of 2012 to meet the needs of the RAPID project.
70. The Government is aware of the plight of poor Malaysian Indian students in the estates who do not achieve good results in examination and are unable to find jobs. In line with this, the Government will allocate RM50 million to train 3,200 Malaysian Indian students in the estates to equip them with skills in line with market demand. The training will be conducted by Industrial Training Institutes and colleges under the Dual National Training Scheme.
71. In ensuring that private sector workers remain healthy and productive to contribute to their companies and economic development, the issue of health must be given priority. In this regard, SOCSO will allocate RM200 million to enable its 1.4 million members to undertake free health screening in Government hospitals or SOCSO’s panel clinics. The health screening is for all workers aged between 40 and 55 years to detect non-communicable diseases.
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