On Friday 15th October 2010, Prime Minister, Datuk Seri Najib Tun Razak tabled a RM212-billion budget for 2011 centred on four key strategies designed to transform Malaysia into a developed and high-income nation by 2020 with sustainable development, spearheaded by the private sector as well as focus on the well-being of the people.
The following are Budget 2011 highlights for Personal Finance and Investment.
- No toll increase on five highways own by PLUS Expressway for the next 5 years.
- First time house buyer will received 50% exemption on stamp duty on sale & purchase agreement and 50% exemption on stamp duty on loan agreement with effective from 1.11.2011 to 31.12.2012.
- Removal of the 10% sales tax on ordinary mobile phones.
- Tax relief on expenses related to taking care of parents extended to other expenses instead of medical bill only. However, the bill limited to RM5,000 only.
- The Employees Provident Fund to undertake mixed development at the identified Malaysian Rubber Board land in Sungai Buloh with an estimated cost of RM10 billion, to be completed by 2025.
- Bumiputera Property Trust Foundation (BPTF) to launch a syariah-compliant Bumiputera Property Trust Scheme of RM1 billion. BPTF would provide opportunities for bumiputera ownership of prime commercial properties in major towns.
- Private pension fund to be launched in 2011 to benefit private sector employees and the self-employed. Employees eligible for tax relief but the maximum amount still at RM6,000.
- Government-Linked Investment Companies (GLIC) to divest shareholdings in major companies listed on Bursa Malaysia and are allowed to increase investment in overseas markets.
- Import duty and excise duty exemption duty to franchise holders of hybrid cars will be extended until Dec 31, 2011 with excise duty to be given full exemption. This incentive is also extended to electric cars as well as hybrid and electric motorcycles.
- Federal Government revenue collection to increase 2.3 per cent to RM165.8 billion in 2011 and its deficit to decline to 5.4 per cent of GDP compared with 5.6 per cent in 2010.
Other interesting developments
- Mass Rapid Transit project will be implemented beginning 2011 with private investment of RM40 billion and to complete by 2020.
- Public-Private Partnership (PPP) project – Ampang-Cheras-Pandan Elevated Highway, Guthrie-Damansara Expressway, Damansara-Petaling Jaya Highway, West Coast-Banting-Taiping Highway, Sungai Dua-Juru Highway and Paroi-Senawang-KLIA Highway
- Kuala Lumpur International Financial District (KLIFD) project valued at RM26 billion, which would be implemented from 2011 by 1Malaysia Development Berhad (1MDB) in collaboration with Mubadala Development Company, an investment arm of the Government of Abu Dhabi.
- Another landmark in Kuala Lumpur, a 100-storey tower to be named Wisma Merdeka.