Budget 2012 Highlights for Personal Finance and Investment

Prime Minister Datuk Seri Najib Razak, who is also Finance Minister, unveiled 2012 budgets at the Dewan Rakyat on Friday 7th October 2011.

The RM232.8 Billion budgets are allocated to implement all government development plans, focusing on the well-being of the rakyat. RM181.6 Billion is for operating expenditure and the remaining RM51.2 Billion is for development expenditure.

The Government’s budget deficit estimated to improve to 4.7% next year compared with the current 5.4%. On top of that, the economic growth was projected to be between 5% and 6% for 2012, with this year’s growth expected at 5% to 5.5%.

The following are Budget 2011 highlights for Personal Finance and Investment.

Area Descriptions
Property Revision of Real Property Gains Tax (RPGT). Tax will be 10%, if the property sell within 2 years, 5% between 2 to 5 years & nil for above 5 years
Government will subsidise RM20,000 for low-cost housing by SPNB.
Under PR1MA programme, 7,700 below market price houses will be built in Cyberjaya, Putra Heights, Seremban, Damansara, Bukit Raja. 100% stamp duty excemption.
8,000 units of low-cost homes will be built for sale and additional 7,000 units for rent under Program Perumahan Rakyat
Maximum house price limit for My First Home Scheme will be increased from RM220,000 to RM400,000. The improved scheme will be available to housebuyers through joint loans of husband and wife beginning January 2012.
To introduce Buy-then-sell development concepts. Buyers only start paying installment after homes are complete. Applicable for house costing RM600,000 and below.
Civil Servant Additional half-month salary bonus, with a minimum of RM500 and RM500 for government pensioners. To be paid together with the December 2011 salary.
Annual increment of civil servants between RM80 and RM320 according to their grades in 2012. Those who opt for the SBPA will receive an annual increment of between 7 per cent and 13 per cent.
600,000 government pensioners will benefit from an additional annual pension increment of 2%.
Low-income household One-off RM500 cash assistance for households earning 3,000 per month and below
One-off RM100 schooling assistance for primary and secondary school students from age 6 to 16, up to Form 5
One-off RM200 book vouchers for students of private and public tertiary institution, and Form 6
Education All primary and secondaryschool fees to be abolished from 2012 school term
EPF & Retirement Contributors can ring fence RM1,300 from account 2 for the purpose of pilgrimage. The money remains with the contributors but they can register for the Haj.
Expats can withdraw their part of their EPF savings for buying a house.
Retirement age will be raised from 58 to 60 years.
A special programme for 175,000 army personnel who are not eligible for pensions.
Increase employers’ contribution for the Employees Provident Fund from 12% to 13% for those earning RM5,000 and below.
Tax Tax relief up to RM3,000 on contribution to a private retirement sceme and insurance annuity for 10 years. Tax deducation on employers; contribution to private retirement scheme
Others Additional 85 units Kedai 1Malaysia
Felda Global Ventures Holdings Sdn Bhd will be listed on Bursa Malaysia by mid-2012.
Full exemption of import duty and excise duty for hybrid and electric cars extended to 31st Dec, 2013.
Government to introduce Skim Amanah Rakyat 1Malaysia for households  with income below RM3,000 per month. Participants can apply for RM5,000 loan with a repayment period of five years

3 comments… add one
  • I like the way you put in the table form. 🙂 That’s very well organized! 🙂 As many has voiced out, middle income group has to eat themselves. lol

  • thanks for sharing..i really part which allowance RM100 given for each students to buy books and Rm200 for higher education

  • This is indeed a comprehensive budget, but the question is will middle class family (especially who live in KL,JB, Penang) with household income ranging from RM3001 to RM5000 were fully aided?


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