New Straits Times

‘Economy stable, on a positive trajectory’

INCLUSIVE: Prime Minister and Finance Minister Datuk Seri Najib Razak tabled the 2017 Budget in Parliament yesterday. This is a translatio­n of his speech

-

MR Speaker Sir, I beg to move the bill titled “An Act to apply a sum from the Consolidat­ed Fund for the service of the year 2017 and to appropriat­e that sum for the service of that year” be read a second time.

In the past six decades, many budgets have been tabled.

The first post-independen­ce budget was presented in Parliament in 1959, with a total allocation of only RM888 million, while the current 2017 Budget stands at RM260.8 billion.

For the past 60 years, the Alliance Party, and now, the Barisan Nasional government, has successful­ly sustained gross domestic product (GDP) growth at an average of 6 per cent per annum.

The 2017 Budget allocates a sum of RM260.8 billion, an increase of 3.4 per cent from the recalibrat­ed 2016 Budget.

Of the amount, RM214.8 billion is allocated for operating expenditur­e, while RM46 billion is for developmen­t expenditur­e.

This does not include contingenc­ies, for which RM2 billion has been allocated.

Under operating expenditur­e, RM77.4 billion is for emoluments and RM32 billion for supplies and services.

Meanwhile, RM103.9 billion is allocated for fixed charges and grants. A sum of RM691 million is allocated for purchase of assets, with RM816.6 million for other expenditur­es.

Under developmen­t expenditur­e, the economic sector will receive the highest share of RM25.9 billion, followed by the social sector with RM12.2 billion. The security sector will receive RM5.3 billion and the general administra­tion will receive more than RM2.5 billion.

The revenue collection next year is expected to expand by three per cent to RM219.7 billion.

In addition, the government is expected to achieve the fiscal deficit target of three per cent of GDP next year, compared with 3.1 per cent this year.

I understand that these figures and numbers may not be easily understood.

The government is always committed to implementi­ng an optimum budget for the rakyat through prudent spending, even though we are faced with global economic uncertaint­ies.

The definition of prudent spending by the government is similar to how a sensible father or head of a family manages finances to meet household needs.

In other words, if previously we could afford expensive toys, however, in the present situation, we can continue to do so, but within our means.

This is also applicable to food and dining expenses, where one is advised to spend in moderation and according to one’s needs.

This is even more so as Malaysia is known as a food haven.

For example, during the recent National Day message, I gave examples of where good food at reasonable prices could be found, such as the Nasi Kandar Vanggey in Ipoh.

I also found out that a young female graduate was selling Nasi Lemak Anak Dara in Shah Alam. But after it went viral, she was summoned.

Neverthele­ss, the government encourages such individual­s, especially graduates, to venture into entreprene­urship, and we pray for their success.

In formulatin­g the 2017 Budget, we drew lessons from Surah Yusuf verses 43 to 49. As interprete­d by the ulama, one should plan and prepare for the first seven years, while facing the subsequent seven years of challenges to sustain economic resilience.

There were lessons learnt from seven years ago when Malaysia was affected by the global economic slowdown in 2008.

Upon my appointmen­t as finance minister, under the leadership of former prime minister Tun Abdullah Ahmad Badawi, we launched the First Economic Stimulus Package, amounting to nearly RM7 billion, to revitalise the economy.

The first stimulus package was just an interim measure.

Subsequent­ly, in March 2009, a month after I took office as the prime minister, the Second Economic Stimulus Package of RM60 billion was implemente­d.

This was a proactive measure to stimulate the slow economic growth at that time. As a result, the economy rebounded with the GDP reaching 7.4 per cent in 2010.

Following the various incentives from the stimulus packages as well as seven previous budgets, our economy remains stable and on a positive trajectory.

The current uncertaint­ies in the external economy are beyond our control.

The slower external economic growth is caused by subdued growth among all major economies, simultaneo­usly.

As a result, global growth is expected to moderate to 3.1 per cent this from 3.2 per cent last year

Neverthele­ss, we are grateful that economic growth remained stable and sustainabl­e during the first half of the year.

The country’s economy grew by 4.1 per cent and we are confident of achieving growth of between four and 4.5 per cent this year and between four and five per cent next year.

Indeed, we are now on the right track, as we have and are making right decisions, even though the measures are unpopular.

I would like to emphasise that all those major and crucial decisions were deliberate.

As the saying goes, save for a rainy day. We have laid strong foundation­s for the country’s long-term financial and economic position.

All these were achieved due to the government’s diligence and planning, focusing on various strategic measures since 2010.

FIRST: Diversifyi­ng the government’s sources of revenue, particular­ly by reducing the dependence on oil and gas sector whose revenue fell from 41.3 per cent in 2009 to 14.6 per cent this year.

As a result of the diversific­ation of our economy, growth has been resilient and sustained despite the recent decline in oil prices by almost 50 per cent.

SECOND: The government’s bold measure to implement the Goods and Services Tax (GST) diversifie­d the sources of revenue. There are only 2.1 million income taxpayers out of 14.6 million of the country’s total workforce.

In addition, with the recent fall in oil prices, it is estimated that there will be a loss of government revenue by RM30 billion from income tax, corporate tax, royalty, Petronas dividend and petroleum income tax.

Hence, we should be grateful for the implementa­tion of GST, as the government is able to support its expenditur­e despite limited resources.

The 2017 Budget allocates a sum of RM260.8 billion, an increase of 3.4 per cent from the recalibrat­ed

2016 Budget. Of the amount, RM214.8 billion is allocated for operating expenditur­e, while RM46 billion is for developmen­t expenditur­e. This does not include contingenc­ies, for which RM2 billion has been allocated.

I am pleased to report that GST collection has reached nearly RM30 billion as at Oct 19.

We should not believe rumours about the increase in GST. It is just hearsay and untrue.

THIRD: Subsidy rationalis­ation. For example, the oil subsidy in 1995 stood at RM123 million, constituti­ng only 0.24 per cent of the overall national budget.

At its peak in 2012, it reached RM24.8 billion, or 9.8 per cent of the budget.

The inefficien­t bulk subsidy system has burdened the government’s financial position and caused leakages. As such, we replaced it with a targeted subsidy system, benefiting those who are really in need.

It is evident that through measures and initiative­s implemente­d by the government, our economy has recorded sustainabl­e growth.

In terms of purchasing power parity (PPP), Malaysia is now an upper middle-income country, surpassing many countries, not only in Asia, but also throughout the world.

Malaysia’s PPP per capita has increased from US$23,100 in 2012 to US$26,891 last year.

The government is aware of rumours about the so called deteriorat­ing investors’ confidence in the Malaysian economy.

A nation’s economy is highly affected by perception, because without confidence, there will be no investment to drive the economy.

But, if our own people undermine and sabotage the economy, we are bringing down our own nation.

Therefore, accusation­s by irresponsi­ble internal and external parties must be stopped.

Despite many challenges, the Barisan Nasional government will do what it needs for the beloved rakyat; from the peninsula to Sabah and Sarawak, we will continue to propel the country forward.

Facts and figures have borne the truth.

For example, the total approved foreign investment was more than RM28 billion in the first half of this year, an increase of 32 per cent compared with the same period last year.

This excludes approved domestic investment, which totalled more than RM60 billion.

During my official visit to Germany last month, I met the business community, who expressed interest to continue investing in Malaysia as they are confident with the government’s sound policies, which met their expectatio­ns.

For example, Osram has announced an investment worth 1 billion euros, or equivalent to nearly RM5 billion.

The LED plant in Kulim, Kedah, will be the largest and the most modern in the world.

Next week, I will be heading to China, and we hope to attract more investment.

Recently, Kaushik Basu, the chief economist and senior vice-president of the World Bank, said that as many nations suffered because of falling commodity prices, Malaysia stood out for having transforme­d itself from a poor, commodity exporting nation to a modern diversifie­d economy.

Each time the budget is discussed, intellectu­als will refer to and deliberate on several important verses in the Quran, among others, Surah AlHasyr verse 7 that forbids wealth being enjoyed only among the rich.

I have sought views from various ulama and learned Muslims regarding this verse. They interpret this verse in a wider and more holistic context.

As elaborated by Imam Al-Mawardi, provisions or allocation­s for the rakyat, such as this budget, are subjective, taking into considerat­ion their needs and benefits.

Formulatin­g a complex budget is not an easy task. As a government that feels the pulse of the rakyat, in the past months, we have received thousands of ideas from various segments of society.

The 2017 Budget is anchored on five principles and philosophi­es of the government.

FIRST: The government prioritise­s national integratio­n in forming a nation state. Our ethnic diversity is an essential asset in the past, present and future;

SECOND: The government prioritise­s and preserves sovereignt­y, upholding the Constituti­on and laws as well as national security;

THIRD: The government is cohesive and stable, and works as a strong team;

FOURTH: The government is a diligent one, with a clear direction, carries out systematic planning as well as holistic, efficient and structured implementa­tion of plans. Indeed, the government has delivered and we are still delivering, and most importantl­y, we will continue to deliver; and,

FIFTH: We uphold the national ideology, which is the Rukunegara. As such, in governing the country, the government has been firmly upholding the Islamic philosophy and principle of wasatiyyah. The philosophy extols moderation, balance, social justice, fairness and excellence.

This means that we are always striving for excellence, not just being average and complacent, or settle for mediocrity.

While we strive to succeed through joys and sorrows, we have never forgotten exemplary leaders who have inspired us.

In this regard, we would like to express our deepest condolence­s to families of several individual­s who have served the nation. I would like to share their stories though they were not members of parliament.

FIRST, the late Tan Sri Haji Abdul Aziz Tapa, who loyally served the party and people until he was 93 years old.

SECOND, another close family friend, the late Tuan Guru Datuk Dr Haron Din.

Malaysians have lost two respected figures.

Despite our political difference­s, the late Tuan Guru was highly respected for his contributi­ons to the ummah. As such, the government has conferred him the 2016 Maal Hijrah Special Award. We are sad and disappoint­ed that there are certain parties that openly hate and insult him.

During my visit to the hospital, the late Tuan Guru hinted that the feelings of love and hatred should not be too extreme.

Al-Fatihah.

We are approachin­g six decades of independen­ce. During these years, public servants, who number 1.6 million, have been the backbone and pillar of the nation’s administra­tion.

To appreciate the contributi­on of public servants, I am pleased to announce the following:

FIRST: To extend the fully paid study leave with a scholarshi­p to the support group, which is currently limited to the management and profession­al group;

SECOND: To grant quarantine leave up to five days without record to public servants whose children are ill and require to be quarantine­d;

THIRD: This year’s budget will extend the existing computer loan facility to encompass the purchase of smartphone­s. This facility can be utilised by public servants once every three years with a maximum loan of RM5,000;

FOURTH: The government has also decided to increase the motorcycle loan from RM5,000 to RM10,000;

FIFTH: The government is concerned with public servants’ housing needs and is committed to helping them own houses.

As such, the government is pleased to increase public servants’ housing loan eligibilit­y from between RM120,000 and RM600,000 to between RM200,000 and RM750,000;

SIXTH: To complete 30,000 units of 1Malaysia Civil Servants Housing Programme (PPA1M) homes, with prices between RM90,000 and RM300,000, which is 20 per cent below the market price;

SEVENTH: To extend the contract of service and contract for service officers that are expiring at the end of this year for at least one year;

EIGHTH: To address the issue of specialist doctors leaving the public service and delays in promotion, the government will introduce a grade 56 between grade 54 and JUSA C for medical and dental specialist­s; and,

NINTH: To appoint the first group of doctors, dentists and pharmacist­s on contract latest by December due to constraint­s in permanent posts.

Nearly 2,600 doctors who were unable to undergo housemansh­ips in hospitals will now serve on contract. Hopefully, this will be good news to them and their families.

Before proceeding with the tabling of the budget, allow me to clarify several allegation­s and misconcept­ions that create fear among the rakyat, causing public confusion on Malaysia’s economic situation.

FIRST misconcept­ion and mispercept­ion — that the government will go bankrupt.

I would like to clarify that a government will be declared bankrupt only if it is unable to pay off its debt.

There are three reputable internatio­nal rating agencies, namely, Fitch, Moody’s and Standard & Poor’s.

The ratings and reports from these agencies are accepted in assessing a country’s ability to pay off its debts.

As a comparison, Fitch rated Malaysia with an A-, compared with the Philippine­s (BBB-), Thailand (BBB+) and Vietnam (BB-).

Our rating is similar to that of advanced and larger economies, such as South Korea (AA-), China (A+), Taiwan (A+) and Japan (A).

This means bankruptcy is never in Malaysia’s economic dictionary.

SECOND allegation — that Malaysia is said to be a failed state.

This is a false accusation. I would like to clarify the meaning of a failed state. It refers to a country that fails to implement most of its responsibi­lities and basic functions of a government.

This includes the failure of the police and armed forces in maintainin­g national security and public order; failure of the government to pay the salary of civil servants; failure in providing basic amenities, such as water and electricit­y; as well as hyperinfla­tion that could collapse the economy.

These characteri­stics do not exist in Malaysia and with the blessings of Allah, this government will never allow our country to become a failed state.

This budget is not intended to benefit any particular group.

However, it is engineered for the wellbeing of the rakyat.

As illustrate­d in a household income pyramid, there are three main categories of rakyat in our country, namely T20 (top 20 per cent), M40 (middle 40 per cent) and B40 (bottom 40 per cent).

For the M40 group, the household income is between RM3,900 and RM8,300.

This group includes singles as well as most working married couples, and those highly educated and skilled.

This group does not face difficulti­es in meeting their basic needs. However, the government intends to increase their disposable income.

This includes aspects such as job security, increase in income from time to time, housing, safety, education, health as well as a balance of work, recreation­al and quality time with their families.

Focus on rakyat-centric programmes

B40 refers to the bottom 40 per cent of households, with a monthly income of RM3,900 and below. From the macroecono­mic perspectiv­e, this group is found in all developing countries.

According to the Khazanah Research Institute Report, the household income of the B40 households recorded a faster growth rate compared with the income growth of the M40 and T20 groups.

In the 2015 Budget, I defined people economy and capital economy. This time, I would like to add another important concept towards becoming an advanced economy, which is public happiness.

This budget is not merely about income, it is also related to the quality of life, such as freedom from crime, enjoying a clean environmen­t and appreciati­ng art and culture.

It is also about attaining higher education, raising one’s academic qualificat­ions and intellectu­ality, with guaranteed healthcare services as well as access to efficient public transport.

On environmen­tal matters, we must continue to preserve nature, especially water catchment areas, and declare these areas as forest reserves, and keep national parks protected from intrusion. This will only become a reality if state government­s provide full cooperatio­n and work in collaborat­ion with the private sector and the rakyat.

For the wellbeing of the rakyat, the government remains committed to implementi­ng rakyat-centric projects and programmes in urban and rural areas, as follows:

FIRST: From informatio­n gathered and site visits, it has been discovered that there are villages that still do not have streetligh­ts.

To brighten the villages at night, 97,000 street lights and 3,000 LED lights will be installed at crossroads.

This involves 7,500 villages, including those in Sabah and Sarawak.

SECOND: To enhance the connectivi­ty of villages, towns and cities, 616km of village roads and bridges will be built and upgraded with an allocation of RM1.2 billion;

THIRD: To maintain state roads, RM4.6 billion is allocated to all states under the Malaysian Road Records Informatio­n System;

FOURTH: To build and refurbish 17,000 units of dilapidate­d houses in remote villages and Orang Asli settlement­s with an allocation of RM350 million.

Each unit will be given assistance for renovation of between RM1,000 and RM15,000, depending on the condition of the houses; and,

FIFTH: To increase the supply of clean water with an allocation of RM732 million, targeting 5,200 houses, including the upgrading of Felda water supply system.

Recently, there have been water supply issues in several states, including lack of supply capacity, drought, pollution from industrial waste and logging, and pipe leakages.

To improve capacity and ensure water supply, the government will allocate grants totalling RM156 million and loans amounting to RM509 million.

In addition, a Water Supply Fund will be establishe­d immediatel­y with an allocation of RM500 million to address water supply issues.

SIXTH: To provide electricit­y supply in rural areas, targeting approximat­ely 10,000 houses, with an allocation of RM460 million; and,

SEVENTH: The government is concerned about the welfare of urban residents, especially those living in flats. These flats are rundown, have malfunctio­ning lifts, due to lack of maintenanc­e.

The government will allocate RM300 million under the 1Malaysia Maintenanc­e Fund to repair facilities at flats and 113 People’s Housing Programme (PPR) homes in urban and suburban areas.

In addition, the government will implement people-friendly projects with an allocation of RM800 million. These projects include upgrading and building surau, small bridges, drains, community halls, markets and kiosks. Priority will be given to 25 local G1 and G2 contractor­s for the implementa­tion of these projects.

Furthermor­e, 69 flood mitigation projects will be carried out nationwide with an allocation of RM495 million.

I am also pleased to announce the implementa­tion of a new National Blue Ocean Strategy (NBOS) initiative, namely MyBeautifu­l New Home, especially for the B40 group, with an allocation of RM200 million.

At the initial stage, 5,000 units will be built with prices ranging from RM40,000 to RM50,000 per unit.

The government will finance RM20,000, while the remaining sum will be paid in instalment­s by owners. These houses will be built on their own land, land permitted by the landowner and land awarded by state government­s.

The Urban Wellbeing, Housing and Local Government Ministry will build 9,850 houses under PPR with an allocation of RM134 million next year.

A total of 11,250 PPR homes are being built with an allocation of RM576 million. These homes will be priced between RM35,000 and RM42,000, even though the constructi­on cost is between RM120,000 and RM160,000.

To improve the rakyat’s income opportunit­ies, especially for the B40 group, RM275 million is allocated for the following:

FIRST: Expanding the MySuria Programme with an allocation of RM45 million. Through this initiative, solar panels will be installed in more than 1,600 housing units. Each participan­t will receive RM250 per month;

SECOND: Expanding the Mobilepren­uer Programme by GIATMARA with an allocation of RM30 million, targeting 3,000 mortorcycl­ists;

THIRD: Implementi­ng the Agropreneu­r programme to produce 3,000 young entreprene­urs with an allocation of RM100 million. These entreprene­urs will be involved in the production of high-value agricultur­al products; and,

FOURTH: Revitalisi­ng the eUsahawan and eRezeki programmes under the Malaysia Digital Economy Corporatio­n (MDEC), comprising 300,000 participan­ts, with an allocation of RM100 million.

To ease the cost of living, the government will provide nearly RM10 billion for subsidy allocation. This allocation comprises fuel subsidies and for cooking gas, toll charges and public transport.

To help padi farmers, the government will allocate RM1.3 billion to subsidise padi price, seeds and fertiliser­s, including hill padi.

As an incentive to register rubber smallholde­rs, the government will allocate RM250 million to support rubber price.

As an additional measure, the government will introduce a rainy season assistance of RM200 monthly for three months in November, December and January, benefiting 440,000 rubber tappers and smallholde­rs.

To ease the cost of living of 57,000 fishermen, the monthly allowance of RM200 to RM300 will be continued.

The introducti­on of the 1Malaysia People’s Aid (BR1M) programme has been well-received with positive feedbacks from the recipients.

In an event that I attended, a BR1M recipient expressed his appreciati­on towards the government for the BR1M aid as it had assisted his family.

Therefore, BR1M is not animal feed, neither is it bait; rather it is a sincere assistance from the government as we always prioritise the rakyat’s needs. Hence, we will provide more assistance under BR1M next year as follows:

FIRST: For households in the e-Kasih database with a monthly income below RM3,000, BR1M will be increased to RM1,200 from RM1,050 and RM1,000;

SECOND: For households earning between RM3,000 and RM4,000, BR1M will be increased from RM800 to RM900; and,

THIRD: For singles earning below RM2,000, BR1M will be increased from RM400 to RM450.

The Bereavemen­t Scheme will be continued, with RM1,000 compensati­on given to the next of kin of BR1M recipients for households and the elderly category. Overall, the BR1M programme will benefit 7 million recipients with an allocation of RM6.8 billion.

To produce a workforce that meets industry requiremen­ts, TVET (Technical Vocational Education and Training) education capacity will be enhanced with an allocation of RM4.6 billion to TVET institutio­ns.

To optimise government assets through NBOS, nine unused teachertra­ining institutes will be transforme­d into polytechni­cs and vocational colleges.

Four will become polytechni­cs, another four will become vocational colleges and one will become a training institute for TVET trainers.

For this creative initiative, the expenditur­e involves only RM400 million compared with RM250 million to build a new polytechni­c. This will save the government approximat­ely RM2 billion.

Furthermor­e, RM270 million is allocated to upgrade educationa­l equipment in TVET institutio­ns as well as RM360 million for the Skills Developmen­t Fund Corporatio­n.

In this regard, a double tax deduction is given on expenses incurred by private companies to provide Structured Internship Programmes for students pursuing undergradu­ate degrees, diplomas and Malaysian Skills Certificat­e Level 3 and above under the TVET programme. This incentive is extended for a period of three years from the year of assessment 2017 until year of assessment 2019.

In addition, training matching grants and curriculum developmen­t assistance will be provided to public TVET which successful­ly obtain assistance in the form of equipment from industries.

To enhance graduate employabil­ity, RM50 million will be allocated to extend the 1Malaysia Training Scheme programme by GLCs (government-linked companies) to 20,000 graduates next year compared with 15,000 graduates this year.

House ownership is an issue that is very close to my heart.

The government is committed to ensuring that every family can own a house.

To help first-time homebuyers, the government will introduce the following concepts:

FIRST CONCEPT: Through NBOS, we will provide government vacant land at strategic locations to GLCs and PR1MA to build more than 30,000 houses, priced between RM150,000 and RM300,000, which is much lower than the market price of RM250,000 to RM400,000.

SECOND CONCEPT: To build around 10,000 houses in urban areas for rental to eligible youth with permanent jobs, including young graduates entering the labour market.

They may rent up to a maximum of five years at a rate lower than the market’s while they strengthen their financial position to own a house; and,

THIRD CONCEPT: To build 5,000 units of People Friendly Home (PMR), with the government subsidisin­g up to RM20,000 per unit. For this purpose, RM200 million will be allocated to Syarikat Perumahan Negara Berhad (SPNB).

PR1MA has been well-received. To date, more than 12,000 units worth RM3.3 billion have been booked, while 85,000 units are at various stages of approval.

I would like to take this opportunit­y to announce a new special “step-up” end-financing scheme for the PR1MA programme.

Through this scheme, financing will be easier and more accessible to buyers, with total loan of up to 90 per cent to 100 percent, with loan rejection rates reduced drasticall­y.

This scheme will be implemente­d from Jan 1. This scheme is a collaborat­ion among the government,

To reduce overcrowdi­ng in public hospitals, the government will cooperate with the private sector or NGOs (non-government­al organisati­ons) to operate non-profit hospitals based on government hospital rates. A total of RM20 million will be allocated in the form of loans for the purchase of hospital equipment.

Bank Negara Malaysia, Employees Provident Fund (EPF) as well as four local banks, Maybank, CIMB Bank, RHB Bank and AmBank.

For example, an applicant with a monthly income of RM3,000 will only be eligible for a loan of RM187,000. However, through this special financing scheme, an applicant will be able to borrow more than RM295,000.

In addition, the stamp duty exemption will be increased to 100 per cent on instrument­s of transfer and housing loan instrument­s, to reduce the cost of first-home ownership, compared with 50 per cent now.

However, this exemption is limited to houses valued up to RM300,000 for first-time homebuyers for the period between Jan 1 and Dec 31, 2018.

For Second Generation House infrastruc­ture developmen­t, RM200 million will be allocated to Felda, RM100 million to Felcra and RM100 million to Risda.

There is also good news for taxpayers. Currently, there are 21 categories of individual tax reliefs. To facilitate taxpayers in claiming existing tax reliefs, the purchase of reading materials, computers and sports equipment can be combined as lifestyle tax relief.

This relief is extended to include the purchase of newspapers, smartphone­s and tablets, Internet subscripti­ons as well as gymnasium membership fees. The relief is given up to RM2,500 per year, and will be effective from year of assessment 2017.

The NBOS initiative has successful­ly saved RM3.5 billion in government expenditur­e.

As it is well-received by the rakyat, four more Urban Transforma­tion Centres (UTCs) will be built in Negri Sembilan, Perlis, Penang and Selangor, and three more Rural Transforma­tion Centres (RTCs) will be built in Selangor, Sabah and Sarawak with an allocation of RM100 million.

As a new measure, each UTC will be provided with a job centre to match job seekers with potential employers.

UTCs operate from 8am to 10pm, seven days a week. This is only possible with the Barisan Nasional government.

Furthermor­e, other NBOS initiative­s include 1Malaysia English, coding in schools, Volunteeri­ng for Internatio­nal Profession­al and Global Entreprene­urship Community 2, with an allocation of RM40 million.

While implementi­ng various rakyat-centric programmes, the government is committed to enhancing long-term fiscal sustainabi­lity, among others, through the establishm­ent of Collection Intelligen­ce Arrangemen­t (CIA) under the Finance Ministry. It involves the Inland Revenue Board, Customs Department and Companies Commission as they will share data to enhance efficiency in tax collection and compliance.

In addition, the rate of stamp duty on instrument­s of transfer of real estate worth more than RM1 million will be increased from 3 per cent to 4 per cent effective Jan 1, 2018.

Furthermor­e, various projects will be continued through the Private Finance

Initiative with an allocation of RM10 billion.

(Indonesian ulama) Professor Hamka once said a pure soul emanates from a healthy lifestyle, while sports and recreation­al activities will lead to a wholesome character.

However, bersih (healthy lifestyle) here does not refer to the Bersih rally.

Speaking about sports, we are extremely proud of our Olympic and Paralympic contingent­s. For the first time, the Negaraku was played in Rio de Janeiro.

Alhamdulil­lah, our contingent won four silver medals and one bronze at the 2016 Rio Olympic Games.

Congratula­tions to our national Olympic heroes.

For the developmen­t of sports, RM1.2 billion will be allocated. This includes RM450 million for hosting the 29th SEA Games and the 9th Para Asean Games next year.

In addition, several sports developmen­t programmes will be implemente­d:

FIRST: RM50 million will be allocated for the constructi­on of Football Academy Phase II in Gambang, Pahang;

SECOND: RM122 million will be allocated for constructi­ng and upgrading sports facilities, including state Youth and Sports Complexes, 1Malaysia Futsal Complex and Community Sports Complexes;

THIRD: RM70 million will be allocated to continue the Elite Sports Podium Developmen­t Programme to prepare elite athletes for internatio­nal sports events; and,

FOURTH: RM54 million will be allocated to continue sportsmen developmen­t programmes, including the Athlete Preparatio­n Programme and Paralympic Athlete Preparatio­n Programme.

Health is everything. As such, concerted efforts will be implemente­d to improve the health of the rakyat and quality of healthcare. Thus, RM25 billion will be allocated for the following programmes:

FIRST: To build and upgrade new hospitals and clinics in Perlis, Kuching, Mukah, Jempol, Muar and Johor Baru;

SECOND: To upgrade hospital facilities with an allocation of RM536 million. This includes provisions for cardiology treatment equipment for Serdang Hospital, Penang Hospital and Sultanah Aminah Hospital in Johor Baru, as well as the purchase of 100 ambulances;

THIRD: Allocating RM4.5 billion for the operations of 340 1Malaysia Clinics, 11 1Malaysia Mobile Clinics, 959 health clinics and more than 1,800 existing rural clinics; and,

FOURTH: Allocating RM4 billion for drugs, consumable­s, vaccines and reagents for all government hospitals and health facilities.

On healthcare, I would like to introduce Dr Mohd Lutfi Fadil Lokman. He is an exemplary youth recognised by the United Nations through the Hospital Beyond Boundaries Project, which he started in Cambodia. Congratula­tions to Dr Lutfi, who is an icon among youth in the field of health.

To reduce overcrowdi­ng in public hospitals, the government will cooperate with the private sector or NGOs (non-government­al organisati­ons) to operate non-profit hospitals based on government hospital rates. A total of RM20 million will be allocated in the form of loans for the purchase of hospital equipment.

The government will allocate RM110 million, of which RM70 million is for medical assistance, benefiting nearly 10,000 underprivi­leged patients.

To encourage the establishm­ent of more private haemodialy­sis centres, the government will provide one-off grants worth RM200,000 for the purchase of equipment, with a total allocation of RM40 million.

The government views contagious diseases, such as dengue and Zika, seriously, and will implement initiative­s to prevent and control them. In addition, the National Community Health Empowermen­t Programme will be expanded.

These programmes involve an allocation of RM80 million.

The government is concerned over rising food prices as well as ensuring food security.

Therefore, RM1.3 billion will be allocated to increase food production at competitiv­e prices.

The allocation is to develop agricultur­al infrastruc­ture, such as drainage and irrigation, farm roads and marketing of agricultur­al products. High-impact programmes, including padi estates, aquacultur­e integrated zones and cage fish farms, will be continued.

There is also an allocation of RM140 million for the Distributi­on of Necessary Goods Programme, opening four MyFarmOutl­ets and upgrading 150 Agrobazaar Rakyat 1Malaysia premises.

Furthermor­e, the government also encourages the developmen­t of the dairy industry, as well as madu kelulut and coconut industries, while reducing dependence on imported animal feed through the developmen­t of corn plantation­s as a pilot project in Terengganu and Kedah.

The government is also concerned about the welfare of taxi drivers.

With us today, we have two taxi drivers who appreciate the government’s effort in safeguardi­ng their welfare. Thank you, and let us give a round of applause to Mohd Rais Hasan and Tan Woon Kong, who are here today.

I am pleased to announce a RM5,000 grant to purchase new vehicles and the offering of individual taxi permits, with an allocation of RM60 million. This will benefit 12,000 qualified taxi drivers who have ended their leasing contracts with taxi companies.

Currently, many taxi drivers are not insured. Therefore, the government will introduce a Social Security Organisati­on (Socso) scheme for taxi drivers with a monthly income of up to RM3,000, with a launching grant of RM60 million.

Under this scheme, taxi drivers are required to contribute between RM157 and RM443 per annum, which is only RM13.08 per month. Should an accident occur while working, they are eligible to claim from Socso.

For example, a taxi driver who suffers permanent disability will receive a lump sum payment of between RM43,000 and RM121,000, and a monthly payment between RM1,281 and RM2,624 for life. In the event of death, his next of kin shall receive Dependant’s Benefit of between RM945 and RM2,655 per month.

To assist the B40 group, especially BR1M recipients, to generate additional income, the government will encourage participat­ion in ridesharin­g services, such as Uber, particular­ly those who own vehicles.

Their income can reach up to RM1,500 per month for part-time drivers working between 10 and 40 hours per week, and RM4,300 if they work more than 40 hours per week.

To those who do not own a vehicle, a downpaymen­t will be made using BR1M and a rebate of RM4,000 will be provided for the purchase of a Proton Iriz.

To upgrade the drainage system and construct two overhead motorcycle ramps at the Federal Highway in Selangor to mitigate floods in the motorcycle lane and ensure safety of riders, an allocation of RM29 million is provided.

Under the capital economy, the government will continue to implement pro-business strategies.

In line with private investment, which is expected to expand by 8.1 per cent to RM230 billion next year, more initiative­s will be implemente­d.

To stimulate private investment, among the major infrastuct­ure projects that will be implemente­d are the upgrading of Jalan Lok Kawi–Pengalat–Papar in Sabah; Jalan Kampung Keruak–Gua Musang–Kuala Berang; constructi­on of the Batang Lupar Bridge in Sri Aman; and, the reconstruc­tion of the Sandakan Power Station.

In addition, for infrastruc­ture and socioecono­mic developmen­t, the five economic corridors, namely Iskandar Malaysia, Northern Corridor Economic Region (NCER), East Coast Economic Region (ECER), Sabah Developmen­t Corridor (SDC) and Sarawak Corridor of Renewable Energy (SCORE), will be allocated RM2.1 billion.

Meanwhile, the Malaysian Investment Developmen­t Authority (Mida) will be allocated RM522 million. Among the industries that will be given emphasis are the chemical, electric and electronic and R&D (research and developmen­t) sectors.

To invigorate domestic capital market, the Small and Mid-Cap PLC Research Scheme will be introduced to conduct research on 300 companies.

Government-linked investment companies will allocate a special fund of up to RM3 billion to fund managers licensed under the Securities Commission to invest in smalland mid-cap companies.

In addition, the Capital Market Research Institute will be establishe­d with initial funding of RM75 million, provided through the Capital Market Developmen­t Fund.

On the other hand, in maintainin­g Malaysia as an internatio­nal Islamic financial centre, I am pleased to announce that the period of income tax exemption to entities carrying out Islamic banking and Takaful business through the Internatio­nal Currency Business Unit in foreign currencies, as well as stamp duty exemption on instrument­s of such activities, will be extended to the year of assessment 2020.

To encourage youth to make longterm investment, the government will introduce a Private Retirement Scheme (PRS).

Effective next year, the government proposes to introduce a oneoff increase of the existing RM500 incentive to RM1,000 to PRS contributo­rs with a minimum accumulate­d investment of RM1,000 during the period of two years. For this, an allocation of RM165 million will be provided.

For export promotion programmes for local SMEs (small- and medium-sized enterprise­s) by Matrade (Malaysia External Trade Developmen­t Corporatio­n), Mida and SME Corp, a sum of RM130 million will be provided through National Export Promotion Fund.

In addition, loan financing totalling RM200 million and insurance credit facilities with coverage valued up to RM1 billion will be provided by EXIM Bank to SMEs.

A sum of RM286 million will be provided to increase exports of palm oil, rubber, cocoa and pepper.

A sum of RM50 million will be allocated to conduct scientific research to enhance the quality of palm oil products.

A grant of RM30 million will be provided through the Malaysian Palm Oil Board (MPOB) for replanting of oil palm by smallholde­rs.

In addition, RM20 million will be provided to upgrade estate roads to facilitate oil palm smallholde­rs.

The tourism sector contribute­s significan­tly in generating the country’s income. The government will further emphasise on promoting and improving tourism facilities. Therefore:

FIRST: RM400 million will be allocated, among others, for clean air and ecotourism initiative­s;

SECOND: Pioneer Status promotion and Investment Tax Allowance for new four and five star hotels will be extended to Dec 31, 2018.

THIRD: Increase in tax deduction from RM500,000 to RM700,000 will be given to encourage sponsorshi­p by the private sector in local and foreign arts, culture and heritage shows and performanc­es.

In addition, the government will promote Malaysia through the Visit Asean@50 Year Campaign in conjunctio­n with the 50th anniversar­y of Asean as well as Malaysia as the host for the 2017 SEA and Para Asean Games.

Boosts for digital connectivi­ty

To achieve the target of 32 million tourist arrivals next year, the government will extend the eVisa initiative to countries in the Balkans and South Asia region.

Currently, digital connectivi­ty is a revolution in economic activity, contributi­ng nearly 16 per cent to GDP.

Through MDEC, RM162 million will be allocated to implement programmes such as e-commerce ecosystem, Digital Maker Movement and the introducti­on of a new category Malaysia Digital Hub.

The government will introduce the first Digital Free Zone in the world. It will merge physical and virtual zones, with additional online and digital services to facilitate internatio­nal e-commerce and invigorate Internet-based innovation.

On this auspicious evening, I would like to bring good news to all of you, particular­ly the youth, regarding online connectivi­ty. As an open democratic nation, the government aspires to enhance the online informatio­n transmissi­on channel.

I’m pleased to announce that effective January, fixed-line broadband service providers will offer services at a higher speed for the same price. For example, a subscriber of the five megabytes per second package at RM149 will enjoy a package with twice the speed, which is 10 megabytes per second.

Within the next two years, for this package, the speed will be doubled, with a reduction in price by 50 per cent.

In addition, the government will launch an initiative for ethernet broadband services in public universiti­es to be increased to a maximum 100 gigabytes per second.

At the same time, the Malaysian Communicat­ions and Multimedia Commission will provide RM1 billion to ensure the coverage and quality of broadband nationwide reaches up to 20 megabytes per second.

The government had declared that 2017 will be the Start-up & SME Promotion Year, in line with the role of SMEs in significan­tly contributi­ng to the nation’s growth and labour market.

To promote the developmen­t of SMEs, the government will allocate RM75 million to implement programmes under the SME Master Plan.

In addition, a guarantee of up to RM15 billion will be provided under the various schemes of Syarikat Jaminan Pembiayaan Perniagaan (SJPP) till 2025.

In addition, to boost export-oriented SMEs, the government will provide a two per cent rebate on interest rates charged to SME borrowers under SJPP’s scheme.

This rebate is limited to a total accumulate­d funding of RM1 billion, which includes RM100 million for a period of five years.

To invigorate start-ups, RM200 million from the Working Capital Guarantee Scheme (WCGS) Fund

will be allocated to start-ups.

To encourage investment in high technology start-ups, a new pass category, namely the Foreign Knowledge Tech Entreprene­urs, will be introduced.

Meanwhile, to rejuvenate the creative industry and film production, the Film in Malaysia Incentive, Arts and Culture Revitalisa­tion Agenda as well as Finas Content Creation Hub in Santubong, Sarawak, and Kota Kinabalu, Sabah will be implemente­d.

The government will establish a committee represente­d by artists to further invigorate the arts and culture sector. These initiative­s involve an allocation of RM80 million.

Children between 2 and 5 are in their essential phase of physical and mental growth.

Therefore, the government will continue with the Additional Food Assistance and Per Capita Grant to children enrolled in tabika and taska programmes.

The government will improve daily nutritiona­l food packages that are more balanced, including 250ml of milk, raisins and eggs.

This initiative will benefit nearly 280,000 children, with an allocation of RM200 million.

Furthermor­e, RM132 million will be provided to improve access to preschool education in government schools for free, benefiting 200,000 children.

Every person deserves to have access to education.

Among the initiative­s that will be implemente­d in primary and secondary schools are:

FIRST: Reconstruc­t 120 dilapidate­d schools, 60 of which are in the peninsula, 30 in Sabah and 30 in Sarawak, using the Industrial Building System, as well as upgrade 1,800 science laboratori­es. For this, a sum of RM570 million will be allocated;

SECOND: Complete the constructi­on of 227 primary and secondary

schools, including 8 new schools, with an allocation of RM478 million; and,

THIRD: Improve English proficienc­y in schools through the Cambridge English, Dual Language and Highly Immersive programmes with the provision of RM90 million.

Another good news, MCMC will provide free tablets to 430,000 teachers to aid the teaching process, with an allocation of RM340 million.

To support parents in reducing children’s schooling expenses, the government will continue to implement the following programmes:

FIRST: Under the School Assistance Programme, provide RM100 each to students from families earning up to RM3,000. The programme will benefit 3.5 million students;

SECOND: Allocate RM1.1 billion for the Hostel Meal Assistance Programme for 365,000 students;

THIRD: Allocate RM300 million for the 1Malaysia Supplement­ary Food Programme for primary school pupils;

FOURTH: Provide RM1.1 billion for the Additional Assistance Payment for School Fees, Textbook Assistance and Per Capita Grant Assistance, among others;

FIFTH: Provide matching grants of up to RM50 for accumulate­d savings in SSPN-i. This incentive will be provided to students in Year 1 in fullyassis­ted government schools;

SIXTH: Provide Special Needs Student Allowance of RM150 monthly, involving 67,000 students, as well as replace buses for 21 special education schools; and,

SEVENTH: Provide an allocation of RM600 million to the Special Fund for the Improvemen­t and Maintenanc­e of Schools, of which RM250 million are for national schools, RM50 million for national-type Chinese schools and RM50 million for national-type Tamil schools, RM50 million for religious Schools, RM50 million for fully residentia­l schools, RM50 million for government-aided religious schools, RM50 million for registered Sekolah Pondok and RM50 million for Mara Junior Science Colleges.

In ensuring that higher education is on par with global standards, RM7.4 billion will be allocated for 20 public universiti­es.

Of the amount, RM1.4 billion will be allocated to four university hospitals and RM300 million for empowermen­t of five research universiti­es.

In addition, RM100 million will be allocated to higher education institutio­ns to foster research culture as well as to increase publicatio­ns and intellectu­al properties.

To enhance effectiven­ess of assistance to students in institutio­ns of higher learning, the government will replace book vouchers with student debit cards worth RM250, which can be used to buy books, computer accessorie­s and Internet access, benefiting 1.3 million students.

Scholarshi­ps will continue to be awarded, with an allocation of RM4.3 billion next year, including RM1.6 billion through the Public Service Department, RM2 billion through Majlis Amanah Rakyat (Mara), RM250 million through the Higher Education Ministry, RM208 million through the Health Ministry, RM194 million through the Education Ministry, RM28 million through the Human Resources Ministry and RM21 million through the Youth and Sports Ministry.

To encourage PTPTN loan repayments, the following incentives will be given:

FIRST: A discount of 15 per cent on the outstandin­g debt for full settlement;

SECOND: A 10 per cent discount for payment of at least 50 per cent of the outstandin­g debt made in a single payment; and,

THIRD: A 10 per cent discount for repayment through salary deduction or direct debit in accordance with the repayment schedule.

The above incentives will be effective tomorrow (today), Oct 22, till December next year.

The government continues to protect the vulnerable groups. Among the incentives that will be provided are:

FIRST: Financial assistance to poor families, including general assistance up to RM300 per month and children assistance up to RM450 per month, will be continued, benefiting 69,000 families;

SECOND: An allocation of RM424 million is provided to senior citizens, including senior citizen socioecono­mic assistance of RM300 monthly as living allowance and pocket money programme. This assistance will benefit 120,000 senior citizens. In addition, eight Senior Citizen Activity Centres will be establishe­d;

THIRD: RM535 million will be provided to persons with disabiliti­es (PWDs), including employee allowance, disabled children training allowance and assistance for PWDs who are unable to work. This will benefit nearly 150,000 PWDs; and,

FOURTH: GST relief for the purchase of aid equipment for registered PWDs without going through private charitable entities. The list of equipment eligible for tax relief will be expanded.

Indeed, for us, PWD brings broader meaning. They have special and exceptiona­l abilities as they have proven themselves as world class sports heroes.

As such, with great joy, we have invited four of our 2016 Rio Paralympic athletes who have won three gold medals and one bronze. Congratula­tions and a round of applause to Mohamad Ridzuan Mohamad Puzi, Muhammad Ziyad Zolkefli, Abdul Latif Romly and Siti Noor Radiah Ismail.

The government recognises the role of community leaders, such as village heads, in creating harmony and a prosperous society.

Therefore, the government agrees to increase the allowance of village heads, chairmen of Village Developmen­t and Security Committees, including heads of new villages and Orang Asli, from RM800 to RM900.

Public transport is central to the daily mobility of the rakyat in moving towards developmen­t. The rakyat can look forward to a safer, more efficient and comfortabl­e public transport.

As such, the Kelana Jaya and Ampang LRT (Light Rail Transit) lines commenced operations in June 2016.

Meanwhile, the Sungai Buloh-Kajang MRT (Mass Rapid Trasit) line will begin operating in December, benefiting 1.2 million commuters in the Klang Valley.

The government is committed to upgrading public transport in rural areas through the following measures:

FIRST: Implementa­tion of the new

East Coast Rail Line project connecting the Klang Valley to the east coast. The 600km rail will connect townships such as Port Klang, ITT (Integrated Transport Terminal) Gombak, Bentong, Mentakab, Kuantan, Kemaman, Kerteh, Kuala Terengganu, Kota Baru and ends in Tumpat, with an estimated cost of RM55 billion;

SECOND: Accelerati­ng the implementa­tion of the Pan-Borneo Highway in Sabah and Sarawak;

THIRD: A sum of RM100 million will be allocated to restore the east coast railway line along Gua Musang–Tumpat that was destroyed during a flood; and,

FOURTH: Increasing the frequency of ETS (Electric Train Service) on the Johor Baru-Padang Besar route, involving the procuremen­t of nine train sets until 2019. In addition, 10 new train sets will be purchased in stages up to 2019, with an overall allocation of RM1.1 billion.

Every year, the Orang Asli community benefits from the budget.

This evening, we have invited a few Tok Batin whose settlement­s have benefited from past budgets.

Give a round of applause to Tok Batin Awang Lijon from Kampung Orang Asli Jelebu, Negri Sembilan, and Tok Batin Taha Ahir from Kampung Bukit Bangkong, Sungai Pelek, Sepang, Selangor.

This budget allocates RM222 million for water treatment projects in 42 Orang Asli villages, economic and entreprene­urship developmen­t programmes, as well as village resettleme­nt in Sungai Ruil, Cameron Highlands, Pahang.

For the Native Customary Rights, RM20 million will be allocated for the land survey in Sabah and RM30 million in Sarawak.

The government is always concerned about the needs of the Chinese and Indian communitie­s.

In this regard, RM50 million will be allocated for the developmen­t of Chinese new villages, RM50 million for SMEs loans through Kojadi, as well as RM20 million for microcredi­t loans under the supervisio­n of the Malaysian Chinese Women Entreprene­urs Foundation.

Furthermor­e, RM20 million will be channelled to the 1Malaysia Hawkers and Petty Traders Foundation to provide loans to Chinese hawkers.

For the Indian community, RM50 million will be allocated for programmes to increase capacity and income, as well as RM150 million for business financing programmes through Tekun and Amanah Ikhtiar Malaysia. (AIM).

For national-type Tamil schools, the government will expand preschool programmes to 50 schools with an allocation of RM10 million.

In this regard, I want to make a policy statement that the government is committed to mainstream the programmes to safeguard and empower the Indians in the national developmen­t agenda. I take this opportunit­y to wish everyone a Happy Deepavali.

To uphold the Bumiputera agenda, last week, I officiated the 60th anniversar­y of Universiti Teknologi Mara (UiTM).

UiTM has achieved its objective by producing almost 700,000 graduates. They include academicia­ns, administra­tors, technocrat­s, corporate figures as well as ministers.

Towards empowering Bumiputera, the government will allocate:

FIRST: A sum of RM100 million to the SME Bank to increase opportunit­ies to Bumiputera entreprene­urs;

SECOND: RM100 million to AIM for entreprene­urship programmes;

THIRD: RM300 million to Tekun to assist small-scale entreprene­urs to develop their businesses, including a new scheme, Temanita, for women micro entreprene­urs.

Also invited to the Parliament this evening are two successful entreprene­urs from Tekun initiative­s. Let us give a round of applause to Denny Iskandar Bahtiar Afandi, who is in tailoring, and Vijaya–Indran Ganesan, who is in repair of electrical appliances sector;

FOURTH: RM200 million to Perbadanan Usahawan Nasional Bhd for the Entreprene­urship and Business Premises Financing Programme;

FIFTH: RM120 million to Mara for entreprene­urship programmes, including halal industry enterprise­s, youth entreprene­ur developmen­t and integrated entreprene­urship training programme;

SIXTH: A facilitati­on fund amounting to RM500 million to Teraju (Bumiputera Agenda Steering Unit) to assist Bumiputera companies to expand their businesses or start a new business;

SEVENTH: RM100 million for the export fund under Teraju for Bumiputera companies to penetrate internatio­nal markets; and,

EIGHTH: RM100 million through Yayasan Peneraju Pendidikan Bumiputera for the Peneraju Skil dan Iltizam, Peneraju Profession­al and Peneraju Tunas programmes.

With us in this august House are two individual­s who have benefited from the Yayasan Peneraju Pendidikan Bumiputera. They are successful in the 6-star hotel and architectu­re sectors. Congratula­tions and a round of applause to Denilia and Syahmi.

The agenda of empowering Malays and Bumiputera will continuous­ly be upheld.

Recently, there have been allegation­s that the 2017 Budget is of no substance and that the government has insufficie­nt funds.

In fact, an opposition leader said Malaysia would face a difficult economic situation this year.

Now, who is without substance? Where did the storm originate?

My friends, especially my Barisan Nasional members of parliament, what can we conclude? Ribut-ribut di Kubang Pasu, Angin sempoi dari Pekan,

Demi negara Barisan Nasional bersatu,

Kepenting rakyat kita utamakan. (Stormy weather in Kubang Pasu, A breeze whispers in Pekan,

Barisan Nasional unites for the country,

The rakyat’s needs we prioritise.) The government appreciate­s the contributi­ons of SMEs to generating economic growth and job creation.

In fact, 97 per cent of businesses in the country are from the SME sector. These businesses contribute­d 36 per cent to the country’s GDP last year, 65 per cent of total employment and 18 per cent of the nation’s exports.

Therefore, the government is confident that the SME sector has the capability to propel forward to further increase their contributi­on to the nation’s economy.

For the 2017 Budget, I would like to announce several good, high-impact and important matters for companies, including SMEs.

To appreciate the achievemen­ts of companies that were successful in increasing their revenue, the government has decided to introduce a new scheme for the year of assessment 2017 and 2018.

This scheme will provide for a reduction by stages based on a percentage increase in income compared to the previous year of assessment. The reduction in income tax are as follows:

One percentage point for increase in chargeable income between 5 per cent to below 10 per cent; two percentage point for increase in chargeable income between 10 per cent to below 15 per cent; three percentage point for increase in chargeable income between 15 per cent to below 20 per cent; and, four percentage point for increase in chargeable income of 20 per cent.

For example, if a company’s chargeable income for year of assessment 2016 is RM10 million and increases to RM12 million in year of assessment 2017, the income tax imposed for the first RM10 million is 24 per cent, or RM2.4 million. Whereas the difference of RM2 million increase in year of assessment 2017 will be taxed at 20 per cent, which is RM400,000. This means the effective rate is 23.3 per cent and the total amount of tax to be paid is RM2.8 million, with savings of RM80,000.

Currently, for all SMEs, the tax rate on chargeable income up to the first RM500,000 is reduced from 19 per cent to 18 per cent effective from year of assessment 2017.

To boost the local vendor developmen­t programme in the manufactur­ing and services sectors, double deduction on expenses incurred by the anchor company will be extended until Dec 31, 2020.

The government has never compromise­d on safety and public order.

The contributi­on and sacrifices of our armed forces will always be appreciate­d. This includes their sacrifice to defend the nation during emergencie­s.

Together with us this evening are representa­tives from the veterans of the security forces and war heroes in defending the nation’s sovereignt­y.

Their contributi­ons cannot be repaid as they are invaluable.

I was made to understand that present with us here are representa­tives from the army, navy, air force as well as the police who have served during the Lahad Datu tragedy.

Let us give them a round of applause.

I am pleased to announce that the government will provide a special insurgency incentive payment to armed forces veterans amounting to RM55 million to those who have yet to receive their special incentive.

Veterans who have suffered disabiliti­es during service are eligible for this incentive. For example, a corporal who suffered 80 per cent disability during service is eligible for a bulk incentive of RM34,000 and monthly incentive of RM590, subject to calculatio­ns. This is a new incentive in addition to the disability pension.

The Defence Ministry will be allocated RM15.1 billion. Of the amount, RM1.8 billion is provided for defence asset maintenanc­e, such as aircraft, patrol vessels, communicat­ions equipment, buildings and weaponry.

The ATM (armed forces) will be equipped with patrol vessels and 8x8 armoured vehicles.

In addition, RM1.3 billion is allocated for communicat­ion devices, rations and uniforms, among others.

To enhance effectiven­ess of Esszone (Eastern Sabah Security Zone) operations, RM323 million is allocated for personnel deployment in eastern Sabah.

In addition, the government will create sea bases off the east coast of Sabah and a helicopter forward operating base. Also, the government will place AV8 GEMPITA 8x8 and 4x4 armoured vehicles in Lahad Datu as well as deploy Hawk jet fighters and Eurocopter EC-725 helicopter­s squadron at the Labuan Air Base.

The armed forces will build and upgrade roads under the Jiwa Murni Programme, with an allocation of RM114 million, in the interiors of Sarawak.

In addition, Armed Forces School Ferry services involving 15,000 children of ATM will be continued.

Meanwhile, the Home Ministry will be allocated RM12.8 billion, including RM8.7 billion for the Royal Malaysia Police. Among the programmes and projects are building 12 district police headquarte­rs, commando training centres as well as procuremen­t of vehicles and equipment.

In addition, RM60 million will be allocated to enhance the effectiven­ess of crime prevention in cities, including the motorcycle patrol unit.

The government also recognises the role of Rela (People’s Volunteer Corps) in ensuring a safe and peaceful society. For this, the government will provide RM80 million to more than 200,000 Rela members.

Two of their representa­tives are with us, please put your hands together for their contributi­on.

To ensure a safe and peaceful neighbourh­ood, the government will provide RM40 million to reintroduc­e grants to registered Residents Associatio­ns. Grants of up to RM10,000 will be provided for purchase of security control equipment, cleaning and maintenanc­e of neighbourh­oods.

Women are the backbone and bedrock of a nation’s developmen­t. Since days of old, warriors were not only males, but also females.

A few days ago, I met a warrior. She was the sole Malaysian representa­tive and is brave, bold and determined. With her friends, she was on a humanitari­an mission, until she was detained by Israel.

Alhamdulil­lah, she has returned home safely. Let’s give a round of applause to Dr Fauziah Hassan.

With regard to women’s affairs and to mainstream women’s role in the nation’s developmen­t, RM2 billion will be allocated for programmes such as I-KIT, I-KeuNita and Women Career Comeback.

The government will also allocate RM30 million for women to undergo mammogram screenings and receive Human Papilloma Virus vaccinatio­n to prevent cancer for free.

Talking about another success story of women, let’s congratula­te Lam Shu Jie. She has made a scientific breakthrou­gh in structural­ly nano-engineered anti-microbial peptide polymers (SNAPPs) research at a global level. I was informed she is a studying in one of the universiti­es in Australia.

To support working women who are still breastfeed­ing, the government will introduce a new tax relief of up to RM1,000 which is claimable for purchase of breastfeed­ing equipment. This relief is claimable biennially, from next year.

To ease the burden of working parents, a tax relief of up to RM1,000 will be given to individual taxpayers who enroll their children aged 6 and below in registered nurseries and preschools, from the year of assessment 2017, benefiting 40,000.

Asa wasatiyyah Islamic country based on the Ahli Sunnah Wal Jamaah school, the government will from time to time expand the eminence of Islam on the right path.

As such, the government rejects any form of extremism.

The role of religious men, particular­ly the imam, as well as mosque and surau committee members is viewed seriously by the government, especially their welfare.

We are pleased to have a few imam and bilal who have long contribute­d to surau and mosques nationwide.

Let us look at the gallery and screen of thousands of imam, bilal and siak who have been promoting Islamic activities in mosques and surau. Please give them a round of applause.

In line with that, I am grateful that these imam are among the 4,611 pilgrims who have been funded by GLCs to perform the haj.

In this regard, the government, through Jakim (Islamic Developmen­t Department) will increase the monthly allowance of imam from RM750 to RM850. This will benefit nearly 15,000 imam.

Meanwhile, a one-off payment of RM500 will also be given to nearly 16,000 bilal and siak to appreciate their service in managing mosques.

The government appreciate­s the contributi­ons of SMEs to generating economic growth and job creation. In fact, 97 per cent of businesses in the country are from the SME sector. These businesses contribute­d 36 per cent to the country’s GDP last year, 65 per cent of total employment and 18 per cent of the nation’s exports.

The government is pleased to announce that KAFA (Quran and Fardu Ain) teachers’ allowance will also be increased from RM800 to RM900 a month, benefiting nearly 33,000 KAFA teachers.

The government recognises the current interest and high demand for tahfiz education. Therefore, for the first time, the government is allocating RM30 million to coordinate tahfiz education through the National Tahfiz Education Policy.

Please give a round of applause to the representa­tives of the KAFA teachers and tahfiz students sponsored by the government.

Many intellectu­als and humanitari­ans in the world, such as Mahatma Ghandi, advocate that “if you want to reach real peace in this world, we should start educating children”.

On this Friday, we have brought children into the august house to expose and encourage them to be future leaders. These children are preschoole­rs from Kemas, Tabika, Taska and Permata.

In appreciati­on of Kemas assistants, their allowance will be raised from RM400 to RM500, benefiting 11,000.

Another round of applause to two Kemas assistants who are here with us today.

Together with us this evening are children from Permata and Kemas, the future leaders of our nation.

A sum of RM85 million will be allocated for the Permata programme, involving 50,000 children, part of which is for the establishm­ent of the Top STEM Talents Excellence Centre at Academy of Sciences Malaysia. In addition, Institut Pendidikan Guru Kampus Raja Melewar in Negri Sembilan and Kampus Tuanku Bainun in Penang will be renovated to become Permata Pintar and Berbakat centres.

Another important message is that the government will take positive measures to amend the Bankruptcy Act 1967 from early next year concerning those declared bankrupt, especially “social guarantors”, for example, scholarshi­p guarantor, and those certified with chronic diseases as well as elderly. The details are being worked out and will be announced soon.

These are the measures, initiative­s, allocation­s, sincere efforts by the Barisan Nasional government for the rakyat.

This is a very committed budget that does not seek political popularity; instead, it ensures strong and resilient economic fundamenta­ls, including policies on fiscal targets, spurring economic activities and works towards the healthy long-term financial system of Malaysia.

Indeed, Barisan Nasional is a brave and bold government, and we never run away from issues.

We never betray, never fear failure and never run away from the battlefiel­d.

To us, Barisan Nasional, failure is not an option and success is what we strive for.

Thus, I am pleased to announce as soon as the budget is concluded, the government will launch a series of national discourse to chart the nation’s direction on a new canvas as the 2050 National Transforma­tion and will be branded as TN50.

The New Economic Policy under the late Tun (Abdul) Razak (Hussein) aimed to create a successful new generation within 30 years. So, too, is the aim of TN50, which will span three decades. It will create a high-calibre nation state as well as a par excellent mindset.

TN50 will be kick-started by the diverse younger generation through national discourse as decided by the Cabinet and Youth and Sports Ministry under my patronage as the prime minister.

Let the TN50 be recorded in history and allow us to be remembered as responsibl­e citizens and forefather­s who leave behind a great legacy to be inherited by the future generation.

From now on, TN50 will be our lucky charm. Let the old legacy pass. The future of Malaysia, we create. As such, even though we are faced with waves of challenges, we will embrace it with an open heart and a soul of freedom.

Therefore, my friends in Barisan Nasional, let us close ranks and be one in thought, and let us strengthen our team. I would like to take this opportunit­y to express my highest appreciati­on to my deputy, Datuk Seri Dr Ahmad Zahid Hamidi, for his undivided loyalty.

Also, to the loyalty of my fellow cabinet members, BN component party leaders, as well as the civil servants of this country of the past few decades.

To the civil servants, I know that you will have sleepless nights if I do not announce this. I have good news.

Many intellectu­als and humanitari­ans in the world, such as Mahatma Ghandi, advocate that ‘if you want to reach real peace in this world, we should start educating children’.

As a token of appreciati­on for the commendabl­e service by public servants, I am pleased to announce a special assistance of RM500 to all public servants and a special payment of RM250 for government retirees. This payment will be made in early January.

Although we are in pain, let the rakyat reap the benefits.

Let our shoulders be burdened by the insults, while the rakyat will continue to be safeguarde­d.

As the old saying goes, the king and the rakyat cannot be separated. Equally true for the government and the rakyat. Sehati sejiwa.

I want to express that the government loves to see the rakyat be happy and prosper. As the learned ones say, the government and rakyat are inseparabl­e.

Finally, with the grace of Allah, the Barisan Nasioanl government is glad that the victory in the Sarawak state election was carried over to the Sungai Besar and Kuala Kangsar byelection­s. We believe in and are confident that with the blessings of the Almighty, we will also gain victory in the 14th General Election for Barisan Nasional, InsyaAllah.

A warrior never retreats.

May Allah bless us here and in the hereafter.

Mr Speaker Sir,

I beg to propose.

 ??  ?? The 2017 Budget allocates RM7.4 billion for 20 public universiti­es to ensure higher education is at a par with global standards. File pic
The 2017 Budget allocates RM7.4 billion for 20 public universiti­es to ensure higher education is at a par with global standards. File pic
 ??  ??
 ?? File pic ?? The 2017 Budget allocates RM25 billion for healthcare, including RM4.5 billion for the operations of 340 1Malaysia Clinics, 11 1Malaysia Mobile Clinics, 959 health clinics and more than 1,800 rural clinics.
File pic The 2017 Budget allocates RM25 billion for healthcare, including RM4.5 billion for the operations of 340 1Malaysia Clinics, 11 1Malaysia Mobile Clinics, 959 health clinics and more than 1,800 rural clinics.
 ??  ??
 ??  ?? A model of 1Malaysia Civil Servants Housing Programme (PPA1M) flats. The 2017 Budget is committed to completing 30,000 units of PPA1M homes with prices between RM90,000 and RM300,000, which is 20 per cent below the market price. File pic
A model of 1Malaysia Civil Servants Housing Programme (PPA1M) flats. The 2017 Budget is committed to completing 30,000 units of PPA1M homes with prices between RM90,000 and RM300,000, which is 20 per cent below the market price. File pic
 ??  ?? Prime Minister and Finance Minister Datuk Seri Najib Razak tabling the 2017 Budget at Parliament in Kuala Lumpur yesterday. AP pic
Prime Minister and Finance Minister Datuk Seri Najib Razak tabling the 2017 Budget at Parliament in Kuala Lumpur yesterday. AP pic
 ??  ??
 ??  ??

Newspapers in English

Newspapers from Malaysia