BAJET 2012

- Budget 2012 allocates RM232.8bil for Government plans, including RM181.6bil for management and RM51.2bil for development.
- RM29.8bil has been allocated for investment in infrastructure, industrial and rural development.

- RM13.6bil has been allocated for the social sector, including education and training, welfare, housing and community development.

- Total revenue for 2012 is forecast to increase 1.9% to RM186.9bil and the deficit to decrease to 4.7% of GDP from 5.4% in 2011.

- The theme for Budget 2012 is “National Transformation Policy: Welfare for the Rakyat, Well-Being of the Nation”.

- We will focus on accelerating investment and further liberalise 17 services sub-sectors, in places enabling 100% foreign equity.

- RP2 will be implemented in 2012, and it will be allocated RM98.4bil, to be split evenly between 2012 & 2013

- RP2 main projects will include the East Coast Highway from Jabor to T’ganu and road upgrades from Kota Marudu to Ranau

- RM18bil of the RM20bil PPP Facilitation Fund will be used for high impact projects, with RM2 billion for bumiputera entrepreneurs

- In 2012, the Government will allocate RM978mil to accelerate the development in five regional corridors

- The Treasury Management Centre will be established and offer incentives to develop M’sia as a competitive financial centre

- We will develop the Kuala Lumpur International Financial District, with incentives including income tax exemptions for firms

- We will develop the Kuala Lumpur International Financial District, with incentives including income tax exemptions for firms

- Income tax exemptions for non-ringgit sukuk issuance and transactions will be extended for another 3 years

- To promote the development of Exchange Traded Funds products I-VCAP will provide RM200mil for Shariah-compliant ETFs

- Felda GVH will be listed on Bursa Malaysia by mid-2012 to raise funds for the company to become a global conglomerate. Felda settlers are expected to receive a windfall, and the amount will be announced before listing

- A RM2bil shariah-compliant SME Financing Fund managed by selected Islamic banks will be established in 2012

- A RM100mil SME Revitalisation Fund offering loans up to a maximum of RM1mil for entrepreneurs will be available from Jan 2012

- Full exemption of import duty and excise duty on hybrid cars and electric cars will continue to be given until 2013

- To promote tourism, the Langkawi Five Year Tourism Development Master Plan will be launched with an allocation of RM420mil

- The real property gains tax will be reviewed so it doesn’t jeopardise the ability of low- and middle-income groups to buy homes

- The Malaysia Healthcare Travel Council will be privatised to promote and develop Malaysia as a healthcare destination

- Budget focuses on developing human capital, creativity and innovation and 2012 will be the National Innovation Movement year

- The Govt has allocated RM100mil promote innovation including the 1Malaysia Award (C1PTA) for innovative student inventions

- To enable SMEs to commercialise research products a Commercialisation Innovation Fund totalling RM500mil will be established

- RM50.2bil will be allocated to the education sector so that it can continue to develop talented, creative and innovative people

- RM1bil will be provided through a special fund for the construction, improvement and maintenance of schools

- We will abolish payments for primary and secondary education, making these free for the first time in our history

- Private schools registered with the Education Ministry will be given incentives including an Investment Tax Allowance

- The Govt will give tax exemption for contributions to educational institutions and all places of worship

- To encourage private sector human capital development incentives including a double deduction on scholarships will be offered

- Budget 2012 introduces a Rural Transformation Programme, so that rural areas can attract private investment and create employment

- RM5bil to develop rural infrastructure, including RM1.8bil to the Rural Road Programme & Village-Link Road Project

- RM500mil to expand the programme to supply clean water to the rural community in Sabah

- RM400mil to upgrade the water supply infrastructure in selected Felda areas

- To provide greater access to bank services for the rural population, Bank Simpanan Nasional will appoint agents in rural areas

- RM90mil for the Orang Asli for basic necessities, including the expansion of the clean water supply project. For the Orang Asli affected by the landslides at Sungai Ruil, RM20mil is provided for their relocation to new homes

- 600,000 Govt pensioners will benefit from an additional annual pension increment of 2%

- Civil servants get pay rise between RM80 to RM320

- Govt will extend the compulsory retirement age from 58 to 60 years old to optimise civil servants’ contribution

- Civil servants will be offered tuition fee assistance for part-time studies, including 5,000 masters and 500
doctoral scholarships

- A special programme will be introduced for 175,000 army personnel who are not eligible for pensions

- RM3,000 will be given to ex-members of the special constable and auxiliary police as well as widows and widowers

- The Govt is mindful of the plight of the rakyat due to rising food prices and will take measures to address this

- The National Agro-Food Policy 2011-2020 will be launched and RM1.1bil allocated for the development of the agriculture sector

- In the spirit of “People First,” all subsidies, incentives and assistance totalling RM33.2bil will be continued

- 500,000 will benefit from KAR1SMA, which provides assistance to poor senior citizens and children and disabled people

- My First Home Scheme will be expanded to increase the limit of house prices from a maximum of RM220,000 to RM400,000

- Govt will identify areas in the vicinity of MRT, LRT and other public transport to be developed by PR1MA

- Govt will continue to implement the Program Perumahan Rakyat by building 75,000 units of affordable houses

- Govt will establish the Special Housing Fund for Fishermen to build and refurbish houses

- Healthcare will be allocated RM15bil operating expenditure and RM1.8bil development expenditure

- Hospitals will be upgraded and constructed as well 81 rural health clinics upgraded and 50 new 1Malaysia clinics launched

- Hospital Kuala Lumpur – the oldest in Malaysia – will be upgraded to be the country’s premier hospital

- Skim Amanah Rakyat (SARA) 1Malaysia will benefit 100,000 households with income below RM3,000 per month

- To assist taxi owners facing increased operating costs, measures will be introduced including tax exemptions on taxi purchases

- The National Legal Aid Foundation will ensure that every individual who is charged in court will be given free legal aid

- To assist the homeless, the Govt established a social assistance centre known as Anjung Singgah

- A training allocation of RM10mil will be provided for women to develop leadership and managerial skills

- To prevent cervical cancer, the Government will provide free Human Papilloma Virus immunisation nationwide

- MyCreative Venture Capital with an initial fund of RM200mil to be established

- RM15mil will be allocated to build 150 futsal courts to achieve the “One Court for One Mukim” target

- To ensure the welfare of retirees measures including a tax relief on Private Retirement Schemes contributions are introduced

- Senior citizens aged 60 years & above will be exempted from outpatient registration fees in Govt hospitals & health clinics

- One-off assistance of RM500 to households with a monthly income of RM3,000 and below will be provided

- For those in private sector earning RM5000 and below, employers’ EPF contribution will increase from 12% to 13%

- Book voucher worth RM200 will be given to Malaysian students in all private and public institutions of higher learning

- Civil servants will be given an additional bonus of half-month salary and pensioners RM500

SUMBER : The Star Online

61. The Government will offer tuition fee assistance to civil servants
to further their studies on part-time basis. In 2012, the Government
with the cooperation of public institutions of higher learning will
offer 5,000 masters scholarships and 500 doctoral scholarships for
eligible civil servants, including teachers with an allocation RM120
million. The Government will also offer 20,000 places for diploma
teachers to pursue their undergraduate studies. In this regard, the
Government will allocate RM80 million for the first year. I am confident
the civil servants and teachers will have a better career path and
promotional prospects.

STRENGTHENING THE CIVIL SERVICE
56. The 2012 Budget will transform the civil service to be dynamic,
responsive and centred on excellence. This includes a radical change in
recruitment, placement as well as career development. A flexible
remuneration system will be introduced to retain or terminate civil
servants based on performance. Civil servants must accept this challenge
and be prepared to change. Hence, the Government will introduce the New
Civil Service Remuneration Scheme or SBPA as follows:

First: Introduce an exit policy for underperforming civil servants and for those who opt to leave the service;

Second: Improve the salary of civil servants through a single tier
structure with additional increments to enable civil servants to
continue receiving annual increments over a longer period. With this,
the maximum salary for a particular grade will be higher. For example,
under SSM, a teacher on grade DG48 receives a maximum salary of
RM6,325.39, while under SBPA the maximum salary will increase 37.7% to
RM8,710. For non-graduate teachers on grade DG34, the maximum salary
under SSM is RM3,860.52 while under SBPA, will increase 39% to RM5,370;

Third: In my recent Teachers’ Day message, I announced a better
career path for graduate teachers. A teacher no longer has to wait 20
years to be promoted. In the new scheme with a time-based promotion, a
teacher will achieve grade 44 on the eighth year and grade 48 on the
16th year of service. For non-graduate teachers under the current
time-based system it will take 10 years to be promoted from grade 29 to
32, while under the SBPA it will only take eight years. Currently,
promotions from grade 32 to 34 are based on vacancies. However under
SBPA, a time-based eight years promotion will be applied; and

Fourth: The Annual Increment has not been revised since 1991.
Beginning 2012, the annual increment of civil servants will be increased
between RM80 and RM320 according to the grade. In addition, civil
servants who opt to accept the SBPA will receive an annual increment
between 7% and 13%.