Budget 2024: What's in it for you?

The Malaysia Budget 2024, themed "MADANI Economy: Empowering the People," allocates RM393.8 billion to stimulate economic growth, reduce the cost of living, and enhance the well-being of the rakyat. Here are the key highlights:

Welfare Assistance (RM58.1 Billion)

• Nearly 50% of the allocation is aimed at controlling the prices of essential goods and services.
• Continued funding of RM200 million for the Payung Rahmah Programme, featuring Jualan Rahmah and Pasar Rahmah initiatives.
  •  Jualan Rahmah offers up to 30% discounts on essential goods.
  • Pasar Rahmah incentivizes 1.2 million entrepreneurs in various markets.

Rahmah Cash Assistance (STR) & Sumbangan Asas Rahmah (SARA)

• Allocation for Rahmah Cash Contribution (STR) increased to RM10 billion, with higher maximum and minimum payment amounts.
• The maximum STR payment has also been increased from RM3,100 to RM3,700.
• The minimum STR rate for singles has been increased from RM350 to RM500.
• In 2024, the SARA program will benefit 700K STR recipients with RM100 per month for 12 months.

Social Protection

• The Employees Provident Fund (EPF) introduces a Flexible Account to allow members to access their funds when needed.

Subsidies

Chicken & Egg Subsidy

• Temporary price controls on chicken and egg prices are lifted, ensuring market availability. Further details to be released by the Ministry of Agriculture and Food Security.

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Electricity Subsidy

• Refined electricity subsidy approach based on consumption, encouraging energy efficiency.
• Hardcore poor households continue to receive bill rebates of up to RM40 per month and waived deposit payments.

Fuel Subsidy

• Addressing diesel fuel subsidy loss by raising prices for some users while keeping subsidies for selected consumers such as freight transport. 

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Road Safety

• RM2.8 billion was allocated to improve roads, bridges, LED streetlights, and smart traffic lights for safety and congestion reduction.

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Business Loans and Financing Guarantees (RM44 Billion)

• Support for micro, small, and medium entrepreneurs, including micro-entrepreneurs, small traders, SMEs, and rural communities.
• Funding through various channels, such as BSN, TEKUN, BNM, and more. Details as below:
  • RM2.4 billion for micro-entrepreneurs and small traders, including RM1.4 billion through BSN and RM330 million through TEKUN.
  • RM8 billion for SMEs through BNM, including RM600 million for micro-enterprises and low-income entrepreneurs.
  • RM600 million through the Dana Impak Khazanah Nasional to promote economic growth in rural and semi-urban communities.
  • RM20 billion in loan guarantees through SJPP, especially for SMEs involved in the green economy, technology, and halal fields.
  • RM100 million in funding for AIM to support micro-businesses, especially those run by single mothers and the poor.
  • RM100 million in financing funds for the cooperative movement through the Malaysian Cooperative Commission.

Tax Reforms

• Service Tax rate increased from 6% to 8%, with exemptions for specific services, such as food and beverage and telecommunications.
• Implementation of a 10% Capital Gains Tax (CGT) on unlisted shares.
• Tax on high-value items like jewellery and watches at a rate of 5% to 10%.