2023 Budget Prioritizes Well-being of People
The government will not adjust interest rates to avoid derailing the above measures, and there will be no "windfall tax," a huge relief for corporate Malaysia.
The Malaysian government has announced its budget for 2023 which prioritizes the well-being of the people by providing handouts, tax cuts, and among other measures, a new luxury goods tax.
The government has allocated RM97 billion for development expenditure, a record high, to stimulate the economy.
Some of the measures in the budget include a luxury tax on items like watches and fashion goods and excise duties on liquid nicotine used in e-cigarettes and vapes.
1MDB, MoF Inc Settles For US$1.8 bil With IPIC and Aabar PJS
1MDB and the Abu Dhabi companies were embroiled in the legal fight in London’s courts with claims that IPIC and Aabar were complicit in the 1MDB fraud. MORE
Well-being of the people
Those with loans under RM50,000 will be released from bankruptcy status to start afresh, and there will be tax relief for those with special medical needs and higher voluntary contributions to EPF.
The government will not adjust interest rates to avoid derailing the above measures, and there will be no "windfall tax," a huge relief for corporate Malaysia.
The development expenditure will be used to kickstart the MRT3 project, upgrade tourist spots, improve airport capacity, and expedite repairs of dilapidated schools and clinics.
Rural roads and village link roads will also be developed, and Sabah and Sarawak will receive an increased allocation of RM6.5 billion and RM5.6 billion, respectively.
The construction sector is expected to grow by 6.1%, and contractors such as GAMUDA, IJM, and SUNCON are expected to benefit.
The healthcare sector has received a total allocation of RM36 billion, with PHARMA benefiting from the allocation for medicine purchases.
Property Sector Benefits
The property sector will have stamp duty exemption on the first RM1 million for real estate transfers between loved ones, while the creation of a special financial zone within Iskandar Malaysia may be positive for developers with exposure there.
The transportation and logistics sector will develop cities bordering Kalimantan, the Pan Borneo highway, and the Sarawak-Sabah Link Road. The measures are expected to benefit consumers, banks, retailers such as AEON, PADINI, MYNEWS, and MRDIY, and companies such as SIME, BAUTO, MAYBANK, RHB, and AMMB, says Rakuten Trade.
News Admin
