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The Chinese Foreign Ministry on Friday extended the country's congratulations to Joe Biden and Kamala Harris, and said China respects the choice of the Americans.
Wang Wenbin, spokesperson of the Chinese Foreign Ministry, said that we have been watching the domestic and international reaction to the US presidential election, and we respect the choices of the Americans.
"We extend congratulations to Mr. Biden and Ms. Harris, and we also understand that the US election result will be decided in accordance with US laws and procedures," Wang said at Friday's media briefing.
Wang's remarks came after several world leaders and representatives of international organizations have congratulated Biden, who was declared the winner of the recent election.
The improvement in China-Japan ties does not come easily,
and needs to be cherished more. It is hoped that the two countries can
meet each other halfway and properly handle their divergences so as to
open up new vistas of their bilateral relationship.
Yet there is little possibility that the Biden
administration will accidentally ignite a conflict in the South China
Sea. However, the chances that Trump will do so in the final days of
presidency are rising sharply as he needs to leave a wealthy legacy for
the military industries before he officially leaves office. But for
Biden, dealing with the messy relations with other countries will be his
priority after dealing with the COVID-19 virus and troubled US economy.
Chinese people's living situation justifies the CPC's
leadership, and Pompeo's malicious rhetoric fools no one. Haunted by the
“Marxist-Leninismonster” in his brain, Pompeo and his like are dragging
the American people into a capitalist black hole. It's very likely that
Pompeo will eventually retreat from his position in months. By then,
Pompeo's claims against China will sound like his political will. Yet
China's booming development will attest that Pompeo is the “worst
Secretary of State in history.”
US Secretary of State Mike Pompeo, at the last moment of
his term, has once again provoked China by saying that "Taiwan has not
been a part of China," which is against the US' official stance and the
foundation for China and the US in establishing their formal diplomatic
ties, but Chinese experts said such a trick is unlikely to affect the
policymaking of the new administration.
The West's slander of China's vaccine also mirrors their
fear about China's rapid rise in science and technology. They do not believe China is able to develop effective vaccine as they have been viewing China with pride and prejudice
America is in the middle of its third nationwide surge in Covid-19 cases — what some are calling a “third wave” — with reported cases hitting a record high of more than 100,000 in one day.
With that, the much-feared fall and winter surge of coronavirus cases that experts warned of for months is here. Despite the US already suffering at least 235,000 Covid-19 deaths — the highest death toll in the world — it looks like things are getting worse.
As of November 8, the seven-day average of daily new coronavirus cases was more than 111,000, a record high. That’s up from a recent low in the seven-day average of fewer than 35,000 cases on September 12. The increase doesn’t appear to be driven by a single state or region — although the Dakotas, Iowa, and Wisconsin appear to be in particularly bad shape — but rather spikes across much of the country at once, with more cases reported in the Northeast, Midwest, South, and West.
The spike is partly due to more testing exposing more cases. But that can’t be the full explanation, because hospitalizations and the overall rate of positive tests are trending up. Over the most recent week of data, the seven-day average for daily tests increased by only 9 percent while daily new coronavirus cases increased by 34 percent.
Unlike the summer’s surge of coronavirus, the US isn’t alone in its latest wave — cases have risen in much of Europe, too. Still, that doesn’t mean this was inevitable: With aggressive measures, developed nations like Canada, Germany, and especially Australia, Japan, New Zealand, and South Korea have kept their Covid-19 caseloads much lower than America’s or Europe’s as a whole. And many European countries, unlike the US, have started to tame their outbreaks with new measures, from lockdowns to mask mandates.
Experts have long warned that a surge was coming in the US in the colder seasons. Even though the country never fully suppressed its summer surge in Covid-19 cases, most states have moved to reopen more businesses, including risky indoor spaces like restaurants and bars, as well as schools, with colleges and universities proving particularly problematic so far.
President Donald Trump, for his part, has encouraged the rapid reopenings — even after his own illness. As he left the hospital, Trump tweeted, “Don’t be afraid of Covid. Don’t let it dominate your life.” He’s kept pushing a false sense of normalcy in the weeks since, even going as far as mocking masks and claiming, falsely, that they’re ineffective. (In reality, the evidence for masks keeps getting stronger.)
LAST Friday, the Finance Minister tabled what is now known as Malaysia’s largest-ever budget.
The excellently-crafted and well-written budget was presented in a couple of hours and after it was presented, the social media, mainstream media, economists, consulting firms and investment banking strategists gave their views on the measures, especially those related to taxes, incentives or grants.
Now that Budget 2021 has been tabled, lawmakers will debate on the merits and vote on it. Having covered budgets for more than two decades, the devil is in the details and this year is not an exception.
Let’s look at the gross domestic product (GDP) estimate first. The government expects GDP growth for 2020 to contract by 4.5% and for next year, it is estimated to grow by between 6.5% and 7.5% in real terms. For the economy to close the year with the projected contraction, the second half of 2020 has a very small room to contract by only 0.7% as the economy shrank 8.3% in the first half.
This is a tall order as economic data remains largely weak as seen in several indicators, which include the industrial production index as well as the poor reading in the retail sub-segment.
With almost the entire nation under the conditional movement control order, economic growth, if any, will be challenging.
Meanwhile, in nominal terms, the government expects GDP growth to be -4.7% this year and to rise significantly by almost 9% in 2021, as inflation is expected to return with a reading of 2.5%, mainly due to the low base effect from 2020.
Perhaps when the Bank Negara releases the third quarter GDP data on Friday, we can then assess if the full year GDP assumption still holds water or otherwise.
For 2021, the government expects GDP growth to be driven by domestic demand, in particular growth from private consumption while the external sector may post some drag as imports are forecast to grow even faster than exports.
On the supply side, the government expects the services and manufacturing sectors, which account for 80% of the economy, to grow by 7% each while construction is expected to bounce back with a near 14% leap in 2021 after the forecast drop of 18.7% this year. From here, we can observe that one of the key drivers of the economy next year is public investment, as the government has bumped up development expenditure to the tune of RM69bil for 2021 from the adjusted figure of RM50bil this year (which was previously forecast to be at RM56bil).
The government’s total expenditure is now broken into three main buckets – other than operating expenditure and development expenditure, we now have a new line item called the Covid-19 Fund with an allocation of RM38bil this year and RM17bil next year.
In essence, since the pandemic outbreak, the government has introduced various economic stimulus packages under its Prihatin package series and the Penjana package, which in total amounted to RM305bil, while the actual direct fiscal injection totaled RM55bil.
However, under the Temporary Measures for Government Financing (Coronavirus Disease 2019) Act, the Parliament had only approved a ceiling of RM45bil for the fund and hence the Minister has proposed, taking into consideration the nation’s need up to 2022, an amendment that will be tabled to raise the fund to RM65bil, an increase of RM20bil.
This increase that was mentioned in the budget speech is meant for the RM10bil Kita Prihatin package, additional assistance for people’s well-being, as well as to secure the supply of the much-needed vaccine. The table above summarises the government’s revenue projection for this year and the next.
The expected revenue for the second half of the year and into 2021 will be challenging for the government, given the level it had achieved in the first half. As it is, the second half forecast is 23.3% higher than the first half.
In addition, for 2021, revenue and expenditure are expected to increase by 4.2% and 4.3% respectively, which will likely be tough given the tax breaks that the government is proposing, in particular, company income tax (CITA) and personal direct taxes.
Based on government’s estimate, taxes from the two sources are expected to fall by 6.8% and 7.2% this year but will bounce back strongly in 2021 with a growth of 8.8% and 18.2% respectively.Interestingly, the 2021 forecast for CITA and personal direct taxes at RM64.6bil and RM42.4bil is higher than 2019’s figure by 1.3% and 9.7% respectively.
As for expenditure, as total federal government debt stood at RM874.3bil mark or 60.7% of GDP as at end of September 2020, the government’s Debt Service Charges (DSC) too have deteriorated.
From an estimated level of 15.4% of GDP this year, DSC is expected to drop further to 16.5% in 2021, mainly driven by 11.6% increase in absolute DSC to RM39bil.
Although both the DSC ratio in 2020 and 2021 will be higher than the self-imposed fiscal limit ratio of 15%, it is hoped that by beyond 2021, this ratio will be brought under control when the economy is expected to expand further.
All in, Budget 2021 measures are holistic and inclusive for all levels of society and have been cleverly crafted to address the challenges faced by Malaysians, especially those severely impacted by Covid-19.The government has largely listened to the voices of hope in addressing the pandemic world.
Having said that, the expected government’s revenue and GDP projections are rather optimistic, resulting in a much lower budget deficit figure while the forecast government tax revenues too are on the high side. While the DSC has now surpassed the self-imposed ceiling, the government’s debt to GDP ratio is expected to remain elevated for at least this year and in 2021.It is important for the lawmakers to approve this budget as the government has taken steps in keeping the economy going.
While there are some shortcomings in the terms of budget allocations, it is hoped that this can be ironed out during the parliamentary debate stage and all lawmakers come to an consensus to approve the gigantic budget.
Pankaj C. Kumar is a long-time investment analyst. Views expressed here are his own.
Economic freedom: Xi leading other Chinese leaders at the fifth plenary session of the 19th Central Committee of the CPC in Beijing on Oct 29. China’s leaders are vowing to make their country a self-reliant “technology power” after a meeting to draft a development blueprint for the state-dominated economy over the next five years. — Xinhua via AP
WHILE the world was following the US presidential elections closely hoping for a positive change in international dynamics, they did not ignore the most important political meeting taking place in China on Oct 26-29.
The developments in China – the only country showing solid economic recovery after combating the Covid-19 epidemic in Wuhan – are too important to be eclipsed by the drama in Washington led by President Donald Trump.
The Oct 26-29 meeting gave a glimpse of the future plans of China, after Beijing withstood two major challenges: the containment from the US and a major public health crisis caused by the novel coronavirus.
The effective control of the virus has enabled China to revitalise its economy, which it contracted in the first half of the year. In the third quarter, China’s GDP posted a positive growth and is expected to see even stronger expansion this quarter.
It is against this backdrop that China was holding its most important policy meeting this year.
Over the four days, top leaders of the Communist Party of China (CPC) led by President Xi Jinping deliberated China’s 14th Five-Year Plan (2021-2025) to chart the future development path for the world’s second largest economy.
They also endorsed a blueprint to achieve President Xi’s vision of turning China into a “great modern socialist nation” by 2035, which by then is expected to be “prosperous, strong, democratic, culturally advanced and harmonious”.
The Fifth Plenary Session of the 19th CPC Central Committee set goals to spur China’s modernisation drive, pursue self-reliance in science and technology to support its development and modernise defense capabilities, according to a post-plenum press conference live on CCTV4.
A communique summarizing the decisions was released on Oct 29 night to the media.
More than 200 leaders and elite members of CPC met behind closed doors to identify policy priorities for keeping the economy growing in the middle of a pandemic, supply chain disruptions, toxic relations with the West and global economic downturn, according to the South China Morning Post.“This five year plan is China’s most important policy program, which sets goals and directions for the national economic and social development, ” said Professor Wang Wen, who was involved in drafting the plan.
The executive dean of Chongyang Institute for Financial Studies at Renmin University of China added that this plan is a “very comprehensive plan” as public opinion was collected on the Internet and reported to decision-making levels.
And President Xi had personally held frequent symposiums on various fields and sectors ahead of the plenary session.
“The plan takes into account the interests and demands of the whole country, various industries, regions and institutions. It is a design to start a new journey of fully building a modern socialist country after China completes the building of a moderately prosperous society in all respects, ” Wang said in a post-event comment piece emailed to Sunday Star.
At the post-event press conference on Oct 30, the media were told Beijing would actively promote “technological self-reliance” to speed up China’s ambition as a “technology power.”
Self-reliance is the main theme of the five-year plan as China faces the threats of economic decoupling and de-globalisation, as well as other headwinds, the media learnt.
China had to nurture its own microchip producers and high technology in the face of US export curbs that has hurt China’s tech industry.
According to a report, Chinese telecommunications giant Huawei has lost a lot of its supply sources of high-precision chips; and if the US ban continues and Beijing does not act, Huawei may have to stop its high-end smart-phone production.
“We will take scientific and technological self-reliance as a strategic support for national development, ” Han Wenxiu, an adviser to President Xi, said at the Oct 30 news conference.
State-linked Global Times, in its editorial, said Trump’s China policies have awakened the Chinese from complacency.
It said: “If it were not for the US’ suppression, Chinese people may have always built our industries on American semiconductors.
“Over the past four years, the US’ China policy has awakened China. It has made us understand we may be stuck on key technologies and we must make up for technological shortcomings.
“It has also convinced us that the US will not accept China’s rise and will do everything to suppress China. This is a cold reality.”
The CPC plenary session has also endorsed the “dual circulation” economic strategy.
Under this new strategy, China will remain open to foreign investment and trade, while moving its pivot to build up an internal economy. The model looks at the domestic market as the country’s economic mainstay, with domestic and foreign markets complementing each other.
Although there is greater emphasis to create the domestic economy by spurring local spending, China will continue to open more sectors to foreign investors.
The message sent to foreigners is: China will not isolate itself from the global economy while developing its domestic economy to be self-reliant in all aspects.
And in fact, at the opening of Shanghai’s third import expo on Wednesday, Xi announced China wants to import more and be the market of the world. He added China’s 400 million-strong middle class will be ready consumers.
According to Han, the Oct 26-29 meeting also decided that China will continue to pursue reforms and open up as it believes in multilateralism and globalisation.
He said: “We will never waver in our national policy of opening up. China will provide countries around the world with larger markets and more opportunities.”
In the next five years, China will focus on high-quality growth and expansion of domestic markets, as well as increasing its innovation capability.
“As China is no longer a follower but a front-runner, the meeting must have considered how China can lead the global economy. The following five years will not be easy. However, as long as we grasp the law, enhance awareness of risks and opportunities... China
will witness a completely new scene of development, ” commented Wang.
As China is facing possible risks of clashes with the US and its allies that are conducting extensive military exercises in waters in South China Sea and nearby waters, military buildup is on the agenda in the next five years.
“China’s necessary military buildup is urgent. Based on the principle of effective defense, besides establishing military advantages in coastal waters, we must consolidate our strategic deterrence based on nuclear capabilities, ” explained Global Times in its editorial.
“We must make Washington realise that it is facing a China that it should be wary of trifling with, and that treating China as a friend rather than a foe much better fits US national interests, ” added Global Times.
Despite this, the communiqué released said the party plans to promote peaceful reunification of Taiwan.
In the four-day intense meeting, the welfare and interests of the people were not left out.
After eradicating the last of extreme poverty this year and lifting 700 million out of abject poverty in the past 40 years, the next goal for the CPC leaders is to hit its target of building a “moderately prosperous society” in 2021.
In fact, the goal to become “a moderately prosperous society” in by 2021 has been achieved, according to state media.
Acknowledging that the Covid-19 pandemic has affected many people, the plenary session discussed employment, income disparity, the quality of life and education, health issues and elderly care, the media were told on Oct 30. While the plenary session deliberated a lot on economic issues, foreign media are keen to scrutinise it from a political angle. To Japan’s Nikkei, the “2035”
figure is a magical figure that could provide indication on the leadership tenure of Xi, who became president in 2013.
“The long-running speculation that Xi is considering staying in power way past 2022 was in effect confirmed as China put in motion an ultralong 15-year vision promising new levels of prosperity by 2035, ” reported Nikkei.
But whether outsiders love CPC or not, China’s 1.4 billion Chinese have the final say.
According to a nationwide survey, about 95% of Chinese nationals polled said they support the CPC leaders and are satisfied with the manner they govern the country and overcome the Covid-19 crisis.
“History has selected the CPC to lead China and its people. The CPC, under the strong and excellent leadership of President Xi, will continue to rule China, ” declared one of four spokesmen at the Oct 30 live press conference.
He added: “The plenary session believes that under the leadership of Xi Jinping, China will be able to face risks and tackle challenges ahead and advance a socialist economy with Chinese characteristics.”
During the 13th Five-Year Plan period,
from 2016 to 2020, China has made great strides in improving the
economy, people's livelihood and other fields. China has contributed
over 30 percent to global economic growth, with GDP hitting almost 100
trillion yuan ($14.9 trillion). Over 50 million people have been
relieved from poverty, and 53.78 million new urban jobs have been
created. New standard bearers in technology emerged, including
high-speed trains, the BeiDou Navigation Satellite System and domestic
passenger aircraft C919. This rapid technological development can be
attributed to investment in research and development, which totaled 2.17
trillion yuan in 2019, accounting for 2.19 percent of GDP and up 56.3
percent from 2015.
From smart unmanned vaccination capsules and artificial meat
to the world's first complete carbon fiber supercar and the safest
electric wheeled excavator, the ongoing third China International Import
Expo (CIIE)
To adapt to the changing international and domestic
trends, China will pursue international cooperation and competition as
well as innovative development in foreign trade, one of the driving
forces of the nation's economic growth.
US diplomacy under Secretary of State Mike Pompeo has
become chaotic, with no principle or bottom line. It's a train wreck.
Pompeo's successor needs to make up for damages done to China-US
relations, US' alliance system and multilateralism.
US President-elect Joe Biden has announced he will form a task force of scientists and experts to bring COVID-19 under control in the United States.
US President-elect Joe Biden vowed to heal and unite the US, a process that will begin with naming a group of scientists and experts as transition advisers on Monday to deal with the COVID-19 pandemic, in a speech at a rally in his hometown of Wilmington, Delaware.
The COVID-19 task force plan will be built on bedrock science, and be constructed out of compassion, empathy, and concern, Biden said as he declared victory Saturday night at the rally.
"I will spare no effort, none, or any commitment to turn around this pandemic."
"Our work begins with getting COVID under control. We cannot repair our economy, restore our vitality or relish life's most precious moments... until we get it (coronavirus) under control," Biden said.
The President-elect said, "On Monday, I will name a group of leading scientists and experts as transition advisors to help take the Biden-Harris plan and convert it into an actual blueprint that will start on January 20, 2021."
The US President-elect said he wanted to provide "some comfort and solace" to the families of the 230,000 Americans who had died from COVID-19. In his speech, Biden also thanked local elected officials and volunteers who worked the polls in the middle of the pandemic.
The US has been hit hard by the pandemic, which has infected over 9 million and killed more than 236,000 Americans.
Biden also vowed to "restore the soul of America" and "rebuild the backbone" of the US. "Let this grim era of demonization in America begin to end here and now," Biden said.
The US President-elect pledged to be a president who seeks not to divide but unify. Addressing those who voted for President Trump, Biden said he understood their disappointment. "But now, let's give each other a chance," he said.
The former vice president said it was time to listen to each other again, and to make progress.
Maintaining social unity has become an increasingly
arduous and sensitive task. Obviously, the US needs political reforms
more than many other countries to enhance its ability to promote unity.
PETALING JAYA: The government has announced a month-long conditional movement control order (CMCO) in Kedah, Penang, Perak, Melaka, Johor and Terengganu from Monday due to the rising number of Covid-19 cases in the states.
The CMCO will end on Dec 6.
“It will be for all states in Peninsular Malaysia, except for Perlis, Pahang and Kelantan,” said Senior Minister for Security Ismail Sabri Yaakob at a press conference today.
“The implementation of the CMCO is to allow the health ministry to conduct targeted screenings and to decrease movement in the community, in addition to curbing the spread of Covid-19 in these states.”
The rules under the CMCO are as follows:
inter-state and inter-district travel is prohibited, except for emergency cases, in which case a travel permit by the police is required and all workers must either show their employee pass or a letter from their companies;
only two members of a household may leave the house to buy necessities;
all schools, higher education institutions, training institutes, kindergartens, childcare centres, public parks and recreational centres will be closed;
activities in the economic, industrial and trade sectors would be allowed to operate as usual;
all forms of public transport, such as buses, taxis and e-hailing services, with a maximum of two passengers, are allowed to operate from 6am to midnight;
daily markets are allowed to open from 6am to 2pm, while wholesale markets may operate from 4am to 2pm, and night markets from 4pm to 10pm;
petrol stations may operate from 6am to 10pm but those located along highways may operate 24 hours;
clinics and public hospitals will be allowed to open for 24 hours while pharmacies and medicine stores may operate from 8am to 11pm;
fishing, farming and the agriculture sectors may operate as usual; and;
all social gatherings, including weddings, and entertainment activities, are not allowed.
Ismail also said all religious activities in mosques will be decided by the state religious authorities, adding that further details may be found on the National Security Council’s (MKN) website.
Meanwhile, Ismail announced that the Maahad Al-Yahyawiah government-aided religious school in Padang Rengas, Kuala Kangsar, Perak, will be placed under the enhanced MCO from tomorrow until Nov 21.
He said the decision was made after 27 positive cases were detected in the area on Nov 5.
He added that the health ministry would continue conducting targeted screenings on a total of 123 students and 11 staff members at the school.
CLICK HERE FOR THE LATEST DATA ON THE COVID-19 SITUATION IN MALAYSIA
PETALING JAYA: Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz is presenting Budget 2021 in the Dewan Rakyat, the first under Prime Minister Tan Sri Muhyiddin Yassin’s administration.
Budget 2021 is widely expected to be one of the biggest, if not the biggest federal budget to date, as it contains many measures to help ordinary Malaysians and to stimulate economic recovery in the midst of the Covid-19 pandemic.
Follow the developments below:
Updating...
Special finance aid for civil servants
The government announced a special finance aid worth RM600 for civil servants grade 56 and below. For pensioners and veterans with no pension, a special financial aid of RM300 will be given. Both aids will be paid out early 2021.
Vapourising vaping
Excise duty at an ad valorem rate of 10% on all types of electronic cigarette devices and non-electronic devices, including vaping products.
Electronic cigarette liquids will also be subjected to an excise duty at a rate of RM0.40 per millimetre.
More savings for households
SAVE 2.0 programme will be introduced, where an e-Rebate of RM200 for a household purchasing a locally made air-conditioning unit or refrigerator. RM30mil has been allocated for the programme, and it would benefit 140,000 households.
Duty-free doom for ciggies
Beginning January 2021, no more new cigarette import licences will be issued. Such licence renewals will also be tightened and the conditions revised, including imposing import quotas.
The transhipment of cigarette exports will be limited to selected ports. Taxes will be imposed on drawbacks on all imported cigarettes for the purpose of transhipment and re-export.
The government will also not allow transhipment activities and re-exports of cigarettes using pump boats.
Taxes will also be imposed on cigarettes and tobacco products at all duty-free islands.
↓
Towards cleaner rivers
RM50mil will be allocated to tackle rubbish and solid waste in rivers,
Education Ministry gets biggest allocation
The Education Ministry will receive the biggest allocation with RM50.4bil or 15.6% of the total budget.
Task force beefed to battle smuggling
The Multi-Agency Task Force will be empowered with the inclusion of the Malaysia Anti-Corruption Commission (MACC) and National Anti-Financial Crime Centre to battle smuggling of high duty items.
When the levy breaks
To help reduce the cashflow burden of still-affected companies, a Human Resource Development Fund (HRDF) levy exemption will be given for six months effective Jan 1, 2021. This exemption will cover the tourism sector and companies affected by Covid-19.
Indigenous inspiration
To ensure the wellbeing of the Orang Asli community, RM158mil has been allocated.
This will be channelled to social assistance and development programmes.
A total of RM5mil has been allocated for surveying work to mark the borders of 21 villages.
Another RM41mil has been allocated for a Native Customary Rights programme in Sabah and Sarawak.
Assistance for contractors
RM2.5bil will be allocated to Class G1 to G4 contractors to carry out small and medium projects nationwide. This will include RM200mil for Federal road maintenance and RM50mil for the maintenance of People's Housing Program housing units.
Special grant for Sabah traders
The government has heard about the plight of the traders and hawkers in Sabah who were greatly affected from the reduced presence of tourists. Thus, an additional Prihatin Special Grant (GKP) of RM1,000 will be given to traders and hawkers in Sabah. This special grant will also be given to taxi drivers, e-hailing drivers, car rentals and tourist guides in Sabah.
Equity crowdfunding boost
To encourage more individual investors to participate in equity crowdfunding (ECF) platforms, an income tax exemption of 50% from the invested amount or limited to RM50,000 will be given.
RM30mil is allocated to a matching grant that will be invested into ECF platforms under the supervision of the Securities Commission.
Preparing for tourists
To ensure the readiness of tourist hotspots, RM50mil is prepared for the maintenance and repairs of tourism facilities all over the country. RM20mil has also been allocated for improving the infrastructure and spurring the promotion of Cultural Villages in Terengganu, Melaka, Sarawak and Negeri Sembilan.
Healthcare help
RM35mil allocated to the Malaysia Healthcare Travel Council to increase competitiveness in the local health tourism sector.
The government will also extend the tax exemption for private healthcare service exports until 2022.
Micro credit financing
Micro credit financing of almost RM1.2bil will be made available through Tekun, PUNB, Agrobank, BSN and other financial institutions. This includes an additional RM110mil to the Micro Enterprises Facility under Bank Negara to encourage entrepreneurship activities among gig workers and those who are self-employed as well as to support the iTekad implementation programme.
Preserving heritage buildings
RM10mil will be allocated to ensure heritage buildings such as Bangunan Sultan Abdul Saad and Carcosa Seri Negara will be maintained and become tourism icons.
More child care centres at government buildings
To improve the support system for frontliners and working parents, RM30mil has been allocated for the setting up of child care centres at government buildings, especially hospitals. Another Rm20mil has been in grants will be allocated to the private sector to encourage them to set up similar centres.
Locals and Orang Asli as tourist guides
Employment opportunities will be provided to 500 people from the local community and the Orang Asli as tourist guides at all national parks to spur the ecotourism segment.
Help for airline staff
The government recognises that the tourism industry, especially airline companies, are among the most affected sectors. Thus, the government will provide training programs and relocations for 8,000 staff from airline companies in Malaysia, with an allocation of RM50mil.
Boost for palm oil sector
The Malaysian Sustainable Palm Oil (MSPO) Certification Scheme will be continued with RM20mil to boost the growth of the country's palm oil sector. A matching grant of RM30mil to encourage investments will be introduced.
Social support centre for women
To combat the issue of domestic violence, the government will set up a social support centre with an allocation of RM21mil. With the help of NGOs, the centre will provide social and moral support for women, especially those facing domestic violence and divorce.
Promoting Malaysian-made goods
RM35mil will be allocated to promote Malaysian-made goods and services under the trade and investment mission.
Supporting the production of local products
The National Development Scheme (NDS) worth RM1.4bil will be allocated to support the implementation of domestic supply chain development and increase the production of local products such as medical equipment.
Safety net
RM24mil has been allocated for a Socso disaster scheme that is expected to benefit 100,000 workers, including delivery drivers and contractual civil service workers.
Contribution to battle Covid-19
Four glove manufacturers - Top Glove, Hartalega, Supermax and Kossan have committed to contribute RM400mil to battle Covid-19, including bearing the cost of the Covid-19 vaccine and health equipment.
<Encouraging high tech and innovative sector Encouraging high tech and innovative sector
RM500mil High Technology Fund will be provided by Bank Negara to support high tech and innovative sector companies.
EPF withdrawal for insurance purchase
The Employees Provident Fund (EPF) will allow its members to withdraw from their Account 2 to purchase insurance products for themselves and their family members. The Private Retirement Scheme (PRS) tax relief of RM3000 a year has been extended until 2025.
RM1bil will be provided as a technology and high value investment incentive package.
Allocation for Defence Ministry and Home Ministry
The Defence Ministry and the Home Ministry will be allocated RM16bil and RM17bil, respectively.
Improving cyber security safety
RM27mil will be allocated to CyberSecurity Malaysia to improve the cyber security safety of the country.
Laptops for online classes
To ensure students at higher learning institutions (IPT) on PTPTN loans are able to follow online classes, the government will work with BSN to ready RM100mil to finance Skim BSN MyRInggit-i COMSIS, a laptop computer loan scheme.
Unlimited pass, and beyond!
The My30 Unlimited Travel Pass initiative will be continued and further implemented in Penang and Kuantan with an overall allocation of RM300mil.
An unlimited monthly travel pass at RM5 will be introduced to students from Year One to Form Six, as well as disabled students.
Tax relief for parents saving for their children's future
To encourage parents to save for the costs of their children’s higher education fees, a tax relief of up to RM8.000 for National Education Savings Scheme (SSPN) net savings will be implemented until assessment year 2022.
Tourism aid
The wage subsidy programme will be extended for another three months, in a targeted manner especially for those in the tourism sector. Altogether, RM1.5bil has been allocated, with an estimated 70,000 employers and 900,000 workers expected to benefit.
Creating jobs
A short-term employment programme MyStep with an allocation of RM700mil will offer 50,000 contractual job opportunities in the civil service and government linked companies (GLCs) from January 2021.
Under this initiative, 35,000 jobs in the civil service will be offered, with a priority given to vacancies such as nurses and medical attendants. The GLCs will provide 15,000 jobs with a priority on technical and financial fields.
Better infrastructure in public universities
Some RM14.4bil will be allocated to the Higher Education Ministry. This would include RM50mil to repair infrastructure and old equipment in public universities.
Stamp duty exemption for first home owners
Full stamp duty exemption will be given to transfer of ownership document and loan agreement for the purchase of a first home worth not more than RM500,000. This exemption will be for the purchase agreement from January 2021 to Dec 31, 2025.
Stable internet connection in universities
To ensure stable internet connection in tertiary education institutions, the government has allocated RM50mil to upgrade the Malaysian Research and Education Network (MYREN) access from 500Mbps to 10Gbps.
Free laptops for students
In the new normal, online learning has become an everyday practice. GLCs and GLICs will contribute RM150mil to Tabung Cerdik to give laptops to 150,000 students at 500 schools in a pilot project. The project will be overseen by Yayasan Hasanah.
A healthier, fitter you (with apologies to Radiohead)
The government allocates RM19mil to implement the Healthy Malaysia National Agenda (Agenda Nasional Malaysia Sihat) to encourage a healthy lifestyle and reduce the risk of of diabetes, hypertension and obesity.
As much as RM28mil will be allocated to carry out programmes like MyFit, Hari Sukan Negara and the Inspire programme for the disabled.
Higher lifestyle tax relief
The limit of the ‘lifestyle tax relief’ has been raised from RM2,500 to RM3,000, which is an increase of RM500 specifically for sports-related expenditure, including entrance participation fees for sports competitions. The scope of the relief has also been expanded to include subscription to electronic newspapers.
Assistance for rubber smallholders
To help rubber smallholders, the rubber production incentive will be increased from RM150mil to RM300mil, with an expected 150,000 smallholders to benefit from this. Another RM1.7bil will be allocated in forms of subsidies, assistance, and incentives for farmers and fishermen.
RM50 e-wallet credit for the youth
The government through the eYouth Programme (Program eBelia) will credit a one-off RM50 to e-wallet accounts of those aged between 18 and 20 years old. With the allocation of RM75mil, the initiative will benefit some 1.5mil youths.
Community centres for childcare
Community centres will be provided as a place of care for children after their school session ends.
Early childhood education programmes
RM170mil will be allocated for the early childhood education programmes by the Community Development Department (Kemas).
Tax deduction for employers of senior citizens
Additional tax deductions will be given to employers who employ senior citizens. This tax deduction will be extended until 2025.
RM2.7 billion is allocated for the improvement of rural infrastructure.
Appreciation for artists
RM15mil will be allocated to the Cultural Economy Development Agency (Cendana) for the implementation of various art and cultural programmes that will benefit more than 5000 artists and those who work behind the scenes.
Community programmes
For the Chinese community: RM177mil will be provided for the improvement of education facilities, housing and new village development.
For the Indian community: RM100mil be allocated to the Indian Community Transformation Unit (MITRA) to empower the socioeconomic status of the Indian community.
PenjanaKerjaya
Under the recruitment of workers under Social Security Organisation (Socso) known as the PenjanaKerjaya:
Incentives for workers earning RM1500 and above will be increased from a rate of RM800 a month, to 40% from of its monthly salary, limited to an incentive of RM4000 a month.
Employers will be given an additional incentive of 20% to encourage job opportunities for people with disabilities, those who are unemployed long-term and workers who have been terminated.
For sectors with high reliance on foreign workers such as those in construction and plantation sector, a special incentive of 60% of the monthly salary will be provided with 40% channeled directly to employers and 20% to local workers to replace the foreign workers.
These incentive will be given for a period of six months.
Those hired under the PenjanaKerjaya, the maximum cost of the training programme that can be claimed by employers will be raised from RM4000 to RM7000 to undergo the a high-skilled programme or a professional certificate programme.
Optomising the value of Malay reserve land
RM750mil will be allocated to Pelaburan Hartanah Berhad (PHB) under the 12th Malaysian Plan to increase the value of Bumiputra reserve land.
Lower EPF contributions
The EPF contribution rate for workers will be reduced from 11% to 9% starting January 2021, for 12 months, worth a total of RM9.3bil.
Reskilling and upskilling programmes
RM1 billion will be allocated for upskilling and reskilling programme involving 200,000 people.
LOWER TAXES … for some
The income tax of those earning between RM50,001 and RM70,000 will be lowered by one percentage point, expected to benefit 1.4 million taxpayers.
For a period of two assessment years, the income tax exemption limit for compensation paid upon job loss will be increased from RM10,000 to RM20,000 for every year of service completed.
Bantuan Prihatin Rakyat (BPR)
The Bantuan Sara Hidup (BSH) assistance package will be changed to Bantuan Prihatin Rakyat (BPR) with better assistance.
1) Those with a household income of less than RM2500, and with a child will receive RM1200, while those with two children or more will receive RM1800.
2) Those with a household income of between RM2501 and RM4000, and with one child will receive RM800, while those with two children or more will receive RM1200.
3) Those with a household income of between RM4000 and RM5001, and with one child will receive RM500, while those with two children or more will receive RM750.
4) Single individuals with an income of less than Rm2500 will receive RM350.
The BPR is expected to benefit 8.1mil people with an allocation of Rm6.5bil.
Welfare assistance for the disabled
To assist the disabled (OKU), the government has agreed to increase the monthly welfare assistance for the group which includes;
1. Non-working OKU allowance increased from RM250 to RM300;
2. Assistance for senior citizens as well as OKU and chronic patients increased from RM350 to RM500;
3. Allowance for OKU workers increased from RM400 to RM450;
4. Assistance for children from poor families to be increased. An increase of RM100 to RM150 per child between the age of seven and 18 years, and up to RM450 per family, or an increase to RM200 for a child aged six and below per family to a maximum of RM1,000 per family.
EPF withdrawal
In a much awaited-move, the government has announced the targeted facility to withdraw EPF savings from Account 1, as much as RM500 per month, amounting up to RM6,,000 for 12 months.
This withdrawal is to assist EPF members who have lost their jobs, and is expected to lighten the financial burden of 600,000 affected members.
Taking into account both the i-Lestari initiative as well as the Account 1 withdrawal facility, the total of cash withdrawal is up to RM12,000.
It is projected that the total payment for Account 1 withdrawals will involve RM4bil.
Eligible members can apply starting January 2021.
Life and health
The government will expand mySalam protection for medical device cost claims such as stents for the heart, or prostheses.
The government also intends to expand social protections for the B40 group through a voucher programme for life insurance.
Each B40 recipient will be given RM50 vouchers as financial assistance for products such as takaful and personal accident insurance.
At the same time, the government will also extend the period of stamp duty exemption on all life insurance products, not exceeding RM100, for another five years until the 2025 assessment year.
BPN2.0 second phase payments in 2021
The BPN was introduced to reduce cash flow burdens for the rakyat who are affected in the wake of the Covid-19 pandemic.
In 2020, BPN and the Bantuan Sara Hidup (BSH) involved the channelling of RM21bil to 10.6 million recipients. In January 2021, the BPN2.0 second phase payments amounting RM2.2bil will be channelled out.
Pneumococcal immunisation programme
A pneumococcal immunisation programme will be implemented for children with an allocation of RM90mil which is expected to benefit 500,000 children.
#KitaJagaKita
The Finance Minister says he is touched with the #KitaJagaKita spirit among Malaysians, and recalls the story of Bertam-born Rosnizam Ishak, who started a marinated lamb business using Bantuan Prihatin Nasional, creating job opportunities for those in the vicinity.
He also cites the example of Pajan Singh Kirpal Singh, who provided free accommodation for frontliners posted to Kuantan during the movement control order and recovery movement control order period, and Michelle Kugan, a crystal and pearl entrepreneur who used micro loans under the National Entrepreneur Group Economic Fund (Tekun) to sustain her business in Tuaran, Sabah.
Thus, Budget 2021 is crafted for Malaysians and themed “Teguh Kita, Menang Bersama”.
Pro-vaxxers
To encourage Malaysians to get preventive vaccinations to curb the spread of diseases, the government will expand the scope of tax exemption for the medical treatment covering vaccination expenses such as pneumococcal, influenza and Covid-19.
Tax exemption will be given for the vaccination costs for self, spouses and children limited to RM1,000.
Tax relief
The government will raise the tax relief limit on personal, spouse and child medical treatment for serious illnesses from RM6,000 to RM8,000. In addition, the tax relief for a full health screening will be increased from RM500 to RM1,000.
The tax relief on expenses for medical treatment, special needs and parental care has also been raised from RM5,000 to RM8,000.
Big budget
Govt allocates RM322.5bil, or 20.6% of our Gross Domestic Product (GDP), for Budget 2021. This is an increase from its total expenditure allocation for 2020, which has been revised upwards to RM314.7bil from the initial budget estimate of RM297bil.
Every individual in B40 group will receive a special voucher worth RM50 to buy takaful hayat and personal accident insurance.
An allocation of RM24mil is provided to address mental health issues by strengthening Mental Health, Terrorism and Injury Prevention Program as well as Substance Abuse.
The maximum tax relief for individual, spouse and children's medical expenses for serious medical ailments raised to RM8,000 from RM6,000
Fight the good fight
RM150mil will also be allocated for the National Disaster Management Agency (Nadma) to coordinate efforts to fight Covid-19.
Hail the frontliners
To honour the sacrifices of frontline workers in handling the Covid-19 pandemic, the government has agreed to a one-off payment of RM500 to them, which is expected to benefit 100,000 people.
For 2021, the government said it will allocate RM1bil more to fight the third wave of the Covid-19 pandemic.
For the year 2020, the government has allocated RM1.8bil for the implementation of the movement control order (MCO) as well as related public health facilities related to Covid-19 among which is to purchase personal protection equipment (PPE), reagents and consumables.
The government will raise the ceiling of the Kumpulan Wang Covid-19 by RM20bil to RM65bil to fund the Kita Prihatin initiative.
The government proposes to raise the ceiling of the Covid-19 Fund by RM20bil to RM65bil.
Three main objectives of Budget 2021
Firstly: The wellbeing of the people
Secondly: Business continuity
Thirdly: Resilience of the economy
Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz points out that Malaysia has gone through a challenging year in 2020. He says that never in modern history has a plague caused such an impact.
We will get through this!
Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz: The government expects the economy to recover in 2021, and to grow by between 6.5% and 7.5% in line with the stimulus packages and Budget 2021.
Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz begins his speech.
Speaker allows the request and calls all MPs to enter the hall.
Let us in!
Opposition leader Datuk Seri Anwar Ibrahim urges that more MPs be allowed into the Hall to hear and debate the Budget 2021 proposal.
AmBank
Group CEO Datuk Sulaiman Mohd Tahir says the government’s Budget 2021
is one that is reflective of the need for mitigatory measures to manage
the continued impact of the Covid-19 pandemic.
Biden Photo: AFP 
The FM really got SHOCKED when LGE asked him whether the budget was approved by the cabinet. Watch the video.
