Over the past few days the recent Budget 2020 proposal by our Finance Minister Lim Guan Eng has been circulating on the Internet. Many different industries, areas, and issues were addressed during his speech. However, for some of us who are not so fluent in finance, it might be a bit difficult to digest. So here are some key highlights from Budget 2020.
Every year in October, Malaysians hold their breath in anticipation of the new federal budget. The Government identifies proposed revenues, spending, and forecast economic conditions. Furthermore, in the new federal budget we learn about new plans on funding, taxes, and plans that affect us.
And thus this year we all waited for Budget 2020 which was announced recently. Please take note that this article will not be addressing every single proposal made. If you would like to have a more comprehensive read you can click here. What I will try to do is highlight some of the key proposals made.
The government has proposed under Budget 2020 that RM450 million will be used here. This budget is meant to acquire up to 500 electric buses for public transportation and will be implemented in selected cities nationwide.
Having electric buses will bring a better impact on the environment as it cuts down on fossil fuels. Furthermore, it will provide a nicer commute with less noise, less vibrations, and less issues.
Firstly, according to Lim Guan Eng, MCMC will set aside RM250 million in regards to satellite technology. Funds will be used to prepare broadband access via satellite technology in efforts to increase connectivity in rural Malaysia.
MCMC will also be putting more focus on implementing connectivity in Sabah and Sarawak. The two Borneo states still face some difficulty in getting good connection to the Internet and more.
Secondly, the Government also plans to increase the allocation for e-sports to RM20 million. The reasoning behind this is that they see a lot of potential for this industry to continue growing.
However, there have been some mixed emotions about this. Some are in full support saying that it’s great that e-sports is being recognised. Meanwhile, others believe that the funds could be directed elsewhere.
Various plans have been proposed under these sectors that mainly include upgrading and building new institutions. This includes clinics and hospitals to provide better access to better healthcare.
Besides that, the Government also plans to allocate RM60 million for pneumococcal vaccination for all children. This vaccine can prevent children from developing pneumococcal disease which can cause pneumonia, meningitis, and sepsis. This has garnered support from the public.
As a way to enable more Malaysians to own property, the rent-to-own (RTO) financing scheme will be introduced. The Government will collaborate with financial institutions to help fund the programme.
Under the RTO scheme, upon agreement an applicant will rent a property for up to 5 years. After this they will have the option to purchase the home based on an agreed price established when the tenancy agreement is signed.
This scheme is only for the purchase of a first home with a property price of up to RM500,000. Furthermore, it allows applicants to avoid putting a 10% downpayment which they might be unable to do upfront.
Under Budget 2020, graduates who are unemployed for more than 12 months will receive a wage incentive. Every month for two years they will receive RM500 only after securing employment. Meanwhile, employers will receive a hiring incentive of RM300 a month for up to two years.
A similar incentive programme will be applied to women aged 30-50 years old who have stopped working for more than a year. Upon being employed, they will receive a RM500/month incentive for up to two years. Their employers will also receive RM300 a month for two years as a hiring incentive.
Secondly, women will now be able to take paid maternity leave for 90 days instead of just 60. This will take effect from the year 2021. Many have voiced out support for this proposed plan.
What do you think about Budget 2020? I think that there will always be some parts that we can agree and disagree on. With something that has such a huge impact on the whole country, it can be quite hard to please everyone. All that matters is that there is greater good happening for us all.