Following are the highlights of the 2014 Budget themed “Strengthening economic resilience, accelerating transformation and fulfilling promises” tabled by Prime Minister Datuk Seri Najib Tun Razak in Parliament today.
* The domestic economy is projected to grow at a stronger pace of between 5.0% to 5.5%.
* The unemployment rate is estimated at 3.1% while the inflation rate will remain low at between 2 per cent and 3%.
* Goods exports are expected to grow 2.5% due to improving external demand while on the supply side, the construction sector is expected to grow 9.6%.
* The per capita income for 2014 is expected to reach RM34,126 compared with RM24,879 in 2009, an increase of 37% over six years.
* It is even possible that Malaysia will achieve developed nation status much earlier than 2020.
* The 2014 Budget allocates a total of RM264.2 billion to implement programmes and projects.
* Of this amount, RM217.7 billion is for operating expenditure and RM46.5 billion for development expenditure.
* In 2014, the Federal government revenue collection is estimated at RM224.1 billion, an increase of RM4 billion from 2013.
* The Federal government's fiscal deficit will further decline from 4 per cent of GDP in 2013 to 3.5 per cent in 2014.
* Private investment is expected to increase further to RM189 billion or 17.9 per cent of GDP, particularly in oil and gas, textile industry, transport equipment and real estate development.
* Public investment is estimated to reach RM106 billion.
* Projects to be implemented include 316-kilometre West Coast Expressway from Banting to Taiping as well as double-tracking projects from Ipoh to Padang Besar and later from Gemas to Johor Baharu.
* Projects undertaken by Petronas include Sabah Ammonia Urea Project in Sipitang; integrated oil and gas production development project, Kebabangan; regasification plant project, Lahad Datu; and RAPID, Pengerang.
* The Government allocates RM1.6 billion for development in the five regional corridors.
* Agropolitan project and oil palm-based industries to be implemented in Sabah Development Corridor, Samalaju Industrial Park and Halal hub in Sarawak Regional Corridor.
* Services Sector Blueprint to be launched next year.
* Logistics Sector Master Plan and National Aviation Policy to be formulated.
* RM3 billion in soft loans under the Maritime Development Fund through Bank Pembangunan Malaysia.
* To replace existing air traffic control and management system in Subang, a new air traffic management centre costing RM700 million will be built at KLIA.
* Kota Kinabalu, Sandakan, Miri, Sibu and Mukah airports to be upgraded with RM312 million allocation.
* Passenger terminals in Langkawi International Airport and Kuantan Airport to be upgraded.
* Second phase of HSBB project to be implemented in collaboration with private sector involving RM1.8 billion investment.
* To increase Internet coverage in rural areas, 1,000 telecommunications transmission towers to be built over next 3 years, with a RM1.5 billion investment.
* To increase Internet access in Sabah and Sarawak, new underwater cables will be laid within 3 years, at a cost of RM850 million.
* Bank Negara Malaysia to lead in formulating the Netting Act to protect enforcement rights of “close-out netting” under the financial contract.
* Environmental, Social and Governance Index (ESG) to be introduced.
* Securities Commission to introduce Framework of Socially Responsible Sukuk Instrument.
* To establish a SRI Fund to be invested in listed companies. - Bernama, October 25, 2013.
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