Malaysia's Budget 2011 Highlight

These are the highlights of Budget 2011:
The Govt took into consideration views from the public and private sectors, focus groups, media, 1M blog and lab sessions.
Govt expects 7% growth for Malaysia in 2010 over previous estimate of 6%.
Govt aims to achieve 6% growth in 2011, supported by private investments, expanding 10.2%, private consumption 6.3%, exports 6.7%.
Income per capita will increase 6.1% to RM28,000 while income in terms of purchasing power parity to USD16,000 (RM49,440).
Will emphasise on efforts to transform the nation into a developed plus high-income economy plus sustainable development.
With the theme "Transformation Towards a Developed and High-Income Nation", Budget 2011 will centre on 4 key strategies.
Several PPP projects identified under the 10MP will be implemented in 2011 through private investment of RM12.5bil PPP project: Construction of highways such as the Ampang-Cheras-Pandan Elevated Highway
PPP project: Construction of a 300-megawatt Combined-Cycle Gas Power Plant in Kimanis, Sabah
PPP project: Development of International Islamic University Malaysia Teaching Hospital in Kuantan; Women and Children’s Hospital
Another PPP project identified is the Academic Medical Centre. This project involves private investment of RM2 bil
Greater KL MRT to be implemented from 2011. When completed, public transport utilisation rate is expected to rise to at least 40%
Another major project is the development of the Malaysian Rubber Board land in Sungai Buloh covering an area of 2,680 acres
A new landmark, Warisan Merdeka, is expected to be completed in 2020. It will include a 100-storey tower, the tallest in Malaysia
The Govt will implement bold measures to revitalise the domestic capital market
Efforts will be taken to strengthen Malaysia's position as a premier Islamic capital market
The Govt will provide Entrepreneurship Enhancement Training Programme to train 500 technopreneurs and attract more angel investors
The Malaysian Technology Development Corporation will be provided a startup fund amounting to RM100mil to provide soft loans
To revitalise capital market activities, the Govt will launch a Private Pension Fund in 2011
Existing income tax relief of up to RM6,000 for employees contributions to EPF will extend to Private Pension Fund contributions
A sum of RM857 mil is allocated for local E&E companies to compete at the international level
The Govt will allocate RM146 mil to support the oil, gas and energy industry
The Govt is committed to develop green technology to ensure sustainable development
Pioneer Status, Investment Tax Allowance for energy generation from renewable sources plus energy efficiency activities extended til 31 December 2015
To further encourage ownership of hybrid cars, import duty and excise duty exemption will be extended until 31 December 2011
Tax exemption on income from trading of Certified Emission Reductions certificate to extend until year of assessment 2012.
The Govt will implement the Programme on Blending of Biofuels with Petroleum Diesel (B5 Programme) in June 2011
The Govt will allocate RM3.8bil in 2011 to increase productivity and generate higher returns in the agriculture sector
Infrastructure facilities to be allocated - RM85mil to facilitate construction of hotels and resorts in remote areas
RM3bil eco-nature resort Nexus Karambunai, Sabah, to commence 2011
To support the tourism industry, the Government will allocate RM100mil
The Govt proposes that import duty on approximately 300 goods preferred by tourists and locals, at 5% to 30%, be abolished.
In efforts to propel the palm oil and related products industry, several measures will be implemented
Measures include encouraging replanting activity to replace aged trees with high quality new clones through RM297mil
RM127mil to be allocated to support domestic oleo derivatives companies plus RM23.3m to expand downstream palm oil industries
Multimedia Development Corridor programme is allocated RM119mil. Focus is on creating an innovative digital economy
Import duty and sales tax exemption on broadband equipment are also extended for two years until 2012
The Government proposes that sales tax be exempted on all types of mobile phones
Corridor and regional development will be accelerated. The Government allocates RM850mil for infrastructure support
For Iskandar Malaysia, a sum of RM339mil is allocated.
The Northern Corridor Economic Region is allocated RM133mil.
East Coast Economic Region is allocated RM178mil for projects
For Sarawak Corridor of Renewable Energy, RM93mil is allocated for facilities
A sum of RM411mil is allocated in 2011 for R&D&C activities
For 2011, a sum of RM71mil is allocated for Special Innovation Unit UNIK
A sum of RM200mil is allocated to purchase creative products such as high quality locally-produced films, dramas and documentaries
The Government proposes that the rate of service tax be increased from 5% to 6%
RM29.3bil is allocated for Ministry of Education, RM10.2bil for Ministry of Higher Education and RM627mil for Ministry of Human Resource
The Govt will establish a Talent Corporation under the Prime Minister’s Office in early 2011
RM6.4bil is allocated for development expenditure to build and upgrade schools, hostels, facilities and equipment
RM213mil is allocated to reward high-performance schools
The Govt will increase pre-school enrolment rate to a targeted 72% by end-2011 through an additional 1,700 classes
The Govt will also strengthen the curriculum and appoint 800 pre-school graduate teachers
RM250mil is allocated for development expenditure to schools: religious, Chinese-type, Tamil national, missionary, Government-assisted
RM576mil is allocated in the form of scholarships for those wishing to further their studies
RM213mil is allocated to enhance proficiency in Bahasa Malaysia, strengthen the English Language
RM20mil is allocated to increase PhD qualified academic staff to 75% in research unis plus to 60% in other higher learning institutions
RM60mil is allocated to further intensify the Industrial Skill Enhancement Programme in State Skills Development Training Centres
The Govt will also allocate RM50mil to the Multimedia Development Corporation to train graduates in ICT
RM474mil is provided to enhance productivity and skills of non-graduates
The 1Malaysia Training Programme will commence in January 2011 with an allocation of RM500mil
RM200mil is allocated to conduct part-time training in the evenings and weekends in selected training centres nationwide
RM200mil from the Human Resources Development Fund to be used by companies to fund specific training programmes for their employees
The Govt will enforce basic minimum wages for security guards, to between RM500 and RM700 a month depending on location
RM30mil is allocated to introduce the Single Mother Skill Incubator Programme and the Prime Entrepreneur and Women Activist
The Govt will provide 40 1Malaysia TASKA to assist women to obtain quality childcare and early education for their children
The Govt will allow flexibility to self-determine fully-paid maternity leave, not exceeding 90 days from the current 60 days
For sports development and management, a sum of RM365mil is allocated to the Ministry of Youth and Sports
To develop football, the Govt will establish a Football Academy in Pahang with RM20mil to produce quality football players
In 2011, the Government will allocate RM1.2 bil to the Ministry of Women, Family and Community Development.
The Govt will launch assistance programme to benefit 80,000 disabled individuals with an allocation of RM218mil
Government will extend tax relief of up to RM5,000 to help parents with expenses such as daycare, caretakers & other daily needs
First-time house buyers will be given stamp duty exemption of 50% on instruments of transfer on a house price not exceeding RM350,000
RM6.9bil is allocated to implement basic infrastructure such as water and electricity supply as well as rural roads
Build and upgrade rural roads in Sabah and Sarawak with an allocation of RM2.1bil and RM696mil in Peninsular Malaysia
RM974mil is allocated as price subsidy for padi, fertilisers and padi seeds. RM230mil for production incentives, increasing padi yield
Govt to establish a 1Malaysia Smart Consumer portal to help the rakyat keep abreast with price movements of retail goods.
Effective January 2011, the monthly allowance of Imam will be increased from RM450 to RM750
The monthly allowance for KAFA teachers will be increased to RM800, an increase from RM500, starting Jan 2011
RM100mil is allocated to implement various programmes, including resolving Orang Asli land rights and border settlement issues
Toll rates in four highways owned by PLUS Expressway Berhad will not be raised for the next five years, effective immediately
RM15.2bil is allocated to build new hospitals, increase the number of doctors, nurses, obtain supplies of medicines and equipment
Since 2009, 51 1Malaysia Clinics are in operation. The Government will provide an additional 25 1Malaysia Clinics
RM350mil is allocated to implement various programmes to combat crime, including burglary, motorcycle and car thefts
RM70mil is allocated for programmes with select NGOs to help Govt strengthen family institution and address social ills eg baby dumping
RM1.9bil is allocated to environmental preservation, including implementing the River of Life Programme and KL greening
To assist children, particularly the low-income to excel academically, the 1MDB will provide multi-vitamins for primary school pupils
1MDB will provide RM20mil to the 1Malaysia Youth Fund. This fund will be utilised to instil the 1Malaysia spirit
The Govt agrees to abolish the Competency Level Assessment/PTK and replace with a more suitable evaluation system by June 2011
Civil servants burden in coping with schooling expenses to be reduced by providing a Special Financial Assistance of RM500
RM212bil is allocated for Budget 2011, which is 2.8% higher than the allocation for 2010
RM45.6bil will be allocated for Development Expenditure, RM15.5bil for the social sector
Government revenue collection is estimated to increase 2.3% to RM165.8bil in 2011, up from RM162.1bil in 2010
The deficit for 2011 is expected to further decline to 5.4% of GDP, compared with 5.6% in 2010.


Above article is derived from THE STAR
You can get a copy of PM's speech here.

Speak Sens by AKPK

I was browsing AKPK's website today coz I like to see the budget chart that they usually have on their site. I like to have a budget worksheet to know my expenses. Westerns budget worksheets are different than ours (Malaysians) because they have 401K.

So, as I was surfing their site, I came across Speak Sens, which you can register yourself and receive and access useful information and savings and life with money. They cover all aspects including college students, workforce New bie, retirees, young entrepreneurs and even for those who would like to start a new family.

If you are looking for good articles on money and how to manage it, I highly recommend you to register yourself at this site. They even have a facebook fan page. Other than that, Speak Sens monthly newsletter is also published. If you are interested just click on Speak Sens link which I have highlighted above.

On my next post, I'll try to summarize the articles that they have published in the speak sens website.

Shop during Sales!!!

        Some of us really wanted to save money, unfortunately, when you decide to save, that is the time where something big will fall on your head and you had to pay for it... well, to avoid this, you can start saving money always by buying things during sales. For example, sales in Sogo is very frequent, practically every month. They often give vouchers for every RM100 purchase. You can also look out for sales at other places. Log on to www.shoppingnsales.com as there are a whole list of sales in the site.

        Other than that, you can also buy it online as I always find it cheaper online that in stores. Furthermoer, you can save your petrol, tol charge, parking fee and your energy. You might think there is shipping charge that you need to pay when you order online. It is true but when you buy more than a certain amount, they give you free shipping. You can share with your friends as well when you buy.

Choose the best credit card....

Credit cards are supposed to be used wisely... unfortunately, today's generations do not realise that they are not an available money in their savings account but it is a debt which accumulates 17.5% interest rate p.a. According to statistics, cards in circulation have grown 278% in 8 years from 2.8 million to 10.6 million in 2008... Back in the days, there were no CC, our parents manage to save money and buy houses, send us to university and the lists go on... But how did we get into this mess....

Proper education on using a credit card is the key to avoid this... For those who wants to get a new card, I have given out some tips on getting the best out of your card... if you already have a credit card... fret not, it is still not too late... here are tips on using the magnetic card frugally...

1. Compare all the available credit cards before choosing the one that suits you the best... if you are frequent traveller, it is best to get an international card (I prefer Citibank).
2. Keep 1 or 2 cards only (preferably 1 local bank and 1 international bank)
3. Charge only what you can pay back. Most of the items today can be paid in installment. Make sure the monthly amount stipulated can be paid.
4. Cash advances are big NO NO. No matter how desperate you are, do not fall into this situation. If you have no other choice but to withdraw, that indicates you are in serious money problem. Go and seek AKPK's help.
5. Don't ignore your debt. Some avoid opening bills once the debt starts ballooning. You can't run away from this. Start doing something about it.
6. Don't pay the minimum amount (5%). Pay more than your minimum amount as it will reduce the finance charges. Try reducing expenses on other things to focus on paying off your credit cards.

So, there you go, if you follow these, I am sure, you will be on your way towards a debt free life...

Be Independent...

This is my first post on Money Make-Over... Reason why I started this... because I had made some mistakes in my life when it comes to $$$... My parents were so frugal with their money, yet I became spendthrift when I started to earn...

I realised that I was not alone in this world... there are others who are dependant on their magnetic cards... I learnt my lesson when the economy crisis happened in 2008... Saving is important!!! Unfortunately, there are many out there who don't realise this and continues with their luxurious lifestyle, totally depending on these cards...

So, this blog is dedicated to everyone out there who wish to be independent financially and who wish to come out from their financial burden as well... The world is huge and there are plenty ways for you to come out from the Debt Prison...  Let us all be DEBT FREE...