Budget 2020 Highlights

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KUALA LUMPUR: Following are the highlights of Budget 2020 tabled in Dewan Rakyat today by Finance Minister Lim Guan Eng.

The budget is themed “Driving Growth And Equitable Outcomes Towards Shared Prosperity”.

Budget 2020 is anchored on four thrusts;

  1. Driving Economic Growth in the New Economy and Digital Era
  2. Investing in Malaysians; Levelling Up Human Capital
  3. Creating a United, Inclusive and Equitable Society
  4. Revitalisation of Public Institutions and Finances
  5. Accelerated Capital Allowance and Automation Equipment Capital Allowance for manufacturing sector on the first RM2 million and RM4 million incurred on qualifying capital expenditure is extended to the assessment year 2023
  6. The incentive is also expanded to include the services sector on the first RM2 million incurred on qualifying capital expenditure for assessment years 2020 to 2023
  7. Government allocates RM50 million for the repair and maintenance of roads leading to Port Klang
  8. Transport Ministry to commence feasibility studies on the Serendah-Port Klang Rail Bypass for cargo shipments and the Klang Logistics Corridor — a dedicated privatised highway connecting Northport and Westport, both projects estimated to cost RM8.3 billion
  9. Government allocates additional RM50 million to stimulate public-private partnerships for the Kota Perdana Special Border Economic Zone at Bukit Kayu Hitam
  10. RM1.1 billion allocated to support projects for corridor development activities, including RM50 million for the development of the Chuping Valley Industrial Area in Perlis by NCIA and RM69.5 million for Kuantan Port-related projects by ECERDC
  11. Government will provide the necessary infrastructure to construct a Digital Malaysia through a public private partnership, involving an investment of RM21.6 billion, half of which will be financed by the government
  12. Malaysian Communications and Multimedia Commission will allocate RM250 million to leverage various technologies, including satellite broadband connectivity
  13. Government will introduce RM50 million 5G Ecosystem Development Grant
  14. RM25 million will be allocated to set up contestable matching grant fund to spur more pilot projects on digital applications such as drone delivery, autonomous vehicle and blockchain technology
  15. Government allocates RM20 million to Malaysian Digital Economy Corporation (MDEC) to grow local champions in creating digital content
  16. Government will provide 50 per cent matching grants of up to RM5,000 per small-and-medium enterprise (SME) for the digitalisation of their operations such as electronic point of sale systems
  17. Government allocates RM550 million to provide Smart Automation matching grants to 1,000 manufacturing and 1,000 services companies to automate their business processes
  18. RM70 million allocation for MDEC to set up 14 one-stop Digital Enhancement Centres to facilitate access to financing and capacity building for businesses
  19. RM20 million allocation for Cradle Fund to promote early stage innovations
  20. RM10 million allocations for Ministry of Entrepreneur Development to focus on advocacy and awareness for halal certification, halal product development and providing platforms for local players to tap on the US$3 trillion global halal market
  21. Market Development Grant’s ceiling per company raised to RM300,000 yearly from RM200,000
  22. Government raises the ceiling for the participation in each export fair to RM25,000 from RM15,000
  23. RM50 million allocated to encourage SMEs to engage in more export promotion activities
  24. Government allocates additional RM50 million to My Co-Investment Fund under the Securities Commission Malaysia to help finance underserved SMEs