BELANJAWAN 2024 SPEECH

BY

YAB DATO’ SERI ANWAR BIN IBRAHIM

PRIME MINISTER AND MINISTER OF FINANCE

INTRODUCING

THE SUPPLY BILL (2024)

IN

DEWAN RAKYAT

FRIDAY, 13 OCTOBER 2023

THEME:

BELANJAWAN 2024:

ECONOMIC REFORMS, EMPOWERING THE PEOPLE

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Tan Sri Speaker Sir,

I beg to move the Bill intituled “An Act to apply a sum from the

Consolidated Fund for the services of the year 2024 and to

appropriate that sum for the services of that year” be read a second

time.

PREAMBLE

Bismillahirrahmanirrahim

Assalamualaikum Warahmatullahi Wabarakatuh and Salam Sejahtera.

Allah SWT decreed in surah Al-Qasas, verse 77:

َ ‫َنس نَصي َبكَ ِمنَ الدُّنيا ۖ َوأَح ِسن َكما أَح‬

ِ َ ‫َفِي األ‬
‫رض ۖ إِ َّن هللاَ ال ي ُِحبُّ ال ُمف ِسدين‬

“But seek, with the wealth which Allah has bestowed on you, the reward

and happiness of the Hereafter. Do not forget your share (of the needs

and provision) from this world and be good (to others) as Allah has been

good to you (by giving more than what you needed), and do not seek

mischief in the land. Allah does not like the mischiefmakers.”

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1. This reminder from Allah SWT to the human race is indeed

meaningful. There must be determination to plan ways to ensure the

wellbeing of the people during this chaotic and challenging time as the

world is no longer what it used to be.

2. We are now going through an unusually strange epoch, one that is

unprecedented in the history of human civilisation. The world has yet to

recover from the lethal grip of the COVID-19 pandemic, which has not only

debilitated us health-wise, but also weakened entire limb and nodes of a

country’s core and societal structure.

3. Thus, facing the postnormal era which are characterised by chaos,

complexity, and contradiction will help us navigate our way out. The

circumstance is further made complex due to multifarious factors which

move at alarming speed, scope, scale, and simultaneity. As a result, it

victimises the rakyat, damages the ecosystems, and disrupts the food

supply chain.

4. Therefore, we must reflect and reset by addressing the impediments

in the country’s economic system. We start by improving governance,

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administrative systems, and eradicating corruption. Among the notable

examples is the implementation of the broad-based subsidy system that

has also benefitted the elites and the super-rich.

5. The economic policy should be geared towards growth and equal

distribution of the economy. However, a large amount of subsidies now

benefits the rich. It is hoped that by improving this leakage of subsidies,

the proceeds can be distributed to the rakyat, including in the increase of

wages of the working class.

6. Past hastiness in the focus of subsidy issues have also resulted in

the country’s debt and liabilities reaching 1.5 trillion ringgit or 82 percent

of the GDP. Debt service payments alone are expected to register 46.1

billion ringgit or 15.2 percent of revenue in 2023. Only by reducing the

deficit and liabilities can the Government restore the country’s sustainable

fiscal position.

7. The determination to change must begin with the commitment of

every citizen, emanating from confidence and conscience. This is as

expressed by the Algerian thinker Malik Bennabi as “the inner struggle of

conscience,” followed by “collective consciousness for renewal” – a

shared awareness between the leaders and the rakyat towards reform.

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8. Therefore, Belanjawan 2024 which I term as the Second

Belanjawan MADANI demonstrates the commitment and

determination of the Unity Government in actualising our intent to

elevate the country and rakyat’s economic stature.

ECONOMIC PERFORMANCE AND CHALLENGES

9. Alhamdulillah, as we approach a full year, the Unity Government

has strived to restore the strength of our homeland. Malaysia’s domestic

economy remains strong.

• The unemployment rate has successfully reduced to 3.4

percent as of August 2023; comparable to the pre COVID-19

level (3.3 percent).

• Although reliance on imported food remains high, the

determination of all parties has successfully reduced inflation

gradually every month. In August 2023, the inflation rate

contracted to 2 percent, among the lowest in the region and

even better than some advanced economies.

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 • Malaysia remains the preferred destination for foreign investors.

For the first half of 2023, we successfully secured approved

investments worth 132.6 billion ringgit, which is 60 percent

more than this year’s target. This achievement includes foreign

direct investment (FDI) valued at 63.3 billion ringgit, involving a

total of 2,651 projects and is expected to create more than 51

thousand job opportunities.

• Malaysia also remains a choice tourist destination. As of August

2023, foreign tourist arrivals accounted for nearly 13 million,

three times more than last year.

• These indicators are the actual strength of the country. Insya-

Allah, with this, the economic performance will continue to

recover, albeit faced with challenges from the value of the ringgit.

10. While these achievements prove the country is on track, we should

not rest on our laurels and quickly become complacent. We must

acknowledge that the crushing global economic situation has dampened

our economic performance. The Gross Domestic Product (GDP) in the

second quarter of 2023 recorded a more moderate growth of

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2.9 percent compared to 5.6 percent in the first quarter of 2023. Overall,

we achieved a growth of 4.2 percent in the first half of 2023.

11. This achievement reflects the subdued demand in exports as well

as the high-base effect in the second quarter of last year. In line with this

development, the GDP growth projection for the year 2023 needs to

be revised to approximately 4 percent.

12. Therefore, existing opportunities need to be capitalised to

comprehensively reform our economic structure to restore the nation’s

status as the champion of Asia.

13. Consequently, Ekonomi MADANI: Memperkasa Rakyat was

launched as the main framework to address complex immediate and long-

term challenges by raising the country’s ceiling and floor. The main focus

is to reform the economic structure and raise the standards of living of the

rakyat. The fresh measures under Ekonomi MADANI aims to achieve

seven benchmarks as medium-term targets.

14. Ekonomi MADANI also serves as a guide to policies that have been

launched, namely the National Energy Transition Roadmap (NETR), the

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New Industrial Master Plan 2030 (NIMP 2030), and the Mid-Term Review

of the Twelfth Malaysia Plan (MTR of the Twelfth Plan).

15. Today, the Second Belanjawan MADANI is presented as a

continuation of the Ekonomi MADANI framework. All efforts will follow

the priorities and benchmarks of Ekonomi MADANI, which have been

divided into three main focus areas:

First: Good Governance for Service Agility;

Second: Restructuring of the Economy to Boost Growth; and

Third: Raising Rakyat’s Standard of Living.

I. GOOD GOVERNANCE FOR SERVICE AGILITY

Measure 1: Commitment to Fiscal Reform

16. The Ekonomi MADANI framework has charted a clear goal, which

is to improve the rakyat’s standards of living and to regain our lead as the

regional economic champion. For this, the country’s financial resources

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have to be managed efficiently while also ensuring the national wealth

generates prosperity for the rakyat.

17. Hence, reforms need to be implemented even though difficult. This

includes expanding the revenue base, implementing targeted subsidies,

and eradicating all forms of systemic corruption and malpractices. We also

need an efficient, outstanding, and agile public service in realising the

country’s build back better agenda.

First: Fiscal Responsibility

18. The increase in subsidies for 2023 is accommodated through

savings and revenue additions. For 2023, the revised estimated

revenue is 303.2 billion ringgit compared to the previous 291.5 billion

ringgit. Total deficit remains projected at 5 percent of the GDP.

19. For 2024, the Government expects GDP to grow between 4 to 5

percent. The projection by the World Bank and International Monetary

Fund (IMF) is for Malaysia’s economy to grow at 4.3 percent. With the

Ekonomi MADANI reform that will be implemented, the Government is

confident of achieving growth nearing 5 percent.

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20. The Government’s revenue collection is expected to record an

increase from 303.2 billion ringgit this year to 307.6 billion ringgit in

2024. Fiscal deficit in 2024 is projected to decrease to 4.3 percent

compared to the target of 5 percent this year and 5.6 percent in 2022.

21. In the medium term, we will achieve a 3 percent deficit of the GDP

or lower, as set in the Ekonomi MADANI Framework. Alhamdulillah, this

august House passed the Public Finance and Fiscal Responsibility Bill

2023 or the Fiscal Responsibility Act (FRA) yesterday. This reinforces the

Government’s commitment in strengthening governance as well as

ensuring transparency and accountability. The FRA increases the

accountability of the Minister of Finance to the Parliament

Second: Belanjawan 2024 Estimation

22. The Second Belanjawan MADANI will allocate 393.8 billion

ringgit, the highest budget ever tabled. From that amount, 303.8 billion

ringgit is for operating expenditure, 90 billion ringgit for

development expenditure, and 2 billion ringgit for contingency savings.

23. This expenditure includes an increase in the Twelfth Plan ceiling by

an additional 15 billion ringgit, bringing the total to 415 billion ringgit for a

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period of five years. This increase demonstrates that the Government is

adopting an expansionary fiscal stance while at the same time responsible

to gradually reduce the fiscal deficit.

Third: Revenue Base Expansion

Tan Sri Speaker Sir,

24. The country’s revenue has to be expanded. Malaysia is the third

highest country in the world for petrol subsidies. The price of our

RON95 petrol is among the cheapest in the world at a rate of 2 ringgit

5 cents per litre, even cheaper than Saudi Arabia, the world’s major oil

producer (2 ringgit 94 cents). This is in comparison to the prices in regional

countries whose incomes are lower than ours: Indonesia at 4 ringgit 45

cents and Thailand at 5 ringgit 99 cents.

Notwithstanding, our tax revenues are among the lowest collected

in ASEAN at just 11.8 percent of GDP compared to Singapore (12.6

percent) and Thailand (16.4 percent), for the year 2021.

25. Thus, as a measure to improve the quality of service and assistance

to the rakyat, the Unity Government is responsible to broaden the revenue

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base. Beginning next year, a number of tax reform measures will be

implemented to broaden the country’s revenue base, without burdening

the rakyat. This is a difficult decision, but one that is necessary to increase

revenue, reduce subsidies, at the same time ensuring the rakyat is

unburdened.

26. FIRST: The Government plans to increase the Service Tax rate

to 8 percent from the current 6 percent. However, in order not to

burden the rakyat, this increase will not include services such as

food and beverage as well as telecommunications. The Government

will also expand the scope of taxable services comprising logistics,

brokerage, underwriting, and karaoke services.

27. SECOND: Taking into consideration input from various stakeholders

during a series of engagements, the Government will enforce the

implementation of the Capital Gains Tax on net gain from the

disposal of local companies’ unlisted shares at the rate of 10 percent

beginning 1 March 2024. The Government will also consider

exemption of the Capital Gains Tax on the disposal of shares related

to certain activities such as approved Initial Public Offering (IPO),

internal restructuring, and venture capital companies subject to

stipulated conditions.

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28. THIRD: The Government will draft a new legislation to implement

the High Value Goods Tax at a rate of 5 to 10 percent on certain high

value items such as jewellery and watches based on the threshold

value of the goods. However, to encourage tourism, tourists will be

exempted from the tax and regulations will be introduced to allow tourists

to claim for tax refund before their departure.

Tan Sri Speaker Sir,

29. Malaysia needs to be in line with international taxation standards

especially in curbing the erosion of tax base activities and the transfer of

profits to countries with low tax rates. Taking into account feedback from

the industry and latest international developments, the Government is

expected to implement the global minimum tax in 2025 and only

applicable to companies with a global income of at least 750 million

euros. The Government will also continue to monitor the development of

the global minimum tax at the international level.

30. With regards to the implementation of e-invoice by the Inland

Revenue Board of Malaysia (IRBM), the Government takes into account

the feedback received and to provide ample time to taxpayers:

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 • As such, the Government has agreed to enforce e-invoice on a

mandatory basis to taxpayers with annual income or sales

exceeding 100 million ringgit beginning 1 August 2024.

• Meanwhile, e-invoice for taxpayers in other income categories will

be enforced in phases with a comprehensive implementation

beginning 1 July 2025.

• The use of Tax Identification Number (TIN) will be expanded to

support the implementation of the e-invoice. This can further

increase the number of taxpayers, which in turn will reduce

revenue leakages. Such matter will continue to be looked at.

31. Enforcement agencies will continue to intensify joint efforts in

addressing revenue leakages. For instance, cigarette smuggling control

measures have contributed to a decrease in the percentage of illegal

cigarettes in the local market to 56.6 percent in 2022 compared to 63.8

percent in 2020. As the number of illegal cigarettes in the market is still

high, inter-agency cooperation will be enhanced, including tightening the

control on liquor smuggling.

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32. Beginning 1 January 2024, the Government will tighten smuggling

control measures and expand it to liquor products.

• Transhipment activities for liquor products will be restricted to

certain ports only.

• Bukit Kayu Hitam Immigration, Customs, Quarantine and

Security (ICQS) Complex will be used as the sole exit for the

northern region.

• Cigarettes import activities for the domestic market to be carried

out via a full container load.

33. The Government appreciates the commitment of enforcement

agencies such as the Royal Malaysian Police (RMP), the Malaysian

Anti-Corruption Commission (MACC), and the Royal Malaysian

Customs Department (RMCD) in enhancing enforcement efforts and

operations to combat leakages of national revenue. The agility of RMP

to combat crime and efforts of MACC to uncover financial syndicates and

cartels should be appreciated. As a measure of encouragement, I am

pleased to reward enforcement agencies that demonstrate continued

commitment and excellent performance accordingly.

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Fourth: Targeting of Subsidies

Tan Sri Speaker Sir,

34. Belanjawan 2023 allocated 64 billion ringgit for expenditure on

subsidies and aid but the need this year is expected to reach

81 billion ringgit, among the highest by any government in the world.

There is therefore a need to reassess the agility and execution.

Subsidies on goods for the rakyat must be implemented and handled

prudently to prevent from an increase in cost of living burdening the

rakyat. Nevertheless, as I have previously stressed, the subsidies

benefit the rich more and are also enjoyed by more than 3.5 million

foreigners. We therefore implore for the Honourable Members of this

House and the rakyat to understand the necessity to restrict subsidies

intended for the underprivileged from continuously benefitting the super-

rich and 3.5 million foreigners.

35. Therefore, beginning next year, the retargeted subsidy approach

will be implemented in phases. If we are able to save on subsidy

expenditure, Insya-Allah we will increase the allocation of cash

assistance to the rakyat, through Sumbangan Tunai Rahmah (STR),

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from 8 billion ringgit to 10 billion ringgit benefitting almost 9 million

rakyat.

FIRST: Chicken and Egg

36. The egg and chicken subsidies, which were initially introduced only

during festive seasons, have been in place since February 2022. The

Government has since then incurred a cost of 3.8 billion ringgit for the egg

and chicken subsidies. These are also enjoyed by the rich and 3.5 million

foreigners.

37. Alhamdulillah, current trends indicate that the supply of chicken and

egg has started to stabilise, and the current market price is now below the

controlled ceiling price. Thus, the Government will consider floating the

price of chicken and egg in accordance with the lower market price

compared to the price limit set by the Government. This will be announced

by the Ministry of Agriculture and Food Security soon, after discussion

with suppliers with assurance that there will not be any unreasonable

resulting price increase by companies and sellers.

38. Announcements on further concrete measures will be made by the

Ministry of Agriculture and Food Security in two weeks’ time.

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SECOND: Electricity

39. The provision of broad-based electricity subsidies is burdensome

and, again, benefits the rich more. I wish to stress that it is unfair to say

electricity tariff has increased, because in reality, 90 percent of the rakyat

is unaffected. For example, in 2022, trends reflected that 10 percent of

the consumers with the highest electricity consumption enjoyed 50

percent of the subsidy. It is absurd that the highest 10 percent enjoys

50 percent of the subsidy meant for the poor, the middle and lower

class. The Government is therefore determined to cease subsidising

the super-rich, while 50 percent of the consumers with the lowest

electricity consumption enjoyed only 10 percent of the subsidies

provided.

40. Therefore, beginning this year, the Government has implemented

targeted subsidies by lifting a part of the subsidies for the highest 10

percent of electricity consumption, but at the same time, maintaining the

same subsidies for 90 percent of consumers. This targeted approach

has saved over 4.6 billion ringgit of the projected electricity

subsidies of 20 billion ringgit. To reiterate, the electricity rate will remain

the same for 90 percent of the rakyat, and any increase will only affect 10

percent of the consumers with the highest electricity consumption, and not

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the other 90 percent. This means that while the electricity subsidies will

be continued, it will however be reduced for the upper class. However, the

Government still bears 16 billion ringgit in electricity subsidies for 2023

especially for consumers in homes and micro, small, and medium

entrepreneurs (MSMEs).

41. The Government will continue to improve the approach of

targeted electricity subsidy according to the level of electricity

consumption. The Government hopes this decision will send the

right signal to consumers to be prudent and practise energy

efficiency. Including at Government offices nationwide.

42. The Government agrees to continue providing electricity bill

rebates of up to 40 ringgit per month to hardcore poor households

with an allocation of 55 million ringgit to further reduce the burden

on these households even though the electricity rate and tariff will

remain the same. Apart from this, the Government also agrees to waive

deposit payment of electricity bill in consumers’ own names.

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THIRD: Diesel Fuel

43. Diesel fuel also faces serious leakages issues. The current price

of subsidised diesel is set at 2 ringgit 15 cents compared to the market

price of 3 inggit 75 cents per litre. This means that the Government has to

bear 1 ringgit 60 cents per litre of diesel or around 1.5 billion ringgit in total

per month. According to diesel consumption data, sales of

subsidised diesel have increased by 40 percent since 2019 even

though the number of vehicles using diesel has only increased by

less than 3 percent. This means that there is a possibility of serious

smuggling activities due to the cheap price of diesel in Malaysia.

44. To prevent leakages and smuggling, the Government intends

to rationalise diesel prices in phases. Conceptually, the price of

subsidised diesel will continue to be enjoyed by selected consumers such

as freight transport. Meanwhile, other users will be charged higher prices.

This approach can reduce the leakages of subsidies while at the same

time reduce the impact on the price of goods for the rakyat.

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ENFORCEMENT MEASURES

45. To achieve the goal of retargeted subsidy, enforcement needs

to be more effective against both the consumers and the sellers.

Their honesty will determine whether this goal will be successful or

otherwise. Although we do not deny traders’ right to make

reasonable profits, the abhorrent practice of cartels and price pacts

that cause excessive and uncontrolled price increases are against

the MADANI principles. The Government will not remain silent if

retargeted subsidies are used as an excuse to increase prices

recklessly and unreasonably.

46. Therefore, the Government’s focus is to eliminate this parasitic

practice through strict and comprehensive control measures. This is

the duty of the Ministry of Domestic Trade and Cost of Living (KPDN)

as well as the Malaysian Competition Commission (MyCC) with an

allocation of 10 million ringgit specifically to perform this duty.

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Measure 2: Institutional Reform Agenda

47. The Chinese philosopher Mengzi formulated four fundamental

points as pillars of moral strength:

仁 rén (insaniyah), 义 yì (righteousness),

48. It is this internal strength that strengthens the Government’s

determination to implement reforms to end the suffering of the rakyat,

eradicate systemic corrupt practices, reduce bureaucracy and hasten

rakyat-oriented projects, as well as to develop a stable political order.

First: Special Task Force on Agency Reform (STAR)

49. We have established the Special Task Force on Agency Reform

(STAR), chaired by the Chief Secretary to the Government, which has

succeeded in accelerating the implementation of projects, especially

those involving the issue of overcrowding in hospitals and refurbishment

of dilapidated schools and clinics. Next year, the STAR Team is

entrusted to accelerate implementation in the maintenance of lifts

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with an allocation of 91 million ringgit and Government quarters with

an allocation of 170 million ringgit.

A total of 2.4 billion ringgit is allocated to build, maintain, and

refurbish quarters for civil servants which are in shameful state due

to their dilapidated conditions. We place enormous responsibilities on

the police, army, fire department personnel, prison officers, and others,

but they are subjected to decrepit and unrepaired basic facilities.

Second: Legislative Reform

50. With the passing of the Public Finance and Fiscal Responsibility Bill

2023, the Unity Government’s onward commitment is to table the

Government Procurement Bill in the Parliament next year, in line with

the aim of governance reform.

The Government has allocated 18 million ringgit to facilitate

legislative reform. This includes the implementation of the Revision of

Sentence of Death and Imprisonment for Natural Life (Temporary

Jurisdiction of the Federal Court) Act 2023.

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51. The Judiciary must be an independent institution that protects

the supremacy of the Federal Constitution and the rule of law. An

allocation of 38 million ringgit is allocated to increase the

productivity of the country’s judicial institutions. This provision

includes priority in refurbishing infrastructure as well as upgrading ICT

facilities in courts that are obsolete and damaged. This also includes 20

million ringgit to empower the Judicial Academy of Malaysia which

has been heavily emphasised by the Right Honourable Chief Justice,

and the Syariah Judicial Academy of Malaysia in training judges of the

upper courts in a more planned and effective manner.

Third: Public Institutions Reform

52. Based on several studies carried out to improve revenue

sustainability, social protection, governance of Government-Linked

Companies (GLCs) and national debt management, received

recommendations that will be implemented are as follows:

• improving the imposition of stamp duty and coordinating the

administration of tax incentives to reduce the leakages of

revenue collection;

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 • strengthening tax administration including simplifying tax

returns and centralising tax collection efforts;

• expanding the coverage of the social protection system,

mainly for senior citizens and informal sectors;

• restructuring development financial institutions (DFIs) by

merging Bank Pembangunan Malaysia Berhad, SME Bank, and

Exim Bank; and

• strengthening the venture capital environment through the

centralisation of venture capital agencies such as Penjana

Kapital and MAVCAP under Khazanah Nasional Berhad.

Fourth: Public-Private-Philanthropy Partnership

53. In line with the Ekonomi MADANI Framework, the Government will

focus on Public-Private-Philanthropy Partnership (PPPP) in implementing

projects for the rakyat.

54. In addressing various issues of the rakyat on the ground the

Government will allocate 100 million ringgit to continue supporting

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efforts taken by NGOs and civil society organisations including

Yayasan Hasanah.

55. To ensure the sources of income of institutions, organisations, and

funds approved under subsection 44(6) of the Income Tax Act 1967

continue to be sustainable and able to support welfare initiatives

envisaged by the Government, it is proposed that the 25 percent limit

terms of use of the accumulated funds for the purpose of

engagement in business be increased to 35 percent. With this

flexibility, cooperation between the Government and NGOs can be

strengthened to improve the rakyat’s quality of life.

Measure 3: Prioritising Services & Rakyat-Oriented Projects

56. The Government will continue to defend the fate of the rakyat and

focus on services and projects which benefit the rakyat’s wellbeing.

Among others, the Government will address the lingering basic problems

of the rakyat.

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First: Managing Rakyat’s Difficulties

(a) Repairing Lavatories

57. It is unacceptable that we have allowed our children to attend

school with deplorable basic facilities all this time, particularly

broken and dilapidated lavatories. I wish to congratulate the Ministry

of Education for their success. Insya-Allah, repair works of

lavatories in 8,354 schools nationwide is about to be fully completed

by the end of this year. Next year, this same determination will be

intensified to refurbish public lavatories nationwide. This year, KPKT must

monitor the condition of public lavatories. 150 million ringgit is thus

allocated to maintain and repair public lavatories in 150 local authorities

nationwide.

(b) Road Accidents

58. With more roads, we are also seeing an increase in accidents. Over

the past decade, we have recorded an average of over 6,000 deaths due

to road accidents. The latest tragic incident that claimed the lives of an

entire family of six on Jalan Kuantan-Segamat-Bandar Muadzam had the

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whole country in mourning. The Government will continue to prioritise

aspects of road safety.

59. Alhamdulillah, as of August, more than 4,100 potholes on

federal roads have been identified and repaired. Our aim this year is

to resolve all the complaints regarding potholes on Federal Roads

nationwide. The Government is committed to ensuring that action is

taken within 24 hours after receiving complaints regarding potholes

on Federal Roads.

• State governments should also make full use of the MARRIS

allocation of 5.4 billion ringgit provided by the Federal

Government to ensure that state roads are in the best

condition to be used by the rakyat.

• Next year, 2.8 billion ringgit is set aside to maintain federal roads

and bridges with 300 million ringgit specifically for G1 to G4

contractors.

• The role of District Engineers will be continuously enhanced to

expeditiously deal with unexpected and minor complaints

involving Federal Roads. The Government will increase the

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 allocation to 200 thousand ringgit from the current 100

thousand ringgit for 115 District Engineers with a total

allocation of RM30 million.

• 100 million ringgit is provided to maintain streetlights, including

replacing them with LEDs that can save up to 60 percent

electricity. 50 million ringgit is also provided for the same purpose

to local authorities nationwide.

• Finally, 50 million ringgit is also allocated to treat accident prone

areas, which includes upgrading existing traffic lights to smart

traffic lights on Federal Roads to resolve traffic congestion.

(c) Justice for the Rakyat

60. Alhamdulillah, following the increase in the eligibility limit to receive

full legal aid to 50 thousand ringgit, the number of civil and shariah cases

receiving legal aid has increased to 8,500 cases. Next year, the function

of the Legal Aid Department will be strengthened to ease the plight

of the poor in obtaining equitable justice.

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61. This Belanjawan MADANI allocates an additional 10 million ringgit

under the Kumpulan Wang Amanah Rakyat Malaysia Luar Negeri to

safeguard our citizens who fall victim to employment fraud

syndicates and other welfare cases abroad.

(d) Second Chance Policy

62. As of July 2023, nearly 14 thousand bankruptcy cases with small

debts below 50 thousand ringgit have been discharged from bankruptcy.

As a result of the implementation of the Second Chance Policy, the

Insolvency Act (Amendment) 2023 has also automatically exempted

current and past cases that met the requirements from declaring

bankruptcy.

63. Next year, the Second Chance Policy will be extended to young

individuals aged 40 and below with debts not exceeding 200

thousand ringgit.

(e) Public Service Delivery

64. Rakyat in remote areas also have equal rights to government

services. Next year, the Government will intensify the initiatives to deliver

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services directly to the rakyat with an allocation of 26 million ringgit

including:

• Program Menyemai Kasih Rakyat (MEKAR) which offers

services from the National Registration Department (JPN);

• Mobile clinic services by university teaching hospitals to

provide basic treatments including early screening for

breast cancer;

• Mobile dental clinics with expansion of service to new areas

in Penampang and Keningau, Sabah;

• Mobile banks in collaboration with local banks to bring banking

services to remote areas; and

• Mobile courts dedicated to handle civil cases.

(f) Online Fraud (Scam)

65. Issues on scam has been on the rise. Since establishment, the

National Scam Response Centre (NSRC) has handled more than

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49 thousand calls and successfully froze up to 60 million ringgit in

transactions. Next year, the Government will increase the allocation

to the NSRC to 20 million ringgit from the current10 million ringgit to

further improve the functionality of the NSRC to combat scam-

related crimes.

66. Bank Negara Malaysia (BNM) in collaboration with the financial

sector is developing the National Fraud Portal (NFP), which is expected

to be completed by the middle of 2024. With the automated ability to track

funds, we hope that this Portal will speed up the time to detect, freeze,

and return the funds.

67. At the same time, related agencies are examining the need to

amend the law including the Criminal Procedure Code to enable more

effective actions to be taken against syndicates and account mules,

further expediting the return of money to scam victims.

Second: Development of Sabah & Sarawak

68. Sabah and Sarawak will be given focus as we make up for lagging

behind on fulfilling the Malaysia Agreement 1963. Under the Unity

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Government, the attempt to honour the agreement achieved by the

previous leaders in the Malaysia Agreement 1963 has been realised.

69. FIRST: Next year, the Federal allocation for the development of

Sarawak will increase to 5.8 billion ringgit from 5.6 billion ringgit.

Meanwhile, for Sabah, the allocation will increase to 6.6 billion ringgit

compared to 6.5 billion ringgit. To increase the effectiveness of the

allocation, the Federal Government has also delegated the authority to

implement development projects valued under 50 million ringgit to

technical agencies in Sabah and Sarawak.

70. SECOND: The Unity Government has increased the interim

Special Grants rate for Sarawak and Sabah to 300 million ringgit

compared to 16 million ringgit for Sarawak and 125.6 million ringgit

for Sabah previously. In Sarawak’s case, the amount has not been

reviewed since 1969. I wish to highlight this to avoid any confusion.

The rate has not been reviewed since 1969, hence the increase to

300 million ringgit. For Sabah, on the other hand, a subsequent

review was conducted afterwards.

71. THIRD: The Inland Revenue Board of Malaysia (Amendment) Bill

2023 was passed by the Dewan Rakyat yesterday to include a

33
representative of the Sabah State Government named as the Chief

Minister of Sabah and a representative of the Sarawak State Government

named as the Premier of Sarawak in line with the results of the Inter-

Governmental Committee (IGC) Report 1963. Alhamdulillah, we managed

to implement it in 2023.

72. FOURTH: The Federal Government and the Sabah State

Government have reached an agreement regarding the transfer of

electricity supply regulatory powers, which will come into effect on

3 January 2024. Although the regulatory power will be transferred to the

Sabah State Government, the Federal Government will continue to assist

the Sabah State Government in strengthening the electricity supply

industry in Sabah by providing subsidies to Sabah Electricity Sdn Bhd

(SESB) until the SESB Transformation Plan is successfully implemented

within seven years, that is by 2030.

73. FIFTH: To ensure stability and reduce electricity supply disruptions

in Sabah, especially in the eastern area, the Federal Government will

support the implementation of hybrid solar energy generation as

well as the construction of a network of electricity transmission lines

in southern Sabah.

34
74. SIXTH: The Federal Government is also negotiating the handover

of Bintulu Port and the operation of the Rural Air Service (RAS) to

the State Government.

Third: Public Sector Digitalisation

75. By the end of the Twelfth Plan, our aim is to be ranked among the

top 20 in the Government Efficiency Sub-Index in the Global

Competitiveness Report. To further improve the efficiency of public

services, the National Digital Identity (NDI) development will be

expedited as a reliable self-endorsement platform.

76. In empowering the digitisation of public service delivery, the

GovTech Nucleus Unit has been created to build internal expertise. This

unit will also facilitate the development of the National Digital Identity and

other user-friendly applications at optimal cost.

35
 II. RESTRUCTURING THE ECONOMY TO BOOST GROWTH

Measure 4: Revamping the Economic Structure

77. The Ekonomi MADANI Framework is aimed at establishing

Malaysia as a regional economic champion. To achieve this goal, the

economic structure needs to be restructured and reorganised so that

existing potentials can be harnessed. NIMP targets a total investment

of up to 95 billion ringgit and involving 3.3 million job opportunities

with median salaries of up to 4,510 ringgit per month by 2030.

78. The Government will allocate up to 10 percent from the total

NIMP investment as a catalyst to accelerate the NIMP mission with a

2024 startup fund amounting to 200 million ringgit.

First: Priority of the HGHV Sector

79. Among structural issues that disrupt the economic system is

premature contraction of the industrial sector. The contribution of the

manufacturing industry has remained below 25 percent of GDP. To curb

36
this problem, future investment priorities are focused on high growth and

high value (HGHV) areas.

80. The results-based incentive is a new dimension that uses a

tiered system in the provision of incentives. This will stimulate

companies to generate the economy through investments in HGHV

areas and eventually creating new economic clusters, expanding

domestic network and establishing a balance between the economy

and environment. With this, companies will enjoy incentives based

on respective commitments. To begin with, the Government plans to

provide a tiered reinvestment tax incentive in the form of investment

tax allowance of either 70 percent or 100 percent.

81. To support the high-value activities ecosystem, the Government

proposes that the Pengerang Integrated Petroleum Complex (PIPC) be

turned into a development hub for the chemical and petrochemical

sector with a tax incentive package in the form of a special tax rate

or investment tax allowance.

37
Second: Malaysia as an Investment Destination

82. Furthermore, the Government will also continue to intensify efforts

to obtain more high-impact investments. In developing Malaysia’s

advantage as a foreign investment destination, the Government will

implement several new policies and directives to introduce ease of

business.

• The Industrial Area in Bayan Lepas, Penang and Kulim Hi-Tech

Park, Kedah have brought together the world’s leading

companies in the electronics and electrical (E&E) sector. To

build a wider ecosystem for the E&E cluster in the northern

region, the Government will open a high-tech industrial area

in Kerian, Northern Perak.

• The responsibilities of MITI and MIDA are no longer limited

to only the approval of investment incentives but need to be

expanded to facilitate FDI and domestic direct investment

(DDI) matters from the application stage until the investment

is realised. For this, an Investment and Trade Coordination

Action Committee (JTPPP) has been established and is

38
 responsible to report directly to me, as the National Investment

Council chairperson.

Third: Internationalisation of Startups

83. The emergence of more local startups is essential to accelerate the

restructuring of the country’s economy. The Government aims to rank in

the top 20 for the Global Startup Ecosystem by 2030, in addition to making

Kuala Lumpur as the Southeast Asian region hub for digital industry and

startups.

84. In accordance with the decision of the National Digital

Economy and Fourth Industrial Revolution Council, 28 million ringgit

is provided to develop the MYStartup platform as a single window

bringing together startups while simplifying business activities

throughout their lifecycle. This initiative will optimise a fund of 200

million ringgit under various funding agencies and venture capitals

on a single platform.

85. To internationalise local startups and increase their

competitiveness to penetrate the regional markets:

39
 • GLCs and Government-Linked Investment Companies

(GLICs) will provide funds of up to 1.5 billion ringgit to

encourage startups, including bumiputera SME

entrepreneurs, to venture into HGHV fields such as digital

economy, space technology and E&E.

86. To support capital funding for startups:

First: allocation of 100 million ringgit to MyCIF for a period

of 3 years to complement the food security

initiatives, environment, the community, and the State

Islamic Religious Council to create opportunities to

develop waqf assets for health, education, and agro-

based enterprises.

Second: tax incentives for individual investors investing in

startups through the equity crowdfunding (ECF)

platform will also be extended to individual investors

through Limited Liability Partnership nominee

companies and extended until 31 December 2026.

40
 Third: tax incentive for angel investors extended until 31

December 2026 to encourage capital funding in

technology related startups.

Fourth: Global Islamic Economy Leader

87. I have alluded to the approach of the Islamic financial sector in

Malaysia which has yet to fulfil the meaning of maqasid shariah based on

justice and benefit for all because it uses the same financial instruments

as an alternative to conventional banks.

88. The words of the late Nejatullah Siddiqi should be appreciated.

He said, “more than anything else, Islamic banking and finance, a

sub-culture of Islamic economics, has been a quest for justice and

morality into the ordinary business of life.”

89. Alhamdulillah, the Islamic finance field has presented us with a

modern banking method without usury for the past four decades.

Nevertheless, this development should not stop here. The direction of the

Islamic economy should be determined in order to be able to achieve the

wider objectives of Islam, including addressing the gap between economic

practices that are in line with the teachings of the al-Quran and Sunnah.

41
90. The International Conference on Islamic Economics and

Finance (ICIEF2023) will be organised in December 2023 to resolve

this issue as an effort to pioneer the transition to a more inclusive

Islamic financial system.

91. This conference will bring together more than 400 thinkers and

technocrats in the field of Islamic finance and involve nearly 100

presentation papers to cover issues and actions that can be taken to

dignify Islamic finance.

92. The readjustment of the Islamic financial system is necessary in the

effort to strengthen the impact of the Islamic financial sector in order to

have the opportunity to provide equality, wellbeing, and prosperity to all

levels of the society.

• Through Value-based Intermediation (VBI), Islamic banks and

takaful operators can explore impactful innovation through

offering various types of capital that meet the needs of all levels

of society, especially those who are without access to financial

services.

42
• BNM and Islamic financial institutions are also advancing an

impactful investment pilot programme through a broader

Investment Account (IA). This effort combines elements of risk

sharing between investors in Sustainable Development Goals

(SDG)-based investments and social investments wherein part

of the profits will be channelled for social development such as

financing the education of the poor.

• Alhamdulillah, Malaysia remains in the pole position in the overall

global Islamic Finance Development Indicator (IFDI) for 10 years

in a row. The Malaysia International Islamic Financial Centre

(MIFC) will continue to strengthen the country’s

competitiveness in the Islamic finance field while highlighting

Malaysia as a prime destination for Islamic fund acquisition and

investment activities as well as a re-takaful hub.

• In order to delve deeper into the universal values of the Islamic

economy and its experience in the current context, the

Government is providing 20 million ringgit to stimulate

research as well as creativity and innovation in Islamic

economy. This effort will be led by the International Centre for

43
 Education in Islamic Finance (INCEIF) in collaboration with MIFC

and the industry.

93. The Government proposes to exempt income tax on income

derived from Islamic Securities Selling and Buying (ISSB) from the

assessment year 2024. This is to increase the overall volume of

securities trading and the liquidity of the shariah-compliant stock market

through the involvement of more investors and brokers in ISSB

transactions in addition to ensuring equal treatment is given to Securities

Borrowing and Lending (SBL) transactions.

94. In order to support the development of the Labuan International

Business and Finance Centre (Labuan IBFC) as an Islamic financial and

shariah-compliant hub, the Government also proposes to fully exempt

income tax for 5 years for Labuan entities carrying out trading

activities related to Islamic finance such as Islamic digital banking,

Islamic digital bourse, ummah-related companies, and Islamic digital

token issuers from the assessment year 2024.

95. The organisation of the 19th Malaysia International Halal Showcase

last month recorded 3 billion ringgit sales of halal products, which is 24

percent higher than the initial target. The world’s largest halal exhibition

44
matched 469 local companies with 231 international buyers from 44

countries.

• In line with the Halal Industry Master Plan 2030, which sets a

benchmark for the halal industry’s contribution of 11 percent of

GDP by 2030, 9 financial institutions are offering special

programmes for halal SMEs on the integrated halal platform

which provides access to special funds and capacity

building programmes.

• In addition, the Government will shorten the halal certificate

processing period from 51 to 30 days. The Halal Development

Corporation (HDC) and JAKIM will collaborate to lead efforts to

simplify the halal certification process, especially for halal

products exporters.

96. The previously launched i-Tekad social finance programme

has benefitted nearly 4,000 micro-entrepreneurs with encouraging

response from 12 financial institutions. Therefore, the Government

is allocating additional funds of up to 25 million ringgit in matching

grants with financial institutions to benefit more entrepreneurs.

45
97. The Government provided 200 million ringgit last April to redevelop

waqf lands in Penang through soft loans. Next year, the Government will

increase the funding to 500 million ringgit to provide soft loans to

increase the redevelopment of waqf lands nationwide.

Measure 5: Empowering MSMEs

98. The Second Belanjawan MADANI will continue to support MSMEs

in line with the goals of the Ekonomi MADANI Framework. The priority is

to support the increase of business capacity and competitiveness in

raising the income of the rakyat and the country.

First: Business Loan Facility

99. Next year, the total value of loans and financing guarantees

available for the benefit of MSMEs amount to RM44 billion.

100. Indeed, micro-entrepreneurs and small traders are provided with

small loan facilities with funds amounting to RM2.4 billion under agencies

such as BNM, BSN and TEKUN.

46
 • RM1.4 billion under the BSN micro loan is to help provide

business capital, equipment purchases, premises and marketing

to hawkers and small entrepreneurs.

• RM330 million under TEKUN is to provide financing facilities to

small traders such as batik and craft operators, Orang Asli

entrepreneurs and Bumiputeras of Sabah and Sarawak. RM30

million is provided specifically to finance businesses run by

the Indian community.

• From this total, RM720 million is set aside to encourage

women and youth to venture into business.

101. Under BNM, a total of RM8 billion in loan funds are provided to

support SME companies. From this amount, RM600 million is dedicated

to help micro-enterprises and low-income entrepreneurs, small

contractors, the application of sustainability practices and food

security-related sectors.

102. For 2024, RM600 million has been allocated under the Dana Impak

Khazanah Nasional, with a priority to promote economic growth and

47
provide more opportunities to rural, semi-urban communities and those

with limited access to financial services.

103. So far, the Syarikat Jaminan Pembiayaan Perniagaan Berhad

(SJPP) has guaranteed more than 100,000 SMEs including 75 percent

non-Bumiputera SMEs and 25 percent Bumiputera SMEs with a total

approved value of more than RM75 billion. Next year, SJPP will

guarantee up to 80 percent of SME entrepreneurs’ loans, especially

to those involved in the green economy, technology and halal fields

with the availability of guarantee funds of up to RM20 billion.

104. Since establishment, Amanah Ikhtiar Malaysia (AIM) has assisted 1

million borrowers, particularly single mothers and the poor, by providing

small business capital. AIM has shown excellent performance by

recording the lowest non-performing loan (NPL) rate of 0.26 percent in

2022. To support AIM’s function to eradicate poverty, the Unity

Government has allocated funding of RM100 million .

105. Next year, RM100 million in financing funds will be provided to

the cooperative movement through the Revolving Capital Fund

under the Malaysian Cooperative Commission, among others, to

assist more cooperatives.

48
Second: Strengthening Competitiveness of MSMEs

106. MSME entrepreneurs should be quick to adapt to technology and

digitise their products and services to penetrate a wider market. The

Government will intensify its efforts to encourage MSMEs to increase their

level of competitiveness through the transition of business models via

automation and digitalisation.

• A total of RM100 million is provided for digitalisation grants

of up to RM5,000 for the benefit of more than 20,000 MSME

entrepreneurs. This grant can be used to upgrade sales,

inventory and digital accounting systems.

• RM900 million loan fund under BNM is provided to

encourage SME companies to increase business

productivity through automation and digitisation.

• RM40 million is provided to implement the Shop Malaysia

Online Programme to encourage small traders, especially in the

home-based F&B businesses.

49
 • The role of the Digital Economy Centre in each state

constituency will continued to be enhanced to support small

entrepreneurs selling their products online with an allocation of

RM25 million.

107. To support companies to remain competitive, the Government

proposes to shorten the time frame for companies to claim capital

allowances on the purchase of ICT equipment and computer

software packages to 3 years, instead of 4 years, from assessment

year 2024.

Third: Local Talent Development

108. Today, the complexity of the economy demands highly skilled new

talent to constantly adapt to the fast-changing world. Consequently, the

development of local talent needs to be done immediately through precise

refinement to ensure that it is in line with the requirements of employers

and the industry.

109. , The total allocation for TVET education next year amounts to

RM6.8 billion. The First Belanjawan MADANI has piloted efforts to

revamp the country’s TVET education through collaboration with GLCs

50
and private companies. As of 5 October, 17 GLCs and 44 private

companies have been involved in the signing of 61 Memorandums of

Understanding covering cooperation through curriculum development as

well as the provision of equipment and expertise.

110. For example, PETRONAS has collaborated with Institut Kemahiran

Belia Negara (IKBN) Bandar Penawar, Johor to provide industrial training

services, curriculum development and equipment that meet the

specifications of the petrochemical industry in Pengerang. Next year,

RM100 million is allocated to provide industry-recognised

professional certification to TVET graduates and as an incentive for

the industry to collaborate with public TVET institutions.

111. Next year, the Human Resources Development Corporation (HRD

Corp) will benefit from RM1.6 billion to provide 1.7 million training

opportunities. At the same time, HRD Corp will reallocate a special fund

using 15 percent of the total levy collected to implement the Program

Latihan MADANI including talent retention and skill improvement

programmes for MSME entrepreneurs and vulnerable groups such

as former inmates, the disabled, the elderly and retirees.

51
112. Efforts to create more future talent who meet the needs of the

industry will be streamlined and expanded through close cooperation

between Government agencies and industry players.

• In order to address the lack of local talent and skills mismatch,

the Academy in Industry Programme will be implemented to

provide on-the-job training for a period of up to 18 months

with an allocation of RM70 million.

• The country’s competitiveness for key sectors such as

aerospace, medical devices and digital depends on the talent

market of skilled and excellent workforce. Therefore, the

Government will offer RM30 million as incentive to the industry to

train local workforce including to offer their expertise as

instructors and to fund new innovations to produce new products.

113. The Government is committed to implement a tiered levy system for

foreign workers before the end of 2024. This system is in place to reduce

dependency on foreign workers, where a higher levy rate will be imposed

on employers with more foreign workers. The additional revenue collected

from this tiered levy will be channelled into a special fund to be utilised for

the automation or training of local workers.

52
114. A total of RM17 million is allocated to implement the Tahfiz

TVET Programme. This programme will open opportunities for tahfiz

students to diversify their skills while continuing their lesson in Hafazan.

115. To encourage the rakyat to improve their skills and venture into new

fields, a tax relief of up to RM2,000 as payment for skills improvement

or self-improvement courses is extended until the assessment year

2026.

116. The Government will also expand the scope for lifestyle to

include the fees for attending self-improvement courses such as

language courses, photography, tailoring classes and others.

117. A multi-tiered levy system for foreign workers will be implemented

before the end of 2024, to reduce dependency on foreign workers where

higher levy rates will be imposed for employers with a larger number of

foreign workers. Collection of this levy will be channelled for the

automation fund to benefit employers in training locals.

53
Fourth: Economy of the Rakyat

118. The Government will continuously strive to lift and dignify the

economy of the rakyat. I am determined to see this country be known for

its clean, beautiful and safe business facilities and stalls. I assure you that

the welfare of hawkers and traders in the markets will continue to be

protected to ensure comfort of the business community and visitors.

First: Dilapidated hawker centres and public market

infrastructure in 150 local authorities’ areas will be

repaired and upgraded with an allocation of RM110

million.

Second: The Government aims to beautify and improve the

cleanliness of 10,000 stalls with an allocation of

RM10 million.

Third: 4,000 units of new streamlined, comfortable and

safe business spaces will be built in every local

authorities’ area with an allocation of RM50 million.

The Government has also agreed to waive kiosk rental

54
 fees for the first 6 months for the rakyat to operate their

business.

Fourth: MARA, Perbadanan Usahawan Nasional Berhad

(PUNB), Perbadanan Pembangunan Bandar (UDA) and

the Kuala Lumpur City Hall (DBKL) will also upgrade

their business facilities.

119. Efforts on the purchase of local products will be intensified through

the Buy Made in Malaysia Goods Campaign and the Use of Goods

and Services from Local R&D (MySTI) programme with an allocation

of RM27 million.

120. To date, more than 1,200 business franchises have been registered

under KPDN and from this, 720 are owned by local companies with sales

value in the country reaching RM30 billion. In fact, well-known local

franchise brands such as Marrybrown, Daily Fresh Foods, Secret Recipe,

Smart Reader and Laundrybar have been operating in 80 countries. To

expand the franchise trade, the Government has provided RM10 million

under the Franchise Strengthening Programme to Increase Exports.

55
Measure 6: Supporting Primary Sectors

First: Logistics Sector

121. Focus will also be directed towards the development of the transport

and logistics infrastructure, in line with current demands to attract more

investors and tourists as well as boost trade activities. To strengthen the

ecosystem and efficiency of the country’s ports:

• RM50 million is provided as a matching grant with the Port

Klang Authority to maintain Jalan Port Klang while enforcing

the overload limit on heavy vehicles.

• RM20 million is provided as a matching grant with the Port

Authorities to upgrade the Malaysia Maritime Single Window

(MMSW) system to unite trading communities at the port through

an integrated digital port with various Government Agencies.

• The proposed development of a Port in Carey Island will be

realised through Request for Proposal (RFP) to further

strengthen the role of Port Klang.

56
122. To encourage more commitment from investor companies to make

Malaysia a global service centre, the Government will introduce a Global

Service Hub tax incentive with an income tax rate incentive of 5 percent

or 10 percent determined on a success basis for a period of up to 10 years.

123. The Government is committed to upgrade existing airports to

enhance operational capabilities to meet the increasing influx of investors,

traders and tourists. A total of RM47 million will be provided to improve

passenger facilities at Tioman Airport terminals and to extend the

existing runway to 1,300 metres.

Second: Tourism and Creative Sector

124. The country is rich in culture and heritage besides being home to

many invaluable natural treasures. We excel in niche markets in the

ecotourism, scuba diving, golf, wedding ceremonies and medical tourism

segments. This huge potential should be developed with a thorough

framework to revitalise the tourism sector to become an engine of

economic growth for the country.

57
125. Therefore, the Visit Malaysia Year has been reinstated to the

year 2026, with a target of 26.1 million foreign tourist arrivals and an

estimated domestic expenditure of RM97.6 billion.

126. The Government will provide RM350 million to boost promotion

and tourism activities for Malaysia to regain its position as the

world’s preferred tourist destination. This provision includes:

• organising 2026 Visit Malaysia Campaign;

• cooperation with the industry for promotional activities and to

organise both domestic and international tourism events;

• assistance to more than 200 cultural activists to organise cultural

and arts activities;

• charter flight matching grant to improve accessibility of

international flights to Malaysia; and

• funds to the Islamic Tourism Centre (ITC) to develop Muslim-

friendly tourism industry in Malaysia.

58
127. Heritage areas, buildings and sites that are tourist attractions will

continue to be preserved to maintain their beauty, safety and cleanliness.

• RM20 million will be provided for the benefit of the state

governments to maintain and conserve tourist attractions

such as Tasik Timah Tasoh in Perlis, Kenong Rimba Park in

Pahang and Pantai Teluk Kemang in Negeri Sembilan.

• A total of RM80 million is also provided to preserve and

conserve heritage buildings and sites that could potentially

be recognised by UNESCO, such as Gua Niah, Sarawak;

Lembah Bujang, Kedah and Royal Belum, Perak.

• RM20 million is also provided to Think City to enhance and

conserve the value of Kuala Lumpur as a creative and cultural

city.

128. Recognising the significant contribution of the tourism and

manufacturing sectors to the development of the country, the Government

is committed to introduce new initiatives under the Malaysian Visa

Liberalisation Plan, involving the following facilities:

59
 First: Facilitate Employment Pass approvals for strategic

investors in key sectors;

Second: Introduce Long-Term Social Visit Pass for

international students who have graduated to meet

industrial skilled personnel needs; and

Third: Improve Visa-On-Arrival facilities, social visit

passes and Multiple Entry Visa offers to encourage

the entry of tourists and investors, especially from

India and China.

129. The Government has also agreed to ease the existing conditions

for the application of Malaysia My Second Home (MM2H) to increase

the arrival of tourists and foreign investors to Malaysia. This improvement

to MM2H is expected to increase investment activities in the Malaysian

financial market and the country’s real estate industry.

Tan Sri Speaker Sir,

130. Local creative talent will continue to be supported to

encourage the production of more artistic works in Malaysia as well

60
as increase their income. The Government will provide RM160

million to implement various initiatives for the benefit of creative

artists, among others:

• RM60 million under the Digital Content Fund to promote local

works and support content based on national values;

• RM90 under the Film in Malaysia Incentive (FIMI) initiative to

further encourage international film production; and

• RM10 million to provide for the MyCreative Matching Grant

Scheme to support artists in the production of creative projects.

131. Following the Selangor State’s decision to lower the entertainment

duty rate, the Government also intends to lower the entertainment

duty rate for the Federal Territory from 25 percent to new rates as

follows:

• Full exemption of entertainment duty for stage

performances by local artists;

61
 • Reduction of entertainment duty to 5 percent for theme

parks, family recreation centres, indoor play centres and

simulators; and

• Reduction to 10 percent entertainment duty for stage

performances by international artists and other

entertainment events such as film screenings as well as

sports and games events.

• At this juncture, I also take the opportunity to call on state

governments to consider a reduction in entertainment duty,

which can support the development of local creative talent

as well as boost the country’s tourism activities.

132. I have looked into the input received during the Jelajah

Belanjawan MADANI in the State of Johor in relation to the

Government’s approach in encouraging the entry of foreign film

production to Malaysia and further compete against incentives

offered by other countries, the Government proposes to set a special

income tax rate of between 0 to 10 percent on film production

companies, foreign film actors and movie crews who carry out

filming in Malaysia.

62
133. In recognition and appreciation of laureates and arts, cultural and

heritage players, the Government will once again organise the

National Art Award annually.

Third: Technology and Innovation

134. Malaysia needs to emphasise an economic growth model led by

research, development, commercialisation and innovation (R&D&C&I)

activities. To ensure Malaysia is successfully listed among the top 30

countries in the Global Innovation Index by 2025:

• A total of RM510 million is allocated as R&D funding under

the Ministry of Science, Technology and Innovation as well

as the Ministry of Higher Education. From this, RM50 million

is exclusively for a matching grant for public universities to

collaborate with the private sector in intensifying research and

innovation activities that can be commercialised.

• A total of RM76 million is also allocated to enhance the

R&D&C&I ecosystem through the provision of a fund to support

the commercialisation of products created by business

63
 enterprises, NGOs as well as Government departments and

agencies.

• The INNOVATHON programme, which was successfully

launched this year, featured many creations by local talent that

can be commercialised. The INNOVATHON programme will be

continued to enrich and stimulate innovation among the

rakyat.

135. To inculcate innovation among industry players, RM10 million will

be provided, involving the E&E technology field under MIMOS, the space

sector under MYSA as well as thedrone and robotics technology under

MRANTI.

Fourth: Plantations and Commodities Sector

136. As of June 2023, the agricommodity sector has contributed RM38

billion or approximately 5 percent to the GDP and RM77.4 billion or 11

percent to the national export. These commendable achievements are not

devoid of various global economic challenges and volatility. These include

the impact of the implementation of non-tariff barriers by importing

countries such as the European Union Deforestation-free Regulation

64
(EUDR), the issue of the reliance on foreign labour and adaptation to

modern technology.

137. The Government will provide RM2.4 billion to FELDA, FELCRA

and RISDA to continue boosting agricommodity activities and improve the

socioeconomic status of smallholders.

138. By 2027, old palm trees that are more than 25 years are

expected to cover an area of more than 560,000 hectares and this will

adversely impact the productivity of fresh fruit bunches with losses

of up to RM7 billion a year. To curb this problem, the Government

will provide the Palm Replanting Programme Incentive with an

allocation of RM100 million. This incentive will be offered through a

grant and loan to 7,000 private oil palm smallholders.

139. The national palm oil industry needs to continue to be defended

against European misconception. The Government will provide RM70

million to enhance the sustainability level of the palm industry as

well as intensify efforts to counter Anti-Palm Oil Campaigns in the

international arena.

65
140. The Malaysian Rubber Board (LGM) has successfully developed a

method of using stimulant gas that can catalyse the production of rubber

up to three times as well as to increase the lifespan of rubber trees up to

25 years. RM10 million is provided for the implementation of a pilot project

to use stimulant gas for the benefit of rubber smallholders in a 1,000

hectare-wide plantation.

141. The Government will allocate RM90 million to RISDA and

FELCRA to encourage smallholders to optimise the use of

production of crops and livestock such as mushrooms, pineapple,

matag coconut, cattle and chicken.

142. To increase the productivity of plantation products and reduce the

dependence on foreign labour through mechanisation and automation

such as drones and self-driving vehicles, the scope of automation tax

incentives will be expanded to cover the commodities sector under

the Ministry of Plantation and Commodities.

143. In Belanjawan 2023 Budget, I increased the activation pricing level

for the Rubber Production Incentive (IPG) from RM2.50 to RM2.70 per

kilogramme. Once again, after hearing the grouses of the rubber farmers,

66
the Government has agreed to increase the IPG activation pricing

level to RM3 per kilogramme with an allocation of RM400 million.

Fifth: GLIC and GLC Companies

144. The role of GLICs and GLCs as the driving force of the

country’s economy is significant. The accumulated investment value

of GLCs is estimated to reach RM130 billion this year. Among the

focus of investment include DDI, venture capital in high-innovation

startups and green growth for climate resilience.

145. Furthermore, GLICs and GLCs have also increased their

contribution in the implementation of various programmes for the welfare

of the rakyat and the country, from RM250 million in 2023 to RM300 million

in 2024.

Measure 7: Sustainable Agenda and Energy Transition

146. The launch of the NETR outlines six key drivers of energy transition,

including renewable energy, hydrogen, green mobility as well as carbon

capture utilisation and storage (CCUS).

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First: Towards Net Zero Carbon Emission

147. To realise the NETR aspiration, the Government will provide the

Fund to Facilitate National Energy Transition with an accumulated

value totalling RM2 billion.

148. Apart from this, financial institutions will also provide financing funds

with a total value of RM200 billion to encourage the industry to transition

towards a low-carbon economy.

149. To achieve the target of 70 percent renewable energy capacity by

2050, efforts to improve the implementation of the Corporate Green Power

Programme will be continued as one of the Third Party Access (TPA)

model implementation methods . The Government will continue to explore

the TPA model and develop appropriate implementation methods to drive

investment in renewable energy capacity.

150. The Government will continue to boost growth in the local electric

vehicle (EV) industry and encourage the acceptance of the rakyat towards

the usage of EVs.

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• The Government welcomes investment of more than RM170

million by leading companies such as TNB, Gentari and

Tesla Malaysia to install 180 EV charging stations.

• To encourage the use of electric motorcycles, the

Government will introduce the Electric Motorcycle Usage

Incentive Scheme to the rakyat with an annual income of

below RM120,000. This scheme will provide up to RM2,400

rebate to buyers.

• To support the needs of the LRT3 projects, Prasarana Malaysia

Berhad has agreed to acquire 150 electric buses and build 3 bus

depots at a cost of RM600 million.

• The Government suggests to extend individual income tax relief

of up to RM2,500 on expenses for EV charging facilities for a

period of 4 years and to extend tax deduction for EV rental costs

for a period of 2 years.

69
151. Encouraging the installation of solar panels will also be intensified.

• The Government will extend the offer period for the Net Energy

Metering (NEM) programme until 31 December 2024 to

encourage the installation of panels in residential premises.

• The Government is also developing a roof solar buyback

programme with minimal cost implications to the system.

• At the same time, the Government is encouraging companies to

offer a “Zero Capital Cost” subscription model, as will be offered

by Gentari, for the residential housing category.

152. Putrajaya will be modelled as Malaysia’s low-carbon city. The

Government will begin installing solar panels on the roof of Government

buildings in collaboration with TNB and Gentari. The Federal

Administration will also begin using electric vehicles as official vehicles.

153. The Government will continue to support Sustainable and

Responsible Investment (SRI). The Government plans to extend the

tax exemption to fund management companies that manage SRI

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funds as well as tax deductions on the cost of issuing SRI sukuk

until the assessment year 2027.

154. To encourage more involvement from companies to join the carbon

market voluntarily, the Government is proposing an additional tax

deduction up to RM300,000 to be given to companies spending on

Measurement, Reporting and Verification (MRV) related to the

development of carbon projects. These expenses can be deducted from

the income from carbon credit sales traded at the Bursa Carbon Exchange

(BCX).

155. The Government will ensure the Petroleum (Income Tax) Act 1967

remains relevant with the current upstream oil and gas industry needs,

while increasing the interest of foreign investors. The Petroleum (Income

Tax) Act 1967 Review Committee comprising the Ministry of Finance,

IRBM and PETRONAS is reviewing and drafting tax incentives for CCUS

and Hydrogen Sulphide projects. Insya-Allah, this study will be finalised

by the end of the year.

71
Second: Preservation of Natural Treasures

156. The Government will continue to support the state governments’

efforts in increasing the percentage of protected forest areas and

protecting endangered wildlife. Next year, the allocation for Ecological

Fiscal Transfer for Biodiversity Conservation (EFT) will be increased

to RM200 million, instead of RM150 million this year.

157. The role of community rangers has been successful in combating

invasion, logging and illegal mining as well as killing of wildlife. The

Government will increase the number of community rangers to 2,000

personnel, instead of 1,000 this year to increase the enforcement of

permanent forest reserves. RM60 million is allocated with a focus on

appointing rangers from among veterans from the Malaysian Armed

Forces, the RMP, Orang Asli and local communities.

158. For the period 2018 to 2022, more than 46,000 complaints have

been received involving human-wildlife conflicts such as elephants, tigers

and tapirs that damage property and agricultural crops with an estimated

loss of RM43 million. A total of RM10 million is provided to help ease

the burden of losses incurred by the rakyat affected by human-

wildlife conflicts.

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159. The Federal Government will pioneer the issuance of biodiversity

sukuk of up to RM1 billion involving the replanting of degraded forests

that will in turn generate carbon credit. This replanting initiative will be

undertaken in collaboration with interested state governments and will

potentially benefit from some of the carbon credit generated.

160. The Government has prepared various forms of tax deductions for

preservation and conservation activities. To encourage more involvement

from the private sector through charity or community projects, the

Government will provide tax deductions to entities that sponsor tree

planting activities or environmental preservation and conservation

awareness projects certified by the Forest Research Institute

Malaysia (FRIM).

161. In addition, to support the social enterprise movement in producing

positive environmental and social impacts, in line with the pillars of

sustainability and wellbeing under Malaysia MADANI, the Government

will extend the tax exemption application period on all social

enterprise income until 2025.

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Third: Readiness to Face Disasters

162. The Twelfth Plan has allocated a significant amount to fund flood

mitigation projects, reaching RM22 billion. This long-term high-impact

project is essential to ensure the rakyat’s wellbeing and curb more losses

of life and belongings. Nevertheless, the Government remains firm in its

stance on procurement, wherein it should be implemented on a tender

basis to avoid wasting the rakyat’s money.

163. Next year, the implementation of a total of 33 High Priority Flood

Mitigation Projects will be undertaken at a cost of RM11.8 billion.

Among the projects involved include Flood Mitigation Plans at:

• Sungai Pahang Basin, Pahang;

• Sungai Langat Phase 2, Selangor;

• Sungai Jelai, Kuala Pilah, Negeri Sembilan;

• Sungai Likas, Kota Kinabalu, Sabah;

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 • Kuching Phase 2; Sarawak;

• Baling Phase 2, Kedah; and

• Integrated River Basin Development, Sungai Kelantan Phase 2,

Kelantan.

164. Letters of Acceptance (SST) for 24 projects are expected to be

issued this year beginning October 2023 involving a total cost of RM5.1

billion. The remaining projects will be issued SSTs in the first quarter of

2024.

165. Meanwhile, to reduce the risk of stagnant water and flash floods,

RM20 million is provided to 150 local authorities to carry out repair

works on damaged sewers and drains.

166. To curb landslide tragedies similar to the one in Batang Kali,

Selangor late last year, the Government has provided RM563 million for

slope repairs nationwide including for monitoring, prevention and

reporting programmes as well as early warnings involving more than

2,000 high-risk slopes.

75
Tan Sri Speaker Sir,

167. Overall, the National Disaster Management Agency (NADMA) as

the main agency for flood preparations has been allocated RM300

million.

• This includes RM100 million which will be channelled

immediately after this Presentation using the 2023 allocation

to ensure smooth flood preparedness later this year.

• The Government has agreed to increase the allocation under

the National Disaster Relief Fund next year to RM200 million

instead of RM100 million this year.

• NADMA will also enhance the comfort levels at evacuation

centres to ensure the welfare of the victims. Among them are

providing nine Permanent Evacuation Centres, refurbishing

lavatories, bathrooms and stores at 1,500 Temporary Evacuation

Centres as well as renting mobile lavatories.

• At all times, the Government is willing to increase the allocation

if needed to ensure best management of disasters.

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168. We must all remember Blake, a member of the K9 Detection Unit of

the Fire and Rescue Department who left us after rendering tremendous

service to the country. The Government will improve the medical

facilities and treatment for K9 dogs of the Fire and Rescue

Department as well as increase the number of K9 detection dogs for

the Fire and Rescue Department, RMP and RMCD with an allocation

of RM5 million.

Fourth: Food Security

169. The disruption of the global food supply chain has had a direct

impact on the local essential items market. The increase in rice prices is

not only happening in Malaysia due to the decision of 19 countries to limit

the export of rice to support their own domestic consumption. Last month,

the Government decided on four urgent measures to ease the rakyat’s

concerns regarding the price hike of imported white rice and the increase

in demand for local white rice.

170. The Government will continue to intensify efforts to ensure the

sustainability of the country’s agro-food industry self-sufficiency level.

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• The Second Belanjawan MADANI will provide RM2.6 billion

to provide various forms of subsidies and incentives to

farmers and fishermen. This allocation has increased to RM600

million compared to this year, in line with the Government’s

decision to increase the rate of the Paddy Price Subsidy Scheme

from RM360 to RM500 per metric tonne.

• I have heard the grouses of paddy farmers when the purchase

price by manufacturers was lowered to a minimum of RM1,200

per metric tonne, whereas the purchase price by manufacturers

was much higher previously. The Government has set the floor

price at RM1,200 since 2014. It gives me great pleasure to

announce the Government has decided to increase the floor

price of paddy to RM1,300 per metric tonne to help the

income of farmers.

• The Government has embarked on a five-season paddy

cultivation pilot effort in 2 years in several areas such as

Bota Kiri, Perak; Kangar, Perlis and Kota Sarang Semut,

Kedah. This is in line with efforts to upgrade the irrigation

infrastructure in Muda Agricultural Development Authority

78
 (MADA) area in Perlis and Kedah to increase rice production with

an investment worth RM3 billion.

• The Government has also agreed to increase the allocation of hill

paddy or huma paddy subsidies from RM40 million to RM50

million and this, among others, will be able to expand the hill

paddy planting area from 43,000 hectares.

• For the benefit of fishermen, the Government will maintain the

diesel subsidy at the lowest price of RM1.65 per litre to selected

classes of fishermen, with a quota of 840 million litres per annum.

Fishermen are also provided a monthly subsistence allowance of

up to RM300 per month and the Fishermen Catch Incentive of up

to RM1,000 per month. The Government will provide RM10

million for the purpose of building new and refurbishing

dilapidated fishermen’s houses.

• Next year, RM400 million will be allocated to implement the

Food Security Strengthening Programme. Particular focus will

be on increasing the production of local food crops that are still

dependent on external imports.

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 o Among others, RM150 million to cooperate with state

governments in optimising land use to increase crop and

livestock production.

o RM50 million to implement the new method of fertiliser

procurement through an open tender basis to provide

farmers the option of fertiliser to be used. This project will

be carried out on a pilot basis in a 90,000-hectare area,

including in Perak, Selangor, Terengganu and Penang.

o RM50 million to supply 50,000 farmers with bio-organic

fertilisers to increase soil fertility.

• To support the increase in production capacity of agricultural

products and the competitiveness of young agroprenuers,

Agrobank provides loan facilities to agro-food entrepreneurs

with the availability of funds of up to RM430 million.

• The Government will protect farmers, breeders and fishermen hit

by natural disasters, which destroy their crops and livestock.

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 o RM50 million is provided under the Agricultural Disaster

Fund as compensation of up to 50 percent of the value of

losses due to disasters.

o RM50 million has also been allocated as startup funds

under Skim Takaful Tanaman Padi for the benefit of more

than 240,000 rice farmers.

171. In essence, I call for the involvement and cooperation of the private

sector in embracing all their strengths and expertise to work together to

increase local food production to reduce reliance on imported supplies.

III. RAISING RAKYAT’S STANDARD OF LIVING

172. As expressed in Thirukkural:

இயற் றலும் ஈட்டலுங் காத்தலும் காத்த வகுத்தலும்

வல் ல தரசு

(Iyatralum Eettalum Kaatthalum Kaattha

Vaguthalum Vallathu Arasu)

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 The person, capable of advancing (wealth from various sources of

income), gathering (wealth from that income in a centre), protecting (the

accumulated wealth) and managing the expenditure of that protected

wealth (in advantageous ways),

is the King.

173. The increase in national revenue from economic and fiscal

restructuring will be fully utilised to elevate the standard of living for the

rakyat to a more meaningful level. Particular emphasis is given to the

channelling of cash assistance directly to the underprivileged as well as

providing education, health and basic infrastructure for all.

Measure 8: Protecting the Welfare of the Rakyat

174. For 2024, a total of RM58.1 billion is provided to finance various

forms of Government assistance to the rakyat including subsidies,

incentives and aid. Almost 50 percent of this allocation is to control the

price of goods and services to benefit the rakyat.

175. For example, RM225 million is allocated to finance the cost of

distribution of essential goods such as petrol, LPG, flour and cooking

82
oil to rural and remote areas under the Community Drumming

Programme. The programme will be expanded to new areas including the

Abai district, Sandakan, Sabah and Engkerebai, Mukah, Sarawak.

First: Payung Rahmah Programme

176. The Payung Rahmah Programme is a manifestation of the

Government’s concern with the plight of the rakyat. The battle against

dealing with the rising cost of living, which was initiated by the late Datuk

Seri Salahuddin Ayub shall not be stopped and will be further enhanced.

177. The Government has allocated RM200 million to continue the

implementation of the Payung Rahmah Programme.

• For example, the Jualan Rahmah Programme, which offers

essential items priced up to 30 percent lower, will be expanded

to more state constituencies nationwide.

• The Pasar Rahmah Programme, which offers incentives to

1.2 million entrepreneurs of wholesale markets, night

markets and farmers markets will continue to reduce the cost

of doing business, thereby lowering sale prices.

83
Sumbangan Tunai Rahmah (STR) & Sumbangan Asas Rahmah

(SARA)

178. I have heard the grievances of the rakyat who faced challenges of

the cost of living and the rising price of goods. This issue has always been

the Government’s priority in ensuring that low-income households

continue to be given appropriate assistance.

179. The wisdom of retargeting subsidies will enable the Government to

improve and increase cash assistance to the rakyat through the STR. Next

year:

• The STR will benefit 9 million recipients or 60 percent of

Malaysia’s adult population.

• The STR allocation will increase by RM2 billion or 25 percent

from RM8 billion to RM10 billion.

• The maximum STR will increase from RM3,100 to RM3,700.

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• The minimum STR rate for singles will also increase from

RM350 to RM500.

• The first STR payment for households is usually RM300. For

STR 2024, the first STR payment is increased to RM500

which will be distributed before Ramadan, Insya-Allah.

• This year, we have introduced SARA by crediting into the

MyKad of 200,000 STR recipients RM100 per month for a

period of six months. Through SARA, the recipient only

needs to present their myKad to retail outlets to buy basic

necessities. Taking into account the excellent feedback, the

Government has decided to extend the SARA benefit to

700,000 STR recipients who will receive RM100 per month

for a period of 12 months.

• STR 2024 will adopt a different approach wherein the

Government will accept new applications as early as

November 2023 and this application period will be opened

throughout the year compared to just once a

yearpreviously. Insya-Allah, the first payment up to RM500

will be made in February 2024.

85
Second: Meaningful Income

180. The People’s Income Initiative (IPR) launched this year has

managed to increase the monthly income of more than 2,000 participants.

Under the INSAN programme, the participants managed to earn an

average sales revenue of up to RM14,000 per month. Next year, RM500

million will be provided to increase the participation of more

hardcore poor in the IPR programme to increase their income..

181. Based on the latest data, efforts to tackle hardcore poverty continue

to reflect progress, with hardcore poverty rate falling from an estimated 1

percent in 2020 to 0.2 percent or 18,000 households at present. For all

the efforts in place, the Government is confident that hardcore poverty can

be put to an end.

182. The Government agrees to enable the skills improvement

programme under the MyFutureJobs platform accessible to all

MySTEP appointments. This platform will provide matching jobs that will

build their future career and generate higher income. This initiative will

offer 50,000 jobs opportunities on contract basis in the public sector and

GLCs starting January 2024.

86
183. The Government will continue to encourage the vulnerable people

such as the disabled, former inmates and senior citizens to secure jobs

with meaningful salaries.

• To encourage private employers to employ the vulnerable,

SOCSO will provide a special incentive of RM1,500 per

month for the period of six months to support the entry of

more than 3,300 job seekers with an allocation of RM30 million.

• The One Percent Policy on Employment Opportunities for

the disabled will be extended to former inmates and senior

citizens via the MYFutureJobs job-matching and MySTEP

programme. Vulnerable group participating in the MySTEP

programme will be offered contractual placements with an

allowance of RM1,500 for a period of six months in various

ministries, GLICs and GLCs as well as Government’s strategic

partners.

184. The Government will continue the Career Building Programme

through SOCSO to ensure informal workers, especially in the gig

economy, are given the opportunity to participate in career development

87
and microcredential skills training programmes. RM35 million will be

provided to bear the cost of training fees and income replacement

incentives for 9,000 gig workers to attend training programmes.

Third: Channelling of Cash Assistance

185. For 2024, the assistance channelled by the Department of Social

Welfare (JKM) is worth more than RM2.4 billion. The assistance is

expected to benefit more than 450,000 rakyat, especially hardcore poor

households, senior citizens, children and the disabled. I am pleased to

share that eligibility requirements have been expanded in line with the

increase in the 2023 Food Poverty Line Income (PGK) that is RM1,198

per month.

186. A portion of the income generated from the sales of special licence

plate numbers will be utilised to ease the burden of the underprivileged.

First: The Government agrees to continue bearing the

driving test fees for the B2 motorcycle licence

category, e-hailing and taxis for the benefit of more

than 40,000 youths from underprivileged families.

88
 Second: A total of 10,000 helmets including for children will

be freely distributed to underprivileged families.

Third: The FLYsiswa initiative is introduced as a subsidy aid to

purchase flight tickets to reduce the financial burden of

students who wish to return to their hometowns. Next

year, the FLYsiswa initiative will continue to benefit

nearly 60,000 students from underprivileged families.

Fourth: Social Protection

187. The Government is improving social protection programmes to

ensure that the focus group continues to receive the appropriate

protection.

First: The Government’s contribution under the Self-

Employment Social Security Scheme (SKSPS) will

be increased to 90 percent with an allocation of

RM100 million. On behalf of the gig workers, I would

like to urge the operating company to cover the

remaining 10 percent of the contribution. I am sure

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 platform operating companies are very attentive of their

workers’ welfare .

Second: The Government’s matching contribution limit

under the EPF’s i-Saraan programme will be

increased to RM500 per year, limited to RM5,000 for

life.

Third: The Government’s matching contribution limit

under the EPF’s i-Suri programme will be increased

to RM300 per year, limited to RM3,000 for life.

Fourth: The Housewives’ Social Security Scheme will be

continued with an allocation of RM50 million

involving more than 400,000 housewives registered

under e-Kasih.

Fifth: On the basis of love and care, the EPF’s i-Sayang

programme will be expanded to allow wives to

transfer 2 percent of their EPF contributions to their

husbands.

90
188. Furthermore, the Government will increase the monthly salary

ceiling for SOSCO contributions from RM5,000 to RM6,000. This

increment will expand cash benefits at a rate of 20.2 percent to benefit

1.45 million workers and their dependents.

189. The accounts of EPF members will be restructured to strengthen

retirement savings. The new EPF Flexible Account will be introduced

to allow accessibility to members at any time.

Measure 9: Empowering the Government Focus Group

190. In line with the inclusive development, efforts will continue to be

intensified to ensure equality of opportunity among the rakyat and provide

specific assistance for certain groups, especially the vulnerable and those

in need of assistance.

First: Bumiputera Agenda

191. We have to take heed from past mistakes that led to the dereliction

and negligence which has resulted in the detriment of Bumiputera

agencies:

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• The main institutions of the country cannot deviate from the initial

goals of its establishment. Past mismanagement has also forced

the Government to incur losses in Tabung Haji (RM20 billion),

FELDA (RM10 billion) and LTAT (RM2 billion). In facing

problems, it is highly inappropriate for main institutions to make

settlements by selling strategic assets. Therefore, in the interests

of stakeholders, the management of main institutions should be

responsible in managing their institutions in a prudent and

professional manner to realise long-term investment potential.

• Moving forward, Bumiputera investment institutions will be

centralised under Yayasan Pelaburan Bumiputera (YPB).

Pelaburan Hartanah Berhad (PHB) will be merged under PNB

and strengthened through the provision of the Government’s

strategic lands especially in Kuala Lumpur for housing

development projects. Ekuinas will also be placed under the

umbrella of YPB to strengthen Bumiputera business expansion

in collaboration with PNB and PUNB.

• Education institutions under MARA including UiTM should focus

on training and upskilling new Bumiputera talent in high-growth

92
 areas such as Islamic economy, aerospace and creative

industries.

• Next year, RM1.6 billion worth of loan facilities and guarantees

will be provided specifically for Bumiputera MSME entrepreneurs

to increase capacity and competitiveness including the provision

of venture capital financing to Bumiputera startups.

• The Government will provide the CAKNA 2 Scheme special fund

amounting to RM2.4 billion to assist small G1 to G4 Bumiputera

contractors to complete Government small-scale projects. The

CAKNA 1 scheme, with a non-debt feature to assist Government

vendors, is extended for the implementation of all Government

agencies.

Second: Women and Children

192. The Ekonomi MADANI Framework sets a benchmark to increase

the participation rate for women in the labour force to 60 percent. To

further encourage women to return to work, tax incentives for women

returning to work are extended until 31 December 2027.

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193. The Government is proposing that the income tax exemption

limit on childcare allowances received by employees or paid directly

by employers to childcare centres be increased from RM2,400 to

RM3,000.

194. Immigration detention centres are not meant for children. There is

no need to refer to international conventions to be aware of the matter; we

need to have empathy. The Government has pioneered the Baitul

Mahabbah programme under the Immigration Department of Malaysia to

provide temporary placement for these children. For 2024, the

Government will expand this programme to three more temporary

settlement centres, namely Sabah, Sarawak and Peninsular with an

allocation of RM10 million.

195. Attention will continue to be given to early childhood education. For

next year, KEMAS is allocated RM586 million.

• A total of 10 new TABIKA and TASKA at a cost of RM31

million will be built, among them, in Kampung Paya Berenjut,

Kemaman, Terengganu; Felda Jelai 1, Tampin Negeri Sembilan

and Taman Kota Masai, Johor Bahru, Johor.

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 • A total of RM20 million is also provided to upgrade the

KEMAS Early Childhood Education premises.

196. For next year, 26 new preschools under the Ministry of

Education will be built involving a cost of RM82 million. This includes

the construction of preschool buildings in:

• Sekolah Kebangsaan Abang Kadir Gedong, Simunjan, Sarawak;

• Sekolah Kebangsaan Bunut Rendang, Kuantan, Pahang; and

• Sekolah Jenis Kebangsaan Cina Chabau, Melaka.

197. The inculcation of Islamic education and the knowledge of the Quran

will continue to be strengthened from an early age. The Government will

implement the KEMAS Pre-Tahfiz Programme with an allocation of

RM20 million, targeting to produce 100,000 young hufaz by 2026.

Second: Youths

198. To inculcate the spirit of volunteerism among youths aged 18 to 20

years, the Government will implement the “pay it forward” concept. A

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RM500 reward will provided to youths who have successfully

participated in volunteerism activities with organisations recognised

by the Government.

199. In addition, the Rakan Muda Programme has been given a new

lease of life to mould the identity and personality of young Malaysians.

The Government has allocated RM20 million to Rakan Muda to

enhance the content of youth programmes.

200. Since inception, the Tunas Usahawan Belia Bumiputera

Programme (TUBE) has produced more than 7,000 Bumiputera youth

entrepreneurs and created nearly 14,000 job opportunities. This

programme will continue next year with an allocation of RM20 million. The

TEKUN Belia Mobilepreneur scheme will be continued with an allocation

of RM10 million as capital for young people to venture into delivery

services using motorcycles.

201. To promote Malaysia as an e-sports industry development hub, a

total of RM30 million is allocated to encourage companies or international

video game studios to invest in Malaysia in the development of their digital

products together with local talent..

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 Third: Key Communities

a) Orang Asli

202. The Orang Asli communities are allocated RM333 million in

2024 compared to RM305 million this year. This allocation includes the

implementation of socio-economic development and infrastructure

projects in Orang Asli villages as well as the provision of social assistance.

203. For example, a total of RM28 million is allocated to intensify the

development programme of Orang Asli entrepreneurs and the

replantation of Orang Asli plantations such as at Batang Padang,

Perak and Hulu Langat, Selangor.

b) Persons with Disabilities (OKU)

204. The Government will continue to protect the wellbeing and empower

the OKU to be self-sufficient.

• A total of RM1.2 billion is provided to channel various forms

of assistance such as caregiving to chronically ill bedridden

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 OKU, OKU who are unable to work and allowances for OKU

workers.

• Next year, the allowance rate for OKU trainees who

participate in the Community Recovery Programme will be

increased to RM300 per month compared to RM150 per

month. This increase is expected to benefit more than 18,000

OKU trainees with an additional allocation of RM30 million.

• BSN will provide RM50 million as a special financing facility to

benefit OKU micro entrepreneurs.

c) Senior Citizens

205. For 2024, a total of RM1 billion is allocated to protect the

wellbeing of senior citizens. This includes providing cash assistance

and channelling of the fund to senior citizens’ care institutions and activity

centres.

206. The Government proposes for the Industrial Building Allowance

to be given to the Senior Citizens Private Nursing Homes approved

by the Ministry of Health at the rate of 10 percent of the cost of buildings

98
to be built or purchased, including renovation costs for each year of

assessment. This allowance is given for eligible expenses incurred from

1 January 2024 to 31 December 2026.

d) Inmates and Refugees

207. The PEKA (Your Second Chance) Programme under the Prisons

Department has successfully provided employment opportunities for

selected inmates who are ending their sentence. Next year, apart from

continuing to work with companies to ensure the success of the PEKA

Programme, a total of RM10 million is also provided for the

implementation of the PEKA TVET Programme to provide CIDB-

accredited competency training to inmates.

208. In the spirit of second chances, the Government will also table

amendments to the Drug Dependants (Treatments and

Rehabilitation) Act 1983 to enable drug addicts to receive treatment and

rehabilitation without being admitted to prison institutions.

209. Malaysia is no exception to spillover effects from the humanitarian

crisis in regional countries. Most of the refugees and asylum seekers in

Malaysia are those who are oppressed in Myanmar. The Government is

99
willing to consider providing controlled access to basic needs

including jobs, services and education.

Measure 10: Providing Excellent Basic Facilities

“Without education and liberty, that soil and the sun of mankind, no

reform is possible, no measure can give the result desired.”

(Jose Rizal)

210. The Ekonomi MADANI Framework sets the benchmark for Malaysia

to be among the top 25 in the United Nations Human Development Index

(HDI). Among the criteria to measure HDI include the education and

health levels of the citizens.

First: Education and Higher Education

(a) Mainstream Education

211. Education remains the main component that receives the highest

allocation in the Second Belanjawan MADANI. The Ministry of

Education, specifically, will be allocated RM58.7 billion compared to

RM55.2 billion in 2023.

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212. Next year, an allocation of RM1.9 billion will be allocated to

upgrade and maintain schools nationwide.

• This includes RM930 million for the upgrading of dilapidated

buildings and infrastructure in 450 schools, comprising 185

projects in Sarawak and 155 projects in Sabah.

• A total of RM1 billion is allocated for the maintenance of all

types of schools such as national, religious and vernacular

schools, including special education schools with a focus on the

needs of students with autism.

213. Next year, the construction of 26 new schools will begin with a

total cost of RM2.5 billion, including:

• SMK Laya-Laya, Tuaran Sabah;

• SMK Baie, Bintulu, Sarawak;

• SMK Seri Melati, Kuantan, Pahang;

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 • SMK Bandar Universiti, Bandar Seri Iskandar, Perak; and

• SMK Binjai, Kota Bharu, Kelantan.

214. Beginning next year, the Government has agreed to expand the

parents’ income criteria in the application of the Federal Small

Scholarship (BKP) according to the PGK rate of RM2,589 compared

to the previous RM1,500. The extension of this requirement will benefit

an additional 35,000 children from underprivileged families.

215. To ensure the children from poor families do not drop out of school,

the Government has agreed to expand the provision of assistance

under the Kumpulan Wang Amanah Pelajar Miskin to Form Three

students compared to Form One students previously. In total, over 1

million students will receive benefits with an allocation RM150 million.

216. The Ministry of Education recorded a decrease in the participation

of upper secondary students in the Science, Technology, Engineering and

Mathematics (STEM) stream to 40.94 percent in 2022 compared to 45.2

percent in 2017.

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 • To strengthen the STEM field, a Special STEM Committee

across ministries will be established to set targets and

measures to increase STEM field participation among secondary

school students.

• The Government will provide RM100 million to maintain and

upgrade school computer labs and acquire new equipment

for STEM learning. Industry representatives will also be involved

as instructors and provide equipment to increase the interest of

students in STEM.

217. The Government will continue to empower and protect the wellbeing

of students with special needs.

• Next year, 18 new special education blocks will be built with

a total cost of RM180 million. This includes SMK Kubang

Rotan, Kedah; SK Bandar Baru Perda, Pulau Pinang and SMK

Dato’ Ali Ahmad, Perlis.

• A total of RM30 million is also provided for special

educational support equipment and disabled-friendly

infrastructure to facilitate students and teachers in school.

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218. The application of Karamah Insaniah among school students

will be enhanced to implement student character-building

programmes that focus on the values of leadership, personality,

manners and integrity.

219. Malaysia recorded the highest school closures compared to regional

countries during the COVID-19 pandemic. Pursuant to this, there are still

students who drop out and require further guidance. To this end, RM100

million is provided to implement a holistic approach involving all

parties to help these affected students.

220. To ensure the suggestions and concerns of parents, educators and

the industry are factored in the currently drafted National Education

Blueprint, the Ministry of Education will carry out the Future of National

Education Tour.

(b) Higher Education

221. The excellence of higher education is measured by the number of

successful young talents produced. Universities, as knowledge hubs,

need to be ready to supply graduates with the necessary skills and

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knowledge of the job market. For this purpose, the Ministry of Higher

Education is allocated RM16.3 billion compared to RM15.3 billion

this year.

222. Lagging internet access in universities is one of the highest

complaints that I have received in my Siri Temu sessions with students.

This should be dealt with utmost urgency. The Second Belanjawan

MADANI will provide RM250 million to replace and extend the

coverage of WIFI in all public universities. This also includes RM5

million for the digitalisation project of the University Teaching Hospitals.

223. To increase the level of comfort and safety in institutes of higher

education (IPT), RM300 million is provided to maintain and repair

infrastructure as well as replace dilapidated equipment. This includes

RM50 million for the procurement of equipment at four technical

universities in Malaysia.

224. The Government will continue to promote knowledge by

encouraging vulnerable communities, including OKU, Orang Asli,

single mothers and senior citizens to participate in the Lifelong

Learning Programme in community colleges. A total of RM5 million

105
is provided for the benefit of 5,000 focused communities in 105

community colleges nationwide.

225. To improve the socio-economic level and empower local

entrepreneurs, the Government has provided RM1 million to each public

university to intensify the implementation of the Program

Pengupayaan Komuniti MADANI and the OKU Community

Rehabilitation Programme.

226. Malaysia needs to move quickly to lead the thrust of the future in

line with the booming global digital transformation. Innovation and digital

talent need to be strengthened, especially in the artificial intelligence (AI),

to support sustainable economic growth in the country. To intensify the

exploration of cross-disciplinary AI, I am pleased to announce the

establishment of the country’s first AI study centre, the Faculty of

Artificial Intelligence (AI) at Universiti Teknologi Malaysia with an

initial allocation of RM20 million.

227. Debts must be paid. To build a responsible attitude among

borrowers, the Government has agreed to provide a discount on PTPTN

loan repayment from 14 October 2023 until 31 March 2024 with the

following rates:

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 First: 10 percent discount on the balance of debt for full

settlement of the loan;

Second: 10 percent discount on payment of at least 50 percent

of the remaining debt in a single payment; and

Third: 15 percent discount on payment by salary deduction or

scheduled direct debit.

228. Lastly, I would like to emphasise on the welfare of university

students. I will not, under any circumstances, allow students, especially

those from underprivileged families, to be denied access to public

universities or have their rights to enrol denied simply because they

cannot afford the enrolment fees. Not having the money to pay the fees

cannot be used as a reason to prevent students from sitting for exams.

• Starting from January 2024, the registration fees for

admission to public universities will be capped at RM1,500.

This is in line with the value of the National Higher Education

Fund Corporation (PTPTN) Advance Loan (WPP), which

amounts to RM1,500 for all eligible prospective students.

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 • At the same time, existing students who cannot afford to pay

their tuition fees will not be blocked from registering for

subjects each semester and payments can be settled after

subject registration. Any payment regulations set by universities

should take into consideration the welfare of students.

• Moving forward, the university Student Affairs Division, in

collaboration with PTPTN or other relevant bodies, should play

a role in simplifying the process and assisting students and

prospective students facing issues in tuition payment.

Second: Health Services

Tan Sri Speaker Sir,

229. The Health White Paper, which was presented in this August House

last June has outlined some of the key challenges of the nation’s health

system that needs to be addressed, including integrating the public and

private health sectors that have been dichotomised for a long time. The

Second Belanjawan MADANI will lay the framework to achieve the four

pillars of the national health reform strategy.

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230. Next year, the Ministry of Health Malaysia will be allocated

RM41.2 billion compared to RM36.3 billion this year, making it the largest

increase among ministries. A total of RM5.5 billion of this allocation is for

procuring medicines, consumables, reagents and vaccines. This includes

purchasing medication from the ASEAN region at reasonable prices and

to ensure quality while reducing dependence on medicines from Western

countries.

231. Malaysia has yet to meet the ratio of one doctor to 400 patients. To

this end, the accessibility to health facilities will continue to be increased

to minimise congestion.

• Next year, several new development projects will begin to be

implemented including:

o Universiti Sains Islam Malaysia Teaching Hospital Complex

(USIM) Phase 1 in Kota Tinggi, Johor at a cost of RM938

million;

o Preliminary work for the construction of Hospital Sultanah

Aminah 2, Johor Bahru, Johor;

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 o Additional Pathology Block at Hospital Raja Perempuan

Zainab II, Kelantan at a cost of RM175 million;

o Additional building for the Emergency and Trauma

Department at Hospital Sultan Abdul Aziz Shah, Universiti

Putra Malaysia, Serdang, Selangor; and

o Five new health clinics including Rantau, Negeri Sembilan;

Kuala Tahan, Jerantut, Pahang; Kuala Jengal, Dungun,

Terengganu; and Pulau Mantanani, Kota Belud, Sabah at a

cost of RM150 million.

o The Government also supports Sarawak’s intention to develop

a Cancer Institute in Sarawak.

• To control congestion in MOH hospitals, the Government will also

continue to enhance cooperation by outsourcing patients to

other hospitals including military, university and private

hospitals with an allocation of RM200 million.

110
232. The commitment of the Unity Government to refurbish dilapidated

clinics will be intensified. A total of RM300 million is allocated to

refurbish 400 rundown clinics with wooden structures and dilapidated

wiring.

233. A total of RM766 million is also allocated for the procurement of

medical equipment at MOH hospitals to replace equipment that has

reached Beyond Economic Repair (BER) and to meet the needs of

various new service disciplines. This includes RM200 million for

ambulance procurement to ensure healthcare service readiness in

responding to emergency calls.

234. Only 3 percent of national health clinics are equipped with digital

health records. Digital records are crucial in establishing quick patient data

access that can be shared across all Government healthcare facilities.

The Government has allocated RM150 million for the maintenance of

ICT systems under the Ministry of Health, including providing Clinic

Management System Subscription (CCMS) to 100 government health

clinics.

235. To protect the rakyat and ensure their wellbeing, healthcare

services should shift from treating patients to disease prevention activities

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and the Agenda Nasional Malaysia Sihat (ANMS), RM130 million has

been allocated for this purpose, including health screening, early

screening for new-borns and providing vaccines to pregnant women.

236. At the same time, as a measure to mitigate health risks, the

following steps will be implemented:

• Imposing an excise duty on chewed tobacco products at

a rate of 5 percent on top of RM27 per kilogramme, similar

to the excise duty levied on snuff tobacco.

• The current excise duty rate for sugary drinks will be

increased from 40 cents to 50 cents per litre. The revenue

from this excise duty will be specifically allocated for

addressing and treating diabetes, including support for

dialysis centres.

237. The Skim Perubatan MADANI will be expanded nationwide with

an allocation of RM100 million, benefitting 700,000 rakyat, and the

mySalam scheme will be continued for two more years. RM50 million

will be allocated for medical device expenses claims such as heart stents.

112
Third: Rural Development

238. The Belanjawan 2024 speech that I am holding today was

placed in a bag produced by the local craft community. I believe that

we can indeed uplift the economic dignity of the local community to

generate meaningful income for them.

239. In support of the efforts to uplift the community's economy, the

Government will introduce the Program Komuniti MADANI under the

auspices of the ICU, Prime Minister’s Department. This programme

aims to boost community-level economic activities, involving five

key sectors, that is agriculture and food, sewing and handicrafts,

herbs and health, tourism and hospitality as well as green and

recycling activities.

240. Every community, whether in rural or urban areas, will be given

the freedom to deliberate and decide on their chosen focus sectors.

The Government will allocate RM1 billion under the Dana Komuniti

MADANI (DKM) to provide grants ranging from RM50,000 to

RM100,000 to communities to facilitate the Program Komuniti

MADANI success.

113
241. To bridge the gap between regions, the improvement of rural

infrastructure will continue to be a top priority.

First: RM1.63 billion has been allocated for the

construction and upgrading of roads in villages and

rural areas including in Bachok, Kelantan, Tambun

Tulang, Perlis; and Chuah, Port Dickson, Negeri

Sembilan.

Second: A total of RM939 million has been allocated to provide

water supply to 5,150 households and electricity supply

to 2,200 households.

Third: RM134 million is allocated for the installation of

60,000 units of village streetlights and the

maintenance of over 500,000 units of village

streetlights.

Fourth: RM57 million for the implementation of 115 projects,

including 54 new projects to upgrade of deteriorated

bridges and construct new bridges.

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 Fifth: RM100 million is allocated for the upgrading,

construction and repair of basic facilities such as

community halls, town halls, paved walkways and

covered pathways in villages and rural areas under the

Social Amenities Project.

242. The Unity Government pledges to address the issue of clean water

supply, especially in Kelantan, Sabah and the Federal Territory of Labuan.

A total of RM1.1 billion has been allocated, to implement solutions

for water supply issues.

• For the State of Kelantan, the construction project of the

Machang Water Treatment Plant Phase 1 with a capacity of

250 million litres per day will be implemented to enhance the

water supply reserve. Asbestos cement pipes will also be

replaced to reduce water loss rates and disruptions in water

supply due to pipe leaks. While waiting for the project to be

completed, the number of rented tankers and static tanks will

be increased to ensure those in Kelantan receive immediate

water supply in case of disruptions.

115
 • To address the water supply issue, especially in Kota Kinabalu,

Sabah, the focus will be on restoring and replacing

infrastructure and equipment to enhance the capacity of

water treatment plants.

• For the Federal Territory of Labuan, efforts are directed towards

replacing dilapidated pipes and repairing existing infrastructure.

243. The Government agrees to introduce the Program Kampung

Angkat MADANI. This programme will focus on providing basic facilities,

including internet access in remote rural areas. To ensure government

agencies work together effectively and avoid working in silos, I direct all

Chief Secretaries and Heads of Services to pool their resources across

ministries and collaborate with GLCs, GLICs and private organisations to

make this programme a success.

Fourth: Digital Connectivity

244. As of September 2023, Digital Nasional Berhad (DNB) has

successfully developed a 5G network with coverage in populated areas at

70.2 percent. As promised, the 5G network is expected to reach

approximately 80 percent coverage in populated areas by the end of this

116
year. Citizens can now enjoy high-quality 5G services offered by all

telecommunications companies. To boost 5G adoption, concerted efforts

will be intensified through collaboration with telecommunication

companies to ensure that more consumers and businesses can benefit

from this.

245. At the same time, CyberSecurity will develop a 5G Cybersecurity

Testing Framework and Local Expertise in 5G Technology to enhance

preparedness against cyber threats. RM60 million is allocated for this

purpose.

Fifth: Road Network & Public Transportation

246. A well-connected road network facilitates the movement of the

rakyat while streamlining the activities of traders and boosts the local

economy. Major road infrastructure projects will continue to be intensified.

• Insya-Allah, the Sarawak Pan Borneo Highway will be fully

completed next year. Meanwhile, the tender process for the

19 packages of work for Phase 1b of the Pan Borneo Sabah

project, spanning 366 kilometres with a cost of RM15.7

billion, will be completed by November this year.

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 • The Sarawak-Sabah Link Road (SSLR) Phase 2 project,

spanning over 320 kilometres, involving a cost of nearly

RM7.4 billion, will also commence at the end of this year.

• Taking into account the increased number of vehicles, the

expansion project of the North-South Expressway (PLUS)

from four to six lanes is extended from Sedenak to Simpang

Renggam at a cost of RM931 million.

247. Public transportation subsidies such as buses, trains and air

services will continue to be provided to ensure continuity of best services

for the rakyat.

• A total of RM96 million in Stage Bus Support Fund is

allocated to help cover the daily operating costs of operators

providing bus services on low-passenger routes in rural areas.

• RM150 million is allocated to continue the Stage Bus Service

Transformation, including expanding its services to benefit

three new locations, namely Kota Bharu, Kuantan and Kota

Setar.

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 • The Government will continue to subsidise air

transportation with an amount of RM209 million for the

benefit of residents in the rural and remote areas of Sabah

and Sarawak.

• For over 180,000 residents of the Klang Valley who rely on

PRASARANA’s bus and rail services for their daily

commutes, the monthly My50 pass benefits will be

continued.

248. The Government has agreed to resume the previous proposal

to construct five LRT3 stations that were previously cancelled.

These stations are Tropicana, Raja Muda, Temasya, Bukit Raja and

Bandar Botanik. The retention of these stations is expected to

complement and enhance the public transportation network in the

Klang Valley, benefitting around 2 million residents, with a cost of

RM4.7 billion.

249. The initial estimate for the Penang LRT to Seberang Perai, as

planned by the State Government, amounts to RM10 billion through

the public-private partnership (PPP) approach.

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Sixth: Housing

250. This year, the Government has mobilised a special team under the

Ministry of Local Government Development (KPKT) to address issues on

delayed, sick and abandoned private housing projects that have burdened

homebuyers. As of August 2023, 256 sick projects involving over

28,000 housing units have been restored, with a Gross Development

Value of RM23.37 billion.

251. Overall, a total of RM2.47 billion is allocated to implement

housing projects for the rakyat in 2024.

• A special guarantee fund of RM1 billion has been allocated to

encourage reputable developers to revive identified abandoned

projects;

• A total of RM546 million is allocated for continuing the

implementation of 36 Program Perumahan Rakyat (PPR),

including a new project in Kluang, Johor. Insya-Allah, 15 PPR

projects are expected to be completed next year to benefit 5,100

potential new residents.

120
 • 14 Program Rumah Mesra Rakyat continue to be

constructed with 3,500 housing units with an allocation of

RM358 million.

• The Government has allocated RM460 million to aid

approximately 65,000 impoverished rural residents for the

construction of new homes or the renovation of their

existing dilapidated houses.

• A sum of RM100 million is allocated for the maintenance of

low- and medium-cost public and private strata housing

projects nationwide. This includes repairing water tanks, roofs

and electrical systems, as well as installing closed-circuit

television cameras.

252. The Government will provide guarantees of up to RM10 billion

for the Housing Credit Guarantee Scheme (HCGS) to benefit 40,000

borrowers.

253. The Unity Government appreciates the efforts of the Pahang State

Government in rescuing the abandoned New Generation FELDA Housing

121
project, involving 1,840 housing units across 10 project sites throughout

Pahang since 2014. This noble effort should serve as an example to other

state governments in assisting FELDA to complete abandoned housing

projects.

254. To facilitate the redevelopment of strata schemes, the residents’

approval threshold for en-bloc sales will be reduced from

100 percent to a level consistent with international practices, such

as in Singapore. This change aims to encourage urban renewal and

promote the redevelopment of ageing buildings in the city.

255. Under the Unity Administration, the Government has taken over the

development of Bandar Malaysia to ensure that strategically located

lands are optimally utilised for rakyat-oriented projects based on

MADANI values. This includes affordable housing projects for veterans,

considering the interests of Bumiputera communities in the Federal

Territories, as well as the provision of parks and green spaces that can be

enjoyed by all residents in the Klang Valley.

256. The Government will allocate RM100 million to the Chinese New

Village to provide basic infrastructure and social facilities to ensure the

wellbeing of the residents.

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257. As a measure to control property prices, the Government intends to

impose a flat rate stamp duty of 4 percent on the transfer of land

ownership documents by non-citizens and foreign-owned companies,

except for individuals with permanent residency status in Malaysia.

258. Meanwhile, beginning 2024, the Government also intends to

propose that property transfer documents involving beneficiaries

relinquishing their rights to eligible beneficiaries as per will,

inheritance or the Distribution Act 1958 will only be subject to a

stamp duty of RM10, instead of the previous ad-valorem rate.

Measure 11: Strengthening Unity and Security

259. The Kembara Kenali Borneo by His Majesty Yang di-Pertuan Agong

and Her Majesty the Permaisuri received enthusiastic national reception

from the rakyat of Sabah and Sarawak. It is undeniable that the true face

of Malaysia is vividly portrayed by the rakyat of Sabah and Sarawak.

123
First: National Security and Defence

260. Recently, our national borders have faced threats from external

elements attempting to disrupt our security. The nation’s security is

challenged by issues related to race, religion and royalty being used as

sources of provocation. The defence of our land is essential to ensure our

security. Internal security must be preserved to maintain harmony.

For the coming year, the Ministry of Defence is allocated

RM19.7 billion, an increase of RM2 billion compared to this year.

Meanwhile, the Ministry of Home Affairs (KDN) is allocated RM19 billion,

an increase of RM500 million compared to this year and the allocation will

be utilised towards enhancing our capabilities in maintaining and

procuring urgent defence assets in a transparent manner and in

accordance with the current policies that are in force.

261. To strengthen the level of national defence readiness and security,

the Government will initiate the procurement process for new assets.

This includes:

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 • The acquisition of 12 new helicopters for the Royal Malaysian Air

Force;

• The procurement of key assets for the Royal Malaysian Army,

including 60 infantry fighting vehicles, 50 High Mobility Light

Tactical Vehicles (HMLTVs), 6 Hovercraft Integrated Fast

Interceptors and 733 various types of support vehicles;

• The refurbishment of 2 submarine assets, in addition to

continuing the acquisition of three Royal Malaysian Navy Littoral

Mission Ships (LMS); and

• The acquisition to replace old assets with 7 twin-engine aircraft

and 5 light helicopters for RMP.

262. The tense situation in the South China Sea needs to be addressed

through peaceful dialogue. Malaysia reiterates its commitment to a

peaceful resolution through the Declaration on the Conduct of Parties in

the South China Sea (DOC) regarding issues in the South China Sea.

However, this does not mean that we can compromise our sovereignty.

125
263. The security of the country’s borders and waters will continue

to be upheld while improving the efficiency and effectiveness of

controls at international entry points. For the upcoming year:

• The Government will increase maritime assets, including the

acquisition of 45 units of various types of Army boats and 9 new

generation patrol ships and Malaysian Maritime Enforcement

Agency (APMM) interceptor boats.

• The Government will also build seven balance posts in Melikin

and Pa’ Daleh, Sarawak, one security post in Sungai Desa Aji

Kuning, Pulau Sebatik, Sabah as well as preliminary work on

the construction of two ICQS in Nabawan and Kalabakan,

Sabah.

• The Government will establish a single border agency (SBA)

to enhance the management of the country’s borders. RM20

million is provided for the maintenance, improvement and

procurement of assets at international entry points nationwide.

264. The wellbeing of uniformed members and retirees will continue to

be preserved.

126
• RM400 million is provided for the maintenance and

refurbishment of all Armed Forces Family Homes.

• Upgrading of the army camp sewerage system in phases

with a provision of RM20 million;

• The Government will continue to intensify the PROTEGE-RTW

initiative, which involves job training placements in collaboration

with companies awarded government contracts. The scope of

this initiative will also be expanded to include veterans from the

Armed Forces under contracts signed by the Ministry of Defence.

• In order to protect the welfare and socio-economic development

of veteran members, the Government will ensure that every

government programme has a specific quota for veterans. This

includes entrepreneurship programmes, training programmes,

employment opportunities and financing facilities.

127
Second: Syiar Islam

265. Next year, the Government is allocating RM1.9 billion for the

management and development of Islamic affairs.

266. In the forthcoming year, Islamic education will continue to flourish

and be embraced by the entire Muslim community in Malaysia:

• Two Islamic education institutions will be constructed next year,

with a cost of RM220 million, namely the complex of Kompleks

Sekolah Menengah Integrasi Sains Tahfiz, Bukit Jalil, Kuala

Lumpur and the Sekolah Menengah Kebangsaan Agama

Jempol, Negeri Sembilan.

• A total of RM150 million is allocated to JAKIM for the

maintenance and upgrading of the infrastructure of Islamic

education institutions, including public religious schools,

registered pondok institutions and tahfiz schools.

• Insya-Allah, the organisation of knowledge-sharing events by

Islamic scholars and intellectuals nationwide, especially at the

Seri Perdana Complex, will be continued and expanded to

128
 enhance the understanding and appreciation of religious

knowledge among the Muslim community.

• In appreciation of the significant contributions and roles

played by over 70,000 takmir teachers, KAFA teachers,

imams, bilal, siak, noja and marbut at the community level,

the Government has agreed to provide a special

contribution of RM700, which will be channelled directly to

them, with a total allocation of over RM50 million.

267. Since 2003, the Government had stopped per capita assistance

to Sekolah Agama Rakyat, citing deviations in the approach to

Islamic education. The Unity Government has decided to reinstate a

grant of RM20,000 to all Sekolah Agama Rakyat registered under

JAKIM. This provision is expected to support the role of Sekolah

Agama Rakyat in nurturing a new generation of Muslims with a

balance between worldly and hereafter knowledge.

129
Third: Sports and Culture as a Means of Unity

(a) Sports

268. Besides promoting an active and healthy lifestyle, sports also serve

as a crucial arena for fostering unity among Malaysians. Despite different

races and religions, our diversity does not in the least bit diminish the

excitement of sportsmanship.

269. Tomorrow is National Sports Day. The Government will continue to

expand sports and recreational programmes for the people,

including:

• Program Kemahiran Sukan Renang for children, OKU and senior

citizens from underprivileged families;

• The organisation of sports and recreational activities to develop

active and healthy senior citizens; and

• Program Perkhemahan Keluarga, aims to utilise camping

facilities provided by the Ministry of Youth and Sports at a

130
 nominal fee in six Kem Wawasan Negara, including in Ulu Sepri,

Rembau, Negeri Sembilan and Ulu Kenas, Kuala Kangsar,

Perak.

270. The Government proposes to provide a special tax exemption for

lifestyle related purchases of sports equipment and activities,

limited to RM1,000. This exemption will also be extended to cover

expenses related to sports training fees.

271. We celebrate the success of our national heroes who have brought

honour to Malaysia at the Asian Games in Hangzhou by winning 32

medals. Next year, the Government will allocate RM72 million to

strengthen the podium athlete ecosystem. This includes

RM20 million under the Road to Gold initiative as preparation to

achieve the first gold medal at the Paris 2024 Olympics.

272. I am certain that everyone has witnessed the inspirational tale of

Aqil Naufal, a student at Felda Lepar Utara 1 in Pahang, who exhibited a

strong passion for sports despite facing adversities. Aqil’s aspiration to

play soccer has come to fruition with the help of the Government and the

encouragement from the Malaysian Amputee Football Association

(MAFA).

131
273. To strengthen the para-athlete ecosystem, RM12 million is

allocated to the National Sports Council for training and preparation

programmes for athletes heading to international para-sports

events.

274. A total of RM50 million is provided for the maintenance and

upgrading of youth and sports facilities nationwide, especially for

dilapidated infrastructure.

275. Following the encouraging response this year, the Government will

continue to provide a matching grant fund of RM50 million to

encourage the organisation of high-performance sports events by

sports association and the private sector.

276. To cultivate a well-informed, proficient and sports-talented future

generation, the Government has consented to offer tax incentives of

up to 10 percent of total income to individuals or businesses that

contributes to institutions, organisations, or funds approved under

subsection 44(6) of the Income Tax Act 1967, which supports

educational programmes, including sports education.

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(b) Culture, Language and Literature

277. Literature has the power to ignite the reader’s imagination and foster

a patriotic love for the country while instilling moral inspiration and noble

values in the nation’s soul. To elevate the arts, culture, language and

national literature, the Government hereby allocates RM50 million to

agencies with the potential to showcase the nation’s artistic and

literary works, enhance heritage theatre performances and promote

the interest in reading great works among the youth.

278. The Government has allocated RM10 million to collaborate with

state governments, including for:

• intensifying cultural activities in Sabah and Sarawak;

• preserving the languages of minority communities such as the

Siam ethnic group;

• establishing the Ethnic and Cultural Centre in Perak; as well as

• rehabilitating the Songket Weaving Centre at the Tuanku Nur

Zahirah Complex, Kuala Terengganu, and the Wood Carving

Village in Besut, Terengganu;

133
279. To support local handicraft, the Government will provide special

exemption for the acquisition of up to RM200,000 for each order

received by handicraft entrepreneurs registered with the Malaysian

Handicraft Development Corporation (Kraftangan Malaysia).

280. To promote unity and cohesion within the community, RM20 million

is allocated to strengthen the role of Kawasan Rukun Tetangga

(KRT) as the social point in disseminating information and providing

community services. The Government also provides RM20 million as

Geran Pertubuhan MADANI for the benefit of locals to implement

volunteer and unity programmes as well as activities related to crime

prevention and disaster preparedness.

281. A total of RM50 million is also allocated as financial assistance

for renovation and maintenance works of registered non-Islamic places

of worship.

134
Measure 12: Wellbeing of Civil Servants

Tan Sri Speaker Sir,

282. In an effort to encourage the production of high-quality Malaysian

batik, the Government agrees to expand the Official Ceremony Attire

Facility to include Malaysian batik attire for all eligible civil servants.

283. To ensure the welfare of civil servants, the Government agrees

to enhance the Ex-Gratia Work Disaster Scheme by raising the salary

ceiling from RM4,000 to RM6,000, in line with the amendment to the

SOCSO Scheme for the private sector. This increase in the salary ceiling

allows for a 50 percent increase in benefit payments under the Ex-Gratia

Work Disaster Scheme, totalling approximately RM1.6 million. In other

words, civil servants or their beneficiaries will enjoy higher compensation

claims in the event of accidents that occur while on duty.

284. Finally, the Government is currently reviewing the remuneration

scheme for civil servants, the last of which was reviewed in 2012. The

study of the Public Service Remuneration System (SSPA) will examine

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the needs of all service schemes and is expected to be finalised by the

end of the next year.

285. While awaiting the completion of this study, it is a pleasure to

announce that the Government agrees to provide an Early Incentive

Payment of the Public Service Remuneration System Review,

amounting to RM2,000 to all civil servants grade 56 and below,

including contract appointees and RM1,000 to all Jawatan Utama

Sektor Awam including police, firefighters, soldiers, armed forces

and all uniformed personnel.

286. Incentive of RM1,000 will also be extended to all government

retirees, including pensioned veterans and non-pensioned veterans. This

payment will be disbursed in a lump sum at the end of February 2024 to

ease the burden of preparing for their children’s schooling and

preparations for the month of Ramadan and Syawal.

287. The Government suggests that private sector employers also

consider reviewing the adequacy of salaries and rewards for employees,

taking into account the challenges of the cost of living. Next year, the

Government will intensify engagement sessions. I call upon the private

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sector to provide incentives, particularly to companies with reasonable

profits.

288. Recent developments in the Gaza Strip have become increasingly

critical as Israel has imposed a harsh and cruel blockade on Gaza’s

residents and has been forcefully attempting to displace them to the

southern part of the peninsula. Malaysia will launch a humanitarian fund

to support and assist the Palestinian people with a fund of RM10 million

and we urge companies and the public to participate in the name of justice

and humanity.

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 CLOSING

Tan Sri Speaker Sir,

289. Thus, a significant responsibility in crafting the budget for the

rakyat’s benefit has been fulfilled. Since the beginning of my tenure in this

role, I have often reminded myself and my team that wa la tashrif,

responsibility is not a privilege. The nation has to be brought back on track

to ensure the peace and wellbeing of the rakyat.

290. Certainly, an interesting story between Caliph Umar Abdul Aziz and

his son Abdul Malik, highlights the importance of being tactful and

cautious when implementing changes. When Abdul Malik urged his father

to act more decisively and swiftly with a stern reprimand, saying, “Father,

why not implement the changes faster? By God, I am ready, even if both

of us have to sacrifice ourselves to uphold the truth!” Caliph Umar Abdul

Aziz responded:

‫ وإني أخاف أن أحمل‬.‫ فإن هللا ذم الخمر في القرآن مرتين وحرمها في الثالثة‬.‫ال تعجل يا بني‬

‫ ويكون من ذا فتنة‬،‫ فيدفعوه جملة‬،‫الحق على الناس جملة‬

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 Oh, my child, do not be hasty. Allah criticises alcohol twice in the

Quran and forbids it only on the third mention. I fear that if I were

to force all the truths upon people (at once), they would reject them

altogether, (and) this would mean that I would become the cause

of even greater corruption. (This is the statement attributed to

Caliph Umar Abdul Aziz, as quoted by Imam al-Shatibi in his book

“al-Muwafaqat.”)

291. This Budget is a statement of the Government’s resolve to revitalise

the economy in these challenging times. The Government is open to

hearing feedback and criticism from all quarters, but it does not mean

unfettered slander is acceptable. Combined with the global economic and

geopolitical challenges that are unsettling, this attitude hinders our

nation’s progress.

292. Therefore, I call upon everyone to return to constructive politics,

fostering segulai sejalai in rebuilding our nation. We all love this

country. Malaysia has tremendous potential, abundant resources, a

skilled workforce, professionals and competitive citizens who can position

us strategically as a leader in the Asian economy as we aspired.

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293. Therefore, I call upon us to prioritise the future of our nation. Unity

among the people, grounded in generosity and mutual respect, will bring

stability to our country and this is essential for the Government to generate

prosperity for all. After six decades as a sovereign nation, it is time for us

to set things right and ensure that every citizen can experience happiness

and a dignified life in this country without ever feeling marginalised.

Wassalamualaikum Warahmatullahi Wabarakatuh.

Tan Sri Speaker Sir, I beg to propose.

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