Malaysia Budget 2024: What does it mean for you?

As is the case every October, the Prime Minister of Malaysia Datuk Seri Anwar Ibrahim has officially unveiled the annual national budget for the coming year. Malaysia’s Budget 2024, which bears the theme ‘Economic Reform, Empowering People’, will encompass an allocation of RM393.8 billion.

From this sum, it has been announced that RM303.8 billion will go towards operating expenditures, followed by RM90 billion in development expenditures. The remaining RM2 billion will go towards contingency savings.

But for the common layman, what are some of the key takeaways that we should be aware of from Budget 2024 that will likely affect our day-to-day lives in the coming year? To begin with, the announcement of the national budget allows taxpayers (you and me) to gain a better understanding of how federal coffers are being spent, which by extension provides a greater degree of accountability in government decisions.

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Additionally, the national budget also grants insights to citizens on new federal initiatives, subsidies, and taxes that are set to be introduced in the months ahead. Naturally, these can have direct implications on your daily life, whether it be in terms of lower public transport fares, or higher service tax amounts when dining out with friends and family.

Budget 2024 is set to address three main avenues, which include implementing reforms that will enhance governance and public delivery system, transforming the local economy and businesses, as well as improving the well-being of the Malaysian people. Here are some key takeaways that you may want to be aware of.

How does Malaysia Budget 2024 affect you?

 Taxes in Budget 2024

1. The sales and service tax (SST) is expected to increase from 6% to 8% by 2024. However, this will not apply to F&B, parking, logistics, as well as telecommunications operators.
2. Taxable services have been expanded to include logistics, brokerage, underwriting, and karaoke services.
3. A new 5% to 10% Luxury Goods Tax will be introduced on certain items such as watches and jewelry.
4. Excise duty taxes on sugary drinks will be raised from 40 sen to 50 sen per litre.
5. Entertainment tax will be reduced to 5% for theme parks, family recreation centres, indoor game centres, and simulatorsin Federal Territories.
6. Entertainment tax will be reduced to 10% for performances staged in Federal Territories by international acts.
7. Entertainment tax will be waived for performances staged in Federal Territories by local acts.

Individual tax reliefs in Budget 2024

1. New RM1,000 tax relief for the purchase of sporting equipment and sports training fees.
2. Existing lifestyle tax relief of RM2,500 to be restructured and will now exclude gym membership fees as well as the purchase of sports equipment, but include self-improvement courses.
3. Existing childcare allowance tax exemption of RM2,400 to increase to RM3,000.
4. Existing tax relief of RM2,500 for the rental, purchasing, or installation of EV chargers to be extended to 2027.
5. Existing tax relief of RM2,000 for upskilling courses now extended to 2026, will now include courses such as languages, photography, and sewing.
6. Those earning less than RM120,000 annually are eligible for rebates of up to RM2,400 on the purchase of an electric motorcycle.
7. Tax incentive for women who return to the workforce to be extended to December 2027.

Cash aid for Malaysians

1. Application for Rahmah Cash Aid will be open throughout the year.
2. Rahmah Cash Aid for youths will increase from RM350 to RM500.
3. Payung Rahmah financial aid initiatives to be extended, including Rahmah Sales and Rahmah Market.
4. Rahmah Cash Aid for eligible individuals will increase from RM3,100 to RM3,700.
5. MySalam takaful insurance scheme will be extended further.
6. New RM1,000 cash aid for pensioners and non-pensioned veterans.
7. Youths aged between 18 to 20 will receive RM500 cash aid for committing to volunteering work with government-recognised bodies.
8. Allowance rate for differently-abled trainees undergoing Community Rehabilitation Programmes to increase from RM150 to RM300.
9. RM2,000 cash aid for all Civil Servants under Grade 56 and below, including contract staff.
10. RM1,000 cash aid for members. of the police, fire department, armed forces, and other uniformed personnel.

Malaysia Budget 2024 on Employment

1. RM35 million earmarked for training fees and allowance incentives for gig workers that have attended upskilling programmes.
2. Salary bracket to qualify for SOCSO now raised from RM5,000 to RM6,000.
3. MySTEP applicants to receive job offers after completion of computer upskilling program through MyFutureJobs platform.
4. Members of vulnerable social groups that complete MySTEP programme will be granted employment contracts under government ministries, government-linked companies, or government-linked investment companies.

Malaysia Budget 2024 on Transportation

1. My50 public transport pass to be extended.
2. FlySiswa initiative to be extended.

Malaysia Budget 2024 on Education

1. PTPTN loan repayment discounts of 10% to 15% to continue until March 2024.
2. Registration fees for public universities capped at RM1,500.
3. RM180 million allocated towards study loans for technical and vocational education and training certifications.

Malaysia Budget 2024 on Personal Health

1. Tax relief of up to RM1,000 for the cost of medical treatment for parents, special needs, as well as the cost of hiring carers to be expanded to include medical checkups.
2. Tax relief for medical expenses is now broadened to include dental examinations and treatment, up to RM1,000.

For a more extensive breakdown of the budget allocation, including benefits, subsidies, and initiatives for employers, corporations, and industries, please visit the Ministry of Finance’s official website by clicking here.

Frequently Asked Questions (FAQ)

1. What to expect in Budget 2024 Malaysia?
– Malaysia’s Budget 2024 is expected to focus on implementing reforms that will enhance governance and public delivery system, transforming the local economy and businesses, as well as improving the well-being of the Malaysian people.