The budget was tabled by our Prime Minister last Friday, it is touted as a people centric and populist budget ahead of the coming general elections in 2018. Budget 2018 continues to highlight the government’s plan to tackle the high living cost and home ownership issues. Carrying the theme Prospering An Inclusive Economy, Balancing Between Wordly And Hereafter, For The Wellbeing Of Rakyat, Towards The TN50 Aspiration is the third series of the five Budgets under the 11th Malaysia Plan, before Malaysia transforms into a high-income and advanced economy by 2020.
Well Let’s dive in to have a look at the winners and losers of the Budget 2018!
The Malaysian Infrastructure
One of the biggest winner of the Budget 2018 would be the construction industry as the latest budget is tabled to improve the transportation and infrastructure of Malaysia. Big projects such as; KVMRT2, LRT3, West Coast Expressway, Central Spine Road, Pan Borneo Highway project and also funds for construction of roads in the rural area. Not to forget the East Coast Rail Link (ECRL) project will see fiscal works commencing in the beginning of 2018.
Visit Malaysia 2020
The tourism sector has been given a boost of RM2.0 bln as Malaysia prepares for the Visit Malaysia 2020, hosting key international meetings. Also, as reported in the World Tourism Organization Report, Malaysia was ranked the 12th in terms of tourist arrivals. The sum is planned to be allocated for Tourism Infrastructure Development as well as to be utilized for development and promotional activities.
The education sector is set to see an increased allocation of RM4.9 bln for the Technical and vocational Education Training (TVET) Master Plan as the country aims to produce a much more competent manpower. Apart from that, RM40.0 mln will be channelled towards Science, Technology, Engineering and Mathematics (STEM) for training of teachers.
To improve the quality and affordability of the healthcare sector, an allocation of 27.0 bln has been given. This includes RM1.40 bln to upgrade and maintain health facilities, medical equipment and ambulances and also RM100.0 mln to upgrade hospital and clinics electrical/wiring systems.
The introduction of Flagship Medical Tourism Hospital Programme, an incentive for private hospitals to attract medical tourist and the extension of investment tax allowance (ITA) of 100.0% for medical tourism until 31st December 2020 is part of the government’s initiative to boost medical tourism.
Power to the People
Rising cost of living has definitely been an ongoing issue, in the budget 2018, the government announced a personal tax reduction of 2.0% for the middle-income household earning between RM20,000-RM70,000 per annum. This measure is estimated to boost disposable income by RM300 – RM1,000 per year which results in approximately RM1.50 bln additional disposable income.
To look into increasing home-ownership, the government allocated RM2.0 bln for development of 237,900 units of housing under the various schemes of affordable housing programmes.
So, will 2018 be a good year for us?
There are definitely winners and losers from the new budget, the governments has made some move to stimulate the economy and mitigate the high living cost, which translates to a better domestic spending.
However, for us traders and investors alike what will the outcome be for us?
Join us for a talk on the outlook of the market as we look into the budget 2018 and the implications on various sectors & stocks.
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Note: all seminars are from 7.30PM – 9.00PM.
No. 1, 3 & 5, Jalan PPM 9,
Plaza Pandan Malim,
(Business Park), Balai Panjang
SS15, Subang Jaya
No. 16 Jalan SS15/4B
47500 Subang Jaya, Selangor