Malaysia’s Budget 2024 will be broadcast live today at 4 pm. Prime Minister Dato’ Seri Anwar Ibrahim, who is also the Minister of Finance, is expected to present his first full budget after forming the new unity government last year.
“Budget 2024 is based on the MADANI Economic framework that is the main focus of the unity government to ensure the needs and of the rakyat is taken care of while driving the growth of the country’s economy,” said the Ministry of Finance in a post on its official Facebook page.
What happened earlier this year
After the Unity Government took power, Dato’ Seri Anwar tabled a refreshed budget themed “Madani Budget” in February of this year, where the government set an allocation of RM388.1 billion, with RM289.1 billion for operating expenditure and RM99 billion for development expenditure.
Nearly RM 8 billion was allocated for the Rahmah cash aid programme, while other assistance included lowered income tax for the M40 and B40, various grants and incentives for SMEs, as well as discounts for PTPTN loan repayments for all.
In the tech sector, we saw the commitment to accelerate the Jendela infrastructure project for better network connectivity. RM725 million was also allocated to implement digital connectivity in 47 industrial areas and nearly 3,700 schools.
The government also was looking to have DNB to be managed more transparently and push the 5G coverage from 50% to 80% by the end of 2023. The government was also looking for better inclusivity among telcos under DNB.
On the green initiatives and EVs, the Madani Budget saw BNM providing up to RM 2 billion to support green start-ups. Specifically, for EVs, the government gave an extended import duty exemption on EV components assembled locally until 31 Dec 2027.
There is also a 100% statutory income tax exemption for manufacturers of EV chargers from 2023 to 2032 and a 100% allowance on investment tax for five years. Lastly, there are tax breaks for companies leasing EVs, with the lease not exceeding RM300,000.
What can we expect from Budget 2024
We are expected to see an increase in budget allocation for 2024. Additionally, Dato’ Seri Anwar also said that he further clarity on the government’s proposed targeted subsidies, taxation and strategies to increase the government’s revenue.
Ministry of Digital Communications (KKD) via its ministry Fahmi Fadzil expressed hope that the budget will see additional allocations to develop Malaysia’s 5G network. The additional funding would be helpful with the upcoming transition of the Dual Wholesale Network (DWN) after DNB achieves 80% 5G coverage. The transition is expected to begin as early as January 2024.
At the moment, the national 5G network deployed by Digital Nasional Berhad has claimed to cover 70% of populated areas in Malaysia with 5,873 5G towers operational as of the end of September 2023
Fahmi also proposed a special grant under the budget for 5G adoption among micro, small and medium enterprises. According to him, 5G will provide numerous advantages to MSMEs, hence KKD hopes that it will obtain the special grant to increase 5G usage among them.
The Minister of Investment, Trade, and Industry, Tengku Zafrul Tengku Abdul Aziz meanwhile hinted that Budget 2024 may include financial provisions to spur the adoption of electric vehicles in Malaysia.
In a speech he made at the opening of the opening of the Tesla Centre Cyberjaya, he said:
“…and as we look to the future, the Budget (2024) is coming, second week of this month, and our focus remains on inclusivity, aligning with the MADANI Economy Framework.
So, we want to make EV ownership accessible to all, not just the M40 or the T20, but also for the B40, through targeted subsidies and financial assistance.
We hope that we can ramp up efforts to expand and enhance our EV charging infrastructure, ensuring a seamless transition for all Malaysians.”
Tengku Zafrul Tengku Abdul Aziz
The Malaysian Automotive Association (MAA) meanwhile is proposing incentives under the Budget 2024 to be given to all types of electrified vehicle (xEV) rather than just electric vehicle (EV). Malaysia is targeting to have 15 per cent of the total industry volume (TIV) for xEV by 2030 and 38 per cent of TIV by 2040.
The association also hopes that personal income tax relief to be given to those who purchase xEV and/or install solar panels at home.
Currently, the government announced that EVs in the country would not be subject to road tax until Dec 31, 2025 to support EV penetration.
Where to watch Budget 2024
The new budget will have a theme of “Madani Economy: Empowering the People.” We can expect to look out for initiatives that would help with alleviating rising costs of living, subsidies for rising commodity and food prices, strengthened automation and digitalisation initiatives, and environmental sustainability – including more green initiatives and EV adoption.
You can watch Budget 2024 online:
You can also watch the the live broadcast through the following channels:
- RTM TV1 (YouTube)
- Official Parliment youtube channel
- Unifi TV channel 663
- Bernama TV (MyFreeView 212/Astro 502/Youtube)
- Astro Awani – (Astro channel 501/Youtube)
Most channels will begin broadcasting from 3 pm onwards.
