After much anticipation from the rakyat, Budget 2021 was finally announced today at 4pm by Finance Minister, Tengku Zafrul Aziz. There were many financial aid initiatives that were set to benefit groups across the community. If you couldn’t catch them all, don’t worry. Here’s everything you need to know about Budget 2021.
1. A one-off payment of RM500 will be given to 100,000 of the Ministry of Health’s frontliners.
2. RM24 million will be given out to the Mental Health, Prevention of Aggression & Injuries long with Misuse of Substances program.
3. RM200 aid per child under 6-years-old will be given to underprivileged families
4. RM150 aid per child between the ages of 7-years-old and 18-years-old will be given to underprivileged families.
5. RM450 allowance will be given to workers in the OKU community
6.RM500 allowance will be given to senior citizens, workers who take care of the OKU community and patients with chronic illnesses.
7. RM180 will be given to each B40 individual for internet subscriptions and mobile phone costs.
8. KWSP contributions are reduced from 11% to 9% starting January 2021.
9. KWSP account holders can take out RM500 monthly from their Account 1 for 12 months amounting to RM6,000.
10. The Private Retirement Scheme (PRS) tax relief of RM3000 a year has been extended until 2025.
11. Bantuan Prihatin Rakyat (BPR) will be replacing BSH and the categories are as follows:
- Households with one child, earning less than RM2,500 will receive RM1,200.
- Households with two children or more, earning less than RM2,500 will receive RM1,800.
- Households with one child, earning RM2,501 to RM4,000 will receive RM800.
- Households with two children or more, earning RM2,501 to RM4,000 will receive RM1,200.
- Households with one child, earning RM4,001 to RM5,000 will receive RM500.
- Households with two children or more, earning RM4,001 to RM5,000 will receive RM750.
- Unmarried individual earning less than RM2,500 will receive RM350. The age limit for unmarried individuals have been lowered to 21-years-old.
12. The government will be giving RM50 one-off to youths between the ages of 18 to 20 years old. The money will be credited to their E-wallet accounts.
13. PERKESO is currently taking care of citizens who have lost their jobs via “Elaun Mencari Pekerjaan”. For the year 2021, “Elaun Mencari Pekerjaan” will be extended for three months and the rates will be:
- 80% of their salary in the first month
- 50% in the second till the sixth month
- 30% in the last three months
14. A total of RM1 billion will be allocated for 200,000 trainees including the following programs:
- RM150 million will be allocated for the Ministry of Higher Education professional certification program where new graduates will each be offered vouchers worth RM3,000 to take professional certificate courses in public and private universities. It is expected that 50,000 graduates will benefit from this program.
- RM100 million will be allocated to Human Resource Development Berhad (HRDF) to implement a joint training program with private sector employers
- RM100 million to Malaysia Digital Economy Corporation (MDEC) to facilitate the transition of existing workforce talent to meet the needs in the expanding ICT industry
- RM100 million to regional development authorities, especially IRDA and READY to equip new skills to the workforce severely affected by border closure. The budget will also be provided for foreign tourists to make it easier for them to get new job opportunities or sources of income
- RM30 million to PERHEBAT for the expected skills and entrepreneurship training program which is expected to benefit 12,000 veterans of the Malaysian Armed Forces.
15. RM21 million for local social support centres to help women in domestic abuse households.
16. RM30 million ringgit to provide nurseries in workplaces for working mothers and frontliners.
17. RM20 million ringgit to encourage private sectors to build child care service centres in their workplace.
18. RM10 million ringgit for cervical cancer screening programs and mammogram test subsidy incentives for women at high risk of contracting breast cancer.
19. Government will introduce MyStep, providing 50,000 short-term job opportunities
20. RM103 million will be allocated to build, upgrade and maintain sports facilities nationwide.
21. RM55 million will be allocated for the development of hockey, rugby, badminton, cycling, and the development of female athletes.
22. RM15 million for the development of e-sports.
23. RM20 million will be allocated as soft loan under the TEKUN Sports scheme to ensure the survival of sports facility operators.
24. Income tax relief limit for lifestyle has been increased from RM2,500 to RM3,000 ringgit in addition to RM500 that will be allocated for sports-related expenses, including sports competition participation fees.
25. GLC and GLIC will contribute RM150 million into the Tabung CERDIK to provide laptops to 150,000 students at 500 schools as a pioneer project.
26. RM5 public transport pass for students from Standard 1 Till Form 6 and also the OKU community.
27. Unlimited public transport pass worth RM30 called MY30 will be continued and it will also be expanded to Penang and Kuantan.
28. The government will be setting up a training and relocation program for 8,000 staff members from Malaysian aviation companies with an allocation of RM50,000,000.
29. RM50million to better the infrastructures and old equipment in public universities.
30. Starting 1 January 2021, the government will be imposing an excise duty of 10% on all smoking equipment, electronic or non-electronic including vapes.
31. The housing initiatives under Budget 2021 are as follows:
- RM500 million for the construction of 14,000 housing units for lower income families, under the Program Perumahan Rakyat.
- RM315 million will be going into the construction of 3,000 Rumah Mesra Rakyat units, under the Syarikat Perumahan Negara Berhad (SPNB).
- RM125 million has been allocated for the maintenance of low cost housing, with assistance going to the repairs of houses that are getting too old or have endured natural disasters.
- RM310 million for the Program Perumahan Penjawat Awam Malaysia, a housing program for civil servants.
- The government will also be working together with financial institutions to prepare a Rent-to-Own programme, which will be implemented up until 2022, for 5,000 PR1MA properties, worth RM1 billion in total.
- The government will be exempting of stamp duty for transfer documents and loan agreements, for purchase agreements completed from 1 January 2021 to 31 December 2025, for homes priced at RM500,000 and lower.
Did we miss anything? Let us know what you guys think of Budget 2021 in the comments!
Also read: Budget 2021: Everything You Need To Know On Housing Initiatives
