Malaysia Budget 2021: Highlights And Summary From The Parliamentary Reading On 6 Nov 2020

Eunis Ong

Last updated 7 Nov 2020

November Budget 2021 Reading

Malaysia's 2021 Budget was tabled by Finance Minister Tengku Zafrul Aziz today (6 Nov 2020), with a total expenditure projected at RM322 billion next year, almost RM8 billion more than the 2020 Budget. The funds will be distributed to various segments and industries nationwide, with main targets to improve the welfare of the people and boost the country's economy that has been badly battered by the coronavirus pandemic.

The 2021 Budget has been called "the most important annual budget" for Malaysia, and is especially crucial as 2021 is expected to be the year for us to bounce back and show good recovery after a very difficult year. Finance Minister Tengku Zafrul Aziz says that we are facing "the worst economic crisis since the Great Depression in the 1930s,".

Highlights From The Budget 2021 Speech

1% decrease in income tax for those earning between RM50,000 - RM70,000 per year.
Malaysians in the B40 group to receive RM50 vouchers through the Baucar Perlindungan Tenang insurance program, which can be used to purchase Perlindungan Tenang products such as Takaful life and personal accident insurance.
Relocation assistance and training to be provided for 8,000 airline employees who have lost their jobs in the midst of the pandemic.
Government servants and retirees to receive a cash aid of between RM300 to RM600.
RM6 billion to be allocated to the Bantuan Prihatin Rakyat (BPR) scheme that will benefit 8.1 million people. Households earning less than RM2,500 will receive RM1,200 (or RM1,800 if they have 2 or more children), households earning between RM2,501 - RM4,000 will receive RM800 per household (or RM1,200 if they have 2 or more children), while households earning between RM4,001 - RM5,000 will receive RM500 (or RM750 if they have 2 or more children).
Single individuals aged below 21 years old that earn lesser than RM2,500 will receive a RM350 cash aid.
Aid for OKU will be increased from RM250 to RM300.
RM24 million to be allocated for mental health programmes.
Increase of tax exemption for medical treatment and health screenings.
RM2.7 billion allocated to rural infrastructure projects, including works for road construction, water supply, electricity supply, building of new houses, and construction of lamp posts.
Employers who hire fresh graduates for apprenticeship programmes to receive RM1,000 per month for three months.
Youths aged between 18 - 20 years old to receive a one-off RM50 e-wallet credit.
RM103 million allocated to build, upgrade, and maintain sports facilities across the country.
RM1.5 billion allocated to ensure internet connectivity for Malaysians in the B40 group, assistance to be provided in the form of credit of RM180 per person.
RM50.4 billion to be allocated to the Education Ministry, an amount that accounts for nearly 16% of the budget. Funds to be distributed to improve the facilities and infrastructure at public universities, upgrade internet connectivity in higher education institutions, provide technical and vocational education and training (TVET), and more.
Government will work with financial institutions under a Rent-To-Own scheme that will involve 5,000 PR1MA homes reserved for first-time home buyers.
The MY30 Unlimited Travel Pass which was introduced in June will be continued, and expanded to Penang and Kuantan.
An unlimited access Monthly Travel Pass priced at RM5 per month will be introduced for students from standard one to form six and the disabled. The pass can be utilized for train services on the Klang Valley komuter lines and other parts of the country.
RM150 million will be allocated to run training programmes and provide assistance to 100,000 entrepreneurs.
RM150 million will be allocated to the Shop Malaysia Online initiative, and RM35 million to promote Malaysia-made products.
500 jobs will be provided for Orang Asli and local communities to become tour guides in national parks across the country.
RM1,000 grant to be provided for traders, taxi and e-hailing drivers, and tour guides in Sabah.
RM1 billion will be allocated to curb the 3rd COVID-19 wave in Malaysia
100,000 frontliners will receive a one-off payment of RM500 as a token of gratitude for their hard work.