Get ready for the revamped Budget 2023, bringing you the theme of “Membangun Malaysia Madani” or “Developing a Civil Malaysia”, presented by the dynamic duo, Malaysia Prime Minister and Finance Minister, Datuk Seri Anwar Ibrahim, on the exciting date of February 24, 2023!
Packed with a whopping allocation of RM 386.14 billion, Malaysia Madani aims to tackle the notorious high cost of living, reinforce the social safety net, and supercharge the micro, small and medium enterprises (MSMEs) ecosystem.
Now, gear up as we dive into the thrilling world of the major financial incentives unveiled in Budget 2023!
1. SJKP or also known as HCGS: Homeownership made possible for irregular incomes!
The Housing Credit Guarantee Scheme (HCGS): Unlocking Home Financing Magic! Get ready for an enchanting opportunity in 2023 as the HCGS guarantees up to RM 5 billion in home financing for those with unpredictable incomes. With a sprinkle of magic, this whimsical housing loan scheme is set to bring joy to 20,000 borrowers in need.
Since its establishment in 2007 as a company wholly owned by the Minister of Finance, the HCGS has been on a mission to empower first-home buyers who dance to their own financial rhythm. Wave goodbye to the limitations of a fixed income! The HCGS is here to support creative souls, gig workers, freelancers, independent business owners, and even small-scale traders like fishermen and farmers.
Check out the requirements and ways to apply in the link below:
>>> https://budget.mof.gov.my/manfaat/faq/sjkp.html <<<
2. 2% reduction in income tax for M40
Get ready to do a happy tax dance! The income tax rate is sliding down an awesome 2% points for those rocking the chargeable income band of RM 35,000 to RM 100,000.
Brace yourselves for some serious savings, as this move is set to put an extra RM 1,300 of pure joy in the pockets of approximately 2.4 million taxpayers each year.
But wait, there’s more! For the high earners in the RM 100,000 to RM 1 million range, tax rates will shimmy their way up by 0.5% to 2%. Don’t fret though, as these changes will only impact a lucky few – less than 150,000 taxpayers will feel the rhythm of the increased tax.
Check out the new tax rates in 2023 below:
Do take note that chargeable income refers to your total annual income minus all the tax exemptions, deductions and reliefs you are entitled to.
3. Stamp duty exemptions for first-time homebuyers
Get ready for the stamp duty part of the century! First-time homebuyers are in for a treat with full stamp duty exemption until the end of 2025 for homes valued at RM 500,000 and below.
That’s right, zero stamp duty! But the fun doesn’t stop there. If you’re eyeing a residential property worth between RM 500,001 to RM 1 million, get ready for a 75% stamp duty exemption until December 31, 2023.
This stamp duty extravaganza got an upgrade from the previous 50% exemption announced in July 2022 under the awesome Keluarga Home Ownership Initiative a.k.a. i-MILIKI. It’s time to dance your way to homeownership without worrying about those pesky stamp duties!
4. Exemption from Stamp Duty for Property Transfers Amongst Family Members
Starting April 1st 2023, transferring real estate between parents and children, and grandparents and grandchildren out of pure affection will make your hearts soar with joy. Guess what? You get a full stamp duty exemption on the instruments of transfer, up to the first RM 1 million of the property’s value. Isn’t that incredible?
But hold on, there’s even more good news. The remaining balance of the property’s value will be subject to an ad valorem stamp duty rate. But fear not! They’re bringing the magic with a 50% stamp duty remission or discount. It’s a way of saying, “We appreciate your love and family ties!”
Oh, and one more thing – these fantastic stamp duty exemptions are exclusively for Malaysian citizen property recipients. So, let the love flow, the properties transfer, and the stamp duties melt away. It’s time to celebrate family bonds and homeownership with a touch of stamp duty enhancement!
5. Fueling Female Entrepreneurship: Empowering through Loan Facilities and Micro-Financing
RM 235 million in financing has been allocated exclusively for women entrepreneurs through BSN Semarak-Nita, Tekunita TEKUN, DanaNITA MARA, and Biz Lady Bank programs.
These initiatives are designed to empower and support women in expanding their existing businesses by offering funds to improve their marketing strategies.
Eligible applicants, including professionals like doctors, lawyers, and accountants, who already own registered businesses, can apply for these loan facilities under the respective schemes. The aim is to encourage and empower more women entrepreneurs to thrive in their ventures.
6. Rahmah Cash Assistance for B40 households
Households with a combined income of less than RM 2,500 are in for a treat with the incredible Rahmah cash aid initiative. With an impressive allocation of nearly RM 8 billion, this initiative aims to benefit almost 9 million recipients across the nation.
The amount of cash aid provided will vary based on the number of children in each household. Here’s the breakdown:
↳ A brand new category has been introduced! Households earning less than RM 2,500 per month with 5 children or more will receive a substantial cash aid for RM 2,500
↳ For households earning less than RM 2,500 with up to 4 children, they are eligible to receive cash aid ranging from RM 1,000 to RM 2,000, based on their specific circumstances
↳ Single senior citizens and single adults will continue to receive their well-deserved cash aid of RM 600 and RM 350 respectively
↳ Families classified as the hardcore poor will receive comprehensive assistance, with the maximum aid amount reaching up to RM 3,100
But that’s not all! We have an exciting bonus exclusively for the youth. 2 million young individuals aged between 18 to 20 years old will be thrilled to receive a special RM 200 e-Tunai Belia Rahmah credit, igniting their journey towards a brighter future.
7. Help for rakyat with financial issues
➤ The government plans to amend the Insolvency Act 1967 to enable automatic and expedited release of bankruptcy cases, aiming to provide relief to 130,000 individuals
➤ Effective March 1 2023, small bankruptcy cases with debts below RM 50,000 and meeting specific criteria will be promptly discharged
➤ The eligibility threshold for total legal aid provided by the Legal Aid Department will be raised from RM 30,000 to RM 50,000, ensuring equitable and unbiased representation for the less privileged.
➤ To combat online scams, BNM (Bank Negara Malaysia) will implement a “kill-switch” policy for all banking institutions, allowing account holders to instantly freeze their accounts and ATM cards upon detecting suspicious transactions
8. SOCSO discount for self-employed workers
⇢ In an effort to enhance social protection and relieve the financial burden of self-employed individuals (both full-time and part-time workers), the Government will maintain its support by covering 80% of the SOCSO contribution value in 2023. (This initiative has been introduced in Budget 2022).
⇢ Consequently, self-employed individuals such as food delivery drivers, farmers, FINAS artists, gig workers, and hawkers will only need to contribute 20% of their SOCSO payments
⇢ A dedicated allocation of RM 100 million will be provided and extended to self-employed individuals. Those belonging to this category can apply through PERKESO’s Matrix Portal or visit the nearest SOCSO office in person.
Special Benefit for Women: To assist women in returning to work after giving birth, SOCSO will amend its Act to offer a financial grant equal to 80% of the insured employee’s monthly salary. It is estimated that more than 130,000 women will benefit from this grant, with an allocation of RM 290 million.
