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Budget 2019: A Wrap-up

Nov 02, 2018

Finance Minister Lim Guan Eng has tabled Budget 2019 in Parliament, with the theme "Credible Malaysia, Dynamic Economy, Prosperous Rakyat".

Under the budget, there is some good news for civil servants.

The government proposed a special payment of RM500 for civil servants in grade 54 and below.

Meanwhile, an additional one-off payment of RM500 will be paid to pensioners who receive less than RM1,000 a month.

The government will also raise the minimum wage to RM1,100 a month.

Guan Eng also proposed targeted fuel subsidies for cars below 1500 ccs and motorcycles less than 125 ccs.

The subsidy for qualified vehicles will be set at 30 sen per litre, and capped at 100 litres a month for cars, while motorcycles are eligible for 40 litres a month.

The price of RON 95 will then be put on a managed float.

Among other highlights...

Public transport users can buy RM100 monthly passes for unlimited trips on RapidKL rail and bus services starting in January.

From January 1st next year, tolls for motorcycles on the First and Second Penang Bridges and the Second Link in Johor will be abolished. 

Meanwhile, there will be a freeze on toll hikes on city highways throughout next year. 

Bantuan Sara Hidup will continue to be given to the B40 group, with households receiving between RM500 to RM1000, based on their monthly income. 

Additional aid of RM120 will be given for each child aged 18 years and below, while there is no age limit for disabled kids.

International online services, including streaming services, will be taxed starting 2020. 

Guan Eng says it's to help make similar local services more competitive.

The government is also proposing an excise duty on manufactured sugary drinks.

Budget 2019 also proposes a 5 per cent increase in the Real Property Gains Tax, and tax breaks will be given to companies that hire former convicts.