The Budget 2022, themed ‘Keluarga Malaysia, Makmur Sejahtera’ was tabled by our Finance Minister, on 29 October 2021 and we bring to the highlights of Budget 2022.
This will be the biggest budget to-date, with an allocation of RM332.1 billion, which is about 3% more than the previous year. “The budget builds upon three key pillars namely Strengthening Recovery, Building Resilience and Driving Reforms” said the Finance Minister in his speech on Friday.
In this article, we bring to you the Budget 2022 highlights as tabled by YB Dato’ Sri Tengku Zafrul bin Tengku Abdul Aziz.
National budgets are important in order to ascertain the allocation for certain industries. This helps businesses plan their company’s budget as well as make necessary adjustments in their allocations.
This brings the question, how will the Budget 2022 help businesses?
- Boosts Economic Growth
A budget allows the government to inject funds into the necessary channels. When a budget is planned, the government takes into account the ways in which it can grow the economy. This is usually done by attempts to improve infrastructures, provide incentives to decrease unemployment and so on. In return, this spending creates a multiplier effect as the nation’s spending power would have greatly increased.
A clear example of this can be seen in the government’s attempt to boost tourism. There is an allocation of RM600 million with the implementation of the Wage Subsidy Programme for tour operators. On top of that, special assistance is also provided to tour operators registered under the Ministry of Tourism, Arts and Culture.
- Expansionary fiscal policies
Tax rebates and increased government spending are two key examples of this policy. With the nation’s biggest budget allocation, it seems as though the government is prepared to get the economy back in order.
- Reduced unemployment
Through it’s JaminKerja initiative, the government has allocated RM2 billion to subsidise the employment of 300,000 workers. This helps businesses hire quality employees with experience, for a lesser amount.
Related Read: Malaysia Wage Subsidy Programme
- Tax Rebates
With new SOPs in line, businesses have been forced to improve the safety of their business premises. The government allows for a tax deduction of up to RM300,000 for the renovation and refurbishment of business premises.
Related Read: How to Reduce Company Tax
In this infographic, we will provide to you the summary of the Malaysian Budget 2022.
Niresh Kaur is a content development manager who writes for WeCorporate. She mainly writes legal articles, as well as analytical content that serves entrepreneurs with insights on the business scene in the APAC region.