•22hb - 24hb oktober 2016* - lgm.gov.my 16/oct22-24.pdf · btrtla harlan 2 2 oct 2016 pertumbuhan...

$: •22hb - 24hb Oktober 2016* - lgm.gov.my 16/Oct22-24.pdf · Btrtla Harlan 2 2 OCT 2016 Pertumbuhan ekonomi global dijangka kekal sederhana f'5"’ [\j PC7.3 rn rp p 11 l ngun dijangka$
Edaran Terhad

•22hb - 24hb Oktober 2016*

Disusun oleh Perpustakaan, UPP

GETAH V6 SEN21 Oktober 2016

asaran getah Malaysia ditutup bercampur-campur semalam

sejajar dengan aliran m enurun di pasaran hadapan getah serantau yang m enerim a tekanan selepas harga minyak jatuh sedikit, kata peniaga.

Katanya, kontrak hadapan getah di penanda aras Bursa Komoditi Tokyo ja tu h paling rendah dalam tempoh seminggu pada Jumaat, diseret tu ru n oleh aktiviti pengambilan untung selepas kenaikan baru-baru ini.

“K ejatuhan itu disekat oleh pertu m b u h an Keluaran Dalam Negara Kasar (KDNK) China yang menggalakkan sebanyak 6.7 peratus pada suku ketiga,” katanya dengan m enam bah laporan itu mesra pasaran kerana ia menun- jukkanpeningkatan aktiviti ekono- m i China yang akan merangsang perm intaan untuk getah.

Pada tengah hari, harga fizikal rasm i Lembaga Getah Malaysia u n tu k gred tayar SMR 20 susut enam sen kepada RM5.91 sekilogram m anakala lateks pukal m en in g k a t dua sen kepada RM4.96 sekilogram.

H arga penutup tidak rasm i un tuk gred tayar SMR 20 tu ru n 0.5 sen kepada RM5-99 sekilogram m anakala susu getah pukal naik dua sen kepada RM4.96 sekilogram.

RU BBER

2 2 OCT 2016

KUALA LUMPURThe Malaysian rubber market closed mixed to higher yesterday in tandem with the downtrend on regional rubber futures markets which came under pressure after a slight decline in oil prices, said a dealer.

The dealer said the rubber futures contract on the benchmark Tokyo Commodity Exchange (TOCOM) fell to over a one-week low on Friday, weighed down by profit-talcing activities after a recent rally.

At noon, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 was six sen lower at 590.5 sen a kg while latex-in-bulk was two sen higher at 496.0 sen a kg.

The unofficial closing price for tyre-grade SMR 20 shed 0.5 sen to 598.5 sen a kg while latex-in-bulk was up two sen at 495.5 sen a kg. - BernamaSMR PRICES FROM MRB IN SEN A KILO: OCT 21

Offer Price Noon sell Closing sellSen/Kg US Cents/Kg Sen/Kg US Cents/Kg

SMR CV 716.50 174.35 721.50 175.60SMR L 675.00 164.25 680.50 165.60SMR 5 602.50 146.65 610.50 148.60SMR GP 599.50 145.90 - -

SMR 10 592.50 144.20. 600.50 146.15SMR 20 590.50 143.70 598.50 145.65

CENTRIFUGED LATEX - LO CAL PRICE (ISO 2004) IN MALAYSIAN SEN/KGfWET)Offer Price Noon sell Closing sellLatex in bulk 496.00 495.50Note: Effective from Jan 2, 2014, MRB will publish only thesellers' offer price.FARMGATE LATEX PRICE:

Latex Cuplum pLow High Low High

(sen/kg) (sen/kg)Peninsular 510.00 620.00 213.00 261.00Sabah 490.00 490.00 195.00 230.00Sarawak

US$Low High

15O.D0 255.00

Sabah 210.00 250.00Sarawak 236.00 457.00Source: Malaysian Rubber Board

AT A GLANCECOMMODITIES (OCT 21)

Tin (per tonne)Gold (per gramme)CPO Futures (per tonne) Nov US$ CPO Futures (per tonne) Rubber (per kg) SMR 20 , Latex OCT 20Nymex Oil Nov (per barrel)

US$19,900 -US$100RM164.65 -RM0.64RM2,759 +RM4US$658.50 -

590.50 sen -6 sen496.00 sen +2 sen

US$50.43 -US$1.17

The SMr

2 2 OCT 2016

EXCHANGE RATEBank Negara's best available quotations by commercial banksof Kuala Lumpur at 5pm on Oct 21, 2016UNITS OF FOREIGN CURRENCY PER UNIT OF MALAYSIANRINGGIT

Buying ODUS dollar: 0,2386 Sterling: 0.1951 Singapore dollar: 0.3326 Yen 100: 24.7578 Euro: 0.2193 Chinese Renminbi: .1.6136 Ringgit Malaysia per foreign currency

OPENING RATES BY MAYBANK ON OCT 21, 2016

Selling OD 0.2389 0.1954 0.3331 24.7946 0.2196 1.6161

SELLING BUYING BUYINGt t /o d TT OD

1 US Dollar...................... ......... 4.2560 4.1140 4.10401 Australian Dollar........ . .... ,...3.2550 3.1320 3.11601 Brunei D ollar............... ......... 3.0640 2.9480 2.94001 Canadian Dollar........... ......... 3.2180 3.1040 3.09201 Euro............................... ......... 4.6540 4.4880 4.46801 New Zealand Dollar.... ......... 3.0740 2.9350 2.91901 Papua N Guinea Kina ........... 1.4410 1.2040 1.18801 Singapore D ollar........ . ......... 3.0635 2.9480 2.94001 Sterling Pound............. ....... ..5.2040 5.0440 5.0240’1 Swiss Franc.................. ......... 4.2790 4.1440 4.1290100 UAE Dirham ......-..... .....117.5000 110.4100 110.2100100 Bangladesh Taka..... ..........5.5110 5.1630 4.9630100 Danish Krone........... ....... 64.2800 58.6200 58.4200100 Hongkong Dollar..... ....... 55.6200 52.2800 52.0800100 Indian Rupee........... ......... 6.4870 6.0400 5.8400100 Indonesian Rupiah... ......... 0.0340 0.0304 0.0254100 Japanese Yen.!......... ......... 4.1020 3.9410 3.9310100 Norwegian Krone.... ....... 53.4800 48.7000 48.5000100 PakistairRupee....... ......... 4.1400 3.8500 . 3;6500100 Philippine Peso........ ..........8.9900 8.3900 8.1900100 Qatar Riyal............... ..... 117.8000 112.0500 111.8500100 Saudi R iyal............... .....114.4700 108.6700 108.4700100 South Africa Rand.;.. ..,,,31 .4200 28.8200 28.6200100 Sri Lanka Rupee...... ......... 2.9900 2.7100 2.5100100 Swedish Krona........ .......49.5700 44.7500 44.5500100 Thai Baht.................. ....... 12.9800 10.9200 10.5200

Btrtla Harlan

2 2 OCT 2016

Pertumbuhan ekonomi global dijangka kekal sederhana

f'5"’ [\j PC7.3 r n r p p 11 l ngun dijangka menunjukkan sediMt bang pada kadar sederhana iaitu 2.1 Walaupun pertumbuhan global ber-c o a a j u peningkatan. peratus bagi tempoh separuh pertama tanibah baik, risiko dijangka masihdiun iur CRtr\t Ekonomi AS dilihat berkembang le- tahun ini, berikutan sokongan sektor wujud. Malah, kemungkinan penuru-

J u bih lemah daripada jangkaan pada perkhidmatan dan penggunaan swas- nan mendadak ekonomi China bolehDPrtlJ m b u hr3 n tempoh separuh pertama tahun ini, tayang lebih tinggi. menjejaskan negarayangmempunyaiy c L a disebabkanpelaburanswastadanper- Bagi tempoh separuh pertama 2016, hubungan kewangan, perdagangan1 F D P m t i IS belanjaan kerajaan yang rendah te- pertumbuhan ekonomi di kawasan dan pelaburan erat dengan negara

K Cl 2) rutama dalam keadaan permintaan Euro berkembang 1.7 peratus atas itu.global yang lembap. faktor perm intaan domestik yang Kesan Brexit juga boleh menjadi

mantap, terutama penggunaan swas- lebih burukterutamadi kawasan Euro

Dertumbuhan ekonomi global Eksport menguncup ta serta pasaran buruh yang semakin dan UK, selain risiko volatiliti dalamdijangka kekal sederhana de- Perdagangan di AS juga terjejas ber- baik. pasaran kewangan global dan aliran

ngan pertumbuhan rendah ikutan eksport yang semakin mengun- modal, harga komoditi rendah, per-bagi kebanyakan negara cupakibatpengukuhanmatawangAS Pelaburan aset berkembang dagangan global lembap dan pening-maju, pada tahun ini. dan kejatuhan eksport perkhidmatan China mencatat pertumbuhan 6.7 pe- katan ketegangan geopolitik.

Negara maju seperti Amerika Sya- pelancongan. ratus disebabkan pelaburan infrast- Perdagangan dunia dijangka ber-rikat (AS), United Kingdom (UK) dan Hasil import negara ituturut me- ruktur awam yang kukuh dan prestasi kembang sebanyak 3-8 peratus ber-China diunjur mencatat pertumbu- rosot berikutan permintaan lebih ren- baik dalam pasaran perumahan. Pe- banding 2.3 peratus, selaras dengan han marginal lebih perlahan iaitu 1.6 dah untuk barangan modal, termasuk laburan aset tetap negara itu turut permintaan global lebih baik, teru- peratus berbanding 2.1 peratus, ma- peralatan penggerudian, medan mi- berkembang 11 peratus, sebahagian tama di AS dan pasaran serta ekonomi nakala pasaran membangun berkem- nyak serta aksesori komputer. besar disumbang oleh pelaburan mo- membangun seperti China, Indianbang pesat serta ekonomi memba- Sementara itu, KDNK UK berkem- dal syarikat milik kerajaan. dan ASEAN.

Berita R a riu

2 2 OCT 2016

\ LA PD R A N EKONOMI 2Q1B/17v S A B T U I

EKSPORt PERKHlDMATANPADA H A R SA MALAR SO lOPERLOMBONGAN

. 5-3%PCNGGUNAAN

5WA5TA316%

PEMBUATANoBARANGAN

29 7%PEMBlNAAN R M l,870,60l

Z . ! JUTAEKSPORT

BARANGAN JS4% -

RM1?870,601; J U T A ti

p e n g g u n a a n/ AWAMa 77%

PEIABURANAW AM l

S 2%

perhhidmatan n 34.4% PELABURAN

SWASTAI> 10 7% f

PERBELANJAAN KEPEMBANGUNAN sosial47%

EKGNOMI > V 99%

PINJAMAN DAN PENGGUNAAN ASET KERAJAAN

: IS-8% / -IPENTADBIRAN AM

LOH

EMOLUMEN29.7%

PERBELANJAANCUKAI

PENDAPATAN43-1%

CUKAI TIOAK - LANGSUNG

22.9*lbRM260#800

JUTARM260,800

JUTASUBSIDI DAN BANTUAN SOSIAL

96%

PEMBERIAN DAN 7SERAHAN KEPAOA * /KERAIAAN NEGERI

3 l% BAVARANPER5ARAAN

9 3%

CUKAI LANGSUNG LAIN32% HASH BUKAN

CUKAI 15-0%

QEKALAN DAN PERKHIDMATAN

12.3%

M M H i r i u

2 2 OCT 2016

lu tingkat

kukuh int

Ketua Setiausaha Negara, Tan Sri Dr Ali Hamsa, m ahu penjawat awam meningkatkan produktiviti dan mengukuhkan ta- hap integriti susulan Bajet 2017 yang banyak m enum pukan kepada kebajikan sektor perkhidm atan awam.

Katanya, Bajet 2017 membuktikan kerajaan tetap m eneruskan komitmen tinggi terhadap penam bahbaikan skim perk h id m a tan d an keba jikan p en jaw at awam.

Beliau berkata, di sebalik ketidaktentuan ekonomi, negara dijangka masih m am pu mengekalkan kadar pertum buhan ekonomi yang menggalakkan pada kadar 4 hingga 4.5 peratus pada tahun ini.

“Ingin saya tegaskan di sebalik beberapa insiden yang berlalai membabitkan penyelewengan oleh segelintir penjawat awam, majoriti masih mendukung prinsip perkhidmatan awam imtuk memberikan khid- m at terbaik kepada rakyat secara berin- tegriti.

“Kadar defisit fiskal kerajaan yang dijangka mencapai sasaran pada 3.1 peratus untuk tahun ini membuktikan kesunggu- han kerajaan dalam memastikan perbelanjaan negara berhemah mengikut perancangan fiskal yang ditetapkan,” katanya.

Ali berkata, sektor perkhidmatan awam akan terus mengorak langkah bersama dengan kerajaan bagi merealisasilcan aspirasi mewujudkan keseimbangan pertumbuhan ekonomi negara dan memastikan jaminan kesejahteraan rakyat.

CUEPACS m inta kaji sem ula bonusDalam pada itu, Presiden CUEPACS, Datuk Azih Muda mahu kerajaan mempertim- bangkan semula pemberian bonus kepada penjawat awam bagi menggantikanbayaran khas sebanyak RM500, yang diumumkan dalam Bajet 2017.

Katanya, pihaknya m enuntut pemberian bonus dua bulan gaji dan jika tidak dapat ditunaikan, pemberian bayaran khas itu perlu ditukar kepada bonus sekurang-kurangnya sebulan gaji.

“Berhubung perlanjutan kontrak penjawat awam sekurang-kurangnya setahun, kami m enuntut ketua jabatan yang sudah menghantar surat penamatan kontrak menarik balik surat itu sejajar pengumuman dalam Bajet 2017” katanya.

Permintaan domestik kukuh pemacu pertumbuhan

® Ekonomi Malaysia diunjur berkembang 4 hingga 5 peratus pada 2017

Ekonom i M alaysia d iu n ju r berkem bang an tara 4 dan 5 peratus pada 2017 berban- d ingjangkaan4.0 hingga 4.5 peratus tah u n ini dengan Pendapatan Kasar Negara (GNI) per

kapita nom inal m eningkat 5 peratus kepada RM39,699 berbanding 4.8 peratus dan RM37,8l 2, ta h u n ini.

Pertum buhan itu didorong oleh perm intaan domestik yang kukuh teru tam a perbelanjaan sektor swasta yang m ana aktiviti sektor itu akan disokong oleh dasar propertumbu- han fiskal dan kewangan akomodatif dalam persekitaran inflasi stabii antara dua peratus dan tiga peratus pada tah u n depan.

Selain itu , perbelan jaan sektor awam juga dijangka m eningkat dipacu oleh pelaburan m odal lebih tinggi syarikat awam.

P e r tu m b u h a n p o s i t i f Dari aspek penawaran, pertum buhan dijangka m enyeluruh dengan se- m ua sektor m encatat pertum buhan positif. Nilai ditam bah sektor perkhidm atan dijangka meningkat 5.7 peratus pada tah u n 20t7 disokong oleh pengembangan dalam semua subsektor.

Ini diikuti, subsektor perdagangan borong dan runrit dijangka berkembang 6.7 peratus, m anakala subsektor m akanan, m inum an dan penginapan 6.5 peratus disokong penggunaan domestik dan aktiviti berkaitan pelancongan yang kukuh.

Turut dijangka meningkat subsektor lain seperti m aklum at dan ko- munikasi (9.6 peratus); hartanah dan perkhidm atan pem iagaan (6.5 peratus) serta pengangkutan dan penyim- panan (5-8 peratus).

Sektor pem buatan juga diunjur berkembang 4.1 peratus pada 2017 disebabkan pertum buhan industri berorientasikan eksport dijangka te- njs disokong perm intaan yang mam- pan bagi produk elektrik dan elektronik (E&E).

Pertum buhan bagi sektor pertani-

an pula dijangka kembaii meningkat kepada 1.5 .peratus pada tahun 2017. Ia berasaskan kepada peningkatan pengeluaran kelapa sawit dan getah serta pertum buhan kukuh subsektor komoditi makanan.

Pengeluaran getah dijangka meningkat

Pengeluaran CPO dijangka kembaii pulili 5.6 peratus kepada 19 ju ta tan berikutan basil lebih baik serta pe- luasan kawasan matang, sementai'a pengeluaran getah juga dijangka berkembang 4.6 peratus kepada 680,000 ta n metrik.

Pengeluaran gas asli dijangka meningkat sejajar perm ulaan operasi ke-

m udalian gas asli cecair terapung pertam a (PFLNG l), yang dianggarkan mengeluarkan 1.2 ju ta tan metrik setahun,

Pada tahun 2017, harga minyak m entah dijangka kekal rendah dengan minyak Brent didagang pada purata AS$45 setong berikutan lebihan minyak global.

Turut diunjurkan berkembang ia- lali sektor pem binaan iaitu 8.3 peratus terutam a disokong pelaksanaan projek infrastruktur besar seperti MKT laluan Sungai Buloh-Serdang- Putrajaya, Lebuh Raya Pan Borneo, Lebuh Raya Bertingkat Sungai Besi- Ulu Klang dan Lebuh Raya Bertingkat Damansara-Shah Alam.

Hainan Perdagangan tu a r Negeri Januari - Ogos 2016

Lam-lam191%

Asia Baiat 4.1% 'RM500.3 bilion--- . ..-'v-i-;: •

. iepun-A(r’k3 ^ . 8.2% I..2 S% - - - - •

EU• 10.2%

'tuiak tcfmasuk Singapura Sumber labatan Perangka<

V , * ‘i J

AS10.S%

Asia Borat i m . -.India 2.1% "

Afrika1.0%

Lam-tain21.7%

EU10.0% .

RM448.1 bilion I ;

fJepun

ASEAN'AS

Eksport barang pembuatan mengembang 83 peratus

O Peningkatan didorong pengembangan sektor elektrik dan elektronik serta produk kimia

Eksport baran g an pem b u a ta n m e n y u m b a n g ham pir 83 peratus kepada jum lah eksport, meningkat 3.8 peratus kepada RM413-3 bilion dalam tem-

poh lapan bulan pertam a 2016.Ia terutama didorong oleh pe

ngembangan sektor elektrik dan elektronik (E&E) serta kimia dan produk kimia (Januari - Ogos 2015: 80.3 peratus; 3.0 peratus; RM398.I bilion).

Pasaran utam a eksport barangan pembuatan ialah Singapura, Amerika Syarikat, China, Jepun dan Hong Kong.

Eksport E&E meningkat 2.2 peratus terutama disokong permintaan mapan bagi peranti semi- konduktor (1.2 peratus) dan kelengkapan telekomunikasi yang meningkat ketara 10.9 peratus (Januari - Ogos 2015: 7.4 peratus; 103 peratus; 01 peratus).

Eksport bukan E&E kembali meningkat 5.1 peratus (Januari - Ogos 2015: -0.2 peratus), didorong pengem bangan dalam subsektor utama, khususnya kimia dan pro- dult kimia; jentera, kelengkapan dan peralatan; barangan perkila- ngan logam; serta barangan optik dan saintifik.

Bagaimanapun, produk petroleum; besi dan keluh; galian bukan logam serta barang kemas mencatat pertum buhan negatif.

Dalam tempoh lapan bulan pertama 2016, pendapatan eksport komoditi menguncup 11.5 peratus kepada RM83.7 bilion (Januari - Ogos 2015: -17.8 peratus; RM94.6 bilion). Prestasi perlahan itu terutama disebabkan harga minyak rendali dan permintaan luar yang lemah.

Im port kasar m eningkatDalam tempoh lapan bulan 2016, import kasar meningkat 0.9 peratus kepada RM448.1 bilion (Januari - Ogos 2015: -1.9 peratus; RM444.3 bilion), disokong permintaan lebih tinggi bagi barangan modal dan penggunaan serta aktiviti eksport semula yang kukuh.

Import barangan pengantara, mewakili 57.2 peratus daripada import kasar, merosot 2.4 peratus kepada RM256.4 bilion (Januari - Ogos 2015: 59.1 peratus; -1.7 peratus; RM262.8 bilion), akibat pe- nguncupan ketara import balian api dan pelincir sebanyak 38.6 peratus; makanan dan m inum an (- 8.5 peratus); dan bekalan perin-

dustrian (-0.7 peratus).Bagaimanapun, import alat gan-

ti dan aksesori berkembang 6.4 peratus, terutama didorong perm intaan lebih tinggi bagi produk litar bersepadu elektronik.

Import barangan modal kembali pulih 5.6 peratus kepada RM64.9 bilion (Januari-Ogos 2015: - 3.7 peratus; RM61.4 bilion), dipacu permintaan kukuh bagi aktiviti pelaburan domestik.

Import barangan modal, kecuali alat kelengkapan pengangkutan, menyumbang 88.8 peratus kepada jum lah barangan modal, meningkat 5.6 peratus terutam a disokong struktur terapung bagi sektor minyak dan gas.

Akaun semasa bagi tempoh separuh pertama 2016 mencatat lebihan lebih rendah RM6.9 bilion atau 1.2 peratus daripada Pendapatan Negara Kasar (GNI) (Julai - Disember 2015: RM15.2 bilion; 2.6 peratus).

Ia disebabkan pengecilan lebihan akaun barangan serta akaun perkhidrnatan dan pendapatan yang terus mencatat defisit.

Lebihan akaun barangan berkurang kepada RM433 bilion (Ju- lai-Disember 2015: RM58.2 bilion) terutama berikutan pendapatan eksport komoditi yang lebih kecil.

Bagi keseluruhan tahun, lebihan akaun semasa dijangka me- ngecil kepada RM16.4 bilion atau dalam lingkungan satu peratus dan 1.5 peratus daripada GNI (2015: RM34.7 bilion; 3.1 peratus).

Berita Harlan

2 2 OCT 2016

Ringgit mengukuh hingga Julai j1 ' Prestasi Ringgit Berfoandlrig " %

8 Mata Wang TerpilihRinggit mengukuh berbanding m ata. pada tempoh sama tahun lalu. B Ifwang utama dan serantau dalam 8 I?tempoh Januari hingga Julai 2016. Pasaran bu ru h stabil |

Sepanjang tempoh itu nilai ringgit Pasaran buruh kekal stabil dalam tern- Akhir2015-AkhirJulai 2016 !imeningkat 5-9 peratus berbanding do- poh separuh pertama 2016 seiring ak- |lar AS, pound sterling (18.9 peratus), tiviti ekonomi yang berdaya tahan. ‘ Akhir Julai 2016 - Akhir Ogos 2016 geuro (4.4 peratus) dan dolar Australia Kenaikan inflasi terutama disebab- ‘ |(2.6 peratus). Unit tempatan itu ba- kan kadar CPI lebih tinggi dalam suku fgaimanapun menyusut sembilan pe- pertama 2016 berikutan pelarasan Dolar AS 5-9 |ratus berbanding yen. harga yang ditetapkan seperli bayaran o.l |

Jika dibandingkan dengan semua tol dan tambang kereta api dalam Pound sterling a 18-9 1mata wang serantau, ringgit turut me- tempoh suku keempat 2015. 10 |ningkat dalam lingkungan satu pe- la turut disumbang oleh pengura- Eur0 , ^ - 44 |ratus hingga 8.5 peratus. ngan rebat tarif elektrik pada Januari 8

Pengukuhan nilai ringgit berban- 2016 serta kesan asas rendah dalam lOOyen -9.0 „ |ding dolar AS didorong penangguhan tempoh suku pertama 2015. § ** |kenaikan kadar faedah AS berikutan Dalam pada itu, pasaran buruh di- Dolar Australia i 2,6 8ketidaktentuan prospek pertumbu- rekodkan stabil dengan kadar peng- ' ■ |han global. angguran mencatat 3.4 peratus de- ‘ Dolar Singapura I

ngan penyertaan tenaga buruh adalah 11 pPem u lihan harga m inyak m entah 67.5 peratus dalam tempoh berkena- mining 6-3 iPemulihan harga minyak mentah glo- an. .. loo peso niipma -1.31 |bal pada Januari 2016 menyokong ke- Turut meningkat ialah jumlah guna lOObaht 2.6 |naikan mata wang negara pengeks- tenaga iaitu 0.2 peratus kepada 14.12 -0.8 1 1port komoditi, termasuk ringgit. juta dalam tempoh sama berbanding 0.3 |

Bagaimanapun, nilai ringgit menyu- 1.8 peratus dan 14.8 juta, tahun lalu. rup,a B l.6 Jsut pada akhir Ogos disebabkan aliran Sektor perkhidmatan kekal sebagai . . . Ikeluar dana daripada pasaran seran- majikan terbesar dengan menyedia- I enminoi ; 0 5 |tau susulan jangkaan pelabur terha- kan 60.5 peratus daripada jumlah ' 5 ^ |dap kenaikan kadar faedah AS pada pekeijaan, diikuti pembuatan (16.6 | won rea | , -0.2 i , , 5 1 Ibulan September lalu. peratus) dan pertanian (11.1 pera- ® _10 - 4 2 8 w 20 I

Sementara itu, kadar inflasi mengi- tus). | - 0/ „ h h 1kut Indeks Harga Pengguna (CPI) ber- Pada tahun ini, pasaran buruh di- | /0p fjada pada kadar purata 2.3 peratus jangka kekal stabil dengan kadar pe- | |dalam tempoh lapan bulan pertama ngangguran pada 3-3 peratus berban- | Sumber: Bank Negara Malaysia Btalrun 2016, berbanding 1.9 peratus ding 3.1 peratus pada 2015. I

2 2 OCT 2016

SEDUTAN PEMBEN1ANGAN BA JET 2017 OLEH PERBAM A M ENTERI. DATUK SER I N A JIB RA ZA H

Perbelanjaan berhemat,

Ekonomi negara terus berkembang pada 4.1 peratus dan kita yakin sasaran pertumbuhan empat hingga 4 ;5 peratus bagi tahun 2016 dan empat hingga lima peratus pada 2017 akan tercapai, insya-Allah. Sesungguhnya jua, we ore now on the right track kerana berani membuat keputusan- keputusan yang tepat, sekalipun ia-tidak popular"

Untuk videolayari www.bharian.com.my

ajet kali ini dengan diperuntukkan RM260.8 bilion, raerupakan peningkatan 3.4 peratus daripada pengubahsuai-

an Bajet 2016. Daripada jum lah ini, RM214.8 bilion adalah Perbelanjaan Mengurus dan RM46 biiion pula, untuk Perbelanjaan Pembangunan. Ini tidak terma- suksim pananluarjangkaseba- . nyak RM2 bilion. Di bawah Pe1 runtukan Mengurus, RM77.4 bilion adalah untuk Emolumen, serta RM32 bilion untuk Perkhid- m atan dan Bekalan, manakala RM103.9 biiion untuk Pemberian dan Kenaan Bayaran Tetap. Pembelian Aset pula, diperuntukkan RM691 ju ta, dan RM816.6 ju ta lagi, untuk perbelanjaan lain.

Di bawah Peruntukan Pembangunan, sektor ekonomi meneri- m a agihan tertinggi sebanyak RM25.9 biiion, diikuti oleh sektor sosial RM12.2 biiion. Sektor keselamatan mendapat RM5-3 biiion, dan sektor pentadbiran am lebih RM2.5 biiion, Oleh itu, berdasar-. kan prestasi semasa, hasil 2017 dyangka berkembang: sekitar tiga peratus iaitu kepada RM219.7 biiion.

Selain itu,... sasaran kerajaan untuk defisit fiskal tiga peratus daripada KDNK pada 2017, mudah-mudahan dapat dicapai, berbanding, 3.1 peratus pada tahun ini. Jadinya, saya faham, angka * dan nombor-nombor yang dise- but barangkali tidak mudah difahami ramai. Sebenamya, apa yang hendak saya sampaikan adalah, kerajaan sentiasa komited untuk melaksanakan bajet yang terbaik melalui perbelanjaan berhemat, sekalipun, kita berhadapan dengan ketidaktentuan ekonomi dunia.

Maksud perbelanjaan berhemat oleh kerajaan di sini, kalau hendak dipercontohkan dalam sese; buah keluarga, seorang bapa atau ketua keluarga harus bijak dalam menguruskan kewangan untuk keperluan seisi rumah. Ertinya, jika dulu, dapat dibelikan mainan yang agak mahal untuk anak- anak, dalam keadaan sekarang,...beli tetap belijuga,...tetapi yang bersesuaian dengan kadar kemampuan, manakala, makan minum, kalau sebelum ini boleh sedikit bermewah dan makan-makan di restoran mahal, kini boleh

| bersederhana serta beijimat, ba- | rangkali di restoran berpatutan,I nam un tidak kurang enak maka- j nannya. • ‘ •I Berbalik kepada Bajet 2017 ini,I kita ingin mengambil ibarat dan { teladan daripada Msah di zaman | Nabi Allah Yusof Alaihi Salam,| bersempena Kitab Suci al-Quran r | Surah 12, ayat 43 hingga 49, ten- | tang perancangan tujuh tahun [pertam a dan persediaan, selanjut- I nya tujuh tahun cabaran menge- { kalkan keutuhan ekonomi negara.| Beriktibar daripada peristiwa her-. j sejarah itu, merujuk kepada $i- I tuaayang berlaku kepada eko- ; nomi negara kita, pada 2008, yak- ) ni tujuh tahun lalu, Malaysia { tidak terlepas daripada dilanda [ kelembapan ekonomi global.

Justeru, selepas dilantik sebagai I Menteri Kewangan, di bawah pim- | pinan m antan Perdana Menteri | ketika itu, Tun Abdullah Ahmad ( BadaWi, kami telah melancarkap j Pakej Rangsangan Ekonomi Per*I tama, beijumlah hampir RM7 bi- { lion, bagi merangsang kembali I pertumbuhan ekonomi negara.| Sebenamya, pakej pertama itu, j merupakan langkah interim saha- I ja. Kemudiannya, kira-kira sebu*I lan sebelum saya dilantik menjadi ! Perdana Menteri pada Mac 2009,I Pakej Rangsangan Kedua bemilai | RM60 biiion telah digerakkan.

( Ekonom i global ta k m e n e n tuTemyatai, langkah proaktif ini berjaya memangkin ekonomi negara yang lembap pada masa itu. Ha- silnya, ekonomi Malaysia kembali berkembang, dengan pertumbu-

| han KDNK mencecah 7.4 peratus I pada 2010. Alhamdulillah, rente- I tan daripada inisiatif pakej stimu- j lus itu, dan tujuh bajet yang telah j dilaksanakan, ekonomi kita stabil j dan kekal berada di landasan po- I sitif. Sesungguhnya, keadaan eko- I nomi global atau external eco*I nomy masa lani adalah tidak me- | nentu dan berada di luar kawalan | kita.

Pertumbuhan perlalian ekono- | mi antarabangsa berpunca dari- i pada kelembapan semua kuasa- I kuasa besar ekonomi dunia seca- i ra serentak. Sebab itulah, pertum*| buhan KDNK dunia m enurun da*| ripada 3 2 peratus pada 2015, ke | paras 3.1 peratus yang diunjurkan i bagi tahun 2016. Kendatipun be- j gitu, kita am at bersyukur, per-.I tumbuhan ekonomi kita masih

kekal stabil dan sustainable bagi separuh pertama tahun in i

Jelasnya, ekonomi negara terus berkembang pada 4.1 peratus dan kita yakin sasaran pertumbuhan empat hingga 4.5 peratus bagi tahun 2016 dan empat hingga lima peratus pada 2017 akan tercapai, insya-Allah. Sesungguhnya jua, vue are now on the right track kerana berani membuat keputusan-kepu* tusan yang tepat, sekalipun ia tidak popular

Segala-galanya ini dicapai ber* foit kegigihan dan perancangan kerajaan dengan menumpukan kepada beberapa dasar strategik, sejak20l 0.

P e r ta m a : M em pelbagaikan sumber hasil kerajaan, terutamanya mengurangkan kebergantungan hasil negara daripada sektor minyak dan gas sebanyak 41.3 peratus pada 2009 kepada 14.6 peratus pada tahun 2016. Hasil daripada mempelbagaikan ekonomi secara lebih meluas ini, pertumbuhan ekonomi negara dapat di- pertahankan dan masih terpeli- hara, sungguhpun harga minyak telah merosot hampir 50 peratus.

Kedua: Langkah berani kerajaan memperkenalkan Cukai Ba* rang dan Perkhidmatan (GST) untuk meluaskan sumber pendapatan kerajaan. Perlu kita sedar, hasil cukai langsung dari individu terdiri daripada 2.1 ju ta pemba- yar sahaja, daripada 14.6 juta jumlah warga keija negara. Tam- bahan pula, dengan kejatuhan harga minyak, dianggarkan kerajaan kehilangan pendapatan kira- kira RM30 bihon setahun, daripada sumber cukai pendapatan, cu

kai korporat, royalti, dividen Pe- tronas dan cukai petroleum.

GST ta k n a lkSedarilah, dengan ada GST, kerajaan berupaya menampung perbelanjaan di kala sumber lain berkurangan. Sukacita saya melaporkan, melalui GST hampir RM30 biiion telahbeijaya dikutip setakat 19 Oktober 2016. Apa yang pastinya, ingin saya tegaskan di sini, janganlah percaya gembar- gembur kadar GST akan dinaikkan. Itu cuma cakap-cakap kosong dan tidak benar sama sekali

Langkah ketiganya, Rasionalisa* si Subsidi: Sebagai contoh, jika hendak dibancUngkan bagi minyak, pada 1995, masa itu subsidi hanyalah RM123 juta. Jumlah ini hanya mewakili OM peratus daripada bajet keseluruhan negara. Kemuncaknya, pada 2012, mencecah jum lah subsidi RM24.8 biiion, atau 9.8 peratus daripada bajet keseluruhan negara.’ Secara lang- sungnya, dasar subsidi pukal jelas membebankan kewangan negara dan menggalakkan ketirisan, dan kita telah ganti dengan subsidi bersasar, yang manfaatnya sam- pai kepada golongan yang benar- benar memerlukan bantuan.

Terbukti, melalui segala inisiatif diambU oleh kerajaan ini, ekonomi kita berkembang secara mam- pan, dan kini, mengikut ukuran Purchasing Power Parity, Malaysia telah menjadi sebuah negara upper middle income, mengatasi banyak negara bukan sahaja di Asia, namun di seantero dunia. Mak- nanya, m enurut KDNK PPP per -

-> tihat Ms.31

http://www.bharian.com.my

Kebajikan

f- Dari Ms.30

kapita rakyat Malaysia, telah meningkat daripada AS$23,100 pada tahun 2012, kepada AS$26,89l pada 2015.

Pada sudut lain, kerajaan sedar tentang desas-desus bahawa, pelabur sekarang kononnya tidak la* gi berkeyakinan dengan ekonomi Malaysia. Perlu difahami, ekonomi sesebuah negara sangat berkait rapat dengan persepsi, sebab- nya, tanpa keyakinan mana mungkin datangnya pelaburan untuk ekonomi digerakkan. But, 1/ our oiun people,....undermine and sabotage our own economy, iba- ratnya merudumkan rum ah dan tanah air kita sendiri. Justeru, perbuatan duijana oleh musuh- musuh luar apatah lagi tangan- tangan kotor dalam negara, yang tidak bertanggungjawab seperti ini, mesti dihentikan!

Bagi kita, kerajaan Barisan Na- sional, bak kata orang, sekalipun seribu panah tersusuk di badan, seandainya sejuta luka terbenam diserang, demi rakyat Malaysia yang tercinta, dari Semenanjung hingga Sabah dan Sarawak, kita akan terus mara menjulang Malaysia ke hadapan. Syukur Alham- dulihah, fakta-fakta telah membuktikan hakikat sebenamya. Mi- salnya, jumlah pelaburan asing yang telah diluluskan bagi separuh pertama 2016, adalah lebih RM28 bilion. Ini merupakan pe* ningkatan sebanyak 32 peratus berbanding tempoh sama tahun lepas. Ini, tidak termasuk pelaburan domestik lebih RM60 bilion.

Malah, semasa lawatan ke Jer-- m an bulan lalu, pertemuan saya dengan komuniti pemiagaan di sana, mereka menyatakan minat untuk terus kekal dengan pelaburan di sini, kerana yakin dengan dasar-dasar Kerajaan Malaysia yang jelas. Contohnya, syarikat Osram telah mengumumkan pelaburan bemilai 1 bilion euro, atau hampir RM5 bilion. Pelaburan untuk kilang LED di Kulim,

. Kedah ini adalah yang terbesar dan terkini di seluruh dunia.

L aw atan k e C hina Insya-Allah, minggu hadapan, saya akan ke China pula. Doakanlah agar lawatan ini akan membawa kejayaan yang lumayan untuk negara kita. Terkini, menurut Kaus- hik Basu, Chief Economist and Senior Vice President of the World Bank, as many nations suffer because of falling global commodity prices, Malaysia stands out for having transformed itself from a poor, commodity-exporting nation to a modem diversified economy.

Bajet 2017 digubal dengan berpegang kepada lim a Prinsip dan Falsafah Kerajaan. Satu: Kerajaan

2 2 OCT 2016

penjawat awam tidak diabai

ini adalah kerajaan, yang mengu- tamakan kesepaduan nasional dalam pembinaan negara bangsa. Kepelbagaian etnik dan kem^jmu- kan sebagai aset teras kemajuan dan pembangunan negara sejak dulu, kini dan selamanya;

Kedua: Kerajaan ini. adalah kerajaan yang mementing dan me- melihara kedaulatan, keluhuran Perlembagaan dan undang-undang serta keselamatan negara;

Ketiga: Kerajaan ini, adalah kerajaan yang kohesif dan stabil serta bekeija sebagai satu pasuk&n yang jitu;

Keempat: Kerajaan ini, adalah kerajaan yang gigih berusaha, dengan arah tuju yang jelas, peran- • cangan sistematik dan pelan pe* laksanaan tersusun, efisien lagi holistik. Indeed, this Government has delivered,...we are still delivering and most importantly, we will continue to deliver dan;

Kelima: Kalau dalam bemegara, kita berpegang kepada ideologi ke-. bangsaan yakni Rukun Negara. Ma- ka dalam mentadbir Malaysia, kerajaan ini akan terus berpandukan kepada falsafah Islami yang universal sifatnya yakni Wasatiyyah, merangkumi kesederhanaan, keseimbangan, keadilan sosial, ke- saksamaan dan kecemerlangan. Ini bererti, kita senantiasa berusaha bersungguh-sungguh untuk memperoleh yang terbaik, bukan sederhana, complacent atau ber- puas had dengan pencapaian ala kadar sahaja.

Dalam melalui suka duka epi- sod memacu kejayaan negara, kita tidak lupa kepada tokoh juga pimpinan yang menjadi sumber inspirasi dan teladan kepada semua. Lalunya, di kesempatan ini, kita menzahirkan ucapan taktiah kepada keluarga beberapa insan yang banyak beijasa kepada negara. Mereka yang akan saya se- butkan sememangnya bukan terdiri daripada Ahli Pariimen namun, sekadar berkongsi cerita dan rasa.

Pertama, Allahyarham Tan Sri Abdul Aziz Tapa yang menumpah taat setia kepada peijuangan bangsanya dan partinya hingga ke hujung usianya, 93tahun. Kedua, kepada seorang lagi sahabat pe- ribadi saya dan keluarga, yalaii AUahyarham Tuan Guru Ustaz Datuk Dr Haron Din. Sesungguh- nya, kita rakyat Malaysia telah ke* hVangan dua tokoh yang sangat dihormati.

Jelas sekali, meskipun Allahyar- ham Tuan Guru berada di lan* dasan politik berbeia, kita tetap menyanjung tinggi peijuangan beliau untuk ummah, dan pihak kerajaan telah menganugerahkan gelaran Tokoh Khas Maal Hijrah 2016 kepadanya. Tapi kita berasa sedih dan kecewa, kerana ada ka-

langan pihak pembangkang sendiri yang terang-terangan mem- benci dan menista beliau.

P en jaw at aw amKita kini berada di ambang enam dekad kemerdekaan watan tercinta ini. Selama itulah penjawat awam yang kini jumlahnya mencecah 1.6 juta orang, menjadi tonggak pentadbiran dan jentera kemajuan negara. Sebagai meng- hargai khidmat bakti dan jasa mereka, sukacitanya saya mengumumkan:

Pertam a: Kemudahan cuti be- l^jar dengan gaji dibayar penuh bersama biasiswa yang sebelum ini hanya kepada Kumpulan Pe- ngurusan dan Profesional, kini akan diberikan juga kepada Kum* pulan Pelaksana; Kedua: Pembe- rian cuti kuarantin kepada penjawat awam, yang anaknya sakit dan perlu dikuarantin menerusi cuti tanpa rekod sebanyak lima * hari; Ketiga: Kalau seperti sedia ada kemudahan pembiayaan diberikan kepada pembelian komputer, b^jet kali ini memutuskan agar kemudahan ini diperluaskan meliputi pembelian smartphone dengan had pinjaman sehingga RM5,000 bagi setiap tiga tahun; dan Keempat: Tidak cukup dengan itu, kerajaan memutuskan bahawa had pinjaman pembelian motosikal akan dinaikkan daripada RM5,000 kepada RM10,000.

Kelima: kerajaan tetap mengambil berat tentang perumahan penjawat awam, dan terus komited supaya mereka memiliki rumah sendiri Maka dengan ini, sukatita kerajaan bersetuju menaikkan kelayakan pinjaman perumahan penjawat awam daripada serendah-rendahnya RM120,000 kepada RM200,000, ma- nakaia pinjaman paling tinggi sebelumnya RM6oo,ooo, kini dinaikkan kepada RM750,000; Keenam: . sebanyak 30,000 unit lagiPeruma- han Penjawat Awam lMalaysia akan disiapkan; dengan harga jualan sekurang-kurangnya 20 peratus drbawah harga pasaran; yakni berharga antara RM90,000 hingga ke RM3OO,0OO;

Ketiguh: Kepada pegawai contract o f service dan contract for service yang akan tamat pada penghujung tahun ini pula, usah- iah bimbang, kontrak tuan-tuan dan puan-puan akan kerajaan lanjutkan sekurang-kurangnya setahun lagi; Kelapan: Bagi mengatasi masalah doktor pakar yang mahu meninggalkan perkhidmatan awam atas isu kelewatan naik pangkat, kerajaan memandang se- rius, seraya kita umumkan satu lapisan gred baru, yakni gred 56 antara gred 54 dan JUSA C di- wiyudkan, bagi pegawai perubatan pakar dan pegawai pergigian

pakar; danKesembilan: kerana kekangan

I jawatan tetap, kerajaan mengam- | bil keputusan melantik secara kon- ! trak kumpulan pertama graduan S perubatan, pergigian dan farmasi | selewat-lewatnya Disember 2016.

Untuk makluman, hampir 2,600 | j doktor yang sebelum ini tidak da- ! | pat penempatan housemanship di I | mana-mana hospital, kini boleh j mery'alani housem anship secara | I kontrak. Harapnya, berita ini j

akan membawa khabar gembira j kepada mereka dan keluarga

Istilah muflis jauh daripada kamus MalaysiaSebelum pembentangan diteruskan, saya ingin memperbetulkan beberapa tuduhan dan misconceptions yang dimomok oleh pihak tidak bertanggungjawab, sehingga mengeliru dan menimbulkan ke- resahan tidak menentu di kala- j ngan masyarakat tentang ekono-

j mi Malaysia. Salah faham dan sa- j | lah persepsi yang pertama,| dikatakan - Kerajaan Akan Bank- 1 rap atau Muflis. Berkait perkara j I ini, saya ingin maklumkan baha- j | wa, sesebuah kerajaan hanya di- j ] kategorikan sebagai bankrap atau j j muflis, sekiranya kerajaan itu ti- j j .dak mampu membayar tanggu- j j ngan hutang-hutangnya.\ Letak duduk ini, dinilai melalui 1j penarafan oleh antaranya tiga j agensi antarabangsa yang sangat j berwibawa yakni, Fitch, Moodys j dan Standard & Poors. Institusi- I j institusi inilah Badan-Badan Pe- j j narafan yang diterima pakai ra- j j ting dan laporan keupayaan ne- j j gara-negara dalam membayar ba- i j lik hutang. Sebagai perbandingan, j j menerusi agensi penarafan Fitch, j j terkini Malaysia diberi penarafan j j A-berbanding dengan Filipina j j BBB-,' Thailand BBB+ dan Web 1j nam BB-. Malah penarafan Ma- ! laysia, adalah sama dengan ke- j lompok negara yang saizekono- j i minya lebih besar dan maju j 1 daripada negara kita, seperti Ko- j rea AA-, China A+, TaiwanA+, j j danJepunA.j Maknanya di sini, istilah muflis j j atau bankrap itu jauh sekali da- j i ripada kamus ekonomi Malaysia! j | Salah faham dan salah persepsi j j kedua, dikatakan bahawa Malay- j sia is a Failed State atau Negara jj Yang Gagal. Ini pun fitnah sema- j ta-mata. Saya nak terangkan apa j j maknanya Failed State... Ia teijadi j j seandainya sesebuah negara itu j gagal melaksanakan sebahagjan j besar tanggungjawab dan fungsi j j asas kerajaan.j Ini termasuklah kegagalan ang- j j gota polis dan askar mengawal j keamanan dan keselamatan ne- j 1 gara, kegagalan kerajaan untuk j j membayar gaji penjawat awam, j

Lihat Ms.32

Kerajaan tetap mengambil berat tentang perumahan penjawat awam; dan terus komited supaya mereka memiliki rumah sendiri. Maka dengan ini, sukacita kerajaan bersetuju menaikkan kelayakan pinjaman perumahan penjawat awam daripada serendah- rendahnya RM120,000 kepada RM200,000, manakala pinjaman paling tinggi sebelumnya RM600.000, kini dinaikkan kepada RM750j000"

Hutang Kerajaan Persekutuan 53.2 peratus daripada KDNKHutang Kerajaan P ersekutuan beraria pada paras RM655-7 bilion a tau 53.2 peratus daripada KDNK sehingga akhir Jun 2016, te ru tam a disebabkan te rb itan hu tang dalam negeri lebih tinggi bagi perbelanjaan pem bangunan (DE).

Hutang dalam negeri kekal sebagai bahagian terbesar daripada jum lah hutang iaitu sebanyak 95-9 peratus, m anakala baki adalah daripada pinjam an luar pesisir.

Pada akhir Jun 2016, hutang dalam negeri Kerajaan Perseku tuan berjum lah RM628.8 bilion, sebahagian besamya terdiri daripada Sekuriti Kerajaan Malaysia (MGS) dan Terbitan Pelaburan Kerajaan Malaysia (MGII).

MGS sebagai instm m en terbesar terbitan Kerajaan Persekutuan m encatat RM365.9 bilion atau 55.8 peratus daripada jum lah hutang manakala MGII sebanyak RM230 bilion.

Usaha promosi berteriisanPeratusan MGII kepada jum lah hutang Kerajaan Persekutuan meningkat kepada 35.1 peratus berbanding 21.8 peratus pada 2010, m encerm inkan usaha berterusan kerajaan dalam m em prom osikan Malaysia sebagai hab kewangan. Islam antarabangsa.

Profil kem atangan hutang Kerajaan Persekutuan kekal dengan agihan yang baik, dengan purata m atang .9.7 tahim. Hutang luar Malaysia berjum lah RM848.2 bilion atau 68.8 peratus daripada KDNK. pada akhir Jun 2016.

Sebahagian besax hutang itu terdiri daripada deposit dan pegangan bukan pe- m astautin ke atas sekuriti hutang ber- denominasi ringgit sebanyak RM309.6 bilion atau 25.1 peratus daripada KDNK, diikuti hutang sektor swasta sebanyak RMI66.7 bilion atau 13.5 peratus.

Pinjaman luar pesisir oleh sektor awam adalah sebanyak-9.9 peratus daripada KDNK, dengan hutang Kerajaan Persekutuan berjumlah dua peratus.

Pegangan bukan pemastautinPegangan bukan pem astautin ke atas sekuriti hutang berdenom inasi ringgit, sebahagian besamya dalam jangka seder- h ana dan panjang m eningkat kepada RM232.2 bilion pada akhir Jun 2016.

Mengenai hu tang sektor awam, sehingga akhir 2015, hu tang sektor itu berjum lah RM870 billon a tau 75.2 peratus daripada KDNK, dengan hutang Kerajaan Persekutuan sebagai kom ponen terbesar berjum lah RM630.5 bilion a tau 72.5 peratus daripada ju m la h hu tang sektor awam.

Hutang syarikat awam bukan kewangan berjum lah RM199.5 bilion atau 22.9 peratus daripada jum lah hutang manakala baki adalah hutang badan berkanun.

2 2 OCT 2016

Defisit fiskal diunjur tiga peratus daripada KDNK pada 2017

Kerajaan akan m eneruskan usaha kon- soiidasi fiskal pada 2017 di sam ping menggalakkan p ertu m b u h an ekonom i serta m elaksanakan program dan projek yang m engutam akan rakyat.

Pem baharuan sektor awam akan diper- giatkan bagi m engukuhkan lagi penguru- san fiskal dan m enam bah baik penyam- paian perkhidm atan awam.

Mengambil kira langkali dilaksanakan itu, defisit fiskal diunjur m encatat RM40.3 bilion atau tiga peratus daripada Keluaran Dalam Negara Kasar (KDNK) pada 2017.

Kutipan hasil Kerajaan Persekutuan pada 2017 dijangka m eningkat 34 peratus kepada RM219.7 bilion berikutan kutipan hasil cukai lebih tinggi, terutam a daripada cukai pendapatan syarikat (CITA).

Hash bukan petroleum terns menjadi penyumbang utam a kepada jum lah hasil dengan bahagian 86.2 peratus, disumbang- kan kutipan Cukai Barang dan Perkliid- m atan (GST) lebih tinggi pada RM40 bilion.

Perbelanjaan Kerajaan Persekutuan dijangka m eningkat 3 4 peratus kepada RM260.8 bilion dengan 82.4 peratus diperuntukkan bagi perbelanjaan mengurus (OE) dan bakinya untuk perbelanjaan pembangunan (DE).

Sejumlah RM774 bilion dipem ntukkan bagi em olum en yang m ana adalah kom- ponen terbesar OE dan RM46 bilion diperuntukkan bagi DE untuk tahun depan.

Peruntukkan terbesar DE adalah bagi sektor ekonomi (56.2 peratus), diikuti sektor sosial (26.5 peratus), keselamatan (11.5 peratus) dan pentadbiran am (5.8 peratus).

Naik tara f in frastruktur fizikalPeruntukan sektor ekonomi digunakan teru tam a bagi menaik taraf infrastruktur fizikal sepeiti m enam bah baik jalan raya dan sistem pengangkutan awam.

Sejumlah RM12.2 bilion dipem ntukkan kepada sektor sosial bagi meningkatkan kualiti liidup rakyat, m anakala RM5-3 bilion dipem ntukkan bagi sektor keselamatan.

Meskipun berdepan cabaran ekonomi semasa term asuk kejatuhan harga minyak m entah dunia, kerajaan akan memanfa- atkan sum ber sedia ada dan terns m elaksanakan pem baharuan fiskal.

Oleh itu, defisit fiskal sebagai peratusan KDNK disasar terus berkurang daripada 3.2 peratus pada 2015 kepada 3.1 peratus pada 2016.

Jawatankuasa Dasar Fiskal (FPC) terns m em ainkan peranan penting dalam me- nentukan hala tuju inisiatif konsolidasi fiskal dengan m enubuhkan Jawatankuasa Teknikal Risiko Fiskal dan Liabiliti Luar Jangka pada Mei 2016.

Jawatankuasa itu bertanggungjawab me- nilai dan mengesyorkan langkah menangani risiko fiskal dan liabiliti luar jangka Kerajaan Persekutuan bagi m em astikan ke- m am panan fiskal jangka sederhana dan panjang.

2 2 OCT 2016

@ Merangkumi had pinjaman, cuti anak sakit

Seramai 1.6 juta penjawat awam menikmati pelba- gai manfaat, termasuk

bayaran khas sebanyak RM500, manakala pesara kerajaan menerima RM250 yang akan dibayar awal Januari depan.

Kerajaan tuntt menaikkan ke~ layakan pinjaman perumahan penjawat awam daripada seren- clah RMl20,000 kepada RM200,000, manakala pinjaman paling tinggi sebelum ini RM600.000 dinaikkan kepada RM750,000.

Sebanyak 30,000 unit Perumahan Penjawat Awam lMalaysia (PPAiM) akan disiapkan dengan harga jualan sekurang-kurangnya 20 peratus di bawah harga pasaran iaitu berharga antara RM90,000 hingga ke RM300,000.

Perkhidmatan kakitangan kontrak yang akan tamat pada

Faktanombor

hujung tahun ini dilanjutkan sekurang-kurangnya setahun lagi, dan kerajaan turut memutuskan had pinjaman pembelian motosikal dinaikkan daripada RM5,000 kepada RM10,000.

bayaran khas kepada penjawat awam

Perumahan Penjawat Awam lMalaysia (PPAIM) akan disiapkan

Kemudahan cuti belajarYang turut diumumkan adalah kemudahan cuti belajar dengan pembayaran gaji penuh bersama biasiswa yang sebelum ini hanya kepada Kumpulan Pe- ngurusan dan Profesional diperluaskan kepada Kumpulan Pelaksana.

Bagi penjawat awam yang anaknya sakit akan menerima pemberian cuti kuarantin menerusi cuti tanpa rekod lima

.hari yang pastinya memudah- kan mereka menumpukan kepada rawatan anak.

PermintaandomestikrangsangpertumbuhanPerm intaan domestik terus kekal memacu p e r tu m b u h a n p ad a 2016, berkem bang kukuh 4.7 peratus, te ru tam a disokong oleh perbelanjaan sektor-swasta yang dijangka berkem bang 5.9 peratus (2015: 5-1 peratus; 6.1 peratus).

Sementara itu, perbelanjaan sektor awam dijangka m eningkat secara m arg inal 0.8 peratus (2015:2.1 peratus).

B erikutan p enggunaan isi ru m a h dan ju m la h p e lab u ran kekal berdaya tahan , KDNK dijangka berkem bang an tara em pat peratus dan 4.5 peratus pada 2016 (2015: 5.0 peratus).

P elaburan sw asta ak an kekal berdaya tahan , m encatat p e rtu m b u h an 5.3 peratus pada 2016, disokong persek ita ran perniagaan m enggalakkan dan inisiatif properni- agaan berte ru san oleh Kerajaan (2015: 6.4 peratus).

Sentim ent p a s a ra n se m a k in b a ik Indeks K eadaan Pern iagaan oleh Institu t Penyelidikan Ekonom i Malaysia (MIER) m eningkat 13.6 m a ta kepada 106.4 m ata dalam tem poh suku kedua 2016, mencer- m in k an sen tim en pasaran yang sem akin baik.

Bagi tah u n ini, perbelanjaan m odal akan bertum pu te ru tam a dalam sektor perkhid- m atan, pem buatan dan pem binaan.

Dalam sektor perkhidm atan, sebahagian besar pelaburan disalurkan dalam subsektor perdagangan pengedaran dan pelancongan.

Subsektor m aklum at dan komunikasijuga dijangka menyokong pelaburan berikutan penam bahbaikan perkhidm atan rangkaian dan aplikasi.

Selain itu , perbelan jaan m odal dalam sektor pem buatan akan disokong pengembangan dalam industri elektrik dan elektronik (E&E) dan peran ti perubatan. Pelaburan dalam sektor pem binaan dijangka didorong terutam a oleh projek infrastruktur.

T erus te r im a a l ir a n m a su k asin g b e rs ih RM23.8 b ilio nMalaysia te ru s m en erim a a liran m asuk asing (EDI) bersih berjum lah RM23.8 bilion dalam tem poh separuh tahun pertam a 2016 (Januari-Jun 2015: RM26.7 bilion).

Penyumbang u tam a FDI ialah Hong Kong (57.3 peratus); Singapura (I8.3 peratus); United Kingdom (6.7 peratus) dan Jepun (6.6 peratus).

Sebahagian besar aliran m asuk FDI disa- lu r dalam sektor perkh idm atan dan pem buatan.

Pelaburan diluluskan oleh Lembaga Pem- bangunan Pelaburan Malaysia (MIDA) dalam tem poh separuh tah u n pertam a 2016 berju m lah RM88.5 bilion m em babitkan 2,499 projek (Januari - Jun 2015: RM126 bilion; 2,730 projek).

Pelaburan awam dijangka kembali pulili 1.7 peratus terutam a disokong perbelanjaan pem bangunan (DE) Kerajaan Persekutuan lebih tinggi dan perbelanjaan modal syarikat awam yang berterusan (2015: -1.0 peratus).

Growth to remain within 5%Domestic demand and private sector spending to drive growthTHE Malaysian economic growth is expected to remain within the 5% band next year. According to the Economic Report for 2016/2017, growth is expected at between 4% and 5% in 2017 underpinned by strong domestic demand especially private sector spending.

The projections are marginally higher than the 4%-4.5% in 2016 and remains about the same of 5% economic growth in 2015.

Gross national income per capita is forecast to rise 5% to RM39,699 from RM37,812. Pro-growth fiscal and accommodative monetary policies will drive private sector activity while public sector expenditure will be driven by higher capital spending by public corporations.

All sectors of the economy are expected to show growth with the services sector by 5.7% next year along with all subsectors of the ser

vices segment, such as retail trade and information and communication.

The manufacturing sector is projected to grow by 4.1%, helped by sustained demand from the electrical and electr onic sector despite lower production of petroleum-related products. Growth in the consumer and construction related industries will be supported by domestic demand.

The agriculture sector is expected to turn around with a growth of 1.5% in 2017 from a decline of 3.3% in 2016. Oil palm output is forecast to grow by 5.6% to 19 million tonnes while rubber production will jump by 4.6% from a decline of 10% in 2016.

The mining sector is expected to grow by 1.4% in 2017 on higher output of natural gas. The price of crude oil is expected to average

US$45 a barrel in 2017 compared with US$40 a barrel this year.

The construction sector is expected to grow by 8.3% in 2017 from 8.7% in 2016, mainly supported by large infrastructure projects such as the MRT and the Pan Borneo Highway.

Affordable housing will drive the residential housing market while the non-residential sector is expected to benefit from mixed commercial development mainly in the Klang Valley, Johor and Penang.

Domestic demand is expected to grow by 4.9% in 2017 with the help of private sector spending which is expected to grow by 6.2%. Public sector spending is projected to grow by 0.6% in 2017 compared with a growth of 0.8% in 2016.

Private investment is expected to rise by 5.8% and will account for 17.2% of gross domestic product

(GDP). Mega projects and the electrical and electronic segments will drive private investment growth. Private consumption is expected to rise by 6.3% on account of a stable labour market, accommodative interest rates and manageable inflation.

Private consumption share's of GDP is expected to rise to 54.2% from 53.3% in 2016.

Public investment will account for 8.4% of GDP and increase by 1.1% in 2017 mainly due to capital expenditure by public corporations. Public consumption will likely rise by 0.4% as the Government reprioritise spending and reduce non-critical items.

On the external front, gross exports are expected to grow at a faster pace of 2.7% in 2017 following a rebound in the exports of commodities and continued

banddemand for electrical and electronic goods.

Gross imports are expected to grow by 3.4% in 2017 from 1.3% following an acceleration in the import of capital goods and intermediate goods from higher manufacturing activity.

The services sector is projected to be in a deficit of RM23.1bU in 2017 from a deficit of RM22.1bil and the travel account should show a surplus of RM30.8bil in 2017.

The primary income account is expected to show a larger outflow of RM37.4bil while the secondary income account is expected to remain in deficit of RM24.8bil mainly due to remittances by foreign workers.

In 2017, the current account is expected to remaiam surplus of RM14.8bil.

Global growth expected to moderate at 3.1pcGLOBAL economic growth is projected to remain moderate at 3.1 per cent this year, compared with last year’s 3.2 per cent.

The projected growth comes on the back of expected small expansion in advanced economies, at 1.6 per cent (over last year’s 2.1 per cent), and improvements in emerging m arkets and deve lop ing economies, at 4.2 per cent compared with last year’s four per cent, according to the Economic Report 2016/2017.

Among advanced economies, the United States is anticipated to register slower growth while the euro area will continue its moderate pace of growth, although Brexit continues to impact consumer and business confidence in the eurozone and the United Kingdom.

During the first half of this year, the US economy only grew 1.5 per cent (compared with January-June last year’s 3.2 per cent) mainly due to lower private investment and government spending.

The US is expected to register slower growth of 1.6 per cent this

year (2015:2.6 per cent).The eurozone, meanwhile, record

ed gross domestic product growth (GDP) of 1.7 per cent in the first half, underpinned by higher disposable income as a result of lower oil prices and better labour market conditions.

Germany and France both recorded 0.4 per cent higher gross domestic product (GDP) growth in the first half, at 1.8 and 1.4 per cent, compared with their January-June numbers of 1.4 and 1.0 per cent, respectively.

Japan is expected to record only marginal growth due to sluggish private consumption and the appreciation of yen.

The Japanese GDP grew 0.5 per cent (compared with 0.2 per cent for January-June last year) due to stagnant wages and a volatile equity market that had eroded consumer sentim ent and business confidence.

The slow pace of , growth in advanced economies is offset by e m e r g i n g a n d d e v e l o p i n g economies like China, India and Asean countries.

China’s accommodative fiscal and

monetary policies continue to support its rebalancing efforts towards more sustainable growth, with the services sector and consumption becoming its main economic drivers.

China registered growth of 6.7 per cent in the first half helped by robust investments in public infrastructure and a favourable housing market.

Its services sector also grew 7.5 per cent due to higher consumer spending on leisure, healthcare and information and communications technology services.

India registered higher growth of 7.5 per cent in the first half and it is expected to remain robust with increased private consumption and stronger services and agriculture sectors.

A m o n g A s e a n c o u n t r i e s , Malaysia, Indonesia, Thailand, the Philippines and Vietnam are expected to record steady expansion, driven mainly by higher infrastructure investment and consumption.

Overall, the Asean GDP is projected to grow 4.5 per cent this year (2015:4.4 per cent) supported by private and public consumption and investment in infrastructure.

REPORTS BY RUPA DAMODARAN, 001 TEE CHING, CHERYL YVONNE ACHU, ZARINA ZAKARIAH FRANCIS DASSf FARAH ADILLA, AMIR HISYAM RASID, UDIANA ROSLI AND BILQIS BAHARI

On track for 4-4.5pc GDP growthMalaysia will continue to

face another challenging, year in 2017 as global growth and trade prospects remain

uncertain, said Finance Minister Datuk Seri Najib Razak.

Low oil prices and volatile financial markets could further destabilise the outlook for oil-exporting and emerging econom ies like Malaysia.

"Being an open economy, we need to be mindful of these risks that may adversely impact our country,” said Najib in the Economic Report 2016/2017 prepared by the ministry.

Last year, the economy faced headwinds from prolonged low commodity prices and volatility in the financial markets.

The recalibrated 2016 Budget’s proactive measures led the country’s gross domestic product (GDP) to grow by 4.1 per cent during the first half of the year.

Growth was supported by strong domestic economic activity, particularly private investment and consumption.

"We are confident of achieving GDP growth of between four and 4.5 per cent for the year ” said Najib.

The government will continue to take proactive measures and leverage digital technology, innovation and creativity’ to further strengthen the economic fundamentals and withstand external uncertainties.

Since the National Transformation Policy was implemented in 2009, private investments have been

Import of services

8 .3 %

Agriculture5 %

The Economy 2017(A t constant 2 0 1 0 prices)

Imports Tb"? I! '

of goods ;.l : V2 9 .7 %

'.-it- - %<> . •• " & i

Manufacturing1 4 .3 %

Construction l 3 .0 %

Services3 4 .4 %

Exports ofgoods 3 5 .4 %

Exports of services 7.4%

Privateconsumption3 3 .6 %

' ' M-,.- /-Vr.’;vV ■ £fa.

\ r.r~#

’if^Publicconsumption 7 .7 %

Public investment1 Private investment15 .2 % 1 0 .7 %

Source: Finance Ministry, Malaysia ' includes change in stock

enhanced and have created new opportunities resulting in favourable economic growth.

Domestic demand has become the key driver of growth, supported by strong private sector activity.

On public finances, Najib said the financial system remained resilient with domestic financial markets

continuing to support economic activities. The banking system remains well-capitalised with ample liquidity.

The fiscal deficit is expected to shrink to 3.1 per cent this year.

Malaysia’s efforts and persistence in enhancing the prosperity of the nation had been well-recognised

with the Class A investment grade ratings from international rating agencies, said Najib.

In terms of the rakyat’s wellbeing, the World Bank refers to Malaysia as a "success story in shared prosperity”.

The government, he added, continues to implement rakyat-centric

programmes and projects while concerted efforts are undertaken to mitigate the rising cost of living, providing affordable houses, quality healthcare, education and skills training.

This, he said, will enable the rakyat to enjoy higher standard of living, particularly the B40 households.

mrr2 2 OCT 2016

Exports likely | External Trade 2015-2017

to grow at : jwhich:"

MALAYSIA’S external posi- ing activities. Manufactured 625,429 648,602 667,244 6.5 3.7 2.9tion is expected to improve Trade surplus is projected at j Agriculturc . 67,247 68,042 69,120 -2.8 1 2 16next year, mainly support- RM88.3 billion from RM91.4 billion : ■ : : : " -

ed by strengthening global growth this year,” the report said. ; ^Mimng 80,194^ ^64,428 65,894 -22.9 -19.7 ^ 2.3

port 2016/17, gross exports were ex- per cent to RM948.4 billion due to of which:pected to grow at a faster pace of 2.7 sustained global trade. : .per cent from 1.1 per cent this year, Gross exports and imports rebound- i Capital goods 95,551 97,209 101627 -0.3 1 7 4.5spearheaded by a rebound in ex- ed 0.9 per cent, respectively, resulting : Intermediate goods 399,526 401336 417,999 -2.1 0.5 42-ports of commodities and continued in a trade surplus of RM52.2 billion. i _ • ’demand for electrical and electron- “Export growth was supported by : Consumption goods 62,430 68,741 71821 24.1 10.1 4.5ics products. higher demand for manufactured j . . . " J W ~ ' ■■- /' i

Gross imports were anticipated to and agriculture goods. Growth in im- 7 w ;expand further by 3.4 per cent next ports was attributed to increasing de- \ ’Estimate. t -*JS**-

S s o S t ^ M S n g n S v ^Fomheyear,gross exports and im- 1 Source.-DepartmentofStatisticsandFran*Ministry : * tand ongoing infrastructure projects, ports are likely to grow 1.1 per cent I....................................................... ................................... .. . _ _ ............... ....... .............

“Furthermore, imports of inter- and 1.3 per cent, respectively, with iafftVM mediate goods are expected to rise trade surplus remaining sizeable at in tandem with higher manufactur- RM91.4 billion.

A balanced deal during trying timesEconomist: It addresses people's needs without compromising financial stabilityBUDGET 2017 has been lauded a “balanced deal”, considering the prevailing' economic challenges facing the country.

Socio Economic Research Center executive director Lee Heng Guie said it addresses the needs of the people and economy without com-, promising the country’s financial stability.

“The Government remains on the path of fiscal consolidation without cutting too much/’ the economist noted.

Tabled by Prime Minister Datuk Seri Najib Tun Razak in Parliament yesterday, Budget 2017 looked to tackle pressing issues faced by the rakyat, such as rising cost of living and affordable housing, as well as how to encourage the growth of local small and medium sized enterprises.

A lot of measures were targeted

at the Bottom-40 of households earning less than RM4,000 per month.

For instance, for the lowest segment of people, the IMalaysia People’s Aid (BRIM) payment would be increased by RM150 to RM1,200 per month.

There were a lot of measures for housing, ranging from homes priced between RM40,000 and RM50,000 per unit to be built on government land, to 10,000 homes in urban areas being put up for rent to eligible youths.

Najib also announced a special “step-up” end-financing scheme for buyers under the PR1MA programme, to facilitate financing of up to 100% of the price of the houses.

He also said that stamp duty on the transfer of real estate worth more than RMlmil will be increased* by 3% to 4% effective Jan 1, 2018.

According to property consultants, the one^year grace period- gives the high-end domestic housing sector some breathing space.

For the first time. Budget 2017 addressed the welfare of taxi drivers,, who were reeling from competition with services such as Uber and Grabcar.~ Towards this end, 12,000 qualified taxi drivers who have ended their leasing contract with taxi companies willbe given a grant of up to RMS,000 to buy a new vehicle.

The Government also announced a scheme to help the lower income

group in the country by enabling them to work as drivers for ride-hailing services.

In this respect, Najib announced that those entitled to the BRIM payment could use the money as downpayment to buy a Proton Iriz with a rebate of RM4,000.

A fair amount of attention was also given to the civil service, involving a one-time allowance of RM500.

On top of that, the housing loan eligibility of government servants will be increased to a maximum of RM750,000 from RM600,000 previously.

Also, civil servants whose contract of service ends this year will see an extension by another year.

To overcome the problem of doctors>unable to do their housemanship, the Government will employ 2,600 of them by December on a

contract basis instead.For companies with less than

RM2.5mil paid-up capital, the tax rate will be reduced from 19% to 18%; for companies with more than RM2.5mil, the tax rate reduction will range from 1% to 4%, depending on the increase in their chargeable income. At the moment these are paying 24%.

There were also various incentives for women and families who send their children to childcare centres and kindergarten.

For the first time, a tax relief was given for breast-feeding equipment and fees incurred for pre-school education.

The Prime Minister rounded off his Budget 2017 speech by announcing that the Government will hold a series of national talks with the aim of charting the nation’s future transformation.

September CPI up 1.5% to 115.3KUALA LUMPUR: The Consumer Price Index (CPI) for September 2016 rose by 1.5% to 115.3 compared with 113.6 registered in the same month last year.

Among the major groups which recorded increases were the index for food and non-alcoholic beverages which rose 3% from September 2015, as well as housing, water, electricity, gas and other fuels (+2.1%).

However, the transport group decreased by 5.5% compared to September 2015, communication fell 2.6% and clothing and footwear declined 0.6%, the Department of Statistics Malaysia said in a statement yesterday.

It said the decline in the transport group was due to the drop of 6.7% and 9.9% in August 2016 and July 2016.

On a monthly basis, the CPI for September 2016 decreased 0.3% to 115.3 from 115.6 in August.

The CPI for January to September 2016 recorded an increase of 2.2% compared with the same period last year, led by increases in the index for food and non-alcoholic beverages which was up by 4% during the period.

Other major groups which contributed to the CPI increase during this period were alcoholic beverages and tobacco (+21.2%); miscellaneous goods and services (+3.3%); restaurants and hotels (+3.1%); health (+2.9%) and furnishing, household equipment and routine household maintenance (+2.7%).

Nevertheless, the increases were partly offset by the transport group which registered a decrease of 5.3% due to lower prices for petrol. - Bernama

Government committed to maintain fiscal targetTHE government remains committed to maintaining the fiscal deficit at 3.1 per cent of gross domestic product (GDP) this year.

The 2016 Budget Recalibration exercise was necessary to ensure that the fiscal target remains on track.

The Economic Report 2016/2017 said it was a pre-emptive measure in response to the significant decline in government revenue following the drop in oil price.

The oil price hit an all-year low of US$26.39 (RM110.31) per barrel in January this year.

The report said with the additional 11 new measures in the 2016 Budget and the nation’s strong economic fundamentals, the GDP would remain on the four per cent to 4.5 per cent trajectory this year.

The Fiscal Policy Committee set up the fiscal risk and contingent liability technical committee in May

THE 2017 FEDERAL GOVERNMENT BUDGET

Income tax 43.1%

Borrowingsa m 'u se d fgovernment’sassets15.8%

EXPENDITURE

: : Economic 9.9% ‘

§6dii4,7%

Security2.0%

WHERE IT COMES FROM

* t'% J * >

Other direct tax

3.2%Non-tax revenue 15.0%

ndirecttax22.9%

Otherexpenditure

9.3%

Subsidies and social assistance

8.6%

WHERE IT GOES

RM 260,800* million-

NST

Generaladministration1.0%

Emoluments29.7%

i

Grants and tran to state goverm

3.1%

sfers T rents ■

. ^^^f^'-Debt'service

Retirementcharges

8.3%j Supplies and

services 123%

charges11.1%

OPERATINGEXPENDITURE

Source: Finance Ministry, Malaysia 1 excludes contingency reserves

to evaluate the government’s fiscal risks and contingent liabilities as well as come up with appropriate measures.

The / policy remains consistent towards achieving price stability and sustainable growth.

During the same period, the ringgit advanced against most major and

regional currencies amid monetary e a s i n g m e a s u r e s in m a j o r economies and improvement in global crude oil prices.

On the 2016 Budget, the report said the “Prospering the Rakyat” theme prioritised on strengthening economic resilience, increasing productivity, innovation and .green

technology, empowering human .capital, advancing Bumiputera agenda and easing the cost of living of the rakyat.

A total of RM265.2 billion was allocated for the year, of which 81.1 per cent or RM215.2 billion was operating expenditure and the remaining 18.9 per cent or RM50 billion for

development expenditure.With the significant drop in crude

oil prices, the expenditure envelope was revised downwards to RM252.1 billion and of this, RM207.1 billion (82.2 per cent) and RM45 billion (17.8 per cent) were allocated for operating expenditure and development expenditure, respectively.

Accelerating high-end m anufacturing

iNFQGRAPHIC: NST

G DP b y S ec to r 2015-2017 (At Constant 2010 prices)

%COP % Change

1 2 0 1 6 * 2 0 1 5 2 Q 1 6 1 2 0 2 7 -

A gricu ltu re / 8 .2 1 .2 - - 3 : 3 _ 1 5

M ining 8 .7

M an u fac tu rin g 2 2 .9 4 9 4 3 0 T -

C o n stru c tio n ■ ' ■ '4 ' 8 .2 8 .7 8 3

Services ■ 5 4 2 f . ; , 5 - \ ' 5 .6 ' / 5 J '

GDP 1 0 0 .0 S jQ 4 0 - 4 5 4 0 - 5 .0

1 Estimate Note:2 Forecast Source

Total may not add up to rounding and exclusion of import duties component 1: DepartmentofStatisticandNfinisiry of Finance, Malaysia

;_ k '

THE manufacturing sector is expected to grow 5.1 per cent per year and contribute 22.5

per cent to the gross domestic product (GDP) and 18.2 per cent to total employment by 2020.

The growth would be mainly contributed by high-end manufacturing sub-sectors.

Last year, the manufacturing sector contributed 23 per cent to the GDP, 80.2 per cent to total gross exports and employed 16.5 per cent of the total workforce.

The government has identified sub-sectors with potential for high- end m a n u f a c t u r i n g such as aerospace, green technology, electrical and electronics (E&E) and medical devices.

These sub-sectors require moving up the value chain.

In the aerospace industry, the government has put in place key initiatives to'make Malaysia the regional leader by 2030.

These initiatives include the National Aerospace Blueprint (2015- 2030) and a new Entry Point Project (EPP) to make Malaysia the hub for aerospace original equipment manufacturers in Southeast Asia.

The EPP is targeted to contribute RM1.1 billion to gross national income (GNI), and create RM1.9 billion investments and 3,368 highly- skilled jobs by 2020.

Green technology, which is a new growth area, is expected to generate RM22.4 billion to GDP, RM28 billion worth of investments and create

more than 144,000 jobs by 2020.The National Green Technology

Policy focuses on four pillars, namely energy, environment, economy and social.

The medical devices sub-sector produces mostly export-oriented equipment and has three general categories, namely rubber and latex products, general manufacturing of medical devices and products manufactured by foreign multinational

corporations.Malaysia remains the world's

leading producer of catheters and medical rubber gloves. The industry is expected to generate revenue of RM17.1 billion, RM11.4 billion in GNI and create 86,000 jobs by 2020.

Challenges in the manufacturing sector are stiff competition from low-cost producers such as China and Vietnam, and inefficiencies associated with cheap labour.

Utusan

2 2 OCT 2016

Penjawat awam berterima kasih kepada kerajaanPUTRAJAYA 21 Okt. - Para penjawat awaip merakamkan penghargaan kepada kerajaan atas pengumuman Bajet 2017 yang merangkumi pemberian pelba- gai inisiatif dan penambahbaikan skim perkhidmatan awam.

Ketua Setiausaha Negara, Tan Sri Dr. All Hamsa mewakili kakita-. ngan awam mengucapkan ribuan terima kasih kepada kerajaan atas pengumuman tersebut dan berikrar memberikan khidmat terbaik kepada negara serta rakyat.

Katanya, Bajet 2017 yang ber- temakan ‘Menjamin Perpaduan dan Pertumbuhan Ekonomi, Menghemah Perbelanjaan Inklu- sif, Mensejahtera Kehidupan Rakyat Seluruh* merupakan komitmen kerajaan terhadap kesejahteraan rakyat termasuk penjawat awam sendiri

. "Antara yang diumumkan adalah peningkatan had kelayakan minimum dan maksimum pinja-

ALI HAMSA

man perumahan kerajaan, pelanjutan pegawai kontrak selama setahun dan pemberian kemudahan cuti belajar ■ bergaji penuh kepada > kumpulan pelaksana.

“Penghargaan juga dirakamkan kepada kerajaan terhadap keputusan pemberian bantuan khas kewangan sebanyak RM500 bagi penjawat awam dan sebanyak RM250 bagi pesara yang mula dibayar pada Januari 2017,” katanya dalam satu kenyataan di sini hari ini.

Pada. masa sama Ali memberitahu, Bajet 2017 akan dilaksanakan dengan segera supaya rakyat dan penjawat awam dapat terns menikmati dan memperoleh faedah seperti yang diumumkan.

“Namun saya ingin menegas- kan bahawa beberapa insiden

yang berlaku melibat- kan penyelewengan segelintir penjawat awam, tetapi majoriti penjawat awam masih mendukung prinsip perkhidmatan awam untuk memberikan khidmat terbaik kepada rakyat secara berin- tegriti.

“Sektor perkhidmatan awam terus

mengorak langkah bersama-sama keraj aan dalam merealisasikan aspirasi mewujudkan keseimbangan pertumbuhan ekonomi negara dan memastikan jaminan kesejahteraan rakyat terus terlak- sana” katanya.

Menunit Ali, di sebalik ketidaktentuan ekonomi, negara dijangka masih mampu mengekalkan kadar pertumbuhan ekonomi yang menggalakkan pada kadar 4.0 peratus hingga 4-5 peratus pada tahun ini.

VtaraB

2 2 OCT 2016

BANTUAN RAKYAT1 MALAYSIAJUMLAH PENERIMA7 JUTA JUMLAH PERUNTUKAN RM6.8 BILION

Pendapatan RM3.000

hingga RM4.000.

naik daripada RM 800 kepada

RIV1900

Skim Khairat Kematian

diteruskan denganpampasanRM1.000.kepada waris

penerima BRIM bagi kategori isi

rumah dan warga emas.

Senarai e-Kasih/ Pendapatan

bulanan di bawah RM3.000 naik

daripada RM1.000 kepada

RM1.200

Individu bujang berpendapatan

di bawah RM2.000, naik

daripada RM 400 kepada

RM450.*

MEMBANTU B40

PELEPASAN CUKAI INDIVIDU• Sehingga RJVH.OOO jika hantaranak

6 tahun ke bawah ke taman asuhan, prasekolah.

• Sehingga RM1.000 beli alat penyusuan ibu.

©Sehingga RM2.500 setiap tahun beli akhbar arus perdana, telefon pintar, tablet, langganan internet dan bayaran keahiian gimnasium yangdigabungkan dengan pembelian bahan bacaan, komputer dan peralatan sukan.

Tiada GST untuk OKU beli peralatan bantuan.

© ©RM4Sjuta RM30 jufa

perluaskan Program perluas programVlySuria. Panel solar akan Mobilepreneur oleh dipasang di lebih 1.600 GiatMara yang

•umah dan setiap peserta menyasarkan 3 ,000 program akan menerima peserta

RM250sebulan. bermotosikal.I

RfVlIOQjuta RMIOOjutalaksana program giatkan program

Agropreneur bagi melahirkan e-Usahawan dan3 ,0 0 0 usahawan tani muda e-Rezeki di bawah

yangterlibatdidalam MDECpengeluaran hasil tani merangkumi

bernilai tinggi. 3 0 0 ,0 0 0 peserta.

Galak sertai pemandu ride-sharing seperti Uber untuk jana

pendapatan tambahan. Jika tiada kenderaan, bayaran pendahuluan boleh dibuat menggunakan BRIM

dan rebat sebanyak RM 4.000 ringgit bagi pembelian kereta

Proton Iriz.

More people receiving BR1MSINCE the start of the IMalaysia People’s Aid Programme (BRIM) 2012, the number of recipients has increased by 76% to 7.4 million people as of end-2015 from 4.2 million.

The immediate impact of BRIM is reflected by an increase in household disposable income of the bottom 40 group, which in turn translates to higher purchase of essential items such as food and housing.

Based on the economic report, household disposable income accounted for an average of 67.4% growth in private consumption.

Between 2012 and 2015, private consumption grew by an average of 7.1% due to BRIM compared to 6.8% without it.

BRIM, a form of conditional cash transfer, was introduced in 2012 to ease tire burden of rising cost of living by offering assistance to households that fall under the lower income group.

Initially, it was provided to

households and individuals earning below RM3,000 and RM2,000.In 2014, it was extended to households with a monthly income of between RM3,000 and RM4,000.

With the rising household income, poverty had been reduced . to 0.6 in 2014, while the Gird Coefficient improved further to 0.401 during the same period, indicating narrowing of income inequality. This is in line with the nation’s socio-economic development agenda to enhance inclusivi-ty*

Gird Coefficient or Gini ratio is a measure of statistical dispersion intended to represent the income distribution of a nation’s residents and is most commonly-used to measure inequality.

The increased earnings in the lower income group will likely spur growth in private consumption as they have a higher marginal propensity to consume.

Bank Negara’s study showed that households earning less than

RM1,000 per month spent ah average. RM0.81 out of RM1 additional income. This is higher compared to the RM0.18 for households earning more than RM10,000 per month.

While BRIM has the ability to create a spillover effect on private consumption, it also has an impact on output of industries that pro-' duce consumer goods.

It indirectly promotes growth of industries that produce consumer goods and this is evident with the increase in output of consumer-related industries such as residential, food and beverage, motor vehicles, accommodation, electricity and gas as well as finance and insurance.

The Finance Ministry’s estimates showed that demand for residential increased by an average of 15.2% with BRIM compared with 14.9% without the cash transfer.

In terms of food and beverage, this was up by an average of 7% with BRIM compared to 6.7.% without it.

Total BR1M disbursed and number of recipients2 0 1 2 -2 0 1 5

RM

7.000

6.000

5.000

4.000

3.000

2.000

1,000

0

Total BR1M disbursed (million)

Average per recipient

Number of recipients (right scale)

7.4

6.87.0

4.2

S m b k h

Million

n 9

8

7

6

5

4

3

2

1

0

Source: Finance M in is t r y

S p fe w H ;, ’«

Cuepacs pleased with new incentives

Civil servants

■ H ou s in g loan increase: fro m be tw een RM 120,000 and RM600,G00 to RM200,000 and RM750,000.

'Increased benefits show Govt is listening'CUEPACS p res id en t D atuk Azih M uda said they w ere satisfied w ith the incentives allocated to the 1.6 m illion civil servants nationw ide.

The qu aran tin e leave fo r civil servants, p u rchase of sm artphones, increase in housing and m otorcycle loans show ed tha t the G overnm ent h a d listened to Cuepacs’ suggestions, he said.

The union also voiced its appreciation on the RM500 special aid fo r civil servants.

However, Azih said in v iew o f the increase in th e cost o f living, the u n ion felt th a t the am o u n t w as insuffic ien t especially w h en the n ew school te rm begins.

There w as good new s fo r contract staff w hose term expires a t the end of this y ear - th e ir contracts w ould be renew ed for at least an o th er year.

O ther benefits include extending scholarships w ith fully p a id study leave to support group staff.

Civil servan ts w hose ch ild ren fall ill an d requ ire qu aran tin e w ill get up to five days un reco rd ed leave.

The G overnm ent w ill also build an o th er 30,000 units of P erum ahan Penjaw at Awam IM alaysia (PPA1M) priced at betw een RM90,000 and RM300,000.

On the p lan to build the houses, Azih said it show ed the Governm en t’s com m itm ent to take care of the w ellbeing of the civil servants.

H u lu Selangor MP D atuk P.

■ Loan ceiling: fro m RM600,000 to RM750,000.

■ S m a rtp h o n e facility , lim ited to RM5,000 - a p p lica b le c-nce1 e ve ry th re e years.

■ M o to rcyc le loan fa c ility increase: fro m RM S,000 to RM10,000.

Kam alanathan- said the incentives to civil servants w ould help them get housing, tran sp o rt and even fully paid study leave to upgrade them selves.

n o t

2 2 OCT 2016

opens opportunitiesMalaysia is set to benefit

from China's “new normal” mainly through trade, investment and strategic cooperation.

Local exporters have to be nimble and adapt to structural developments in the Chinese market to seize the opportunities.

The government, in complementing this, will continue to implement various strategies, programmes and initiatives to further promote a vibrant, competitive and resilient domestic economy.

China’s rebalancing of its economy from an export, manufacturing- and investment-driven economy to one that is led by domestic, services and consumers could result in a lower growth rate compared with the double-digit expansions it had in the previous decades.

Although this poses downside risks in the near term, the shifting patterns in consumption and trade are expected to present significant opportunities for the Malaysian economy over the medium and long term.

Amid the economic restructuring, China outbound travellers continued to grow rapidly by 10 per cent to 128 million with a total expenditure of US$292 billion (RM1.2 trillion) last year.

A total of 1.7 million tourists from China made up 6.5 per cent of tourist arrivals to Malaysia last year, contributing RM5.7 billion in receipts.

Malaysia expects a substantial increase in inbound China tourists due to a more convenient visa oolicv.

attractive holiday packages, and increased flights.

Additionally, higher imports of services and consumption goods by China will benefit exporters of consumer services such as tourism, health and other services in which Malaysia has competitive advantages.

As at end-June 2016, the accumulated China investments in Malaysia stood at RM4.4 billion, mainly concentrated in financial, insurance, and construction sectors.

China's presence in Malaysia as a recipient of its growing outward investment is evident in the financing and construction of the second Penang Bridge, the Gemas-Johor Baru double-tracking rail project, the Malaysia-China Kuantan Industrial Park and the development of Forest City in Iskandar Malaysia.

Malaysia is also well-positioned to benefit from Asean’s free-trade deal with China — the Asean-Chi- na Free Trade Agreement — which will reduce tariffs close to zero on more than 90 per cent of products traded between Asean and China by 2020.

Recognising all these positive developments in China, the government has embarked on various initiatives to boost trade with the country via the National Export Council.

A special Malaysia Promotion Programme will be launched in Shanghai next month to intensify the branding of Malaysian products and services.

The government has also identi-

Structural Shift in Malaysia’s Exports to China(nfocsapnic NST '

Chemicals and chemical products

22%

Other vegetable oils 3.2%

E&E 2.9%

Sawn timber and moulding 1.9%

Saw logs — « ^ p B p jk6 2 % Total exports

Wood to China s g H IBproducts BMJL7 billion j j g S l

6.3%

Natural rubber 11%

lSource; Deportment of Statistic and Malaysia External Trade Development Corporation

•Others6.2%

Palm oil and palm-based products 44.5%

Crude ■ petroleum 15.8%

Machinery, equipment and parts _

2.4%

Rubber products —

3.2% ~LNC

I 3.8%

Manufactures g of metal •.

4 5 %

Metalliferous •ores a n d __|

metal scrap 5.1%

Palm oil and (

palm-based ' products

6%

Optical and scientific equipment 2.4%

Others9.4%

Total exports to China

RM202.5 billion

wmm

.I f iBM

E&E42.6%

J 8 W

I

-.??***£....i s e p i tg *

Petroleum products 102%

Chemicals and chemical products 10.4%

fied many potential areas for Malaysian exporters to tap.

These include healthcare, education and language training, environ

mental services, aerospace, robotics, automotive, halal industry, energysaving electrical and electronics products, building material and in

terior fittings, and lifestyle products (fashion/apparel, cosmetics, toiletries, green/organic goods, and agriculture produce).

Utasan

2 2 OCT 2016

Industri komoditi negara lebih strategikKUALA LUMPUR 21 Okt. - InSentif meningkatkan pengeluaran sawit yang diperuntukkan dibawah Ba- jet 2017 dapat membantu meletakkan industri sawit lebih berdaya sa- ing pada masa hadapan.

Ketua Eksekutif Persatuan Minyak Sawit Malaysia (MPOA),Prof. Emeritus Datuk Dr. Makhdzir Mardan berkata, ia membole- hkan lebih banyak penyelidikan dilakukan bukan sahaja oleh Lem- baga Minyak Sawit Malaysia (MPOB) tetapi juga institusi pengajian tinggi awam (IPTA).

Katanya, dalam masa sama, insentif itu juga dapat' mengurangkan kebergantungan kepada pMerja asing yang mer- ugakan masalah utama pgrip diatasi dalam, in- dfisfri sawit.j|$5ebelum ini, kerajaan pernah

n||$jiberi insentif sebegini tetapi kn$$perlu berbuat sesuatu teru-

MAKHDZIR MARDAN

HANAPISUHADA

tama terhadap aktiviti penyelidikan dan pembangunan (R&D) dari segi mekanisme dan robotik

supaya industri sawit lebih kompetitif dan strategik.

. “Saya yakin, langkah permulaan yang diambil kerajaan ini akan memberi manfaat kepada 220,000 (mengikut rekod MPOA) pekebun kecil di seluruh negara yang berdepan dengan situasi men- cabar sepanjang tahun ini terutama membabitkan isu pekerja asing” ka- tariya kepada Utusan Malaysia di sini hari ini.

Pada pembentangan Bajet 2017, Per- dana Menteri, Datuk Seri Najib Tun Razak

niengumumkan peruntukan RM50 juta untuk kajian saintifik bagi meningkatkan kualiti produk sawit dan geran RM30 juta mela-

lui MPOB untuk tanam semula kelapa sawit oleh pekebun kecil.

Selain itu, kerajaan turut mem- peruntukkan. sebanyak RM286 juta untuk meningkatkan pengeluaran eksport perladangan sawit, getah, koko dan lada.

Sementara itu, Pengarah Be- sar Felda, Datuk Hanapi Suhada berkata, sekiranya Felda memperoleh insentif penyelidikan yang disalurkan menerusi Felda Global Ventures Holdings Berhad (FGV) kepada Felda Agricultural Services Sdn. Bhd., ia dapat membantu kumpulan menghasilkan biji benih sawit dan minyak sawit mentah (MSM) yang berkualiti.

"Kita berharap insentif ini dapat dimanfaatkan dengan sebaik-bai- knya dalam meningkatkan kualiti MSM pada masa hadapan,” katanya.

Dari segi tanam semula, beliau memberitahu, Felda menjalan- kaii sendiri proses itu mehbatkan peruntukan sebanyak RM24 juta hingga RM25 ju ta yang tidak termasuk sara hidup peneroka dengan kawasan seluas 4,000 hektar.

Dalam pada itu, Pengarah Uru- san Kumpulan Supermax Corpo

ration Bhd., Datuk Seri Stanley Thai menyifatkan insentif untuk menggalakkan eksport dapat membantu kumpulan mengem- bangkan produk buatan Malaysia ke pasaran global.

“Apatah lagi Supermax Group mengeksport 100 peratus produk' sarung tangan perubatan dan kanta lekap untuk pasaran global "katanya.

Smallholders hail govt move to resume aid for oil palm replanting

OOI TEE CHING

KUALA LUMPUR: National Association of Sm allholders Malaysia (NASH) president Datuk Aliasak Ambia thanked the government for resuming financial assistance for replanting of oil palms next year, after two years of “dry period”.

NASH represents some 400,000 small farmers planting oil palm and rubber trees throughout Malaysia.

Yesterday, Prime Minister Datuk Seri Najib Razak, in tabling 2017 Budget, allocated RM30 million.for smallholders to replant their unproductive trees.

“We’re very grateful for the RM30 million oil palm replanting grant for next year. There was no budget for us to replant ageing trees for the past two years ” he told Business Times in a telephone interview.

“We hope this RM30 million is adequate because there is no mention of replanting area next year,” he added.

Aliasak noted the oil palm replanting grant was previously set at RM7,500 per hectare (ha) in Peninsular Malaysia and RM9,500 per ha

NASH president D atuk AliasakA m bia says there was no budget to replant ageing trees for the past two years.

in Sabah and Sarawak.He said the oil palm replanting

grant goes as payment for labour, chemical usage, high yielding seedlings and machinery rental.

Najib said the government will also allocate RM250 million next year as an incentive for sustained rubber production.

From January to August this year,

rubber output only amounted to 4S7,954 tonnes.

For the fiill-year, the government estimated rubber output to shrink further by 10 per cent to 650,000 tonnes from last year’s 722,122 tonnes.

So far, SMR 20 prices averaged at RM5.17 per kg with the lowest at RM4.27 per kg on February 112016.

This is due to weak demand from China following anti-dumping and countervailing duties by the United States on select tyres.

Since the start of this year, the government is incentivising smallholders to go on tapping rubber by increasing the floor prices to RM5150 per kg (free on board) and RM2.20 per kg (farm-gate price)

Aliasak also thanked the government for heeding smallholders’ call to further raise the floor price for rubber sales.

“The cost price is around RM3.20 per kg while the floor price is only set at RM2.20 per kg.

“We have been selling rubber below cost price. Hopefully, the RM250 million allocation is meant to raise the floor price above production cost level,” he said.

2 2 OCT 20)6

‘Incentives to boost civil sector’MUCH NEEDED BOOST: Implementation of measures to be expedited, says Ali Hamsa

KUALA LUMPUR

THE civil sector will hit the ground running to implement the measures listed in 2017 Budget.

Chief Secretary to the Government Tan Sri Dr Ali Hamsa yesterday vowed that the public sector would quickly execute the measures so that civil servants would benefit from it.

"Malaysia’s civil service will continue to move in tandem with the government in realising the aspiration of building a balanced economic growth and to safeguard the people’s welfare,” he posted on his Face- book account.

He said the budget took into consideration matters that needed to be addressed to boost the civil sector, including allowing government servants to further their studies with a full salary and scholarships to equip them with the right set of skills and knowledge.

Thanking the government for incentives dedicated to those in the civil sector, Ali expressed gratitude to Prime Minister Datuk Seri Najib Razak on the decision to give RM500 special assistance to all public servants and RM2S0 for government retirees.

Ali reminded civil servants to boost the ir p ro d u c tiv ity and strengthen their level of integrity.

"I want to stress that despite incidents of embezzlement committed by a few, majority of those in the civil sector uphold the principles of public service,” he said.

The Congress of Unions of Employees in Public a n d C i v i l S e r v i c e s (Cuepacs) president Datuk Azih Muda said the incentives for civil servants were made with good considerations.

"Allowing government servants to further their studies with a full salary and scholarships will give them an opportunity to be holistic workers and better themselves with knowledge,” he said.

On the contract extension of service and contract for service officers that expire at the end of this year, Azih said he hoped that it would be followed by all employers and those who do not should be reported.

Meanwhile, the government’s ini

tiative to strengthen technical and vocational education and training (TVET) will allow the industry to fill the gap of skilled workers.

Under 2017 Budget, a total of RM4.6 billion was allocated for TVET.

Malaysian Employers Federation executive director Datuk Shamsud- din Bardan said: “The development

of highly-skilled human capital is essential to help Malaysia shift -towards higher-value and knowledge intensive activities that are the hallmarks of an advanced nation.

“Investments in human capital are vital to the improvem ent of personal wellbeing due to its many socio-economic benefits. RM90 million for improvements of English is also positive,” he said.

Meanwhile, the manufacturing industry is expected to get a boost through the development and growth of small- and medium-sized enterprises (SMEs).

The government has allocated atotal of RM75 million to implement programmes under the SME Master Plan as announced by Najib yesterday.

Federation of Malaysian Manufacturers (FMM) president

Tan Sri Dr Ali Hamsa

Datuk Azih M uda

P a y m en t a n d in c e n tiv e s

IfiPOORAPHid.

R M S S m i!Special insurgency Incentive Payment to veteran M'siart Armed Forces

Imam allowance increased from

EM 750 to RM 8S0 ;./■benefiting nearly 1 5 ,0 0 0 imams

KEM A Sassistants allowance raised from

RM 400 to RM500benefiting 1 1 ,000

O ne-off payment

RM50Gwill be given to nearly 16,000 Bilal&Siak

RMI5O0 to all publicservants while special payment of

R M 2 5 0 K T nm"Allowance increased to

RM 900for village heads, chairmen of Village Development & Security Comm, heads of NewVillages&OrangAsli

Tan Sri Saw Choo Boon said: "The numerous programmes and incentives focusing on the development of SMEs are expected to boost the development and growth of SMEs and entrepreneurship ”

Saw said the reduction in income taxes for companies would motivate

businesses to increase their revenue.

"However, FMM hopes to see the extension of this incentive to the overall chargeable income in view of the same steps that have been taken by other regional economies,” Saw said.

97,000 RM350mstreet lights and 3,000 LED lights to be installed at crossroads to brighten 7,500 villages nationwide

to build and refurbish17,000 dilapidated houses in remote villages & Orang Asli settlements

RM1.2b RM500mto build and upgrade 616km of village roads and bridges

Water Supply Fund to be ( established to address water supply issues

for 69 Flood Mitigation Plans

RM4.6b

tomaintainstateroads

to provide electricity supply

10,000 houses

Tax deduction increased to R M 7 0 0 k

to encourage sponsorships by the private sector in art&cultural performances & local heritage

Film in M’sia Incentive. Arts& Culture Revitalisation Agenda. FINAS Content Creation Hub in Santubong. Sarawak & Kota Kinabalu, Sabah to be implemented

eVisa extended to countries in the Balkans & South Asia regions to achieve target of 3 2 m tourist arrivals

next year

Promotion of Malaysia through Visiting ASEAN(®50 Year Campaign as well as host of 2017 SEA & Para ASEAN Carnes

Reliel extended to include purchase of printed newspapers, smartphones, tablets, internet subscriptions, gym membership fees

Lifestyle Tax relief combines existing tax relief, purchase of reading materials, computers and sports equipment

RM165m to increase incentive to RM 1.000 for Private Retirement Scheme contributors with minimum investment of RM1.000 within 2 years

Tax relief of up to

RM1,000for taxpayers who enrol their children aged 6 and below into registered nurseries and pre-schools

RM75mto establish Capital Market Research Institute

One-off increase of the existing

RM500incentive to RM1.000 to Private Retirement Scheme contributors.

R M 3 bto GLCs to fund managers under Securities Commission to invest in potential small and mid-cap companies

Small and Mid-Cap PLC Research Scheme will be introduced to conduct research on

300companies

Tax exemption period extended until

2020for entities carrying out Islamic banking and Takaful business through International Currency Business Unit and stamp duty exemption

EM162mvia MOEC among others, to implement programmes such as the e-commerce ecosystem and Digital Maker Movement

Initiative for ethernet broadband services in public universities to be increased to a max. 100C8 per second

Introduction of new location categories as Malaysia Digital Hub to enjoy benefit of MSC Bill of Guarantees, including tax incentives and introduction of Digital Free Zones.

Effective January 2017, fixed line broadband service providers will offer services at a higher speed for the same price

Broadband speed to be increased within next two years and reduction in prices by

50%

R M lbbroadband quality and coverage nationwide reaches up to 20 megabytes per second.

Accelerating implementation of Pan Borneo Highway in Sabah and Sarawak

Increasing trip frequency of ETS for the Johor Baru - Padang Besar route

HMlOOmto restore East Coast railway line along Gua Musang - Tumpat stretch

for implementation of new East Coast Rail Line in phases

RM551i

Utusan

2 3 OCT 20 It

Ringgit dijangka tinggi minggu depanKUALA LUMPUR 22 Okt. - Ring git dijangka meningkat minggu depan berikutan sentimen positif daripada pengumuman bajet 2017, kata seorang peniaga.

Penganalisis Penyelidikan Forex Time, Lukman Otunuga berkata, Bajet 2017 meningkatkan sentimen dalam ekonomi Malaysia kerana ia. memberikan kejelasan bagaimana negara akan menangani isu-isu pada tahun mendatang.

“Topik utama berkaitan dengan perbelanjaan kerajaan untuk mempercepatkan pertumbuhan, meningkatkan pelaburan bagi perniagaan kecil dan sederhana dan mengurangkan defisit bajet.

“Malaysia terns berusaha untuk mendapatkan kestabilan ekonomi dan justeru itu memaparkan dalam bajet usahanya untuk meningkat-

P E N G A N A LIS IS ekonom i percaya nilai ringgit akan m engukuh ekoran keyakinan pada Bajet 2017 yang dibentang oleh Perdana M enteri kelmarin.

kan perpaduan dan pertumbuhan Malaysia menunjukkan ketahanan. ekonomi ” katanya. dengan pertumbuhan Keluaran

Beliau berkata, penurunan Dalam Negara Kasai (KDNK) diun- harga komoditi dan peningkatan jurkan pada antara empat dan limasemula dolar terus memberi te- peratus pada 2017. kanan kepada kebanyakan negara “Dengan inflasr diunjur padasedang pesat membangun, tetapi tiga peratus pada 2017 dan ek-

sport 2.7 peratus, kes.eluruhan prospek bagi Malaysia kelihatan menggalakkan” katanya.

Bagi asas Jumaat ke Jumaat, unit tempatan mengukuh berbanding dolar Amerika kepada 44830/1890 daripada 4 .1980/2050.

Ringgit juga ditutup kebanya- kannya tinggi berbanding kumpulan mata wang utama.

Unit tempatan meningkat berbanding dolar Singapura kepada 3.0027/0078 daripada 3.0247/0302 pada Jumaat minggu sebelumnya, tetapi susut berbanding yen kepada 4.0279/0341 daripada 4 .0230/0301.

Ringgit mengukuh berbanding pound British kepada 5*1158/1248 berbanding 5.1249/1339 minggu sebelumnya dan meningkat berbanding euro kepada 4.5595/5677 daripada 4.6245/6331. - bernama

Utuflftn

2 3 OCT 2016

Perdagangan Malaysiajran kearah positif- MustapaTEHRAN, IRAN 22 O k t - Usaha m empertingkatkan perdagangan Malaysia dan Iran beracia pada landasan positif apabila . kedua- dua negara m enyatakan komitmen untuk m em pertingkatkan hubungan ekonomi.

Menteri Perdagangan Anta- “Jika kita lihat sekarang ini,rabangsa dan Industri, Datuk perdagangan kedua-dua nega-Seri Mustapa Mohamed berkata, ra tidak seimbang dengan Irantum puan ketika ini ada- membeli lebih banyaklah untuk mengimbangi daripada kita terutam aperdagangan kedua-dua minyak kelapa sawit.negara dengan m elihat ■ j f e " Jadi, ini perlu diseim-kepada beberapa pelii- r bangkan,” katanya diang pelaburan yang wu- sin ihariin i.jud di republik ini. ' ' Beliau berkata de-

Katanya, antara . mikian kepada Ming-produk keluaran Iran guan Malaysia selepasyang boleh diim port .ke. m engadakanperjum pa-Malaysia selain berkaitan mustapa an dengan Menteri In-ininyak dan gas adalah mohawed dustri, Perlombongansimen serta besi keluli medan Perdagangan Iran,mandangkan republik ini meru- M ohammad Reza Nematzeneh pakan antara negara pengeksport sem pena Misi Perdagangan danbaranganberkenaan. Pelaburan ke Tehran.

“Iran sedang menarik Terdahulu, Mustapa menga-pelaburan asing sebanyak RM30 dakan perjum paan dengan Men-hingga R.M50 bilion setahun. t'eri Petroleum, Bijan NamdarMaknanya, peluang pelaburan Zangeneh.itu besar bagi kita. Oleh itu, hari Misi berkenaan adalah susu- ini kita membawa bersama ’20 lan daripada m esyuarat bilateralwakil perniagaan mewakili io antara Perdana Menteri, Datuksyarikat Malaysia untuk m elihat Seri Najib Tun Razak bersamapeluang itu di sini. Presiden republik ini, Dr. Hassan

Rouhani di Putrajaya baru-bann ini.

Mustapa seterusnya m em - bentangkan kertas kerja berta- juk Peluang Perdagangan dan Pelaburan d i Malaysia pada sem inar anjuran Dewan Perdagangan, Industri, Perlombongan dan Pertanian Iran (ICCIMA).

Berkuat kuasa 16 Januari lalu, sekatan-sekatan antarabangsa yang dikenakan terhadap Iran ditarik balik selepas badan pe- m antau nuklear Bangsa-Bangsa Bersatu (PBB) mengesahkan Iran telah melaksanakan semua langkah yang terkandung dalam perjanjian nuklear terhadap republik ini.

Dalam pada itu, Mustapa berkata, Petronas dan Bukhari International Ventures (BIV) te lah m enyatakan m inat untuk terlibat dalam industri minyak dan gas Iran berikutan pengena- lan kontrak petroleum berinte- grasi (IPC) oleh kerajaan republik ini.

M enurutnya, sistem - baharu yang diperkenalkan selepas sekatan terhajlap Iran ditarik itu tu ru t menarik m inat beberapa syarikat kecil dan sederhana Malaysia untuk terlibat dalam industri tersei-but. -MINGGUAN

fiF T A H V44-5 SENV J L . i n i I 23 Oktober 2016

asaran getah Malaysia diun- ju r kekal stabil minggu ini,

disokong terutamanya oleh pertumbuhan ekonomi China yang menggalakkan, kata seorang peniaga.

Beliau berkata pertumbuhan keluaran dalam negara kasar China pada 6.7 peratus pada suku ketiga menunjukkan akti- vitiekonomi negara itu berkembang, menggalakkan permintaan getah.

Selain itu, pasaran getah juga bergantung kepada pergerakan harga minyak mentah.

Bagi asas perband ingan Jumaat ke Jumaat, harga tengah hari Lembaga Getah Malaysia bagi gred tayar SMR 20 tu ru n 44.5 sen kepada RM5.905 sekilogram daripada RM6.35 sekilogram Jum aat lalu manakala susu getah pukal naik sembilan sen kepada RM4.96 sekilogram daripada RM4.8? sekilogram sebelumnya.

Harga semasa ditutup pada jam 5 petang bagi SMR 20 susut 42 sen kepada RM5.985 sekilogram daripada RM6.405 sekilogram minggu lalu manakala susu getah pukal menambah 7.5 sen kepada RM4.955 sekilogram daripada RM4.88 sekilogram sebelumnya. BERNAMA

RUBBER

TteSttr2 4 OCT 2016

KUALA LUMPURThe Malaysian rubber m arket is likely to rem ain stable this week, mainly supported by China’s encouraging economic growth, a dealer said.

He said China’s gross domestic product growth of 6.7% in the third quarter indicated the country’s expanding economic activities, spurring demand for rubber.

He said in addition, the rubber market also depended on the movement of crude oil prices.

“If crude oil prices were to improve next week (this week), they will cer

tainly lend a support to the rubber prices as well,” he added.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s noon price for tyre-grade SMR 20 dipped 44.5 sen to 590.5 sen a kg from 635.0 sen a kg previous Friday, while latex-in-bulk rose nine sen to 496.0 sen a kg from 487 sen a kg previously.

The 5pm unofficial closing price for SMR 20 lost 42 sen to 598.5 sen a kg from 640.5 sen a kg previously, while latex-in-bulk added 7.5 sen to 495.5 sen a kg from 488.0 sen a kg previously. - Bemama

RUBBER OUTPUT (in kilograms)

COMPANY MAR 16 APR 16 MAY 16 JUNE 16 JUL 16 AUG 16 SEPT 16

FGVIOI CorpKuala Lumpur Kepong

167,58421,967

1,285,057

151,1065,073

640,293

169,1122,820

585,082

278,2964,742

1,105,577

293,19221,233

1,457,445

349,59747,126

1,750,48242,472

1,535,839

dasar fiskalP e n e ru s a n pendekatan penya- tuan fiskal dalam Bajet 2017 adalah positif memandangkan suasana pertum buhan menca- bar ketika ini dan mempamer- kan hasrat kerajaan untuk mengekalkan dasar fiskal berhemat, kata Standard Chartered Global Research.

Kerajaan menetapkan defisit fiskal 2017 pada 3.0 peratus daripada keluaran dalam negara kasar (KDNK), tu run daripada 3.1 peratus pada 2016.

Penurunan sederhana itu sejajar dengan jangkaan kami, kata firm a penyelidikan itu dalam satu nota penyelidikan.

. Defisit fiskal miitlak mening-' kat sedikit kepada RM40.3 bilion berbanding RM3S.7 bilion pada 2016, dan kenaikan kecil ini bukan satu kebimbangan.

Kerajaan juga meningkatkan

Bajet 2017bertujuanmengukuhkankedudukan fiskalnegara melaluiperbelanjaanberhemat bagimenyokongpertumbuhanekonomi"Hanifah Hashim,Pengarah Eksekutif dan Ketua Pendapatan Tetap serta Sukuk Franklin Templeton Investments

pem berian B antuan Rakyat lMalaysia (BRIM) kepada RM6.8 bilion daripada RM5-9 bilion, sejajar dengan janjinya untuk menyokong isi rum ah berpendapatan rendah. Ini akan meningkatkan BRIM kepada lebih 3 peratus daripada perbelanjaan sekarang.

Kesejahteraan rakyatSem entara itu, Malaysia terus menunjukkan disiplin fiskal dengan berjaya mengurangkan defisit fiskal secara beransur-ansur sejak krisis kewangan global hingga ke hari ini, dem ikian m enuru t firm a pelaburan global, Franklin Templeton Investments.

Katanya,.kejayaan itu dicapai dengan pelaksanaan pel- bagai langkah m em eritkan seperti memperkenalkan cukai

barang dan perkhidmatan, mengurangkan subsidi bahan api serta mempelbagaikan ekonomi.

“Bajet 2017 bertu juan mengukuhkan kedudukan fiskal negara melalui perbelanjaan berhem at bagi menyokong pertum buhan ekonomi dan pada masa sama memberi p e r hatian rapi kepada kesejahteraan rakyat.

“Ia adalah im bangan yang baik, tetapijikaiadilaksanakan dengan baik ia akan menawar- kan pelincir kepada enjin ekonom i bagi m enjana aktiviti ekonomi dan merangsang keyakinan perniagaan,” kata Pe- ngarah Eksekutif dan Ketua Pendapatan Tetap serta Sukuk Franklin Templeton Investments Malaysia, Hanifah Hashim.

BERNAMA

U M M B

2 4 OCT 2016

nsentif rancakkan eksport komoditi negaraOleh ZUNAIDAH [email protected],my

KUALA LUMPUR 23 Okt. - Perun- tukan dana sebanyak RM286 juta dilihat m am pu m erancakkan eksport komoditi negara ke pasaran- pasaran baharu yang menawar- kan potensi lebih besar.

Presiden dan Ketua Pegawai Eksekutif Felda Global Ventures Holdings Berhad (FGV), Datuk Za- karia Arshad berkata, dalam masa sama kum pulan m enyam but baik sokongan kerajaan kepada pekebun kecil sawit dengan peruntukan RM30 ju ta bagi m eningkatkan insentif tanam semula.

Katanya, insentif itu juga ter- m asuk m enyediakan RM20 juta

sebagai dana pem bangunan infrastruktur di ladang-ladang dan sebanyak RM50 ju ta sebagai in sentif penambahbaikan kualiti keluaran produk sawit.

“Bajet 2017 dirangka dengan begitu inklusif, mesra rakyat dan mampu memberi kesan pem bangunan untuk jangka masa panjang.

“Secara um um nya, FGV yakin kandungan bajet ini akan m em beri impak yang berkesan terhadap kadar pertum buhan negara tahun depan,” katanya kepada Utusan Malaysia di sini.

Perdana Menteri, Datuk Seri Najib Tun Razak dalam pembentangan Bajet 20 17 kelmarin mengum um kan peruntukan sebanyak RM100 ju ta un tuk m en

ingkatkan kualiti fproduk sawit, tanam an sawit dan naik ta ra f jalan ladang.

Selain itu, kerajaan tu ru t mem- peruntukkan sebanyak RM286 ju ta un tuk m eningkatkan pengeluaran eksport perladangan sawit, getah, koko dan lada.

M enurut Zakaria, kerajaan tu ru t m em enuhi hasrat penduduk luar bandar dengan m eningkatkan pem bangunan infrastruktur di kawasan mereka.

“Perdana Menteri peka dengan keperluan perniagaan dengan m enawarkan insentif pengurangan kadar cukai korporat kepada syarikat yang berjaya m eningkatkan perolehan pada 20 17 ,” katanya.

Secara um um nya,FGV yakin kandungan bajet in i akan m em beri impale yang berkesan terhadap kadar

tahun depan"

ZAKARIA ARSHAD Presiden dan Ketua Pegawai Eksekutif Felda Global

Jtures Holdings Berhad

D M

2 4 OCT 2016

Iran terbuka tandatangan FTA dengan MalaysiaTEHRAN. IRAN 23 Okt. - Iran terbuka terhadap kemungkinan untuk menandatangani satu perjanjian perdagangan bebas (FTA) dengan Malaysia.

Menteri Perdagangan Antara- bangsa dan Industri, Datuk Seri Mustapa Mohamed berkata, peijan- jian itu bermaksud kedua-dua negara bakal memiliki kelebihan dalam urusan import eksport barangan termasuk pengurangan cukai.

“Saya telah bercerita kepada pihaklrantentangFTAkitadengan Turki yang mana telah. melonjak- kan perdagangan Malaysia-Turki. “Iran berkata mereka juga mem- punyai FTA dengan Turki dan ia

Melaporkan dari TEHRAN. IRAN

banyak m em bantu meningkatkan perdagangan mereka.

Jadi, mereka terbuka untuk meli- hat kemungkinan menandatangan perjanjian itu dengan ldta ” katanya.

Beliau berkata demikian kepada Utusan Malaysia selepas mengadakan pertem uan dengan Menteri Industri, Perlombongan dan Perdagangan Iran, Mohammad Reza Namatzadeh sem pena

Misi Perdagangan dan Pelaburan Ice Tehran di sini semalam.

Yang turu t hadir Duta Besar Malaysia ke Iran, Raja Nushirwan Zainal Abidin.

Produk-produk utam a yang diimport dari Iran ke Malaysia dari Januari ke Ogos tahun ini adalah produk petroleum iaitu RM60 .56 juta, pengeluaran pertanian (RM47.25 juta), baja dan mineral m entah (RM8.75 juta), m akanan diproses (RM7.37 juta) serta pengeluaran besi (RM7 .2 4 juta).

Import keseluruhan , produk petroleum itu telah meningkat

, lebih RM3i 8 ,0 6 o berbanding tem pohsam atahun la lu . - u tu sa n

Sun

2 4 OCT 2016

Domestic demand tounderpin 2017 growth

THE Malaysian economy is expected to grow between 4 % and 5% in 20x7 , underpinned by strong domestic demand.

Domestic demand is projected to expand 4 .9% in 2017, underpinned largely by private sector expenditure, which is envisaged to grow 6 .2%.

Private sector activity will be supported by pro-growth fiscal and accommodative monetary policies in the environment of stable inflation, which is projected to be in the range of 2% to 3%.

Public sector expenditure, which is expected to increase marginally by 0 .6 %, will be driven by higher capital investment by public corporations.

In tandem with favourable business sentiment, private investment is forecast to rise 5.8%, accounting for 17.2% of gross domestic product (GDP). Growth is expected to be supported by ongoing projects such as Pan Borneo Highway, Rapid (refinery and petrochemical project in Johor) and the Mass Rapid Transit.

Private consumption is seen to grow 6 .3% on account of stable labour market, accommodative interest rates and manageable inflation.

The report said cash transfers and lower Employees Provident Fund contributions are also expected to increase household disposable income; which in turn will

promote consumption activities,“Thus, share of private consumption to

GDP is projected to increase to 54.2% in 2017,” it noted.

Public investment accounting for 8.4% of GDP, is envisaged to increase 1.1% in 2017, mainly on account of capital expenditure by public corporations.

Meanwhile, public consumption is only expected to increase marginally by 0 4 % following government measures to reprioritise spending and reduce non- critical items.

The government maintained its target of 4%-4-5% GDP growth for 2016, with a fiscal deficit of 3 j % of GDP.

AT A GLANCE

• Padi fa rm e rs : S u b s id ie s fo r padi price, seed s and fe rt ilis e rs as w e ll as hill padi (RM1.3 billion a llo ca tio n )

• R u b b e r sm a llh o ld e rs : P u rc h a s e f lo o r p rice to be im p le m e n te d (R M 2 5 0 m illion a lloca tion ) and ra in y s e a so n aid o f R M 2 0 0 m o n th ly fo r N o v e m b e r, D e c e m b e r and Ja n u a ry

• F is h e rm e n : C o n tin u a tio n o f m o n th ly a llo w a n ce s o f b e tw e e n R M 2 0 0 and R M 300

• F arm ers : D e v e lo p m e n t o f a g ricu ltu ra l in fra s tru c tu re su ch as d ra in age and irriga tion , fa rm ro a d s and m a rk e tin g o f a gricu ltu ra l p ro d u c ts (R M 1 3 b illion a lloca tion ) •

• M o re T V E T in s titu tio n s to p rod u ce local w o rk fo rc e th a t m e e ts in d u s try requ irem en ts (R M 4 .6 billion a llo ca tio n )

• To b o o s t g ra d u a te e m p lo ya b ility , th e IM a la ys ia Tra in ing S c h e m e (SL1M ) p ro g ra m m e b y G LC s is e x te n d e d to 20,000 g ra d u a te s in 2017 (R M 5 0 m illion a llocation )

• B o o k v o u c h e rs re p la ce d w ith s tu d e n t d eb it card w o r th R M 2 5 0 w h ic h can be u se d to p u rch a se b o o k s and in te rn e t access

• O n e -o f f in c re a s e o f R M 5 0 0 in ce n tive to RM 1.000 fo r y o u n g P r iv a te R e tire m e n t S c h e m e c o n tr ib u to rs w ith a m in im u m a ccu m u la te d in v e s tm e n t o f RM 1.000 fo r a p e rio d o f tw o y e a rs (RM 165 m illion a lloca tion )

• RM 7.4 b illion a llo ca te d to 20 pub lic

u n ive rs it ie s to en su re h ig h e r e d u ca tio n is on a p a r w ith g lo b a l s ta n d a rd s

• S ch o la rsh ip s w ill co n tin u e to be a w ard ed w ith an a lloca tion o f RM 4.3 billion in 2017, including:- RM1.6 billion th ro u g h th e P u b lic S e rv ice

D e p a rtm e n t- RM 2 billion th ro u g h Mara

• In ce n tive s to e n co u ra ge re p a ym e n ts o f P T P T N s tu d e n t loans, inc lu d in g a 15% d iscou n t on th e o u ts ta n d in g d e b t fo r full s e tt le m e n t and 10% d iscou n t fo r p a y m e n t o f a t le a s t 5 0 % o f th e o u ts ta n d in g d e b t m a d e in a s in g le p a ym e n t

* E x is t in g co m p u te r loan fa c ility is e x te n d e d to e n c o m p a s s th e p u rch a se o f s m a rtp h o n e s , T h is fa c ility can be u tilised o n ce e v e ry th re e ye a rs w ith a m a x im u m loan o f R M 5 ,0 0 0 .

* M o to rc yc le loan lim it increa sed fro m R M 5 .0 0 0 to RM 10,000

* H o u s in g loa n s e lig ib ility in crea sed from b e tw e e n RM 120.000 and R M 6 0 0 .0 0 0 to b e tw e e n R M 2 0 0 .0 0 0 and R M 7 5 0 .0 0 0

* IM a la ys ia C iv il S e rva n ts H o u s in g (P P A 1 M ) to c o m p le te 3 0 ,0 0 0 u n its w ith se llin g p r ic e s o f b e tw e e n R M 9 0 ,0 0 0 and R M 3 0 0 .0 0 0 , w h ic h are 20 % b e lo w th e m a rk e t p rice

* C o n tra c ts o f s e rv ic e e x p ir in g end o f th is ye a r w ill be e x te n d e d fo r a t le a s t o n e y e a r

* A sp ec ia l a s s is ta n ce o f R M 5 0 0 to all pub lic se rva n ts and a sp e c ia l p a y m e n t o f R M 2 5 0 fo r g o v e rn m e n t re tire e s to be paid o u t in e a r ly Ja n u a ry 2017

• R e c o n s tru c t 120 d e s titu te s c h o o ls a cross th e c o u n try and u p gra d e 1,800 sc ience la b o ra to rie s (R M 5 70 m illion a lloca tion )

• C o m p le te c o n s tru c tio n o f 227 p r im a ry and s e c o n d a ry s c h o o ls n a tion w id e , inc lu d in g e ig h t n e w s c h o o ls (R M 4 7 8 m illion a lloca tion )

• A d d itio n a l a ss is ta n ce p a ym e n t fo r sch o o l fees, te x tb o o k a ss is ta n ce and p e r cap ita g ra n t a ss is ta n ce (RM1.1 billion a lloca tion )

• S pecia l fun d fo r im p ro ve m e n t and m a in ten a n ce o f s ch o o ls (R M 6 0 0 m illion a lloca tion )

• R M 2 5 b illion a lloca ted to e n h a n ce th e hea lth leve l o f th e ra k ya t and q u a lity o f h e a lth c a re in th e c o u n try v ia th e fo llo w in g p ro g ra m m e s :- U p g ra d e h osp ita l fac ilities w ith an a lloca tion

o f R M 5 3 6 m illion

- Fund ing o p e ra tio n s o f 340 IM a la ys ia clinics, 11 IM a la ys ia m ob ile clinics, 959 health c lin ics and m o re than 1,800 rural clinics (R M 4 .5 billion a llocation)

- S u p p ly o f d ru g s , consum ab les, vaccines and re a ge n ts to all g o ve rn m e n t hospita ls and h e a lth fac ilities (R M 4 billion allocation)

• T h e g o v e rn m e n t w ill p rovide o n e -o f f grants w o rth R M 2 0 0 ,0 0 0 fo r th e purchase o f e q u ip m e n t in p riva te haem od ia lys is centres (R M 4 0 m illion a llocation )

• T h e M in is try o f D efence w ill be a llocated a su m o f RM15.1 billion. Th is includes RM1.8 billion e a rm a rk e d fo r d e fen ce asset m a in te n a n ce su ch as a ircraft, patro l vesse ls , c o m m u n ica tio n equ ip m en t, bu ild ings and w e a p o n ry . RM1.3 billion is a llocated for co m m u n ica tio n d ev ices , ra tions and un iform s.

• To e n h an ce e ffe c t iv e n e s s o f Eastern Sabah S e c u r ity Z o n e op era tions , a sum o f RM 323 m illion is a lloca ted fo r p e rson n e l d e p lo ym e n t at th e e a s te rn b o rd e r o f Sabah

• T h e a rm e d fo rc e s w ill build and upgrade roads in th e in te r io r o f S araw ak un de r the Jiwa M urn i P ro g ra m m e (RM114 m illion a llocation)

• T h e M in is try o f H o m e A ffa irs is allocated RM12.8 b illion , inc lu d in g a sum o f RM8.7 billion fo r th e R oya l M alaysian Police.M a jor p ro g ra m m e s and p ro je c ts include bu ild ing 12 d is tr ic t po lice head quarte rs and 69 co m m a n d o tra in in g cen tres as w ell as p ro c u rin g ve h ic le s and equ ipm ent.

Where the government gets the money

B o rro w in g s + u se o f g o v e r n m e n t 's a s s e t s

RM41 bil

i i r e c t ta xWMOliil

M120.7 bil r e rPM6? 2 biifiM?') 9 hi|

M39.1 bil Non~tD.< revenue

How the government spends your tax money

Gfncjr.il o(lrn>ni3tuition RM2.67bll ''%?>

Security RM5.29bli ( j

v 5|

/ RM77.42 bil

\R M 2 8 .8 7 b il\*LJJ

-

RM12.18bif ( < / ) ( ,P ^ R M 3 2 0 2 b il

/ ' RM21.76 bil

v i v y ■ : ’

RMS.06 bit

SocialRM3.9 M

i??yaGr".■MRMO.S 7 bit 'tJ

RM30.3bil ( t p } |E con om ic

RMI0.6 bit 0 - -¥

RM4.93M J 0

RM2.4i l § f

C7* \ RM 22.43 bilK*L'/

RM 24.24 bil

y.4

d e v e l o p m e n t e x p e n d i t u r e

M a l a y s i a 's

EM 40.34 billionb u d get deficit for 2017 is:

a Robert Kuok's

k US$10 billionnet worth

\ V

Quek Leng Chan’s Teh Hong Plow’s

US$5.3 billion US$4.65 billionnet worth net worth

Lee Shin Cheng's Llm Kok Th ay’s


—

£!• / \ ft \

Ananda Krishnan's Syed Mokhtar Albukhary's


digi\ DIGi.Com's m arket cap of

RM38.95 billion

CIMB Group's m arket cap of

RM42.42 billion

THE EDGE„ , ., 2 4 OCT 2016M a l a y s i a 's

RM554 billiontotal budget deficits from 1997 to 2017 is:

A lm o st th e s iz e

of...

Bill Gates' Warren Buffett’s

US$75 billion US$60.8 billionnet worth net worth

1

I I Ka-Shlng Wanda Group's ABbaba’s Facebook’sUS$21.7 bHUon WangJianlln JackMa Mark Zuckerberg

net worth US$28.7 bHIion US$20.5 bBlion US$44.6 billionnet worth net worth net worth

the combined net worth of Malaysia’s top 5 0 billionaires

US$63 billion (RM264 billion)

Bank Negara Malaysia's foreign reserves (US$97.7 bIRfon or RM405 billion as at e nd-Sept 2016)

\ of the over RM90Q billion contributed by Petronas to

the federal and state government from 1974-2015“v

Alm ost the size of the combined market cap of

Malaysia's top 10 largest com panies (RM572 billion)

iT M

M aybank

Telekom M alaysia

NUTV; NFTVVPRTIf RASED ON FOHBFS 5016 B ILLIO N AIR E LIST.M ASKFT CAP FIGU RF5 AS AT OCTOBER * RM4.2

2017 debt service charges ofRM28.87bil

is equivalent to...RM2.4 billion a month

RM555 million a week

Debt service charges rise to RM28.87 bil or 13.1% of government revenueB 7 C IN D Y Y 5 A P

f the RM28.87 billion allocated for debt service charges in 2017 were distributed to Malaysia’s population of 31-8 million,each person will stand to get RM908.Sadly, 13.1% of government revenue needs to go towards servicing the federal government's debt that had escalated to RM655.75 billion in 2Q2016 (excluding the RM178 billion debt guaranteed by the government as

at 1Q2016) from RM266.7 billion in 2007.Compare the RM28.87 billion w ith the charges of RM12.9

billion (9.2% of government revenue) in 2007 and RM6-4 billion (9.8% of government revenue) in 1997.The charges have been more than 10% of government revenue since 2014.

The projected debt service charges are slightly more than the RM28.2 billion personal income tax collection and 75% of the RM38.5 billion GST collection expected for 2016. It also means the government needs to come up with RM2.4 billion a month, or RM555 million a week or RM79 million a day,to service its debt.

In infrastructure terms, the RM28.87 billion is enough to fund 90% of die Sungai Buloh-Serdang-Putrajaya (SSP)MRT Line, which is expected to cost RM32 billion. It is also the size of seven klia2s (RM4 billion), six Second Penang bridges (RM4.5 billion), 19 Bus Rapid Transit systems (KL-Klang line RM1.5 billion) or 72 hospitals (based on the cost of IHH Healthcare’s RM400 million Gleneagles Medini,Nusajaya).

It is also 70% of die RM41.3 billion allocated under the Malaysian Education Blueprint 2013-2025 to build 30 primary, 27 secondary and five fully residential schools, plus four MARA junior science colleges.The RM123 billion Malaysia spent to service its

debt between 2013 and 2017 was three times the allocation. Malaysia could have boosted its coffers substantially

in the past two decades had there been less debt service charges or had its economy expanded further with higher development spending. Between 1997 and 2017,the RM311 billion that went to debt service charges is equivalent to Bill Gates’ net worth of US$75 billion (based on die Forbes 2016 World Billionaix'es list). It is also 1.2 times the combined net worth of Malaysia’s top 50 billionaires.

For the ordinary Malaysian, the RM28.76 billion is enough to give every Malaysian RM133 and a weeldy KFC dinner plate

treat for a whole year. It is also five times the RM5.4 billion allocated for Bantuan Rakyat LMalaysia(BRlM)lastyear. 0

Debt service charges rose above 10% of government revenue in 2014 and is projected at 13.1% in 2017

m Debt service charges iRMbiRioni 0 Oebt serviced'aiges a s o f government fiwrme r;.)

11113jit;

M il| § l

f 2017 debt service charges ofRM28.87 bilis equivalent to...

SECOND PENANG BRIDGERM4.5 billion /to construct)

I Kl&M4 billion

■ tot

HOSPITALS(basedoncost'ariHH-..' . Healthcare's RM4b0mil SlehebglesMedinf,. ..'4ri

97 *98 99 DO 01 02 03 04 '05 '06 07 08 09 10 11 12 13 H 15 16 17

For the ordinary Malaysian,

RM28.87 bilis enough to g iv e ...

m&w

%

BR1M(RM6.8 billion allocation for

2017)

l KFC dinner plate(RM14.90 each) every week for all Malaysians the whole year plus RM133 one-time extra cash per person

for all 31.8 minion Malaysians

(RMZ50aday)

It Is also similar to RM28.2 billion

personal income tax collection and

75%ofRM38.5 billion GST

collection expected for 2016

A need to bite the bullet on civil service pay and pensionB Y C I N D Y Y E A P

ivil servants and pensioners m ust have slept well on Friday night. For at least a fifth straight year, they are getting a special cash bonus in January.

“To the civil servants, I know th a t you will have sleepless nights if I do not an

nounce th is. I have good new s. As a token of appreciation for the com m endable service by public servants,! am pleased to announce a special assistance of RM500 to all public servants, and a special paym ent of RM250 for government retirees/’ Prime M inister Datuk Seri Najib Razak said before concluding his Budget 2017 speech last Friday.

Already, civil servants are provided aid for housing and smaller item s like a motorcycle, computers and sm artphones.

Yet even civil servants and government pensioners m ust have noticed that the government had been less generous w ith cash bonuses the past two years.

Like in January 2016, civil servants will get RM500 and government pensioners, RM250, come January 2017. But those tracking these numbers closely would notice tha t the new year cash bonus for civil servants used to be at least a half-m onth bonus w ith RM500 being the m in im um instead of a blanket paym ent. Similarly, pensioners used to get RM500 in Budget 2013 and Budget 2012.

Najib did not say how m any civil servants and retirees would benefit from the Budget 2017 "special assistance” or m ention how m uch the "good new s” cost the governm ent’s coffers next year.

W hen tabling Budget 2012 in October 2011, he revealed th a t RM4 billion w as needed to pay one m onth’s bonus (m inim um RM500 each) to 1.3 m illion civil servants and RM1,000 to 618,000 governm ent pensioners.Andthatwas before the m inim um wage was raised.

There were about 700,000government pensioners as at October 2015 and the civil service is believed to have grown to 1.6 m illion people.'

“Giving bonus is not an issue if the economy is

expanding and civil servants see it as an incentive to work harder,raise productivity and improve service quality. However, if it is recurring and civil servants see it as a 'given', then it becomes a recurrent expenditure th a t has to be provided annually.lt could be better designed and tied to the performance of each m inistry/’ says Dr Yeah Kim Leng, an economics professor at Sunway University Business School.

W hat’s giving some economists sleepless nights, though, is the growing size of the federal governm ent's em olum ent and pension bill.

In 2017, em olument and retirem ent charges (pension) are expected to reach RM99.2 billion, or 45% of projected government revenue.The figure had doubled in the past decade from RM40.8 billion (29.2% of governm ent revenue) in 2007, and will only rise further as more civil servants age and live longer.

More th an 40% of government revenue had gone to these obligations since 2014, official data show.

Retirem ent Fund Inc (KWAP) CEO Wan Kamaru- zam an Wan Ahmad told T h e E d g e in an interview January th is year th a t th e possibility of m oving at least some civil servants to a EPF-like "defined contribution” from th e curren t "defined-benefit” schem e is being weighed by policymakers as part of long-term financial planning. At the tim e, there was no specific com m itm ent or tim eline for a public pension reform.

Experts know the reform requires strong political will and thorough planning.

As a percentage of the governm ent's operating expenditure, em olum ents and pensions are projected to rise to 46.1% in 2017 from 44.9% in 2016.

"We view the level as too high for comfort and is no t sustainable as it is expected to eat into the government’s other spending tha t could benefit the economy in th e long ru n /' RHB Research Institu te econom ists Vincent Loo and Mohd Aris Nazm an M aslan w rote in an Oct 21 note.

Em olum ents’ share of total revenue alone will be 36% of to tal operating expenditure nex t year. "Indeed, it has risen above the 30% level since 2014, from an average of 28.8% a year in 2010 to 2014 and 24% annually from 2000 to 2015, proving tha t th is part of expenditure is tough to reduce due to political constraints. I t is also one of its m ain objectives of reducing the rakyat’s burden caused by the rising cost of living," they added.

Still, a balance needs to be struck to ensure longte rm fiscal sustainab ility . Inaction would m ost certainiv lead to a n iehtm are. 0

Forecast

GDP forecast to grow 4% to 5% in 2017B Y BILLY TOH

" “"I 1 he M inistry of Finance is expectingthe country’s economy to grow 4% to 5% in 2017, em anating m ainly from domestic demand, underpinned by strong economic fundam entals supported by rakyat-cen tric and pro-

growth measures in Budget 2017, according to the Economic Report 2016/17.

The report says domestic dem and is expected to grow 4.9% next year, compared with 4.7% in 2016 and 5.1% in 2015,w ith the private sector spearheading growth. The grow th in domestic demand is largely attributed to private sector expenditure, which is expected to rise 6.2% next year.

In com parison, private sector spending grew 5.9% this year and 6.1% in 2015.

Private investment is forecast to increase 5.8%, accounting for 17.2% of gross domestic product (GDP).This is an increase from 5.3%,or 17% of GDP, this year, although it is still lower than the 6.4% recorded in 2015.Growth in private investment next year is expected to be supported by ongoing projects such as the Pan-Borneo Highway, Petroliam Nasiona! Bhd's refinery and petrochemical integrated development complex and the mass rapid transit project.

Investm ent in export-oriented industries, especially electrical and electronics, is projected to increase w ith the im provem ent in global demand for semiconductors. As for this year, private investment remains resilient despite a slight drop in growth .supported by a favourable business climate and pro' business initiatives by the government.

The Business Condition Index (BCI), by the Malaysian Institu te of Economic Research,

Domestic demand is expected to grow 4.9% next year

gained 13.6 points to 106.4 in the second quarter of this year (2Q2016),according to the report. But in 3Q2016, it dived below the 100-point threshold to settle at 83.9 points, indicating a possible slowdown in the final quarter of the year. In 1Q2016, the BCI was 92.8 points.

Private consum ption is forecast to expand 6.3% next year, higher than the 6.1% expected this year. It will see its share of GDP increase to 54.2% next year from 53.3% in 2016. Private consum ption accounted for 52.4% of GDP in 2015 w ith 6% growth.

The report states that cash transfers and lower Employees Provident Fund contributions will promote consumption as household disposable income increases. The gradual improvement in consum er sentim ent was also reflected in the increase in the Consumer Sentim ent Index, which edged up to 78.5 points in 2Q2016,

compared w ith 72.9 points in 1Q2016. Other indicators, such as sales of food and imports of consum ption goods, also registered high growth of 29.9% and 12.5% respectively in the first eight months of 2016, compared w ith 0.2% and 16.4% in the previous corresponding period.

Public expenditure for 2017 is expected to increase marginally by 0.6%, 0.2% lower than this year, as public consum ption is forecast to rise slightly by 0.4% next year compared with 0.2%. While it represents a small increase,it is still a sharp drop from the 2.1% growth in 2015.

Public investment growth will moderate to 1.1% next year — lower than the 1.7% in 2016 — accounting for 8.4% of GDP (2016: 8.7%) on higher capital investm ent by public corporations. In com parison, public investm ent declined i% in 2015. The growth this year is m ainly due to higher development expendi-

GDP growth

06 07 08 0910 11 12 13 14 1516*17*

BLOOMBERG

ture (DE) by the federal government and continued capital outlays by public corporations.

DE is projected to grow 10.4% this year from a mere 3.2% in 2015, w ith the bulk of it in the economic sector. Capital expenditure by the federal government will continue to focus on upgrading roads, rural infrastructure and urban public transport as well as enhancing the provision of public education and healthcare services in 2017.

As for public consumption, it is forecast to increase marginally by 0.4% next year com- . pared w ith the 0.2% in 2016. Both forecasts for; 2016 and 2017 reflect the governm ent’s com* m itm en tto more prudent spending. In 2015, public consum ption grew by 4.4%. S

Budget reflects nation’s strong economy ,,REMARKABLE: Despite tough world conditions, it caters to diverse groups, ranging from civil servants to women, entrepreneurs, the rural and urban poor to SMEs and students

T HATEVER label is ascribed to the 2017 } Budget, tabled in the Dewan Rakyat on

Friday by Finance Minister Datuk Seri Najib Razak, also the prime minister, the clear message is that despite the ongoing sluggish global economic recovery and low commodity prices, which have spared no nation, the Malaysian economy continues to hold its own, although there may be some headwinds ahead.

It may not be an “election budget” as opposed to a “commitment budget”, as Najib alluded to in his pre-budget statement, but it is a politically shrewd one which neatly Fits into his 2017 Budget theme: “Ensuring unity and economic growth, inclusive prudent spending, wellbeing of the rakyat”.

An election is due before May 2018, but if the economy continues on its steady growth trajectory, especially if commodity prices start to rebound in a more sustainable way and the government can sort out governance issues, then the prime minister may well be tempted to call a snap election in 2017 in the wake of a weak and divided opposition.

The social constituency that stands

to gain the most from the budget is the so-called B40, the category of income pyramid referring to the bottom 40 per cent of households with a monthly income of RM3,900 and below, which is prevalent in any economy in the world. This is followed by the M40, the group which includes singles, most working married couples, the educated and skilled, whose monthly income ranges from RM3,900 to RMS,300.

As such, the 2017 Budget resembles more a “People’s Budget” aimed at a cornucopia of diverse groups ranging from civil servants, women, entrepreneurs, the rural and urban poor to small- and-medium-sized enterprises (SMEs) and students.

According to Khazanah Research Institute, the income of the B40 households recorded a faster growth rate last year compared with that of the M40 and T20 (top 20 per cent income) groups.

It is a far cry from the first postindependence budget tabled in 1959 by the Alliance Party, the precursor to the Barisan Nasional coalition, which amounted to a princely sum of RM888 million.

In contrast, the 2017 Budget estim ates governm en t revenues at RM260.8 billion, 3.4 per cent higher than the recalibrated 2016 Budget.

What is remarkable is that for the past six decades, Malaysia has managed to sustain gross domestic product (GDP) growth at a 6 per cent per annum average.

Nobody should be under any illusion that the road ahead could be bumpy, especially if conditions in the global or regional economy beyond the control

of Putrajaya materialise.Next year's budget deficit, for in

stance, is estimated at RM41.1 billion, based on government revenue projections of RM219.7 billion. While the expansion rate of the deficit has slightly slowed down from 3.1 per cent this year to a projected 3 per cent next year, the differential is so small that any whiff of unpredictability could push up the upside risk.

Putrajaya should not be tempted to expand the Goods and Services Tax (GST) to boost revenue. Najib, to his credit, has strongly dismissed rumours that he plans to extend GST rates. The GST collection netted nearly RM30 billion to Treasury coffers as at Oct 19.

The impact of falling commodity prices on national revenues must not be underestimated.

The recent fall in oil prices alone resulted in revenue loss of an estimated RM30 billion from income and corporation tax, royalties, Petronas dividend and petroleum income tax.

But, the government has also been successful in diversifying sources of revenue through its policy to reduce dependency on oil and gas sector- related revenue from 41.3 per cent in 2009 to 14.6 per cent this year.

“As a result of further diversification of our economy, growth had been resilient and sustained despite the recent decline in oil prices by almost 50 per cent. The government’s bold measure to implement GST further diversified sources of revenue. We should realise that there are only 2.1 million income taxpayers out of 14.6 million of the country’s total workforce,” explained Najib in his budget address.

Similarly, the prime minister stressed that he is “confident of achieving a (GDP) growth of between four per cent and 4.5 per cent in 2016 and between four per cent and five percent in 2017”.

This is against an expected global

growth background of 3.1 per cent this year from 3.2 per cent last year.

The World Bank, in its latest Regional Economic Outlook for Asia Pacific at the World Bank Group Annual Meetings in Washington in October, had already downsized its Real GDP projection for Malaysia for next year to 4.6 per cent from the 4.8 per cent projection in its Article IV Consultation Report on Malaysia published in May.

Similarly, the current account balance was revised downwards to 1.2 per cent from 2.3 per cent for this year and to 1.5 per cent from 1.9 per cent next year. The good news is that the Consumer Price Index, inflation, is projected at three to 3.1 per cent, albeit up from 2.1 per cent projection for this year. This is due to the current account balance, vagaries of the commodities markets, cost of imports and volatility of the ringgit exchange rate.

On a positive note, Malaysia’s Purchasing Power Parity per capita increased from US$23,100 in 2012 to US$26,891 last year, making it an upper middle-income country; approved foreign investment totalled RM28 billion during the first half of this year, an increase of 32 per cent compared with the same period last year; and, the provision of vacant lands to government-linked companies and the IMalysia People’s Housing Project is slated to build more than 30,000 affordable houses with several tax incentives.

The challenge for Najib and his successors is to leverage Malaysia’s A- rating in pursuit of the national ideology, Rukunegara, under the universal Islam ic principle of wasatiyyah — moderation, balance, social justice, fairness and excellence — to effect National Transformation by 2050!

w m u 5 h ta k p a rk e r@ y a h o o .c o .u k

The w riter is an independent London- based economist and writer.

mailto:[email protected]

REUTERS

RUBBER-TOCOM marks biggest weekly fall in 3 months on position adjustment

345 words 21 October 2016 18:17Reuters NewsLBAEnglishCopyright 2016 Thomson Reuters. All Rights Reserved.

TOKYO, Oct 21 (Reuters) - Benchmark Tokyo rubber futures fell for a fourth straight day on Friday, touching a 10-day low and marking the biggest weekly drop in about three months, as investors continued to adjust positions from a recent rally that sent prices to 6-month highs.

The Tokyo Commodity Exchange (TOCOM) rubber contract for March delivery <0#2JRU:> finished 2.2 yen lower at 173.9 yen ($1.67) per kg, after hitting its lowest since Oct. 11 of 173.5 yen.

For the week, it lost 5.1 percent, the steepest slide since late July.

"Position adjustments went on," said Satoru Yoshida, commodity analyst at Rakuten Securities. Easing concerns over an impact on rubber shipments after Thai King Bhumibol Adulyadej's death were also contributing to the declines, he added.

The world's longest-reigning monarch, King Bhumibol died on Thursday last week in a Bangkok hospital at the age of 88, clouding the economic outlook of the world's biggest rubber producer.

The TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, surged 24 percent from Aug. 25 low of 148.6 to Monday's high of 184.6 yen.

"I think the correction has been done this week and the prices may rebound next week if oil market gains further," Yoshida said.

Oil edged higher on Friday as Russia reiterated its commitment to joining an output freeze by top producers to stem a two-year slide in prices, but a strong dollar capped the gains.

The most-active rubber contract on the Shanghai futures exchange for January delivery slipped 140 yuan to finish at 13,660 yuan ($2,020.38) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 144.5 U.S. cents per kg, up 0.1 cent.

($1 = 6.7611 Chinese yuan renminbi) ($1 = 103.8300 yen) (Reporting by Yuka Obayashi; Editing by Amrutha Gayathri)

Released: 2016-10-21T11:17:41.000Z

Document LBA0000020161021 ecalOOhzv

t h c E d g e

Budget 2017: Higher-spending budget to help meet GDP target

By Billy Toh698 words24 October 2016The Edge Financial DailyTHEDGEEnglish(c) 2016 The Edge Communications Sdn Bhd

It provides RM260.8 billion, a 3.4% increase from previous budget

This article first appeared in The Edge Financial Daily, on October 24, 2016.

KUALA LUMPUR: The increased spending in Budget 2017 will be a driving force to help Malaysia achieve its gross domestic product (GDP) growth target of 4% to 5% next year, said economists.

The budget provides RM260.8 billion in 2017, a 3.4% increase from the recalibrated Budget 2016. Of this total, RM214.8 billion is allocated for operating expenditure and RM46 billion for development expenditure.

Affin Hwang Investment Bank Bhd chief economist Alan Tan Chew Leong believes the higher development expenditure will create positive multiplier effects that could boost economic growth in 2017.

"The government has allocated RM46 billion for development expenditure compared with RM45 billion in Budget 2016. This indicates that the budget is expansionary and supportive of economic growth. While the total expenditure for Budget 2017 is an increase of 3.4%, there was a 2.2% decline in Budget 2016," he told The Edge Financial Daily.

Tan is of the view that the growth in 2017 will continue to rely on domestic demand, which is driven by private consumption.

With a slowdown in sight, the measures introduced in the budget to support private consumption such as cash transfer through the Bantuan Rakyat 1 Malaysia (BR1M) programme can help the Bottom 40% (B40) group, as well as the lifestyle tax relief that can boost spending power for the Middle 40% (M40) income bracket, whose household income ranges between RM3,860 and RM8,319.

Tan also feels that Budget 2017 is business-friendly with a new scheme to reduce income tax, specifically for assessment year 2017-2018.

He, however, thinks that more needs to be done by the government to optimise operating expenditure.

"While the operating expenditure is still manageable, I think more could be done to plug leakages and improve the efficiency of this spending," Tan said.

Sunway University Business School professor of economics Dr Yeah Kim Leng reckons that the government's 2017 GDP projection appears rather optimistic given subdued global growth outlook and multiple external risks.

However, he said the country has yet to reach the brink of bankruptcy.

"While the government is still in a fiscal deficit and rising debt is a concern, we have not reached anywhere close to bankruptcy. But the question of long-term sustainability is something that we have to look into, especially if we continue to see a widening fiscal deficit. The government has to take note of these issues and the latest budget is a reflection of the commitment to reduce fiscal deficit," Yeah added.

Nevertheless, Yeah warned that a shift in spending towards off-balance sheet could raise concerns over the government's contingent liabilities, something that was previously raised by the opposition party.

Yeah also sees domestic demand driving the economic growth. He, however, noted that the high household debt in the country could be an indicator of the limits for private consumption to continue to drive growth.

"It's unlikely for private consumption to keep the trend growth of around 7% to 8%. It's more likely to stabilise at 5% to 6%, and that also requires consumer sentiment to improve," Yeah said.

He cited some of the measures introduced by the government to sustain private consumption aside from BR1M, such as higher bonuses for civil servants as well as job creation.

Affin Hwang Asset Management Bhd chief marketing officer Chan Ai Mei told The Edge Financial Daily it is important for the government to encourage the younger generation to think and plan ahead for the longer term.

As such, she sees the proposal to introduce a one-off increase in the existing RM500 incentive to RM1,000 to Private Retirement Scheme (PRS) contributors with a minimum accumulated investment of RM1,000 during the period of two years, as a positive.

"Twenty-five per cent of the PRS member base today is youths and we hope to see that number increase further. There are 5 million Malaysian youths aged between 20 and 30 [years]," Chan added.

Document TH EDGE0020161024ecao00005

NEW STRAITS TIMES ONLINE

Budget reflects nation's strong economy

1,040 words 24 October 2016 New Straits Times N ST RAT 14English(c) 2016 New Straits Times Press (Malaysia) Berhad.

WHATEVER label is ascribed to the 2017 Budget, tabled in the Dewan Rakyat on Friday by Finance Minister Datuk Seri Najib Razak, also the prime minister, the clear message is that despite the ongoing sluggish global economic recovery and low commodity prices, which have spared no nation, the Malaysian economy continues to hold its own, although there may be some headwinds ahead.

It may not be an "election budget" as opposed to a "commitment budget", as Najib alluded to in his pre-budget statement, but it is a politically shrewd one which neatly fits into his 2017 Budget theme: "Ensuring unity and economic growth, inclusive prudent spending, wellbeing of the rakyat".

An election is due before May 2018, but if the economy continues on its steady growth trajectory, especially if commodity prices start to rebound in a more sustainable way and the government can sort out governance issues, then the prime minister may well be tempted to call a snap election in 2017 in the wake of a weak anddivided opposition.

The social constituency that stands to gain the most from the budget is the so-called B40, the category of income pyramid referring to the bottom 40 per cent of households with a monthly income of RM3,900 and below, which is prevalent in any economy in the world. This is followed by the M40, the group which includes singles, most working married couples, the educated and skilled, whose monthly income ranges from RM3,900 to RM8,300.

As such, the 2017 Budget resembles more a "People's Budget" aimed at a cornucopia of diverse groups ranging from civil servants, women, entrepreneurs, the rural and urban poor to small- and-medium-sized enterprises (SMEs) and students.

According to Khazanah Research Institute, the income of the B40 households recorded a faster growth rate last year compared with that of the M40 and T20 (top 20 per cent income) groups.

It is a far cry from the first post-independence budget tabled in 1959 by the Alliance Party, the precursor to the Barisan Nasional coalition, which amounted to a princely sum of RM888 million.

In contrast, the 2017 Budget estimates government revenues at RM260.8 billion, 3.4 per cent higher than the recalibrated 2016 Budget.

What is remarkable is that for the past six decades, Malaysia has managed to sustain gross domestic product (GDP) growth at a 6 per cent per annum average.

Nobody should be under any illusion that the road ahead could be bumpy, especially if conditions in the global or regional economy beyond the control of Putrajaya materialise.

Next year's budget deficit, for instance, is estimated at RM41.1 billion, based on government revenue projections of RM219.7 billion. While the expansion rate of the deficit has slightly slowed down from 3.1 per cent this year to a projected 3 per cent next year, the differential is so small that any whiff of unpredictability could push up the upside risk.

Putrajaya should not be tempted to expand the Goods and Services Tax (GST) to boost revenue. Najib, to his credit, has strongly dismissed rumours that he plans to extend GST rates. The GST collection netted nearly RM30 billion to Treasury coffers as at Oct 19.

The impact of falling commodity prices on national revenues must not be underestimated.

The recent fall in oil prices alone resulted in revenue loss of an estimated RM30 billion from income and corporation tax, royalties, Petronas dividend and petroleum income tax.

But, the government has also been successful in diversifying sources of revenue through its policy to reduce dependency on oil and gas sector-related revenue from 41.3 percent in 2009 to 14.6 per cent this year.

"As a result of further diversification of our economy, growth had been resilient and sustained despite the recent decline in oil prices by almost 50 percent. The government's bold measure to implement GST further diversified sources of revenue. We should realise that there are only 2.1 million income taxpayers out of 14.6 million of the country's total workforce," explained Najib in his budget address.

Similarly, the prime minister stressed that he is "confident of achieving a (GDP) growth of between four per cent and 4.5 per cent in 2016 and between four per cent and five per cent in 2017".

This is against an expected global growth background of 3.1 per cent this year from 3.2 per cent last year.

The World Bank, in its latest Regional Economic Outlook for Asia Pacific at the World Bank Group Annual Meetings in Washington in October, had already downsized its Real GDP projection for Malaysia for next year to 4.6 per cent from the 4.8 percent projection in its Article IV Consultation Report on Malaysia published in May.

Similarly, the current account balance was revised downwards to 1.2 per cent from 2.3 percent for this year and to 1.5 per cent from 1.9 per cent next year. The good news is that the Consumer Price Index, inflation, is projected at three to 3.1 per cent, albeit up from 2.1 per cent projection for this year. This is due to the current account balance, vagaries of the commodities markets, cost of imports and volatility of the ringgit exchange rate.

On a positive note, Malaysia's Purchasing Power Parity per capita increased from US$23,100 in 2012 to US$26,891 last year, making it an upper middle-income country; approved foreign investment totalled RM28 billion during the first half of this year, an increase of 32 per cent compared with the same period last year; and, the provision of vacant lands to government-linked companies and the IMalysia People's Housing Project is slated to build more than 30,000 affordable houses with several tax incentives.

The challenge for Najib and his successors is to leverage Malaysia's A- rating in pursuit of the national ideology, Rukunegara, under the universal Islamic principle of wasatiyyah - moderation, balance, social justice, fairness and excellence - to effect National Transformation by 2050!

The writer is an independent London-based economist and writer.

( END)

Document NSTRAT0020161024ecao0003a

NEW STRAITS TIMES ONLINE

'Economy stable, on a positive trajectory'

11,041 words 22 October 2016 New Straits Times N ST RAT 14English(c) 2016 New Straits Times Press (Malaysia) Berhad.

INCLUSIVE: Prime Minister and Finance Minister Datuk Seri Najib Razak tabled the 2017 Budget in Parliament yesterday. This is a translation of his speech

MR Speaker Sir,

I beg to move the bill titled "An Act to apply a sum from the Consolidated Fund for the service of the year 2017 and to appropriate that sum for the service of that year" be read a second time.

In the past six decades, many budgets have been tabled.

The first post-independence budget was presented in Parliament in 1959, with a total allocation of only RM888 million, while the current 2017 Budget stands at RM260.8 billion.

For the past 60 years, the Alliance Party, and now, the Barisan Nasional government, has successfully sustained gross domestic product (GDP) growth at an average of 6 per cent per annum.

The 2017 Budget allocates a sum of RM260.8 billion, an increase of 3.4 per cent from the recalibrated 2016 Budget.

Of the amount, RM214.8 billion is allocated for operating expenditure, while RM46 billion is for developmentexpenditure.

This does not include contingencies, for which RM2 billion has been allocated.

Under operating expenditure, RM77.4 billion is for emoluments and RM32 billion for supplies and services.

Meanwhile, RM 103.9 billion is allocated for fixed charges and grants. A sum of RM691 million is allocated for purchase of assets, with RM816.6 million for other expenditures.

Underdevelopment expenditure, the economic sector will receive the highest share of RM25.9 billion, followed by the social sector with RM12.2 billion. The security sector will receive RM5.3 billion and the general administration will receive more than RM2.5 billion.

The revenue collection next year is expected to expand by three per cent to RM219.7 billion.

In addition, the government is expected to achieve the fiscal deficit target of three per cent of GDP next year, compared with 3.1 per cent this year.

I understand that these figures and numbers may not be easily understood.

The government is always committed to implementing an optimum budget for the rakyat through prudent spending, even though we are faced with global economic uncertainties.

The definition of prudent spending by the government is similar to how a sensible father or head of a family manages finances to meet household needs.

In other words, if previously we could afford expensive toys, however, in the present situation, we can continue to do so, but within our means.

This is also applicable to food and dining expenses, where one is advised to spend in moderation and according to one's needs.

This is even more so as Malaysia is known as a food haven.

For example, during the recent National Day message, I gave examples of where good food at reasonable prices could be found, such as the Nasi Kandar Vanggey in Ipoh.

I also found out that a young female graduate was selling Nasi Lemak Anak Dara in Shah Alam. But after it went viral, she was summoned.

Nevertheless, the government encourages such individuals, especially graduates, to venture into entrepreneurship, and we pray for their success.

In formulating the 2017 Budget, we drew lessons from Surah Yusuf verses 43 to 49. As interpreted by the ulama, one should plan and prepare for the first seven years, while facing the subsequent seven years of challenges to sustain economic resilience.

There were lessons leamt from seven years ago when Malaysia was affected by the global economic slowdown in 2008.

Upon my appointment as finance minister, under the leadership of former prime minister Tun Abdullah Ahmad Badawi, we launched the First Economic Stimulus Package, amounting to nearly RM7 billion, to revitalise the economy.

The first stimulus package was just an interim measure.

Subsequently, in March 2009, a month after I took office as the prime minister, the Second Economic Stimulus Package of RM60 billion was implemented.

This was a proactive measure to stimulate the slow economic growth at that time. As a result, the economy rebounded with the GDP reaching 7.4 per cent in 2010.

Following the various incentives from the stimulus packages as well as seven previous budgets, our economy remains stable and on a positive trajectory.

The current uncertainties in the external economy are beyond our control.

The slower external economic growth is caused by subdued growth among all major economies, simultaneously.

As a result, global growth is expected to moderate to 3.1 per cent this from 3.2 per cent last year

Nevertheless, we are grateful that economic growth remained stable and sustainable during the first half ofthe year.

The country's economy grew by 4.1 per cent and we are confident of achieving growth of between four and 4.5 per cent this year and between four and five per cent next year.

Indeed, we are now on the right track, as we have and are making right decisions, even though the measures are unpopular.

I would like to emphasise that all those major and crucial decisions were deliberate.

As the saying goes, save for a rainy day. We have laid strong foundations for the country's long-term financial and economic position.

All these were achieved due to the government's diligence and planning, focusing on various strategic measures since 2010.

FIRST: Diversifying the government's sources of revenue, particularly by reducing the dependence on oil and gas sector whose revenue fell from 41.3 per cent in 2009 to 14.6 per cent this year.

As a result of the diversification of our economy, growth has been resilient and sustained despite the recent decline in oil prices by almost 50 per cent.

SECOND: The government's bold measure to implement the Goods and Services Tax (GST) diversified the sources of revenue. There are only 2.1 million income taxpayers out of 14.6 million of the country's total workforce.

In addition, with the recent fall in oil prices, it is estimated that there will be a loss of government revenue by RM30 billion from income tax, corporate tax, royalty, Petronas dividend and petroleum income tax.

Hence, we should be grateful for the implementation of GST, as the government is able to support its expenditure despite limited resources.

I am pleased to report that GST collection has reached nearly RM30 billion as at Oct 19.

We should not believe rumours about the increase in GST. It is just hearsay and untrue.

THIRD: Subsidy rationalisation. For example, the oil subsidy in 1995 stood at RM123 million, constituting only 0.24 per cent of the overall national budget.

At its peak in 2012, it reached RM24.8 billion, or 9.8 percent of the budget.

The inefficient bulk subsidy system has burdened the government's financial position and caused leakages. As such, we replaced it with a targeted subsidy system, benefiting those who are really in need.

It is evident that through measures and initiatives implemented by the government, our economy has recorded sustainable growth.

In terms of purchasing power parity (PPP), Malaysia is now an upper middle-income country, surpassing many countries, not only in Asia, but also throughout the world.

Malaysia's PPP per capita has increased from US$23,100 in 2012 to US$26,891 last year.

The government is aware of rumours about the so called deteriorating investors' confidence in the Malaysianeconomy.

A nation's economy is highly affected by perception, because without confidence, there will be no investment to drive the economy.

But, if our own people undermine and sabotage the economy, we are bringing down our own nation.

Therefore, accusations by irresponsible internal and external parties must be stopped.

Despite many challenges, the Barisan Nasional government will do what it needs for the beloved rakyat; from the peninsula to Sabah and Sarawak, we will continue to propel the country forward.

Facts and figures have borne the truth.

For example, the total approved foreign investment was more than RM28 billion in the first half of this year, an increase of 32 per cent compared with the same period last year.

This excludes approved domestic investment, which totalled more than RM60 billion.

During my official visit to Germany last month, I met the business community, who expressed interest to continue investing in Malaysia as they are confident with the government's sound policies, which met their expectations.

For example, Osram has announced an investment worth 1 billion euros, or equivalent to nearly RM5 billion.

The LED plant in Kulim, Kedah, will be the largest and the most modern in the world.

Next week, I will be heading to China, and we hope to attract more investment.

Recently, Kaushik Basu, the chief economist and senior vice-president of the World Bank, said that as many nations suffered because of falling commodity prices, Malaysia stood out for having transformed itself from a poor, commodity exporting nation to a modern diversified economy.

Each time the budget is discussed, intellectuals will refer to and deliberate on several important verses in the Quran, among others, Surah Al-Hasyr verse 7 that forbids wealth being enjoyed only among the rich.

I have sought views from various ulama and learned Muslims regarding this verse. They interpret this verse in a wider and more holistic context.

As elaborated by Imam Al-Mawardi, provisions or allocations for the rakyat, such as this budget, are subjective, taking into consideration their needs and benefits.

Formulating a complex budget is not an easy task. As a government that feels the pulse of the rakyat, in the past months, we have received thousands of ideas from various segments of society.

The 2017 Budget is anchored on five principles and philosophies of the government.

FIRST: The government prioritises national integration in forming a nation state. Our ethnic diversity is an essential asset in the past, present and future;

SECOND: The government prioritises and preserves sovereignty, upholding the Constitution and laws as well as national security;

THIRD: The government is cohesive and stable, and works as a strong team;

FOURTH: The government is a diligent one, with a clear direction, carries out systematic planning as well as holistic, efficient and structured implementation of plans. Indeed, the government has delivered and we are still delivering, and most importantly, we will continue to deliver; and,

FIFTH: We uphold the national ideology, which is the Rukunegara. As such, in governing the country, the government has been firmly upholding the Islamic philosophy and principle of wasatiyyah. The philosophy extols moderation, balance, social justice, fairness and excellence.

This means that we are always striving for excellence, not just being average and complacent, or settle for mediocrity.

While we strive to succeed through joys and sorrows, we have never forgotten exemplary leaders who have inspired us.

In this regard, we would like to express our deepest condolences to families of several individuals who have served the nation. I would like to share their stories though they were not members of parliament.

FIRST, the late Tan Sri Haji Abdul Aziz Tapa, who loyally served the party and people until he was 93 years old.

SECOND, another close family friend, the late Tuan Guru Datuk Dr Haron Din.

Malaysians have lost two respected figures.

Despite our political differences, the late Tuan Guru was highly respected for his contributions to the ummah. As such, the government has conferred him the 2016 Maal Hijrah Special Award. We are sad and disappointed that there are certain parties that openly hate and insult him.

During my visit to the hospital, the late Tuan Guru hinted that the feelings of love and hatred should not be too extreme.

Al-Fatihah.

We are approaching six decades of independence. During these years, public servants, who number 1.6 million, have been the backbone and pillar of the nation's administration.

To appreciate the contribution of public servants, I am pleased to announce the following:

FIRST: To extend the fully paid study leave with a scholarship to the support group, which is currently limited to the management and professional group;

SECOND: To grant quarantine leave up to five days without record to public servants whose children are ill and require to be quarantined;

THIRD: This year's budget will extend the existing computer loan facility to encompass the purchase of smartphones. This facility can be utilised by public servants once every three years with a maximum loan of RM5,000;

FOURTH: The government has also decided to increase the motorcycle loan from RM5.000 to RM 10,000;

FIFTH: The government is concerned with public servants' housing needs and is committed to helping them own houses.

As such, the government is pleased to increase public servants' housing loan eligibility from between RM120.000 and RM600.000 to between RM200.000 and RM750.000;

SIXTH: To complete 30,000 units of 1 Malaysia Civil Servants Housing Programme (PPA1M) homes, with prices between RM90.000 and RM300.000, which is 20 per cent below the market price;

SEVENTH: To extend the contract of service and contract for service officers that are expiring at the end of this year for at least one year;

EIGHTH: To address the issue of specialist doctors leaving the public service and delays in promotion, the government will introduce a grade 56 between grade 54 and JUSA C for medical and dental specialists; and,

NINTH: To appoint the first group of doctors, dentists and pharmacists on contract latest by December due to constraints in permanent posts.

Nearly 2,600 doctors who were unable to undergo housemanships in hospitals will now serve on contract. Hopefully, this will be good news to them and their families.

Before proceeding with the tabling of the budget, allow me to clarify several allegations and misconceptions that create fear among the rakyat, causing public confusion on Malaysia's economic situation.

FIRST misconception and misperception - that the government will go bankrupt.

I would like to clarify that a government will be declared bankrupt only if it is unable to pay off its debt.

There are three reputable international rating agencies, namely, Fitch, Moody's and Standard & Poor's.

The ratings and reports from these agencies are accepted in assessing a country's ability to pay off its debts.

As a comparison, Fitch rated Malaysia with an A-, compared with the Philippines (BBB-), Thailand (BBB+)and Vietnam (BB-).

Our rating is similar to that of advanced and larger economies, such as South Korea (AA-), China (A+), Taiwan (A+) and Japan (A).

This means bankruptcy is never in Malaysia's economic dictionary.

SECOND allegation - that Malaysia is said to be a failed state.

This is a false accusation. I would like to clarify the meaning of a failed state. It refers to a country that fails to implement most of its responsibilities and basic functions of a government.

This includes the failure of the police and armed forces in maintaining national security and public order; failure of the government to pay the salary of civil servants; failure in providing basic amenities, such as water and electricity; as well as hyperinflation that could collapse the economy.

These characteristics do not exist in Malaysia and with the blessings of Allah, this government will never allow our country to become a failed state.

This budget is not intended to benefit any particular group.

However, it is engineered for the wellbeing of the rakyat.

As illustrated in a household income pyramid, there are three main categories of rakyat in our country, namely T20 (top 20 per cent), M40 (middle 40 per cent) and B40 (bottom 40 per cent).

For the M40 group, the household income is between RM3,900 and RM8,300.

This group includes singles as well as most working married couples, and those highly educated and skilled.

This group does not face difficulties in meeting their basic needs. However, the government intends to increase their disposable income.

This includes aspects such as job security, increase in income from time to time, housing, safety, education, health as well as a balance of work, recreational and quality time with their families.

B40 refers to the bottom 40 per cent of households, with a monthly income of RM3,900 and below. From the macroeconomic perspective, this group is found in all developing countries.

According to the Khazanah Research Institute Report, the household income of the B40 households recorded a faster growth rate compared with the income growth of the M40 and T20 groups.

In the 2015 Budget, I defined people economy and capital economy. This time, I would like to add another important concept towards becoming an advanced economy, which is public happiness.

This budget is not merely about income, it is also related to the quality of life, such as freedom from crime, enjoying a clean environment and appreciating art and culture.

It is also about attaining higher education, raising one's academic qualifications and intellectuality, with guaranteed healthcare services as well as access to efficient public transport.

On environmental matters, we must continue to preserve nature, especially water catchment areas, and declare these areas as forest reserves, and keep national parks protected from intrusion. This will only become a reality if state governments provide full cooperation and work in collaboration with the private sector and the rakyat.

For the wellbeing of the rakyat, the government remains committed to implementing rakyat-centric projects and programmes in urban and rural areas, as follows:

FIRST: From information gathered and site visits, it has been discovered that there are villages that still do not have streetlights.

To brighten the villages at night, 97,000 street lights and 3,000 LED lights will be installed at crossroads.

This involves 7,500 villages, including those in Sabah and Sarawak.

SECOND: To enhance the connectivity of villages, towns and cities, 616km of village roads and bridges will be built and upgraded with an allocation of RM1.2 billion;

THIRD: To maintain state roads, RM4.6 billion is allocated to all states under the Malaysian Road Records Information System;

FOURTH: To build and refurbish 17,000 units of dilapidated houses in remote villages and Orang Asli settlements with an allocation of RM350 million.

Each unit will be given assistance for renovation of between RM1,000 and RM15,000, depending on the condition of the houses; and,

FIFTH: To increase the supply of clean water with an allocation of RM732 million, targeting 5,200 houses, including the upgrading of Felda water supply system.

Recently, there have been water supply issues in several states, including lack of supply capacity, drought, pollution from industrial waste and logging, and pipe leakages.

To improve capacity and ensure water supply, the government will allocate grants totalling RM156 million and loans amounting to RM509 million.

In addition, a Water Supply Fund will be established immediately with an allocation of RM500 million to address water supply issues.

SIXTH: To provide electricity supply in rural areas, targeting approximately 10,000 houses, with an allocation of RM460 million; and,

SEVENTH: The government is concerned about the welfare of urban residents, especially those living in flats. These flats are rundown, have malfunctioning lifts, due to lack of maintenance.

The government will allocate RM300 million under the 1 Malaysia Maintenance Fund to repair facilities at flats and 113 People's Housing Programme (PPR) homes in urban and suburban areas.

In addition, the government will implement people-friendly projects with an allocation of RM800 million. These projects include upgrading and building surau, small bridges, drains, community halls, markets and kiosks. Priority will be given to 25 local G1 and G2 contractors for the implementation of these projects.

Furthermore, 69 flood mitigation projects will be carried out nationwide with an allocation of RM495 million.

I am also pleased to announce the implementation of a new National Blue Ocean Strategy (NBOS) initiative, namely MyBeautiful New Home, especially for the B40 group, with an allocation of RM200 million.

At the initial stage, 5,000 units will be built with prices ranging from RM40,000 to RM50,000 per unit.

The government will finance RM20,000, while the remaining sum will be paid in instalments by owners. These houses will be built on their own land, land permitted by the landowner and land awarded by state governments.

The Urban Wellbeing, Housing and Local Government Ministry will build 9,850 houses under PPR with an allocation of RM134 million next year.

A total of 11,250 PPR homes are being built with an allocation of RM576 million. These homes will be priced between RM35,000 and RM42,000, even though the construction cost is between RM120,000 and RM160.000.

To improve the rakyat's income opportunities, especially for the B40 group, RM275 million is allocated for the following:

FIRST: Expanding the MySuria Programme with an allocation of RM45 million. Through this initiative, solar panels will be installed in more than 1,600 housing units. Each participant will receive RM250 per month;

SECOND: Expanding the Mobileprenuer Programme by GIATMARA with an allocation of RM30 million, targeting 3,000 mortorcyclists;

THIRD: Implementing the Agropreneur programme to produce 3,000 young entrepreneurs with an allocation of RM100 million. These entrepreneurs will be involved in the production of high-value agricultural products; and,

FOURTH: Revitalising the eUsahawan and eRezeki programmes under the Malaysia Digital Economy Corporation (MDEC), comprising 300,000 participants, with an allocation of RM100 million.

To ease the cost of living, the government will provide nearly RM10 billion for subsidy allocation. This allocation comprises fuel subsidies and for cooking gas, toll charges and public transport.

To help padi farmers, the government will allocate RM1.3 billion to subsidise padi price, seeds and fertilisers, including hill padi.

As an incentive to register rubber smallholders, the government will allocate RM250 million to support rubberprice.

As an additional measure, the government will introduce a rainy season assistance of RM200 monthly for three months in November, December and January, benefiting 440,000 rubber tappers and smallholders.

To ease the cost of living of 57,000 fishermen, the monthly allowance of RM200 to RM300 will be continued.

The introduction of the 1 Malaysia People's Aid (BR1M) programme has been well-received with positive feedbacks from the recipients.

In an event that I attended, a BR1M recipient expressed his appreciation towards the government for the BR1M aid as it had assisted his family.

Therefore, BR1M is not animal feed, neither is it bait; rather it is a sincere assistance from the government as we always prioritise the rakyat's needs. Hence, we will provide more assistance under BR1M next year as follows:

FIRST: For households in the e-Kasih database with a monthly income below RM3,000, BR1M will be increased to RM1,200 from RM1.050 and RM1.000;

SECOND: For households earning between RM3.000 and RM4,000, BR1M will be increased from RM800 to RM900; and,

THIRD: For singles earning below RM2.000, BR1M will be increased from RM400 to RM450.

The Bereavement Scheme will be continued, with RM 1,000 compensation given to the next of kin of BR1M recipients for households and the elderly category. Overall, the BR1M programme will benefit 7 million recipients with an allocation of RM6.8 billion.

To produce a workforce that meets industry requirements, TVET (Technical Vocational Education and Training) education capacity will be enhanced with an allocation of RM4.6 billion to TVET institutions.

To optimise government assets through NBOS, nine unused teacher- training institutes will be transformed into polytechnics and vocational colleges.

Four will become polytechnics, another four will become vocational colleges and one will become a training institute for TVET trainers.

For this creative initiative, the expenditure involves only RM400 million compared with RM250 million to build a new polytechnic. This will save the government approximately RM2 billion.

Furthermore, RM270 million is allocated to upgrade educational equipment in TVET institutions as well as RM360 million for the Skills Development Fund Corporation.

In this regard, a double tax deduction is given on expenses incurred by private companies to provide Structured Internship Programmes for students pursuing undergraduate degrees, diplomas and Malaysian Skills Certificate Level 3 and above under the TVET programme. This incentive is extended for a period of three years from the year of assessment 2017 until year of assessment 2019.

In addition, training matching grants and curriculum development assistance will be provided to public TVET which successfully obtain assistance in the form of equipment from industries.

To enhance graduate employability, RM50 million will be allocated to extend the 1 Malaysia Training Scheme programme by GLCs (government-linked companies) to 20,000 graduates next year compared with 15,000 graduates this year.

Flouse ownership is an issue that is very close to my heart.

The government is committed to ensuring that every family can own a house.

To help first-time homebuyers, the government will introduce the following concepts:

FIRST CONCEPT: Through NBOS, we will provide government vacant land at strategic locations to GLCs and PRIMAto build more than 30,000 houses, priced between RM150,000 and RM300,000, which is much lower than the market price of RM250,000 to RM400,000.

SECOND CONCEPT: To build around 10,000 houses in urban areas for rental to eligible youth with permanent jobs, including young graduates entering the labour market.

They may rent up to a maximum of five years at a rate lower than the market's while they strengthen their financial position to own a house; and,

THIRD CONCEPT: To build 5,000 units of People Friendly Flome (PMR), with the government subsidising up to RM20,000 per unit. For this purpose, RM200 million will be allocated to Syarikat Perumahan Negara Berhad (SPNB).

PR1MA has been well-received. To date, more than 12,000 units worth RM3.3 billion have been booked, while 85,000 units are at various stages of approval.

I would like to take this opportunity to announce a new special "step-up" end-financing scheme for the PR1MA programme.

Through this scheme, financing will be easier and more accessible to buyers, with total loan of up to 90 per cent to 100 percent, with loan rejection rates reduced drastically.

This scheme will be implemented from Jan 1. This scheme is a collaboration among the government, Bank Negara Malaysia, Employees Provident Fund (EPF) as well as four local banks, Maybank, CIMB Bank, RFIB Bank and AmBank.

For example, an applicant with a monthly income of RM3.000 will only be eligible for a loan of RM187,000. Flowever, through this special financing scheme, an applicant will be able to borrow more than RM295,000.

In addition, the stamp duty exemption will be increased to 100 percent on instruments of transfer and housing loan instruments, to reduce the cost of first-home ownership, compared with 50 percent now.

Flowever, this exemption is limited to houses valued up to RM300,000 for first-time homebuyers for the period between Jan 1 and Dec 31, 2018.

For Second Generation Flouse infrastructure development, RM200 million will be allocated to Felda, RM100 million to Felcra and RM100 million to Risda.

There is also good news for taxpayers. Currently, there are 21 categories of individual tax reliefs. To facilitate taxpayers in claiming existing tax reliefs, the purchase of reading materials, computers and sports equipment can be combined as lifestyle tax relief.

This relief is extended to include the purchase of newspapers, smartphones and tablets, Internet subscriptions as well as gymnasium membership fees. The relief is given up to RM2,500 per year, and will be effective from year of assessment 2017.

The NBOS initiative has successfully saved RM3.5 billion in government expenditure.

As it is well-received by the rakyat, four more Urban Transformation Centres (UTCs) will be built in Negri Sembilan, Periis, Penang and Selangor, and three more Rural Transformation Centres (RTCs) will be built in Selangor, Sabah and Sarawak with an allocation of RM100 million.

As a new measure, each UTC will be provided with a job centre to match job seekers with potential employers.

UTCs operate from 8am to 10pm, seven days a week. This is only possible with the Barisan Nasional government.

Furthermore, other NBOS initiatives include 1 Malaysia English, coding in schools, Volunteering for International Professional and Global Entrepreneurship Community 2, with an allocation of RM40 million.

While implementing various rakyat-centric programmes, the government is committed to enhancing long-term fiscal sustainability, among others, through the establishment of Collection Intelligence Arrangement (CIA) under the Finance Ministry. It involves the Inland Revenue Board, Customs Department and Companies Commission as they will share data to enhance efficiency in tax collection and compliance.

In addition, the rate of stamp duty on instruments of transfer of real estate worth more than RM1 million will be increased from 3 per cent to 4 per cent effective Jan 1, 2018.

Furthermore, various projects will be continued through the Private Finance Initiative with an allocation of RM10 billion.

(Indonesian ulama) Professor Flamka once said a pure soul emanates from a healthy lifestyle, while sports and recreational activities will lead to a wholesome character.

Flowever, bersih (healthy lifestyle) here does not refer to the Bersih rally.

Speaking about sports, we are extremely proud of our Olympic and Paralympic contingents. For the first time, the Negaraku was played in Rio de Janeiro.

Alhamdulillah, our contingent won four silver medals and one bronze at the 2016 Rio Olympic Games.

Congratulations to our national Olympic heroes.

For the development of sports, RM1.2 billion will be allocated. This includes RM450 million for hosting the 29th SEA Games and the 9th Para Asean Games next year.

In addition, several sports development programmes will be implemented:

FIRST: RM50 million will be allocated for the construction of Football Academy Phase II in Gambang,Pahang;

SECOND: RM122 million will be allocated for constructing and upgrading sports facilities, including state Youth and Sports Complexes, 1 Malaysia Futsal Complex and Community Sports Complexes;

THIRD: RM70 million will be allocated to continue the Elite Sports Podium Development Programme to prepare elite athletes for international sports events; and,

FOURTH: RM54 million will be allocated to continue sportsmen development programmes, including the Athlete Preparation Programme and Paralympic Athlete Preparation Programme.

Health is everything. As such, concerted efforts will be implemented to improve the health of the rakyat and quality of healthcare. Thus, RM25 billion will be allocated for the following programmes:

FIRST: To build and upgrade new hospitals and clinics in Periis, Kuching, Mukah, Jempol, Muarand Johor Barn;

SECOND: To upgrade hospital facilities with an allocation of RM536 million. This includes provisions for cardiology treatment equipment for Serdang Hospital, Penang Hospital and Sultanah Aminah Hospital in Johor Baru, as well as the purchase of 100 ambulances;

THIRD: Allocating RM4.5 billion for the operations of 340 1 Malaysia Clinics, 11 1 Malaysia Mobile Clinics, 959 health clinics and more than 1,800 existing rural clinics; and,

FOURTH: Allocating RM4 billion for drugs, consumables, vaccines and reagents for all government hospitals and health facilities.

On healthcare, I would like to introduce Dr Mohd Lutfi Fadil Lokman. He is an exemplary youth recognised by the United Nations through the Hospital Beyond Boundaries Project, which he started in Cambodia. Congratulations to Dr Lutfi, who is an icon among youth in the field of health.

To reduce overcrowding in public hospitals, the government will cooperate with the private sector or NGOs (non-govemmental organisations) to operate non-profit hospitals based on government hospital rates. A total of RM20 million will be allocated in the form of loans for the purchase of hospital equipment.

The government will allocate RM110 million, of which RM70 million is for medical assistance, benefiting nearly 10,000 underprivileged patients.

To encourage the establishment of more private haemodialysis centres, the government will provide one-off grants worth RM200,000 for the purchase of equipment, with a total allocation of RM40 million.

The government views contagious diseases, such as dengue and Zika, seriously, and will implement initiatives to prevent and control them. In addition, the National Community Health Empowerment Programme will be expanded.

These programmes involve an allocation of RM80 million.

The government is concerned over rising food prices as well as ensuring food security.

Therefore, RM1.3 billion will be allocated to increase food production at competitive prices.

The allocation is to develop agricultural infrastructure, such as drainage and irrigation, farm roads and marketing of agricultural products. High-impact programmes, including padi estates, aquaculture integrated zones and cage fish farms, will be continued.

There is also an allocation of RM140 million for the Distribution of Necessary Goods Programme, opening four MyFarmOutlets and upgrading 150 Agrobazaar Rakyat 1 Malaysia premises.

Furthermore, the government also encourages the development of the dairy industry, as well as madu kelulut and coconut industries, while reducing dependence on imported animal feed through the development of com plantations as a pilot project in Terengganu and Kedah.

The government is also concerned about the welfare of taxi drivers.

With us today, we have two taxi drivers who appreciate the government's effort in safeguarding their welfare. Thank you, and let us give a round of applause to Mohd Rais Hasan and Tan Woon Kong, who are here today.

I am pleased to announce a RM5,000 grant to purchase new vehicles and the offering of individual taxi permits, with an allocation of RM60 million. This will benefit 12,000 qualified taxi drivers who have ended their leasing contracts with taxi companies.

Currently, many taxi drivers are not insured. Therefore, the government will introduce a Social Security Organisation (Socso) scheme for taxi drivers with a monthly income of up to RM3.000, with a launching grant of RM60 million.

Under this scheme, taxi drivers are required to contribute between RM157 and RM443 per annum, which is only RM13.08 per month. Should an accident occur while working, they are eligible to claim from Socso.

For example, a taxi driver who suffers permanent disability will receive a lump sum payment of between RM43,000 and RM121,000, and a monthly payment between RM 1,281 and RM2,624for life. In the event of death, his next of kin shall receive Dependant's Benefit of between RM945 and RM2.655 per month.

To assist the B40 group, especially BR1M recipients, to generate additional income, the government will encourage participation in ride-sharing services, such as Uber, particularly those who own vehicles.

Their income can reach up to RM1,500 per month for part-time drivers working between 10 and 40 hours per week, and RM4,300 if they work more than 40 hours per week.

To those who do not own a vehicle, a downpayment will be made using BR1M and a rebate of RM4.000 will be provided for the purchase of a Proton Iriz.

To upgrade the drainage system and construct two overhead motorcycle ramps at the Federal Highway in Selangor to mitigate floods in the motorcycle lane and ensure safety of riders, an allocation of RM29 million is provided.

Under the capital economy, the government will continue to implement pro-business strategies.

In line with private investment, which is expected to expand by 8.1 per cent to RM230 billion next year, more initiatives will be implemented.

To stimulate private investment, among the major infrastucture projects that will be implemented are the upgrading of Jalan Lok Kawi-Pengalat-Papar in Sabah; Jalan Kampung Keruak-Gua Musang-Kuala Berang; construction of the Batang Lupar Bridge in Sri Aman; and, the reconstruction of the Sandakan Power Station.

In addition, for infrastructure and socioeconomic development, the five economic corridors, namely Iskandar Malaysia, Northern Corridor Economic Region (NCER), East Coast Economic Region (ECER), Sabah Development Corridor (SDC) and Sarawak Corridor of Renewable Energy (SCORE), will be allocated RM2.1 billion.

Meanwhile, the Malaysian Investment Development Authority (Mida) will be allocated RM522 million. Among the industries that will be given emphasis are the chemical, electric and electronic and R&D (research and development) sectors.

To invigorate domestic capital market, the Small and Mid-Cap PLC Research Scheme will be introduced to conduct research on 300 companies.

Government-linked investment companies will allocate a special fund of up to RM3 billion to fund managers licensed under the Securities Commission to invest in small- and mid-cap companies.

In addition, the Capital Market Research Institute will be established with initial funding of RM75 million, provided through the Capital Market Development Fund.

On the other hand, in maintaining Malaysia as an international Islamic financial centre, I am pleased to announce that the period of income tax exemption to entities carrying out Islamic banking and Takaful business through the International Currency Business Unit in foreign currencies, as well as stamp duty exemption on instruments of such activities, will be extended to the year of assessment 2020.

To encourage youth to make long-term investment, the government will introduce a Private RetirementScheme (PRS).

Effective next year, the government proposes to introduce a one-off increase of the existing RM500 incentive to RM1,000 to PRS contributors with a minimum accumulated investment of RM1.000 during the period of two years. For this, an allocation of RM165 million will be provided.

For export promotion programmes for local SMEs (small- and medium-sized enterprises) by Matrade (Malaysia External Trade Development Corporation), Mida and SME Corp, a sum of RM130 million will be provided through National Export Promotion Fund.

In addition, loan financing totalling RM200 million and insurance credit facilities with coverage valued up to RM1 billion will be provided by EXIM Bank to SMEs.

A sum of RM286 million will be provided to increase exports of palm oil, rubber, cocoa and pepper.

A sum of RM50 million will be allocated to conduct scientific research to enhance the quality of palm oil products.

A grant of RM30 million will be provided through the Malaysian Palm Oil Board (MPOB) for replanting of oil palm by smallholders.

In addition, RM20 million will be provided to upgrade estate roads to facilitate oil palm smallholders.

The tourism sector contributes significantly in generating the country's income. The government will further emphasise on promoting and improving tourism facilities. Therefore:

FIRST: RM400 million will be allocated, among others, for clean air and ecotourism initiatives;

SECOND: Pioneer Status promotion and Investment Tax Allowance for new four and five star hotels will be extended to Dec 31, 2018.

THIRD: Increase in tax deduction from RM500,000 to RM700,000 will be given to encourage sponsorship by the private sector in local and foreign arts, culture and heritage shows and performances.

In addition, the government will promote Malaysia through the Visit Asean@50 Year Campaign in conjunction with the 50th anniversary of Asean as well as Malaysia as the host for the 2017 SEA and Para Asean Games.

To achieve the target of 32 million tourist arrivals next year, the government will extend the eVisa initiative to countries in the Balkans and South Asia region.

Currently, digital connectivity is a revolution in economic activity, contributing nearly 16 percent to GDP.

Through MDEC, RM162 million will be allocated to implement programmes such as e-commerce ecosystem, Digital Maker Movement and the introduction of a new category Malaysia Digital Hub.

The government will introduce the first Digital Free Zone in the world. It will merge physical and virtual zones, with additional online and digital services to facilitate international e-commerce and invigorate Internet-based innovation.

On this auspicious evening, I would like to bring good news to all of you, particularly the youth, regarding online connectivity. As an open democratic nation, the government aspires to enhance the online information transmission channel.

I'm pleased to announce that effective January, fixed-line broadband service providers will offer services at a higher speed for the same price. For example, a subscriber of the five megabytes per second package at RM149 will enjoy a package with twice the speed, which is 10 megabytes per second.

Within the next two years, for this package, the speed will be doubled, with a reduction in price by 50 per cent.

In addition, the government will launch an initiative for ethernet broadband services in public universities to be increased to a maximum 100 gigabytes per second.

At the same time, the Malaysian Communications and Multimedia Commission will provide RM1 billion to ensure the coverage and quality of broadband nationwide reaches up to 20 megabytes per second.

The government had declared that 2017 will be the Start-up & SME Promotion Year, in line with the role of SMEs in significantly contributing to the nation's growth and labour market.

To promote the development of SMEs, the government will allocate RM75 million to implement programmes under the SME Master Plan.

In addition, a guarantee of up to RM15 billion will be provided under the various schemes of Syarikat Jaminan Pembiayaan Pemiagaan (SJPP) till 2025.

In addition, to boost export-oriented SMEs, the government will provide a two per cent rebate on interest rates charged to SME borrowers under SJPP's scheme.

This rebate is limited to a total accumulated funding of RM1 billion, which includes RM100 million fora period of five years.

To invigorate start-ups, RM200 million from the Working Capital Guarantee Scheme (WCGS) Fund will be allocated to start-ups.

To encourage investment in high technology start-ups, a new pass category, namely the Foreign Knowledge Tech Entrepreneurs, will be introduced.

Meanwhile, to rejuvenate the creative industry and film production, the Film in Malaysia Incentive, Arts and Culture Revitalisation Agenda as well as Finas Content Creation Hub in Santubong, Sarawak, and Kota Kinabalu, Sabah will be implemented.

The government will establish a committee represented by artists to further invigorate the arts and culture sector. These initiatives involve an allocation of RM80 million.

Children between 2 and 5 are in their essential phase of physical and mental growth.

Therefore, the government will continue with the Additional Food Assistance and Per Capita Grant to children enrolled in tabika and taska programmes.

The government will improve daily nutritional food packages that are more balanced, including 250ml of milk, raisins and eggs.

This initiative will benefit nearly 280,000 children, with an allocation of RM200 million.

Furthermore, RM132 million will be provided to improve access to preschool education in government schools for free, benefiting 200,000 children.

Every person deserves to have access to education.

Among the initiatives that will be implemented in primary and secondary schools are:

FIRST: Reconstruct 120 dilapidated schools, 60 of which are in the peninsula, 30 in Sabah and 30 in Sarawak, using the Industrial Building System, as well as upgrade 1,800 science laboratories. For this, a sum of RM570 million will be allocated;

SECOND: Complete the construction of 227 primary and secondary schools, including 8 new schools, with an allocation of RM478 million; and,

THIRD: Improve English proficiency in schools through the Cambridge English, Dual Language and Highly Immersive programmes with the provision of RM90 million.

Another good news, MCMC will provide free tablets to 430,000 teachers to aid the teaching process, with an allocation of RM340 million.

To support parents in reducing children's schooling expenses, the government will continue to implement the following programmes:

FIRST: Under the School Assistance Programme, provide RM100 each to students from families earning up to RM3,000. The programme will benefit 3.5 million students;

SECOND: Allocate RM1.1 billion for the Hostel Meal Assistance Programme for 365,000 students;

THIRD: Allocate RM300 million for the 1 Malaysia Supplementary Food Programme for primary school pupils;

FOURTH: Provide RM1.1 billion for the Additional Assistance Payment for School Fees, Textbook Assistance and Per Capita Grant Assistance, among others;

FIFTH: Provide matching grants of up to RM50 for accumulated savings in SSPN-i. This incentive will be provided to students in Year 1 in fully-assisted government schools;

SIXTH: Provide Special Needs Student Allowance of RM150 monthly, involving 67,000 students, as well as replace buses for 21 special education schools; and,

SEVENTH: Provide an allocation of RM600 million to the Special Fund for the Improvement and Maintenance of Schools, of which RM250 million are for national schools, RM50 million for national-type Chinese schools and RM50 million for national-type Tamil schools, RM50 million for religious Schools, RM50 million for fully residential schools, RM50 million for government-aided religious schools, RM50 million for registered Sekolah Pondok and RM50 million for Mara Junior Science Colleges.

In ensuring that higher education is on par with global standards, RM7.4 billion will be allocated for 20 public universities.

Of the amount, RM1.4 billion will be allocated to four university hospitals and RM300 million for empowerment of five research universities.

In addition, RM100 million will be allocated to higher education institutions to foster research culture as well as to increase publications and intellectual properties.

To enhance effectiveness of assistance to students in institutions of higher learning, the government will replace book vouchers with student debit cards worth RM250, which can be used to buy books, computer accessories and Internet access, benefiting 1.3 million students.

Scholarships will continue to be awarded, with an allocation of RM4.3 billion next year, including RM1.6 billion through the Public Service Department, RM2 billion through Majlis Amanah Rakyat (Mara), RM250 million through the Higher Education Ministry, RM208 million through the Health Ministry, RM194 million through the Education Ministry, RM28 million through the Human Resources Ministry and RM21 million through the Youth and Sports Ministry.

To encourage PTPTN loan repayments, the following incentives will be given:

FIRST: A discount of 15 per cent on the outstanding debt for full settlement;

SECOND: A 10 per cent discount for payment of at least 50 percent of the outstanding debt made in a single payment; and,

THIRD: A 10 percent discount for repayment through salary deduction or direct debit in accordance with the repayment schedule.

The above incentives will be effective tomorrow (today), Oct 22, till December next year.

The government continues to protect the vulnerable groups. Among the incentives that will be provided are:

FIRST: Financial assistance to poor families, including general assistance up to RM300 per month and children assistance up to RM450 per month, will be continued, benefiting 69,000 families;

SECOND: An allocation of RM424 million is provided to senior citizens, including senior citizen socioeconomic assistance of RM300 monthly as living allowance and pocket money programme. This assistance will benefit 120,000 senior citizens. In addition, eight Senior Citizen Activity Centres will be established;

THIRD: RM535 million will be provided to persons with disabilities (PWDs), including employee allowance, disabled children training allowance and assistance for PWDs who are unable to work. This will benefit nearly 150,000 PWDs; and,

FOURTH; GST relief for the purchase of aid equipment for registered PWDs without going through private charitable entities. The list of equipment eligible for tax relief will be expanded.

Indeed, for us, PWD brings broader meaning. They have special and exceptional abilities as they have proven themselves as world class sports heroes.

As such, with great joy, we have invited four of our 2016 Rio Paralympic athletes who have won three gold medals and one bronze. Congratulations and a round of applause to Mohamad Ridzuan Mohamad Puzi, Muhammad Ziyad Zolkefli, Abdul Latif Romly and Siti Noor Radiah Ismail.

The government recognises the role of community leaders, such as village heads, in creating harmony and a prosperous society.

Therefore, the government agrees to increase the allowance of village heads, chairmen of Village Development and Security Committees, including heads of new villages and Orang Asli, from RM800 to RM900.

Public transport is central to the daily mobility of the rakyat in moving towards development. The rakyat can look forward to a safer, more efficient and comfortable public transport.

As such, the Kelana Jaya and Ampang LRT (Light Rail Transit) lines commenced operations in June 2016.

Meanwhile, the Sungai Buloh-Kajang MRT (Mass Rapid Trasit) line will begin operating in December, benefiting 1.2 million commuters in the Klang Valley.

The government is committed to upgrading public transport in rural areas through the following measures:

FIRST: Implementation of the new East Coast Rail Line project connecting the Klang Valley to the east coast. The 600km rail will connect townships such as Port Klang, ITT (Integrated Transport Terminal) Gombak, Bentong, Mentakab, Kuantan, Kemaman, Kerteh, Kuala Terengganu, Kota Barn and ends in Tumpat, with an estimated cost of RM55 billion;

SECOND: Accelerating the implementation of the Pan-Borneo Highway in Sabah and Sarawak;

THIRD: A sum of RM100 million will be allocated to restore the east coast railway line along Gua Musang-Tumpat that was destroyed during a flood; and,

FOURTH: Increasing the frequency of ETS (Electric Train Service) on the Johor Baru-Padang Besar route, involving the procurement of nine train sets until 2019. In addition, 10 new train sets will be purchased in stages up to 2019, with an overall allocation of RM1.1 billion.

Every year, the Orang Asli community benefits from the budget.

This evening, we have invited a few Tok Batin whose settlements have benefited from past budgets.

Give a round of applause to Tok Batin Awang Lijon from Kampung Orang Asli Jelebu, Negri Sembilan, and Tok Batin Taha Ahirfrom Kampung Bukit Bangkong, Sungai Pelek, Sepang, Selangor.

This budget allocates RM222 million for water treatment projects in 42 Orang Asli villages, economic and entrepreneurship development programmes, as well as village resettlement in Sungai Ruil, Cameron Highlands, Pahang.

For the Native Customary Rights, RM20 million will be allocated for the land survey in Sabah and RM30 million in Sarawak.

The government is always concerned about the needs of the Chinese and Indian communities.

In this regard, RM50 million will be allocated for the development of Chinese new villages, RM50 million for SMEs loans through Kojadi, as well as RM20 million for microcredit loans under the supervision of the Malaysian Chinese Women Entrepreneurs Foundation.

Furthermore, RM20 million will be channelled to the 1 Malaysia Hawkers and Petty Traders Foundation to provide loans to Chinese hawkers.

For the Indian community, RM50 million will be allocated for programmes to increase capacity and income, as well as RM150 million for business financing programmes through Tekun and Amanah Ikhtiar Malaysia.(AIM).

For national-type Tamil schools, the government will expand pre-school programmes to 50 schools with an allocation of RM10 million.

In this regard, I want to make a policy statement that the government is committed to mainstream the programmes to safeguard and empower the Indians in the national development agenda. I take this opportunity to wish everyone a Happy Deepavali.

To uphold the Bumiputera agenda, last week, I officiated the 60th anniversary of Universiti Teknologi Mara(UiTM).

UiTM has achieved its objective by producing almost 700,000 graduates. They include academicians, administrators, technocrats, corporate figures as well as ministers.

Towards empowering Bumiputera, the government will allocate:

FIRST: Asum of RM100 million to the SME Bank to increase opportunities to Bumiputera entrepreneurs;

SECOND: RM100 million to AIM for entrepreneurship programmes;

THIRD: RM300 million to Tekun to assist small-scale entrepreneurs to develop their businesses, including a new scheme, Temanita, for women micro entrepreneurs.

Also invited to the Parliament this evening are two successful entrepreneurs from Tekun initiatives. Let us give a round of applause to Denny Iskandar Bahtiar Afandi, who is in tailoring, and Vijaya-lndran Ganesan, who is in repair of electrical appliances sector;

FOURTH: RM200 million to Perbadanan Usahawan Nasional Bhd for the Entrepreneurship and Business Premises Financing Programme;

FIFTH: RM120 million to Mara for entrepreneurship programmes, including halal industry enterprises, youth entrepreneur development and integrated entrepreneurship training programme;

SIXTH: A facilitation fund amounting to RM500 million to Teraju (Bumiputera Agenda Steering Unit) to assist Bumiputera companies to expand their businesses or start a new business;

SEVENTH: RM100 million for the export fund under Teraju for Bumiputera companies to penetrate international markets; and,

EIGHTH: RM100 million through Yayasan Peneraju Pendidikan Bumiputera for the Peneraju Skil dan lltizam, Peneraju Professional and Peneraju Tunas programmes.

With us in this august House are two individuals who have benefited from the Yayasan Peneraju Pendidikan Bumiputera. They are successful in the 6-star hotel and architecture sectors. Congratulations and a round of applause to Denilia and Syahmi.

The agenda of empowering Malays and Bumiputera will continuously be upheld.

Recently, there have been allegations that the 2017 Budget is of no substance and that the government has insufficient funds.

In fact, an opposition leader said Malaysia would face a difficult economic situation this year.

Now, who is without substance? Where did the storm originate?

My friends, especially my Barisan Nasional members of parliament, what can we conclude?

Ribut-ribut di Kubang Pasu,

Angin sempoi dari Pekan,

Demi negara Barisan Nasional bersatu,

Kepenting rakyat kita utamakan.

(Stormy weather in Kubang Pasu,

A breeze whispers in Pekan,

Barisan Nasional unites for the country,

The rakyat's needs we prioritise.)

The government appreciates the contributions of SMEs to generating economic growth and job creation.

In fact, 97 per cent of businesses in the country are from the SME sector. These businesses contributed 36 per cent to the country's GDP last year, 65 per cent of total employment and 18 per cent of the nation's exports.

Therefore, the government is confident that the SME sector has the capability to propel forward to further increase their contribution to the nation's economy.

For the 2017 Budget, I would like to announce several good, high-impact and important matters for companies, including SMEs.

To appreciate the achievements of companies that were successful in increasing their revenue, the government has decided to introduce a new scheme for the year of assessment 2017 and 2018.

This scheme will provide for a reduction by stages based on a percentage increase in income compared to the previous year of assessment. The reduction in income tax are as follows:

One percentage point for increase in chargeable income between 5 per cent to below 10 per cent; two percentage point for increase in chargeable income between 10 per cent to below 15 per cent; three percentage point for increase in chargeable income between 15 per cent to below 20 per cent; and, four percentage point for increase in chargeable income of 20 per cent.

For example, if a company's chargeable income for year of assessment 2016 is RM10 million and increases to RM12 million in year of assessment 2017, the income tax imposed for the first RM10 million is 24 percent, or RM2.4 million. Whereas the difference of RM2 million increase in year of assessment 2017 will be taxed at 20 per cent, which is RM400,000. This means the effective rate is 23.3 per cent and the total amount of tax to be paid is RM2.8 million, with savings of RM80,000.

Currently, for all SMEs, the tax rate on chargeable income up to the first RM500,000 is reduced from 19 per cent to 18 per cent effective from year of assessment 2017.

To boost the local vendor development programme in the manufacturing and services sectors, double deduction on expenses incurred by the anchor company will be extended until Dec 31, 2020.

The government has never compromised on safety and public order.

The contribution and sacrifices of our armed forces will always be appreciated. This includes their sacrifice to defend the nation during emergencies.

Together with us this evening are representatives from the veterans of the security forces and war heroes in defending the nation's sovereignty.

Their contributions cannot be repaid as they are invaluable.

I was made to understand that present with us here are representatives from the army, navy, airforce as well as the police who have served during the Lahad Datu tragedy.

Let us give them a round of applause.

I am pleased to announce that the government will provide a special insurgency incentive payment to armed forces veterans amounting to RM55 million to those who have yet to receive their special incentive.

Veterans who have suffered disabilities during service are eligible for this incentive. For example, a corporal who suffered 80 per cent disability during service is eligible for a bulk incentive of RM34,000 and monthly incentive of RM590, subject to calculations. This is a new incentive in addition to the disability pension.

The Defence Ministry will be allocated RM15.1 billion. Of the amount, RM1.8 billion is provided for defence asset maintenance, such as aircraft, patrol vessels, communications equipment, buildings and weaponry.

The ATM (armed forces) will be equipped with patrol vessels and 8x8 armoured vehicles.

In addition, RM1.3 billion is allocated for communication devices, rations and uniforms, among others.

To enhance effectiveness of Esszone (Eastern Sabah Security Zone) operations, RM323 million is allocated for personnel deployment in eastern Sabah.

In addition, the government will create sea bases off the east coast of Sabah and a helicopter forward operating base. Also, the government will place AV8 GEMPITA8x8 and 4x4 armoured vehicles in Lahad Datu as well as deploy Hawk jet fighters and Eurocopter EC-725 helicopters squadron at the Labuan Air Base.

The armed forces will build and upgrade roads under the Jiwa Mumi Programme, with an allocation of RM114 million, in the interiors of Sarawak.

In addition, Armed Forces School Ferry services involving 15,000 children of ATM will be continued.

Meanwhile, the Home Ministry will be allocated RM12.8 billion, including RM8.7 billion for the Royal Malaysia Police. Among the programmes and projects are building 12 district police headquarters, commando training centres as well as procurement of vehicles and equipment.

In addition, RM60 million will be allocated to enhance the effectiveness of crime prevention in cities, including the motorcycle patrol unit.

The government also recognises the role of Rela (People's Volunteer Corps) in ensuring a safe and peaceful society. For this, the government will provide RM80 million to more than 200,000 Rela members.

Two of their representatives are with us, please put your hands together for their contribution.

To ensure a safe and peaceful neighbourhood, the government will provide RM40 million to reintroduce grants to registered Residents Associations. Grants of up to RM 10,000 will be provided for purchase of security control equipment, cleaning and maintenance of neighbourhoods.

Women are the backbone and bedrock of a nation's development. Since days of old, warriors were not only males, but also females.

A few days ago, I met a warrior. She was the sole Malaysian representative and is brave, bold and determined. With her friends, she was on a humanitarian mission, until she was detained by Israel.

Alhamdulillah, she has returned home safely. Let's give a round of applause to Dr Fauziah Hassan.

With regard to women's affairs and to mainstream women's role in the nation's development, RM2 billion will be allocated for programmes such as l-KIT, l-KeuNita and Women Career Comeback.

The government will also allocate RM30 million for women to undergo mammogram screenings and receive Human Papilloma Virus vaccination to prevent cancer for free.

Talking about another success story of women, let's congratulate Lam Shu Jie. She has made a scientific breakthrough in structurally nano-engineered anti-microbial peptide polymers (SNAPPs) research at a global level. I was informed she is a studying in one of the universities in Australia.

To support working women who are still breastfeeding, the government will introduce a new tax relief of up to RM1,000 which is claimable for purchase of breastfeeding equipment. This relief is claimable biennially, from next year.

To ease the burden of working parents, a tax relief of up to RM1,000 will be given to individual taxpayers who enroll their children aged 6 and below in registered nurseries and preschools, from the year of assessment 2017, benefiting 40,000.

As a wasatiyyah Islamic country based on the Ahli Sunnah Wal Jamaah school, the government will from time to time expand the eminence of Islam on the right path.

As such, the government rejects any form of extremism.

The role of religious men, particularly the imam, as well as mosque and surau committee members is viewed seriously by the government, especially their welfare.

We are pleased to have a few imam and bilal who have long contributed to surau and mosques nationwide.

Let us look at the gallery and screen of thousands of imam, bilal and siak who have been promoting Islamic activities in mosques and surau. Please give them a round of applause.

In line with that, I am grateful that these imam are among the 4,611 pilgrims who have been funded by GLCs to perform the haj.

In this regard, the government, through Jakim (Islamic Development Department) will increase the monthly allowance of imam from RM750 to RM850. This will benefit nearly 15,000 imam.

Meanwhile, a one-off payment of RM500 will also be given to nearly 16,000 bilal and siak to appreciate their sen/ice in managing mosques.

The government is pleased to announce that KAFA (Quran and Fardu Ain) teachers' allowance will also be increased from RM800 to RM900 a month, benefiting nearly 33,000 KAFA teachers.

The government recognises the current interest and high demand for tahfiz education. Therefore, for the first time, the government is allocating RM30 million to coordinate tahfiz education through the National Tahfiz Education Policy.

Please give a round of applause to the representatives of the KAFA teachers and tahfiz students sponsored by the government.

Many intellectuals and humanitarians in the world, such as Mahatma Ghandi, advocate that "if you want to reach real peace in this world, we should start educating children".

On this Friday, we have brought children into the august house to expose and encourage them to be future leaders. These children are preschoolers from Kemas, Tabika, Taska and Permata.

In appreciation of Kemas assistants, their allowance will be raised from RM400 to RM500, benefiting 11,000.

Another round of applause to two Kemas assistants who are here with us today.

Together with us this evening are children from Permata and Kemas, the future leaders of our nation.

A sum of RM85 million will be allocated for the Permata programme, involving 50,000 children, part of which is for the establishment of the Top STEM Talents Excellence Centre at Academy of Sciences Malaysia. In addition, Institut Pendidikan Guru Kampus Raja Melewar in Negri Sembilan and Kampus Tuanku Bainun in Penang will be renovated to become Permata Pintar and Berbakat centres.

Another important message is that the government will take positive measures to amend the Bankruptcy Act 1967 from early next year concerning those declared bankrupt, especially "social guarantors", for example, scholarship guarantor, and those certified with chronic diseases as well as elderly. The details are being worked out and will be announced soon.

These are the measures, initiatives, allocations, sincere efforts by the Barisan Nasional government for the rakyat.

This is a very committed budget that does not seek political popularity; instead, it ensures strong and resilient economic fundamentals, including policies on fiscal targets, spurring economic activities and works towards the healthy long-term financial system of Malaysia.

Indeed, Barisan Nasional is a brave and bold government, and we never run away from issues.

We never betray, never fear failure and never run away from the battlefield.

To us, Barisan Nasional, failure is not an option and success is what we strive for.Page 18 o f 19 © 2016 Factiva, Inc. All rights reserved.

Thus, I am pleased to announce as soon as the budget is concluded, the government will launch a series of national discourse to chart the nation's direction on a new canvas as the 2050 National Transformation and will be branded as TN50.

The New Economic Policy under the late Tun (Abdul) Razak (Hussein) aimed to create a successful new generation within 30 years. So, too, is the aim of TN50, which will span three decades. It will create a high-calibre nation state as well as a par excellent mindset.

TN50 will be kick-started by the diverse younger generation through national discourse as decided by the Cabinet and Youth and Sports Ministry under my patronage as the prime minister.

Let the TN50 be recorded in history and allow us to be remembered as responsible citizens and forefathers who leave behind a great legacy to be inherited by the future generation.

From now on, TN50 will be our lucky charm. Let the old legacy pass. The future of Malaysia, we create.

As such, even though we are faced with waves of challenges, we will embrace it with an open heart and a soul of freedom.

Therefore, my friends in Barisan Nasional, let us close ranks and be one in thought, and let us strengthen our team.

I would like to take this opportunity to express my highest appreciation to my deputy, Datuk Seri Dr Ahmad Zahid Hamidi, for his undivided loyalty.

Also, to the loyalty of my fellow cabinet members, BN component party leaders, as well as the civil servants of this country of the past few decades.

To the civil servants, I know that you will have sleepless nights if I do not announce this. I have good news.

As a token of appreciation for the commendable service by public servants, I am pleased to announce a special assistance of RM500 to all public servants and a special payment of RM250 for government retirees. This payment will be made in early January.

Although we are in pain, let the rakyat reap the benefits.

Let our shoulders be burdened by the insults, while the rakyat will continue to be safeguarded.

As the old saying goes, the king and the rakyat cannot be separated. Equally true for the government and the rakyat. Sehati sejiwa.

I want to express that the government loves to see the rakyat be happy and prosper. As the learned ones say, the government and rakyat are inseparable.

Finally, with the grace of Allah, the Barisan Nasioanl government is glad that the victory in the Sarawak state election was carried over to the Sungai Besar and Kuala Kangsar by-elections. We believe in and are confident that with the blessings of the Almighty, we will also gain victory in the 14th General Election for Barisan Nasional, InsyaAllah.

A warrior never retreats.

May Allah bless us here and in the hereafter.

Mr Speaker Sir,

I beg to propose.

( END)

Document NSTRAT0020161024ecam0000g

^JERUSALEM POST" Hrwft M - M*ng tngHVi 6 t+ f and motitnad EngMfi m tx m

Najib unveils pro-business budget to boost economy

1,13 7 words 22 October 2016Jpost.com (The Jerusalem Post online edition)JPSTENEnglish©2016, Jpost.com (The Jerusalem Post online edition), All rights Reserved - Provided by SyndiGate Media Inc.

The government provided a major boost to private investments and small and medium scale enterprises through pro-business strategies in the 2017 budget that clearly is set to instill greater investor confidence and propel the economy to greater heights amid external headwinds.

In measures which encourage domestic demand, Prime Minister Datuk Seri Najib Tun Razaksaid private investment would expand 8.1 per cent to RM230 billion in 2017, arising from several infrastructuture projects that would lead to continued brisk construction activity much to the glee of contractors.

In tabling the budget at the Dewan Rakyat today, he also handed out incentives to heighten Malaysias position as an Islamic financial centre, empower Bumiputra entrepreneurship and further develop the countrys five economic corridors.

Najib, who is also Finance Minister, allocated RM50 million for scientific research to raise the quality of palm oil products and RM30 million for replanting, reflecting the golden crops position as major export commodity.

In pushing fora business-friendly environment, the Prime Minister also announced that fixed line broadband sen/ice providers will offer higher broadband speed at the same price which will facilitate international commerce and invigorate internet-based innovation.

In keeping the economic momentum moving forward and stimulate private investment, Najib proposed multi-billion ringgit infrastructure projects covering all states including Sabah and Sarawak.

Among the major infrastucture projects are the upgrading of Jalan Lok Kawi Penglat Papar, Sabah; Jalan Kampung Keruak Gua Musang Kuala Berang; construction of Batang Lupar Bridge, Sri Aman; and the reconstruction of Sandakan Power Station Project.

Fie also announced that the Goods and Services tax (GST), which was a saviour to government in view of the plunge in crude oil pruices, managed to rake in a collection of RM30 billion as of Oct 19, 2016.

Najib also said a sum of RM2.1 billion will be allocated for infrastructure and socioeconomic development in the five economic corridors, namely, Iskandar Malaysia, Northern Corridor Economic Region (NCER), East Coast Economic Region (ECER), Sabah Development Corridor (SDC) and Sarawak Corridor of Renewable Energy (SCORE).

Malaysian Investment Development Authority (MIDA) will be allocated RM522 million with emphasis given to chemicals, electric and electronics, and R&D activities.

The budget, themed Ensuring Unity and Economic Growth, Inclusive Prudent Spending, Wellbeing of the Rakyat, was valued at RM260.8 billion, up 3.4 per cent from the 2016 recalibrated budget.

It is the eighth national budget presented by Najib at the Dewan Rakyat today since becoming Prime Minister in 2009.

Of the total allocation, RM46 billion would for development expenditure which does not include contingencies that amounts to RM2 billion.

The revenue collection in 2017 is expected to expand at around three percent to RM219.7 billion.

The government is expected to achieve the fiscal deficit target of three per cent of gross domestic products (GDP) in 2017, compared with 3.1 percent this year, he said.

The budget also focused on prudent financial management to reduce the fiscal deficit and sustain Malaysias global standing among international credit rating agencies.

Fitch had rated Malaysia with A- compared with the Philippines (BBB-), Thailand (BBB+) and Viet Nam (BB-).

Our rating is similar to that of advanced and larger economies such as South Korea (AA-), China (A+),Taiwan (A+), Japan (A), Najib said.

Najib also dished out sufficient funds to further strengthen the nations economic resilience and measures to cushion the impact of external vulnerabilities.

The government, he said, will also upgrade infrastructure in rural areas through various measures which include the implementation of the new East Coast Rail Line project connecting Klang Valley to the East Coast, in phases.

The 600-km rail will connect townships such as Port Klang, ITT Gombak, Bentong, Mentakab, Kuantan, Kemaman, Kerteh, Kuala Terengganu, Kota Bharu and ends in Tumpat, with an estimated cost of RM55 billion;

The government will also accelerate the implementation of Pan Borneo Highway in Sabah and Sarawak, which will not only help communication but also open up economic opportunities and activities.

A sum of RM100 million was allocated to restore the East Coast railway line along Gua Musang Tumpat that was destroyed during the floods last year. In order to increase the trip frequency of the Electric Train Service (ETS) for the Johor Bahru Padang Besar route, an allocation of RM1.1 billion was proposed.

To invigorate the domestic capital market, government-linked investment companies will allocate a special fund up to RM3 billion to fund managers licensed under the Securities Commission to invest in potential small and mid-cap companies.

In addition, a Capital Market Research Institute will be established with initial funding of RM75 million, provided through Capital Market Development Fund.

For export promotion programmes to local SMEs by MATRADE, MIDA and SME Corp, a sum of RM130 million is provided through National Export Promotion Funds.

Loan financing totalling RM200 million and insurance credit facilities with coverage valued up to RM1 billion will be provided by EXIM Bank to SMEs.

A sum of RM286 million was also provided to increase exports of palm oil, rubber, cocoa and pepper.

While emphasising the importance of the roles of SMEs, Najib said the government had declared next year to be the Startup and SME Promotion Year in line with the role of SMEs in significantly contributing to the nations growth and labour market.

To promote the development of SMEs, the government will allocate a total of RM75 million to implement programmes under the SME Master Plan.

A guarantee of up to RM15 billion is provided under the various schemes of Syarikat Jaminan Pembiayaan Pemiagaan (SJPP) to be extended till 2025, Najib said.

To invigorate startups, a total of RM200 million from the Working Capital Guarantee Scheme (WCGS) Fund will be specifically allocated to startups.

To empower the Bumiputera agenda, the Prime Minister said the government will allocate RM100 million to SME Bank to increase opportunities to Bumiputera entrepreneurs.

He said RM200 million was allocated to Perbadanan Usahawan Nasional Bhd to implement the Entrepreneurship and Business Premises Financing Programme, RM120 million to MARA for various entrepreneurship programmes, halal industry enterprises, youth entrepreneur development and integrated entrepreneurship training programme.

He also proposed the Facilitation Fund amounting to RM500 million to the governments Bumiputera Agenda Steering Unit or TERAJU to assist Bumiputera companies to expand their businesses or to start a new business.

A total of RM100 million for Export Fund under TERAJU was set aside for Bumiputera companies to penetrate into international markets.

The agenda of empowering Malays and Bumiputeras will continuously be upheld, Najib said.

Turning to online connectivity, Najib said the Malaysian Communications and Multimedia Commission (MCMC) will provide RM1 billion to ensure the coverage and quality of broadband nationwide reaches up to 20 megabytes per second in efforts to enhance digital connectivity.

Document JPSTEN0020161022ecam00234

Vietnam’s rubber industry encounters ‘white crisis’VietnamNet Bridge - A sign o f the times: The rubber price has fallen to $1,500 per ton from the highest peak o f $4,000-5,000 per ton gained in 2011.

Highway No 14, which connects Binh Phuoc district, was once covered by the green color of rubber trees. Rubber was compared to ‘white gold’ which brought prosperity to locals.

However, the situation is different now. Those who travel across Binh Phuoc, Tay Ninh, Binh Duong and Dong Nai may see bare and ragged rubber forests, and piles of felled rubber trees lying on the roads.

That is the consequence of the rubber latex price plunge, from $4,000-5,000 per ton in 2011 to $1,500 per ton now. There is no sign of the heyday returning.

While the production cost is $2,000-2,200 per ton, the selling price is not higher than $1,500. This is why many farmers have felled rubber trees and shifted to grow other crops.

According to the Ministry of Agriculture and Rural Development (MARD), in 2015 alone, about 6,000 hectares of rubber were chopped down.

W h ile the p ro d u ctio n cost is $2,000-2,200 p er ton, the se lling p rice is not h igh e r than $1,500. T h is is w h y m an y fa rm e rs have felled ru b b e r trees and shifted to grow other crops.

Binh Phuoc and Tay Ninh, the localities, which pioneered the ‘rubber growing movement’, have also pioneered the ‘rubber devastation movement’.

However, though many rubber fields have been cleared, the total rubber growing area in Vietnam is still larger than the area planned by the government (1 million hectares vs 800,000).

With the scale, according to IRSG (International Rubber Study Group) and Economist Intelligence Unit, Vietnam now ranks third in the world in terms of rubber production.

The country is also facing the oversupply with the surplus of 147,000 tons in 2015.

In 2016, though Vietnam tried to control the output to avoid overproduction, it still has 3 million tons of

rubber in stock, which is equal to 25 percent of total annual output.

Vietnam cannot cut down the output sharply to gather strength on clearing the inventory volume.Stopping the exploitation means letting rubber trees die.

Large-scale companies, especially the subsidiaries of the Vietnam Rubber Group (VRG) such as Dong Phu (DPR), Tay Minh (TRC) and Phuoc Hoa (PHR) which can enjoy preferences in land access, have made heavy investments to develop their rubber fields.

DPR, for example, had poured VND800 billion by June 2016, into projects growing 6,300 hectares of rubber in Cambodia.

DPR’s investment rate per hectare of rubber is equal to 60-70 percent of the average investment rate.This, plus the cost control measures, help DPR have production costs lower than the selling price.

However, it is still more difficult to make profits from growing rubber. DPR’s financial report showed that it was not rubber trees but liquidation and financial investment activities which had brought its major income.

related news• VN-.Tapan project unveils protein-free natural rubber

Chinese. Thai manufacturers eve Vietnamese tire market

Mai Nam

REUTERS

RUBBER-Tokyo futures snaps 4-day losing streak on Shanghai gain

370 words 24 October 2016 08:48Reuters NewsLBAEnglishCopyright 2016 Thomson Reuters. All Rights Reserved.

TOKYO, Oct 24 (Reuters) - Benchmark TOCOM rubber futures rose on Monday, snapping a 4-day losing streak and rebounding from a 10-day low, on the back of an overnight recovery in Shanghai futures and higher oil prices on Friday.

FUNDAMENTALS

* The Tokyo Commodity Exchange rubber contract for March delivery <0#2JRU:> was up 2.5 yen, or 1.4 percent, at 176.4 yen ($1.70) per kg as of 0037 GMT, after marking the biggest weekly drop in about three months.

* The most-active rubber contract on the Shanghai futures exchange for January delivery climbed 115 yuan to 13,730 yuan per tonne in an overnight trade on Friday.

* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.4 percent from the prior Friday, the exchange said on Friday.

* Falling demand for Daimler's trucks prompted the company to lower its revenue outlook for the year, taking the shine off a forecast-beating rise in third-quarter operating profit lifted by higher margins for Mercedes-Benz luxury cars.

* Swedish truckmaker Volvo forecast lower heavy-duty truck markets on both sides of the Atlantic next year after reporting a surprise rise in profitability in the third quarter despite a slide in sales.

* For the top stories in the rubber market and other news, click or

MARKET NEWS

* Oil settled up on Friday on hopes Russia and OPEC will reach agreement at the weekend on market support initiatives to keep crude above $50 a barrel, although traders cautioned about pressure from a double-digit rise in the U.S. oil rig count.

* The U.S. dollar was flat at 103.890 yen on Monday.

* Japan's benchmark Nikkei stock average was steady in early Monday trade after Wall Street was little changed last Friday.

DATA/EVENTS (GMT)

* The following data is expected on Monday: (Time in GMT)

0700 France Markit manufacturing PM I flash Oct

0730 Germany Markit manufacturing PMI flash Oct

0800 Euro zone Markit manufacturing PMI flash Oct

1345 U.S. Markit manufacturing PMI flash Oct

($1 = 103.8600 yen) (Reporting by Yuka Obayashi; Editing by Richard Pullin)

Released: 2016-10~24T01:48:20.000Z

Docu ment L BA0000020161024ecao001 me

N E W S T R A I T S T I M E S O N L I N E

Only country in the world having a basic income scheme

440 words 24 October 2016 New Straits Times N ST RAT 18English(c) 2016 New Straits Times Press (Malaysia) Berhad.

THE 2017 Budget will cost the government around RM260 billion, a far cry from the RM888 million, post-Merdeka budget of 1957. This budget is comprehensive, in-depth and inclusive.

It took into consideration the economic situation at the global and domestic levels, and developed strategies to manage national unity, sustain growth and maintain national security.

Prime Minister Datuk Seri Najib Razak said the budget was significant as it would carry the country into the year 2020 as a developed country with high-income status.

Generally one can be won over by the priceless jewels displayed throughout the speech. Not to be missed are the usual goodies for the people, specifically taxpayers, consumers, housebuyers, civil servants, entrepreneurs, investors, developers, students, teachers, sportsmen and sportswomen.

As a departure from previous budget presentations, the prime minister surprised his audience by introducing several Malaysians who had excelled in their vocations, including winners in the Rio Olympics, taxi drivers, heads of Orang Asli communities, entrepreneurs, security personnel and women and youth activists. He singled out their contributions to the country.

There were also moments when the prime minister injected humour to highlight some points and cynicism to underline his objection to the negative attitudes and behaviour shown by certain quarters towards the government. He laced his presentation with quotes from the Quran and Islamic scholars such as Al-Mawardi.

In the same vein, he also recalled the wise words of the late Ustaz Haron Din on the play of words such as suka and benci, that can be applied interchangeably in the later stages of life. This was indeed a veiled reference to the antics of some people who had opposed the government.

Of relevance too were the quotations from Gandhi and Hamka that overall sought to build up the image of the humanist and philosopher in the prime minister.

Another jewel in the budget is the increased 1 Malaysia People's Aid (BR1M) payments for the bottom 40 per cent (lower-income segment).

Malaysia is thus the only country that has put into practice the still untried idea of a universal basic income scheme talked about widely in the West, the initiative of calling for a new national discourse to focus on various aspects of the country in the future and finally the announcement of a new vision - the 2050 National Transformation.

The budget also prioritised Malaysia's development goals in the coming year.

At the end of the speech, the prime minister also alluded to the fact that the next general election would be held soon.

DR AZHARI-KARIM,

Petaling Jaya, Selangor

( END)

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'Incentives to boost civil sector'


KUALA LUMPUR: THE civil sector will hit the ground running to implement the measures listed in 2017 Budget.


"Malaysia's civil service will continue to move in tandem with the government in realising the aspiration of building a balanced economic growth and to safeguard the people's welfare," he posted on his Facebook account.


Thanking the government for incentives dedicated to those in the civil sector, Ali expressed gratitude to Prime Minister Datuk Seri Najib Razak on the decision to give RM500 special assistance to all public servants and RM250 for government retirees.

Ali reminded civil servants to boost their productivity and strengthen their level of integrity.

"I want to stress that despite incidents of embezzlement committed by a few, majority of those in the civil sector uphold the principles of public service," he said.

The Congress of Unions of Employees in Public and Civil Services (Cuepacs) president Datuk Azih Muda said the incentives for civil servants were made with good considerations.

"Allowing government servants to further their studies with a full salary and scholarships will give them an opportunity to be holistic workers and better themselves with knowledge," he said.


Meanwhile, the government's initiative to strengthen technical and vocational education and training (TVET) will allow the industry to fill the gap of skilled workers.


Malaysian Employers Federation executive director Datuk Shamsuddin Bardan said: "The development of highly-skilled human capital is essential to help Malaysia shift towards higher-value and knowledge intensive activities that are the hallmarks of an advanced nation.

"Investments in human capital are vital to the improvement of personal wellbeing due to its many socio-economic benefits. RM90 million for improvements of English is also positive," he said.


The government has allocated a total of RM75 million to implement programmes under the SME Master Plan as announced by Najib yesterday.

Federation of Malaysian Manufacturers (FMM) president Tan Sri Saw Choo Boon said: "The numerous programmes and incentives focusing on the development of SMEs are expected to boost the development and growth of SMEs and entrepreneurship."

Saw said the reduction in income taxes for companies would motivate businesses to increase their revenue.

"Flowever, FMM hopes to see the extension of this incentive to the overall chargeable income in view of the same steps that have been taken by other regional economies," Saw said.

( END)

Document NSTRAT0020161024ecam0000d


'Incentives to boost civil sector'


KUALA LUMPUR: THE civil sector will hit the ground running to implement the measures listed in 2017 Budget.


"Malaysia's civil service will continue to move in tandem with the government in realising the aspiration of building a balanced economic growth and to safeguard the people's welfare," he posted on his Facebook account.


Thanking the government for incentives dedicated to those in the civil sector, Ali expressed gratitude to Prime Minister Datuk Seri Najib Razak on the decision to give RM500 special assistance to all public servants and RM250 for government retirees.

Ali reminded civil servants to boost their productivity and strengthen their level of integrity.

"I want to stress that despite incidents of embezzlement committed by a few, majority of those in the civil sector uphold the principles of public service," he said.

The Congress of Unions of Employees in Public and Civil Services (Cuepacs) president Datuk Azih Muda said the incentives for civil servants were made with good considerations.

"Allowing government servants to further their studies with a full salary and scholarships will give them an opportunity to be holistic workers and better themselves with knowledge," he said.


Meanwhile, the government's initiative to strengthen technical and vocational education and training (TVET) will allow the industry to fill the gap of skilled workers.


Malaysian Employers Federation executive director Datuk Shamsuddin Bardan said: "The development of highly-skilled human capital is essential to help Malaysia shift towards higher-value and knowledge intensive activities that are the hallmarks of an advanced nation.

"Investments in human capital are vital to the improvement of personal wellbeing due to its many socio-economic benefits. RM90 million for improvements of English is also positive," he said.


The government has allocated a total of RM75 million to implement programmes under the SME Master Plan as announced by Najib yesterday.

Federation of Malaysian Manufacturers (FMM) president Tan Sri Saw Choo Boon said: "The numerous programmes and incentives focusing on the development of SMEs are expected to boost the development and growth of SMEs and entrepreneurship."

Saw said the reduction in income taxes for companies would motivate businesses to increase their revenue.

"Flowever, FMM hopes to see the extension of this incentive to the overall chargeable income in view of the same steps that have been taken by other regional economies," Saw said.

( END)

Document NSTRAT0020161024ecam0000d

BUSINESS TIMESAgriculture sector set to rebound with 1.5pc growth

433 words 22 October 2016 Business Times BTMAL 13English (c) 2016

THE agriculture sector is expected to turn around with 1.5 per cent growth next year, from this year's fall by 3.3 per cent as it banks on higher harvest of oil palm fruits and more frequent tapping for latex.

Oil palm planters are expected to produce 19 million tonnes of palm oil next year, six per cent more than the estimated 18 million tonnes this year.

Rubber output is also expected to expand five per cent to 680,000 tonnes from this year's estimated 650,000 tonnes.

The agriculture sector shrank six per cent in the first half of this year due to lower palm oil and rubber output, said the Economic Report 2016/2017 .

Production of livestock, fruits and vegetables, however, grew supported by government initiatives to achieve self-sufficiency.

For the full year, the agriculture sector is expected to shrink at 3.3 per cent, mainly weighed down by lower palm oil and rubber output.

Palm oil is integral to Malaysia's economy as it accounts for 40 per cent of the agriculture sector and six per cent of the country's exports.

In the first nine months of this year, palm oil production fell sharply at 15.3 per cent to 12.6 million tonnes from 14.9 million tonnes a year ago. This was due to pro-longed drought phenomenon El Nino that causes trees to bear less fruits.

For the same period, palm oil prices averaged at RM2,556 per tonne, higher than last year's RM2.151. On the whole, exports are crimped by the sharp drop in output despite the higher average selling price.

From January to August of this year, rubber output only amounted to 457,954 tonnes. For the full year, the government estimates that rubber production will shrink further by 10 per cent to 650,000 tonnes from last year's 722,122 tonnes.

So far, SMR 20 prices averaged at RM5.17 per kg with the lowest at RM4.27 per kg on February 11. This is due to weak demand from China, following anti-dumping and countervailing duties by the United States on select tyres.

Since the start of this year, the government has been incentivising smallholders to go on tapping rubber by increasing the floor prices to RM5.50 per kg (free on board) and RM2.20 per kg (farm-gate price).

The government estimates this year's rubber prices to continue to settle at RM5 per kg from last year's RM5.22 per kg.

( END)

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