Hold on to your wallets – Malaysia’s 2019 Budget is on its way!
After a surprise victory in the last election, Malaysia’s new government is gearing up to reveal its 2019 fiscal blueprint on November 2nd. Analysts and media insiders are already sniffing out what the budget might include.
Money Cuts – Time to Tighten the Belt
- Capacity planners at MARC predict a trim in operating costs. Think salary em (emoluments), pensions, and bonuses—the public cash cow might be milked a bit.
- Prime Minister Mahathir recently announced a cool 15 % cut on the total development budget, capping it at RM220 million (roughly S$72.9 million) by 2020.
New Taxes – Because the State Loves a Fresh Tax Rub
- RHB Bank sees the government throwing in sector‑specific levies targeting e‑commerce, sugary drinks, and maybe a carbon tax. The idea? More money in the coffers, less tax loopholes.
- Expect bumps across the board—look at gambling, tobacco, and alcohol taxes targeting the classic “don’t let the ‘hobby’ drain your wallet” approach.
Welfare Aid – From Handout to Hand‑On Targeting
- Prime Minister Mahathir told the media that the annual „Cash‑Aid“ programme will finally get a makeover. The new plan swaps out the old cost‑of‑living subsidy for a more targeted assistance, aiming to keep public spending in check while still helping those who need it.
Affordable Housing – Cheers to Homeownership
- Analysts extrapolated from The Edge that the policy will push for affordable homes and loosen some buying rules. Goal: light up the property market for low‑wage earners.
Fuel Subsidies – A Blanket that Gets Precise
- Nomura predicts the government will continue a blanket fuel subsidy in 2019 but will work toward a more targeted scheme, ensuring the fuel rally is fair for both consumers and the economy.
Deficit – A Tiny Elephant in the Room
- UOB forecasts a high budget deficit of 3.5‑4 % of GDP in 2018, easing to 3.0‑3.5 % next year as the government settles past tax refunds.
- When discussing the mid‑term review of the 11th Malaysia Plan, Mahathir stated the fiscal deficit target might not be met, but it should hit 3.0 % by the end of the five‑year plan in 2020.
Hi‑Tech Incentives – Let’s Automate, Man!
- Deputy Minister Ong Kian Ming emphasized the budget will encourage companies to adopt automation and IT innovations, riding the wave of the digital transformation of the manufacturing sector.
So, folks, the 2019 budget is shaping up to be a roller‑coaster: a bit of want, a dash of new taxes, and a sprinkle of tech incentives. Stay tuned, keep your finances tidy, and watch how the new government reshapes Malaysia’s economic landscape.
