Highlights from Malaysia's Budget 2020

Below are the highlights from Malaysia's budget for 2020:

• 10 yr tax break for the electronics sector that shifts towards 5G and Industry 4.0.
• Shorten procedures to register a business.
• Allow delayed payments at customs to speed up trade.
• MYR 250m on rural connectivity.
• MYR 50m for the 5G ecosystem.
• MYR 550m grant for companies to automate, promote smart manufacturing.
• MYR 20m for e-sports.
• MYR 30 in credit to open e-wallet.
• MYR 500m guarantee for women entrepreneurs.
• Grants to improve financing access for Bumiputeras.
• MYR 2bn industry transformation.
• Special task force for Islamic Finance.
• Extension of the tax break for Sukuk issuance through 2025.
• Extends tax break for Syariah funds through 2023.
• Extends tax break for green tech investments through 2023.
• Solar industry 70% income tax break for 10 years.
• MYR 550m for palm oil farmers replant.
• MYR 810m for FELDA settlers.
• MYR 524m for the public R&D sector.
• A 10-year tax break for intellectual property.
• MYR 1.1bn on tourism targets 30 million tourists in 2020.
• Special investment incentive to attract Fortune 500 global companies.
• Incentives to help unemployed graduates for >12 months, top-up MR 500 for the employee, MYR 300 to the employer for hiring the employee.
• Increase maternity leave to 90 days.
• Higher minimum wage MYR 1,200/mth in main cities.
• SME tax threshold raised to MYR 600k (from MYR 500k), taxed at 17%.

Looking at the list, I felt that it has actually ignored the M40. A lot of the budget is for the B40 and companies. Nothing much for the rest of us. A reduction in income tax will be much appreciated. With living expenses on the rise, less income tax will be helpful. Only happy that we are getting RM30 in our e-wallet. Now, I wonder which e-wallet will the government transfer the RM30 to, since most of us have Boost, TnG eWallet, Bigpay, Setel, etc.

Still, if you already have a financial plan ready, just continue with the plan. Any additional stuff that the government gives is a bonus.