Budget 2014 AT A GLANCE Total budget: RM264.2 billion Operation expenditure: RM217.7 billion Development expenditure: RM46.5 billion Domestic economic prospects: Net foreign direct investment was higher at RM18.2 billion in the first half of 2013 compared with RM15.9 billion during the same period in 2012. International reserves remained strong at RM444.9 billion at Oct 14, sufficient to finance 9.7 months of retained imports and 3.9 times the short-term external debt. For entire 2013, domestic economy expected to expand 4.5% - 5%. Growth supported by private investment, increasing 16.2% to estimated RM165 billion. Private and public consumption expected to grow 7.4% and 7.3% respectively Domestic economy projected to grow at a stronger pace of 5% to 5.5%. Growth to be driven by private investment at 12.7%, and private consumption 6.2%. Exports of goods expected to grow 2.5% over improving external demand. On the supply side, construction sector expected to grow 9.6%, services sector at 5.7%. Unemployment rate estimated at 3.1%, inflation rate to remain low between 2% and 3%. Per capita income for 2014 expected to reach RM34,126. Plans to achieve the target per capita income of RM46,500 in and even achieve developed nation status much earlier than 2020. Projects and allocations Projects to be implemented include 316km West Coast Expressway from Banting to Taiping. and double-tracking projects from Ipoh to Padang Besar and later from Gemas to Johor Bahru. RM700 million to build new air traffic control and management system at KLIA. This is to replace the existing one in Subang. RM312 million to upgrade Kota Kinabalu, Sandakan, Miri, Sibu and Mukah airports, additional upgrade of terminals in Langkawi International Airport and Kuantan Airport. Services sector blueprint to be launched next year, the logistics sector master plan and national aviation policy to be formulated. National Entrepreneur Development Office to be established to plan and coordinate all entrepreneurship activities RM1 billion investment in companies scoring high on Environmental, Social and Governance Index Second phase of the High-Speed Broadband (HSBB) project in collaboration with the private sector involving RM1.8 billion investment to expand coverage to major towns. Internet speed to be increased to 10 Mbps. RM1.5 bil to build 1,000 new telecommunications tower over three years. RM850 mil to build new undersea cable to improve internet in East Malaysia over 3 years To allocate RM210 mil for a private retirement scheme (PRS) to encourage young to start saving. Starting Jan 1, the government will top up RM500 into the account for those aged 20-30 years old who can save RM1,000. It is estimated that 420,000 youths may join this scheme to run for five years. [More to follow]
Posted on: Fri, 25 Oct 2013 09:09:43 +0000
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