The 2015 Budget was tabled by the Prime Minister and Finance Minister, Dato Sri Najib Tun Razak on 10 October 2014. There are no major surprises in the budget as the main focus is in the impending implementation of the Goods and Services Tax (GST) on 1 April, 2015.
This is the last budget under the 10th Malaysia Plan. The budget addresses key issues to promote fiscal sustainability, accelerating growth and prospering the Rakyat (people) thus placing the nation on firmer growth path towards Vision 2020.
The budget announced the increase in development expenditure to 4.1% of GDP up from 3.9% in 2014, bucking the declining trend of past five years. The majority of these expenditures will be concentrated on mega infrastructure projects in line with the 11th Malaysia Plan and New Economic Model goals of making the economy more sustainable, competitive and investment-friendly towards achieving developed nation status. Accordingly, a new Malaysian National Development Strategy (MyNDS) will be formulated to speed up and streamline high-impact projects.
The Rating Agency of Malaysia forecasts a slight slowdown in economic growth to 5% in 2015 from an expected 5.6% in 2014. A weak external sector is expected to be offset by robust private domestic demand and an uptick in public expenditure and investments.
The personal income tax rate deduction of 1% to 3% and expansion of chargeable income band exceeding RM100,000 with effect from Year of Assessment (YA) 2015. Corporate tax reduction of 1% to 19%, 24% from 20% and 25% with effect from YA2016.
In recognising the importance of developing human capital many of the training incentives are extended and enhanced. This is a welcomed initiative given the buoyant nature of the job market and the need to offer training as a staff...