Earlier today, Malaysian Finance Minister Datuk Seri Zafrul Tengku Abdul Aziz tabled Budget 2023, with a total allocation of RM372.3 billion. The budget is themed ‘Keluarga Malaysia, Prospering Together’ and is driven by a 3R agenda — Responsive, Responsible, and Reformist.
Here are some highlights from the budget that may interest HR professionals:
– Two per cent cut on taxable income ranging from RM50,000 to RM100,000:
i.e. from 13 per cent to 11 per cent for taxable income from RM50,000 to RM70,000; and from 21 per cent to 19 per cent for taxable income from RM70,000 to RM100,000.
– Employers who hire youth aged 18 to 30 who are unemployed for over three months will receive unemployment incentive under SOCSO.
– Loan facilities amounting to RM305 million will be provided through SME Bank, TEKUN, Mara, BSN, and Agrobank, specifically for young entrepreneurs.
– Government to bear 80 per cent of SOCSO’s contribution to reduce the burden of self-employed individuals.
– The limit for Employer’s Provident Fund (EPF) Voluntary Contribution increased to RM100,000 a year.
– An incentive between RM600 and RM750 for three months to employers who hire persons with disabilities (PWDs), Orang Asli, ex-convicts, and women who return to work.
– SOCSO to provide mobility assistance of RM500 for individuals who secured a job in other states, RM1,000 for long-distance moves from Sabah or Sarawak to the peninsula, and vice versa.
– The My50 travel pass initiative to continue to benefit 180,000 commuters, many using it for work purposes.
– The Securities Commission will introduce a special training program to increase skills among women in the corporate world, subsequently identifying and increasing the number of women in the boardroom.
– The MyStep initiative will continue, offering 50,000 contract positions (15,000 in the public sector, and 35,000 in government linked companies). Service duration for MyStep in the public sector will be extended to 31 December 2023.
– From 2023, wages in the MyStep program is increased by RM100.
– HRD Corp will provide RM750 million to give skill training for over 800,000 workers which will increase productivity and income.
