Sunday, October 09, 2011

Malaysia 2012 Budget - Nothing Much for Personal Finance

It seems to me nothing much from a personal finance perspective. Anyway, let's go through it which I think maybe useful to you personally...

(1) Exemption of Import Duty For Hybrid & Electric Cars

This is from the previous year and will be continue until 2013. I'm not sure if this is a good thing because the net spending in not decreasing if you buy hybrid & electric cars. So, think twice if you really want to go for Hybrid & Electric cars.

(2) Free Primary & Secondary Education Fees

I do not aware that we need to pay for primary & secondary education fees. All the while, I thought that is free! :) Perhaps I'm wrong now.  How much exactly is being save here? Anyone knows?

(3) RM500 for Households Monthly Income Less Than RM3K

It is one time payment. So monthly, you will have RM  41.67. Alright, this is still better than nothing especially if you have low income household. Besides that, there will be one-off RM100 schooling assistance for primary and secondary schools(up to form 5) and also one-off RM200 book voucher for private & public tertiary institution and form 6 as well.

(4) Additional Bonus for Civil Servants and Pensioners.

There will be 1/2 month bonus for all civil servants and RM500 bonus for all pensioners. Bonus to be paid by December 2012. This sounds good for civil servants.

(5) Increase to 10% for  Real Property Gains Tax.

Real Property Gains Tax (RPGT) will be increased to 10% from 5% if the property is sold within 2 years. The 5% remains as previously - if the property is sold between 2 to 5 years, there will be 5% RPGT and nil for 5 years and above. This may not be good for speculator but if you really want to sell, just wait for 2 years. Property investment is meant for long term anyway, in my opinion.

Sharing: Do you know the RPGT used to be 30% before 2010? Then later it was then revised to 5%. It seems to me the forming of property bubble is somehow indirectly caused by the government.  Don't you think so? Now, they're fixing it?

(6) Some other stuff...

  • Retirement ages increases to 60 from 58 for civil servants. 
  • Free Papilloma Virus immunization for cervical cancer prevention.
  • EPF increases to 13% for Employer Contribution but that is only for those earning below RM5K.


Well, what? As usual, there is no beneficial to me at all. It is worst than last year! That's why I think this round for Malaysia 2012 budget is really nothing much at least to myself. Is that the reason why many of us are migrating to other countries? 

If you are civil servants and have low income household, this budget will be beneficial to you. Hope you can enjoy this benefits. If you wonder what are the previous years Malaysia budget, you can visit the following links:
P/S: If I missed out any key items, feel free to share....


Alvin Lim said...

seriously nothing much for middle income group like me. the epf contribution...just more money for them =_=

also, one wonders, where will the gov take all the money from since they are so many low income group families in the country. they not planning to tax the rich.... so?

hahaha, epf lo :P better withdraw fast fast

p/s... i think gov sch also hv to pay admin fees 1. but very very little la.

ChampDog said...

Yes, the middle income group - earn less, pay tax the most and always yet no benefits from this kind of budget!

So middle income group will always stay within the middle income group and rich will be even richer! If unlucky, we may fall into the low income group.

Withdraw fast fast and put where? Still, I think EPF return is not that bad. I so far only withdraw for housing.

LCF said...

On (1), well, you are right, but most people who drive Hybrids are those middle/senior managers at MNC who got thousands of car allowance subsidy anyway. So can save fuel, but monthly loan repayment covered by company.

On (2), I think it's the RM 60+ last time when we paid on the first day or school's called "Chap Fai" in canto, literally translated, "Misc fees".

On (3), I read that there's quite a number of T&Cs as of what is deemed as a "household". Something like, single lady living away from hometown earning < 3k is not eligible for it?

ChampDog said...

Oh, misc fees. Okay, so it is about RM60?

No idea. I think she should be considered. Household means the added income for both husband and wife. If you're single or single's mum, as long as your income is < RM3K, it should be eligible. Not this way?

Kris said...

I remembered the school fee is just RM3 per month :P benefit for middle income ppl this budget.

Looks like the only way to become truly rich is through business.

You don't want to be caught in a golden handcuff situation, (you hate your job, but cannot leave it because it pays well :P. Applies especially to senior employees)

ChampDog said...

RM3 per month? Hehehe... no idea. So a year, will be RM36. :D

Yes, Business and the only place that you can find tax loophole. :)

Golden handcuff situation? Okay, I admit. I'm at that situation. Too bad...

Jobless Girl said...

If that's true RM 3. What can u do with RM 3 in now a days? This is so call benefit?

ChampDog said...

That's called better than nothing! lol! :)

LCF said...

Ok, got this from this issue of P.Money. Here's the ongoing rate for the fees required of students in primary and secondary school, before budget 2012 - 24.50 and 33.50 respectively. for co-curriculum activities, internal test papers, and insurance premiums.

Kris said...

Still cheap thankfully. You ever see the school fees of an international school?? The annual fees itself can feed a small family.

ChampDog said...

Thanks LCF, will update the post. Yes, it is cheap but don't know how helpful for this subsidy since it is cheap. :D

I think international school is usually for those expat kids from oversea? Is it better at international school? :D

Kris said...

Local people also do go to international schools. Not sure is whether it is that really good compared to normal schools..

ChampDog said...

Maybe is the status and better in terms of English communication skill, I think. :)

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