March 10, 2009

Malaysia Second Stimulus Package

Malaysia announced the RM 60 billion Second Stimulus Package to be spent over 2 years in view of deterioration of Malaysia economic prospects in the near future. Among the points that are worth to note for the rakyat are as follow:

  1. 163,000 training opportunities and job placements to be conducted/absorbed by the Government agencies and private sectors.
  2. Companies that hire retrenched employees will be given double tax deduction on the amount of remuneration paid, up to RM10,000 per month and limited up to 12 months of employment per employee.
  3. Fill up 50,000 vacancies in Federal Agencies.
  4. Additional 13,000 contract jobs with the government agencies.
  5. Government will subsidize tuition fees/research grants of RM10,000 for Master's degree and RM20,000 for PhD degree at local institutions. [UPDATES] Only for 500 graduates.
  6. Additional RM200 million to build low cost housing by SPNB.
  7. House buyers will be given tax relief on interests paid for housing loans up to RM10,000 a year for 3 years. [UPDATES] Only for those houses of which the S & P signed between March 10, 2009 and Dec 31, 2010. Total tax relief is up to RM10,000 for 3 years and only limited to ONE property. Properties that are rented out will not be eligible for this tax relief.
  8. A total of RM5 billion of Government Savings Bond will be sold to all rakyat above 21 years old, with the minimum investments of RM1,000 up to a maximum of RM50,000. The bond will pay 5% interest annually.
  9. Tax exemption of retrenchment benefits increased to RM10,000.
  10. Deferred repayment of housing loans for retrenched employees for one year.
  11. Discount of RM5,000 for those who trade in old cars (> 10 years old) for purchasing of new Proton and Perodua cars.
  12. 50% reduction of landing charges for all airlines in Malaysia - hopefully this translate to lower ticket fees.
  13. Office renovation can claim for capital allowance up to RM100,000 within 2 years. [UPDATES] Only from March 10, 2009 to Dec 31, 2010.

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