Budget 2005

[masterof_none]

Malaysia's Budget 2005 is out :
http://www.nst.com.my/Current_News/NST/Saturday/National/20040911080229/Article/indexb_html

Highlights :

Education is still the highest receipient of the budget, totalled $21.5 billion

GDP projected to 7% (compared to 6.5% previously).

Deficit reduction of 3.8% of GDP was projected.

Increse in "sin taxes" and reduction of import taxes of 118 goods

Increase focus on agricultural industry.

Police got raised to reduce crime rate (a huge one) and also other civl servants (as usual).



Overall, it looks good. However, I can't find anywhere in the news that says it would promote R&D in the universities back home. I'm not entirely sure how the colossal Education fund would be used but I hope the R&D is one of the things that they would focus. It's really crucial to give birth of the local talents on science. And hopefully the Brain Gain program would work. (First, they must make sure that applying for PR and citizenship easier).
anyway, looks like this Budget would reduce the deficit, which is good.
I think there's nothing wrong with deficit Budget. we just need to make sure that we could pay it up soon.

any comment anyone?




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[Zeroth]

erm, i did not really look through it yet, but i think i noticed an increased pricing in cigerrate prices. While the intention is good, i think i will not be working. Nobody will give up smoking just because of the price hike. It'll just increase the burden of the family involved, and add more income to the government.

Anyway, i guess this is not a very profesional analysis of the matter.

[KobeBryant]

On expenditure for 2005, he said the Government proposed to spend RM117.4 billion to achieve objectives targeted in the Budget.

With revenue expected at RM99.2 billion, the overall Government deficit next year was expected to be reduced further to 3.8 per cent of gross domestic product (GDP) from an estimated 4.5 per cent this year


expenditure is RM 117.4 while Revenue is Rm99.2
how to calculate the percentage of the deficit of GDP ?

[chenchow]

basically Deficit of GDP would be (Expenditure - Revenue) , which would be 18.2 billion and that number is 4.5% of our estimated GDP.

[jiinjoo]

Under the new scheme, teachers designated as "Guru Cemerlang" and "Pengetua Cemerlang" would be able to remain in schools after promotion instead of being forced to leave their teaching posts for appointments in State or district education offices.
This is good - many teacher I know loath the prospect to move around. It's very disruptive to the whole family.

I agree with m.o.n. - there's almost no mention of R&D. My speculation on the intention is to make R&D a privatized matter and focus on the "factory" results, i.e. producing more workers with a bachelors degree, or bringing more kids to at least SPM level for example, since no private company is in the position to do that.

This is the one I'm always looking at

http://star-techcentral.com/tech/story.asp?file=/2004/9/10/technology/8877311&sec=technology

I'm dead curious why the rebate is always so meager... What kind of computer can you buy with RM500!? Afterall, if you buy too lousy a computer, your kids can't get hooked to it and learn more, after losing both interest and patience the computer purchsed will be left at home to rot - what's the point?

[opaqa]

I'm dead curious why the rebate is always so meager... What kind of computer can you buy with RM500!?

No, you don't have to buy a RM500 computer. $500 is just the tax rebate.

Anyway, computers are so much more affordable nowadays. in addition, you can opt to either pay a lump sum or have it financed and pay weekly/monthly payments.

I am personally glad that the gov't is doing something to help us. most of my non-m'sian friends are jealous of the benefits that I enjoy as a M'sian. I'm not saying that our gov't is perfect, but compare us to other nations, I know that at least our gov't is trying to help its people.

[Thirdshifter]

a pack of 20s premium brand ciggies in Malaysia cost RM6.80 now.

[opaqa]

PM minta remaja jangan hisap rokok (http://www.utusan.com.my/utusan/archive.asp?y=2004&dt=0913&pub=Utusan_Malaysia&sec=Dalam_Negeri&pg=dn_04.htm)

"Jangan hisap rokok, jangan hisap rokok, ini tidak baik kepada kita.''

"Kalau dah hisap, cuba-cubalah berhenti. Rugi sahaja, harga rokok pun dah naik, hisap buat apa,'' kata Perdana Menteri Datuk Seri Abdullah Ahmad Badawi.

[digimushu]

I'm all for the rise in ciggie prices, probably because i'm one of those people who have a particular dislike of people smoking in front of me. Hopefully, this will reduce the number of cases of lung cancer caused by second hand smoke.

The tax rebate for computer purchase thing is great! Computers are so cheap these days, it will make them more affordable.

I am a little bit worried about the lack of funding for R&D tho. This proves that M'sia has once again lost foresight on the importance of R&D....

[chenchow]

On the rise of cigarette and alcohol prices, in a way, it would generate about RM800 million tax revenue for the government. However, in another way, there could be more smuggling of contraband cigarettes into the country.

What do everyone think about this issue?

On the price increase of cigarette, would it cause the increase of even more social ills, as it would become even costly for people to afford it? Or it would be a good deterrent for youngsters to pick up smoking?

On R&D, I believe that the budget given for this year is RM900 million. It is channeled within the Higher Education Budget I believe. Minister of Higher Education was saying about the transformation of IPTA into research universities.

[saser_sp]

Books price also rebated .... :D

[qedx]

RM700 free books per year, ah heaven! :D

Is the Last week at Dewan Rakyat column available in the Star's website? Tried looking for it because I read it today and the Sri Gading MP annoyed me with his comments on the cigarette tax increase. Couldn't find it online so I scanned it.
http://www.qedx.com/index.php?op=ViewResource&blogId=1&resource=Last_week_at_the_Dewan_Rakyat_09192004.jpg

However his comments in the second column, "The exhaust fumes had done him in rather than cigarettes!" is a bit interesting. That secondary smoke is about 10 times worse than diesel engine emissions aside, do we have some sort of vehicle emissions rule in Malaysia for normal vehicles (cars and such)?

[chenchow]

RM 700 of free books? Guess it is free rebate, i.e. Rm700 of books not taxed... This is a good step forward though, where it encouraged Malaysians to buy more books to read. As of now, this RM700 rebates do not include newspaper, and perhaps not include magazines, but rather the purchase of books, including textbooks.

Anyone think what should be the best definition books for rebate? Anyone has any opinion on this budget?