Budget 2008

Today’s the Budget 2008 tabling. Naturally, like other Malaysian, I’m actually interested on what’s really affecting me directly, than the ones that’s affecting me indirectly. So what did I find this year?

From The Star Budget 2008 site:

To promote a culture of life-long learning among Malaysians, the Government proposes tax relief of up to RM5,000 on education fees be extended to all post graduate studies.

My take? Great! At least, now i can look into furthering my studies to Masters degree, and don’t really have to worry about the fees.

In line with efforts to establish a knowledge-based economy and narrow the digital divide, the Government has targeted to increase the broadband penetration rate to 50% of households by 2010, from 12% currently. For this, an effective public-private partnership will be required to accelerate the rollout of broadband. As part of this effort, developers will be encouraged to provide telecommunication infrastructure in new housing areas.

At least the Government is really serious in getting broadband Internet to all. Maybe if the Government decided to do something about the monopoly in the Internet services in the country - it would definitely be a blast.

the Government will establish a fund to provide guarantees to banks, which provide loans to those without fixed income. For a start, RM50 million is allocated to provide such guarantees to Bank Simpanan Nasional and Bank Islam Berhad, effective 1 January 2008

Finally - Ah Long would could be something of the past.

To ease the burden of home loan repayment, the Government will allow EPF contributors to make monthly withdrawals from the balance in Account 2. The scheme will be effective 1 January 2008 and is for the financing of one house.

Haha - this is something i actually look forward to. I just got a house this year - although the loan hasn’t actually started, this news would come in handy.

In addition, to promote healthy lifestyle among Malaysians, the Government proposes that individual tax relief of up to RM300 a year be given on the purchases of sports and exercise equipment.

All work and no play makes Ashotiwoth a dull man. I think it’s high time and applaudable for the Government to actually encourage Malaysians to play more sports by introducing this scheme. Now - maybe it’s time to get that new Nike running shoes?

Overall, I didn’t know what to comment. I’m not exactly an economist; i merely give opinion based on solely my personal view. But whatever it is, I believed that the Budget is definitely for the good - although i really hoped that the Government would announced that I don’t have to pay any income tax this year….. :) Fat chance….

September 8, 2007 | Filed Under General 

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Comments

9 Responses to “Budget 2008”

  1. zewt on September 8th, 2007 12:13 am

    excuse me but… when you said you dont have to worry about fees… did you think the govt is going to hand u 5000 bucks to spend or what? the proposal is that 5000 bucks is allowed as a deduction from your income.

    and… how can ah long be a thing of the past with govt issuing BNM bonds? in fact… ppl might borrow from ah long to subscribe to these bonds…

    ok la… the EPF one is pretty positive but… when one retires… EPF…. gone.

  2. ashotiwoth on September 8th, 2007 12:23 am

    zewt - when i say i don’t have to worry about the fees, i don’t mean that I don’t have to pay for it. what i meant is what i pay for the fee, i can redeem it back as tax reduction. that means less tax to pay - which essentially mean a little bit more money to spend.

    the BNM bonds is only for senior citizens above 55 years old who doesn’t have a permanent job. i believed at that age, they may have some form of savings (in EPF) to help them to buy. different lah…

    that EPF thingy, it will help, but not that i’m planning to use it anyway :)

  3. zewt on September 8th, 2007 12:33 am

    fair enough…

    but seriously… unless u are making heaps… 5000 tax savings is nothing.

  4.   Do you feel much safer with the new Budget 2008? by Blog @ ashotiwoth.com on September 8th, 2007 12:35 am

    […] have commented somewhat on the Budget 2008 on my other blog. But i guessed I’d like to mention some of the points that I think i have […]

  5. ashotiwoth on September 8th, 2007 12:46 am

    zewt - true enough, but something is still better than nothing rite?? :)

  6. moo_t on September 8th, 2007 1:26 am

    zewt, did you calculate the inflation.

    Do you know that a house cost 2x the purchase price thanks to the interest fee? Think of this, it is a double stupidity : bank charge you 8% housing loan interest, and EPF only make 5% per year. Do you see the logic? That’s the reason why Singapore do it for many years. The withdrawal just transfer the wealth BACK to the people, instead of letting the banks earn 3% interest from the people. (And 3% interest for 20 years is equal to ~ 55% of you house value )

    Without the withdrawal scheme, the inflation will eat into EPF scheme. 1 plate of rice in KL cost RM3.5 today, and it might cost RM20 in next 20 years.

  7. moo_t on September 8th, 2007 1:29 am

    BTW, the RM5000 tax relief for education is cosmetic. Unless you make RM6000 per month, otherwise you will only save less ~RM50-RM150 tax money. But for the rich salary bringer (RM 5000 above), this help cut down their tax payment margin cap, can easily save them RM800-RM2000 tax money.

    In short, rich people getting richer.

  8. lilian on September 8th, 2007 2:14 am

    LOL, sikalang kopi 20 linggit tarak cukup, kena tambah kasi enam puluh baru boleh kenyang.

  9. ashotiwoth on September 10th, 2007 11:35 pm

    moo_t,
    i’m trying hard to follow on how it helps me reduce the home loan. could you assist to illustrate with some example?

    lilian - yeah la….

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