Malaysia Budget 2015 (Bajet 2015)What implications does it has to students, youths, fresh graduates, teachers and lecturers in Malaysia? Read on the excerpts of Prime Minister Najib Razak's budget 2015 speech below.
|Malaysia Budget 2015 (Bajet 2015) / PicCredit|
From Prime Minister's budget 2015 speech:
THIRD STRATEGY: DEVELOPING HUMAN CAPITAL AND ENTREPRENEURSHIPLiked this post? Subscribe now to read more post like this one! Tweet
77. Currently, human resource is among the key factors contributing to prosperity of a nation. Wealth creation is no longer solely dependent on resources such as petroleum, oil palm or minerals but also includes ideas, creativity and innovation as well as people’s skills including invention of new products which are capable of driving economic growth and nurturing new entrepeneurs.
78. Consistent with the people’s economy, it is the Government’s aspiration to increase the component of wages to GDP from 34% currently to 40% by 2020.
Measure 1: Strengthening Teaching Professionalism and School Performance
79. The education sector will continue to be strengthened in line with the Malaysia Education Blueprint 2013 – 2025. For this purpose, the Government will allocate RM56 billion to the Ministry of Education for various teaching and learning programmes. Emphasis will be given towards strengthening schools which require guidance and special assistance. In this regard, a sum of RM250 million will be allocated for School Improvement Specialist Coaches and School Improvement Partners programmes.
Measure 2: Empowering Trust Schools and Building New Schools
80. The Government will expand the Trust Schools programme which started in 2011. To date, 30 Trust Schools have been set up benefiting nearly 20,000 students and 1,500 teachers. Under the programme, Principals are accorded autonomy and are highly accountable for the management as well as the teaching and learning process in schools. As such, the Government plans to expand 20 more Trust Schools in Johor, Sarawak, Selangor, Perak, Negeri Sembilan and the Federal Terrritory of Kuala Lumpur with an allocation of RM10 million in 2015.
81. The Government will also build 12 new schools comprising seven primary schools, three secondary schools and two boarding schools nationwide.
Measure 3: Mainstreaming Technical and Vocational Education
82. By 2020, at least 46% of jobs will require technical and vocational qualifications. For this, the Government will increase the student intake in vocational and community colleges through the Vocational and Technical Transformation programme and upgrade colleges. For this purpose, the Government allocates RM1.2 billion.
83. Currently, applications for entry into Technical and Vocational Training (TEVT) programmes received by the Ministry of Education far exceed the capacity of 20,000 places. To open up more opportunities in this field, the Government will allocate RM100 million immediately to Ministry of Education for 10,000 placements in technical and vocational private colleges. Further, RM50 million will be allocated to MARA to implement TEVT programmes.
84. To encourage private companies, the Government proposes that the existing tax incentives be enhanced as follows:
First: Double deduction for scholarships awarded to students in vocational and technical courses at the certificate level;
Second: Double deduction on expenses incurred by a company to implement a structured internship programme for students at diploma and vocational level; and
Third: Further deduction on training expenses incurred by an employer for employees to obtain certificate qualifications from accredited vocational and professional bodies.
Measure 4: Development and Maintenance of Education Facilities
85. To ensure a safe and conducive learning environment, the Government will allocate RM800 million for the following:
- National Schools RM450 million;
- National-type Chinese schools RM50 million;
- National-type Tamil schools RM50 million;
- Religious schools RM50 million;
- Fully residential schools RM50 million;
- Government Aided Religious Schools RM50 million;
- MARA Junior Science Colleges RM50 million;
- Registered Sekolah Pondok RM25 million; and
- National-type Chinese Secondary Schools (Conforming Schools) which use the national curriculum RM25 million
86. The Government is pleased to announce that the electricity and water bills of all National-type schools under the Ministry of Education will be paid in full up to a maximum limit of RM5,000 a month compared with RM2,000 previously.
Measure 5: Sponsoring Education
87. In 2015, the Government will allocate RM3 billion for sponsoring education of which RM1.9 billion will be given to the Public Services Department, Ministry of Education RM759 million and Ministry of Health RM258 million.
Measure 6: Expanding MyBrain15 Programme
88. The Government has introduced MyBrain15 Programme to produce 60,000 PhD holders by 2023. To date, 34,525 students are pursuing post-graduate studies with a cost of over RM386 million. In 2015, RM112 million will be allocated for this programme. MyBrain15 Programme, which is currently for the private sector, is proposed to be extended to civil servants and employees of statutory bodies who are keen to further their studies on part-time basis in local higher learning institutions.
Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN)Measure 7: Tabung Pendidikan Tinggi Nasional
89. Since the establishment of Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) in 1997 to date, 2.1 million borrowers have taken loans worth RM47.8 billion. However, as at 31 August 2014, only RM5.36 billion or 46% of RM11.76 billion has been collected.
90. Sadly, 174,000 borrowers have not made any payments since 2010. As such, the Government will take appropriate new measures to recover the outstanding loans.
91. It is a sin to die without settling one's debts as the soul will not rest in peace.
92. To encourage repayments, the Government proposes that a 10% rebate is given to borrowers who continuously make repayments for 12 months until 31 December 2015. An additional 20% discount will be offered to borrowers who make lump sum repayments from today until 31 March 2015.
93. Since 2005, National Education Savings Scheme (SSPN-i), SSPN-i account holders with a monthly household income not exceeding RM2,000 have been enjoying matching grants. To encourage more parents to become depositors and obtain the same benefits, the Government proposes contributors' monthly household income limit be increased to RM4,000.
Measure 8: Enhancing Graduate Employability
94. To date, it is estimated that 53,000 graduates remain unemployed after six months of graduating. To enhance graduates' employability, the Government proposes that the curriculum and skill training programmes at public skill training institutions as well as institutions of higher learning be reviewed. For this, Talent Corp will provide RM30 million for Industry Academia Collaboration programme where universities, Government entities and industries will collaborate to develop the curriculum for the internship programmes and industrial training.
Malaysian University English Test (MUET)
95. In addition, graduates’ self-confidence and English proficiency skills will be enhanced. Currently, students need to have a minimum of Band 1 in Malaysian University English Test for entry into public institutions of higher learning (IPTA). Beginning next year:
Malaysian University English Test (MUET)
(i) for entry into IPTAs the minimum MUET band will be increased according to the field of study, for example:
(a) Arts and Social Science courses - Band 2
(b) Science, Technology, Engineering and Mathematics (STEM) courses - Band 3
(c) Law and Medical courses - Band 4
(ii) to graduate, students must achieve
(a) Arts and Social Science courses - Band 3
(b) STEM courses - Band 4
(c) Law and Medical courses - Band 5
96. In the second quarter of 2014, there were a total of 13.5 million jobs, an increase of around 1.6 million jobs compared to 2010. To safeguard the welfare of workers:
(i) The Employment Act 1955 and related labour acts will be reviewed, including better terms and conditions of employment, appointment and dismissal, flexible working arrangements and termination benefits;
(ii) The JobsMalaysia portal will be improved to meet the needs of an increasingly dynamic labour market;
(iii) The Government will introduce an Employment Insurance System aimed at assisting retrenched workers by giving temporary financial assistance as well as providing opportunities for reskilling and upskilling; and
(iv) Providing technical training and education assistance to Indian youth, particularly those from low-income families with an allocation of RM30 million.
97. In 2011, Skim Latihan 1Malaysia has enabled aound 45,000 graduates from the low-income households and rural areas to obtain jobs. The Government supports CSR effort by the employers in its implementation through double deduction incentive to companies for the purpose of tax computation until 31 December 2016. I propose the tax incentive be extended until 31 December 2020.
Measure 10: Globally Recognised Industry and Professional Certification Programme
98. To intensify upskilling and reskilling programmes, the Government will introduce a new programme, namely Globally Recognised Industry and Professional Certification Programme or 1MalaysiaGRIP with an allocation of RM300 million in matching grants between the Government and the Human Resources Development Fund to train 30,000 workers.
Measure 11: Double Shift Training
99. The Government will increase skills training programmes in institutes under Department of Labour (JTK). The training programme is for students with Malaysia Skills Certificate (SKM), university or college graduates as well as industrial workers particularly semi-skilled workers. In order to optimise the 32 JTK training institutes, the Government will leverage the double shift training capacity for full-time programmes comprising 176 courses with high demand in the labour market. With intake of two times per year, an estimated 48,000 students will be trained in the five year period of implementation with an allocation of RM570 million.
Measure 12: Promoting Startups
100. The Government aspires to position Malaysia as a choice location for Startups in the region. Among the efforts is the establishment of MaGIC which aims to create a more conducive ecosystem to facilitate the Startups to commence operations. To attract more expatriate entrepreneurs establish Startups in Malaysia, the paid-up capital for Startups is set at RM75,000. Eligible expatriate Startup entrepreneurs will be given Work Pass for one year.
All Primary and Secondary School Students Get RM100 Each135. To ease the burden of school expenses incurred by the parents and guardians of students, particularly for low-income group, the Government will continue the schooling assistance programme. Starting January 2015, a RM100 each will be given to all primary and secondary school students with an allocation of RM540 million which will benefit 5.4 million students.
1Malaysia Book Voucher Programme (Baucar Buku 1Malaysia, BB1M)136. In addition, for the purpose of purchasing reference books and instruments the Government will continue to implement the 1Malaysia Book Voucher Programme with the assistance of RM250 per student. A sum of RM325 million will be allocated for this programme and is expected to benefit about 1.3 million students.
182. For households with a monthly income between RM3,000 and RM4,000, the Government will increase BR1M from RM450 to RM750. This assistance will be disbursed in three instalments that is RM200 to be paid in January and May while the balance of RM350 from September 2015.
183. For single individuals aged 21 and above and with a monthly income not exceeding RM2,000, BR1M will be increased from RM300 to RM350 a year. This assistance will be disbursed early next year.