A11 BUDGET ALLOCATIONS

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1 A11 BUDGET ALLOCATIONS In summary, a total of RM260.8 billion has been set aside for the 2017 budget, of which RM214.8 billion will be allocated for Operating Expenditure and RM46 billion for Development Expenditure. A separate amount of RM2 billon is set aside for contingencies. From the total Operating Expenditure, RM77.4 billion is allocated for Emoluments; RM32 billion for Supplies and Services; RM103.9 billion for Fixed Charges and Grants; RM691 million for the Purchase of Assets; and RM816.6 million for Other Expenditure. For Development Expenditure, RM25.9 billion is allocated to the economic sector to support the needs of infrastructure, industrial, agricultural and rural development; RM12.2 billion is allocated to the social sector for education, training, health, housing and the well-being of society; RM5.3 billion is allocated for development of the security sector; and RM2.5 billion for general administration. Specific allocations proposed in the Budget are as follows: 1. The Government will continue to implement Rakyat Centric projects and programmes in urban and rural areas as follows: (i) RM100 million to install 97,000 street lights and 3,000 LED lights in 7,500 villages nationwide; (ii) RM1.2 billion to build and upgrade 616km of village roads and bridges; (iii) RM4.6 billion for all states to maintain state roads under the Malaysian Road Records Information System (MARRIS); (iv) RM350 million to build and refurbish 17,000 units of destitute and dilapidated houses in remote villages and Orang Asli settlements; (v) RM732 million to increase the supply of clean water and upgrade the Federal Land Development Authority (FELDA) water supply system; (vi) RM156 million for grants and RM509 million for loans to improve capacity and ensure water supply; (vii) RM500 million to establish a Water Supply Fund to address water supply issues throughout the nation; (viii) RM460 million to provide electricity supply in rural areas; and (ix) RM300 million under the 1Malaysia Maintenance Fund (TP1M) to repair flats and 113 People s Housing Programmes (PPR) in urban and suburban areas. 2. The Government will implement People-Friendly Projects with an allocation of RM800 million. 3. A sum of RM495 million will be allocated to continue with 69 Flood Mitigation Plans nationwide. 4. The Government will implement the National Blue Ocean Strategy (NBOS) initiative, namely MyBeautiful New Home for the B40 with an allocation of RM200 million. 5. To build 9,850 houses in 2017 under the PPR, a sum of RM134 million will be allocated to the Ministry of Urban Wellbeing, Housing and Local Government (KPKT). 6. A sum of RM576 million is allocated to complete 11,250 PPR houses. 7. To assist in improving the rakyat s income opportunities, a total of RM275 million is allocated for the following: (i) RM45 million to expand MySuria Programme for the installation for solar panels in more than 1,600 housing units; 74

2 (ii) RM30 million to expand Mobilepreneur Programme by GIATMARA, targeting 3,000 participants using motorcycles; (iii) RM100 million for implementing Agropreneur programme to produce 3,000 young entrepreneurs; and (iv) RM100 million for revitalizing eusahawan and erezeki programmes under the Malaysia Digital Economy Corporation (MDEC). 8. The Government will provide nearly RM10 billion for subsidy allocation to ease the cost of living. 9. A sum of RM1.3 billion will be allocated to subsidise paddy price, seeds and fertilizers including hill paddy to assist paddy farmers. 10. A sum of RM250 million will be allocated to implement the purchase of floor price as an incentive to registered rubber smallholders. 11. The Government will allocate RM260 million to introduce the Rainy Season Assistance of RM200 monthly for 3 months in November, December and January to benefit 440,000 rubber tappers and smallholders. 12. The monthly allowance of RM 200 to RM300 to fishermen will be continued to ease their cost of living. 13. The Government will allocate RM6.8 million to implement BR1M assistance which will benefit 7 million recipients. 14. A sum of RM4.6 billion is allocated to Transforming Technical and Vocational Education and Training (TVET) institutions to produce a local workforce that meets industries requirements. 15. A sum of RM270 million is allocated to upgrade educational equipment in TVET institutions and RM360 million for the Skills Development Fund Corporation. 16. In order to enhance graduate employability, RM50 million is allocated to extend the 1Malaysia Training Scheme (SL1M) programme by GLCs. 17. The Government will allocate RM200 million to Syarikat Perumahan Negara Berhad (SPNB) to build 5,000 units of People s Friendly Homes (PMR) by subsidising up to RM20,000 for each house in order to enhance the first home buyers affordability. 18. For Second Generation House infrastructure development, RM200 million, RM100 million and RM100 million are allocated to Federal Land Development Authority (FELDA), Federal Land Consolidation and Rehabilitation Authority (FELCRA) and Rubber Industry Smallholders Development Authority (RISDA) respectively. 19. A sum of RM100 million is allocated to build 4 more Urban Transformation Centres (UTC) in Negeri Sembilan, Perlis, Pulau Pinang, Selangor and 3 more Rural Transformation Centres (RTS) in Selangor, Sabah and Sarawak. 20. A sum of RM40 million is allocated to adopt the National Blue Ocean Strategy (NBOS) initiatives which include 1Malaysia English, Coding in schools, Volunteering for International Professional and Global Entrepreneurship Community The Government will allocate RM10 billion to implement various Rakyat-Centric projects through the Private Finance Initiative (PFI). 22. The Government will implement sports development programmes with allocations as follows: (i) RM1.2 billion for various sports development, including RM450 million for hosting the 29th SEA Games and the 9th Para ASEAN Games in 2017; (ii) RM50 million for the construction of Football Academy Phase II in Gambang, Pahang; (iii) RM122 million for constructing and upgrading sport facilities including States Youth and Sports Complex, 1Malaysia Futsal Complex and Community Sports Complex; 75

3 (iv) RM70 million for the Elite Sports Podium Development Programme to prepare elite athletes for international sports events; and (v) RM54 million for Sportsmen Development Programmes including the Athlete Preparation Programme and Paralympic Athlete Preparation Programme. 23. To enhance the health level of the rakyat and quality of the healthcare services and facilities, the following will be allocated: (i) RM536 million for upgrading hospital facilities including the provision of cardiology treatment equipment for Serdang Hospital, Pulau Pinang Hospital and Sultanah Aminah Hospital in Johor Bahru as well as the purchase of 100 ambulances; (ii) RM4.5 billion for the operation of 340 1Malaysia Clinics, 11 1Malaysia Mobile Clinics, 959 health clinics and more than 1,800 existing rural clinics; (iii) RM4 billion for supply of drugs, consumables, vaccines and reagents to all Government hospitals and health facilities; (iv) RM20 million in the form of loans for the purchase of hospital equipment; (v) RM110 million, of which RM70 million is for medical assistance, which is expected to benefit nearly 10,000 underprivileged patients; and (vi) RM40 million for the establishment of more private haemodialysis centres with one-off grants worth RM200,000 for purchase of equipment. 24. A sum of RM80 million is allocated to implement initiatives to prevent and control contagious diseases and to expand the National Community Health Empowerment Programme. 25. To increase food production at a competitive price, a sum of RM1.3 billion is allocated to improve agricultural infrastructure. 26. The Government has allocated RM140 million to implement the Distribution of Necessary Goods Programme by opening 4 MyFarmOutlets and upgrading of 150 Agrobazaar Rakyat 1 Malaysia premises. 27. The Government will allocate RM60 million to provide grants of RM5,000 each to taxi drivers to purchase new vehicles and to offer them individual taxi permits. 28. An allocation of RM29 million to upgrade the drainage system and to construct 2 Overhead Motorcycle Ramps at the Federal Highway in Selangor. 29. The Government will allocate RM2.1 billion for infrastructure and socioeconomic development to 5 economic corridors, namely, Iskandar Malaysia, Northern Corridor Economic Region (NCER), East Coast Economic Region (ECER), Sabah Development Corridor (SDC) and Sarawak Corridor of Renewable Energy (SCORE). 30. A sum of RM522 million is allocated to the Malaysian Investment Development Authority (MIDA) for the chemical industry, electric and electronics industries and R&D activities. 31. The Government will allocate RM3 billion to fund managers licensed under the Securities Commission to invest in potential small and mid-cap companies. 32. The Government will establish the Capital Market Research Institute with an initial funding of RM75 million through the Capital Market Development Fund. 33. A sum of RM165 million is allocated to introduce a one-off increase in Private Retirement Scheme (PRS) incentive from RM500 to RM1,000 for PRS contributors with a minimum accumulated investment of RM1,000 during the period of 2 years. 34. To encourage export promotion programmes to local SMEs, the following has been allocated: (i) RM130 million is provided through National Export Promotion Funds; 76

4 (ii) RM286 million to increase exports of palm oil, rubber, cocoa and pepper; (iii) RM50 million to conduct scientific research to enhance the quality of palm oil products; (iv) A grant of RM30 million to Malaysian Palm Oil Board (MPOB) for replanting of palm oil by smallholders; and (v) RM20 million to upgrade estate roads to facilitate palm oil smallholders. 35. To promote and improve tourism facilities, the Government will allocate RM400 million for clean air and ecotourism initiatives. 36. A sum of RM162 million is allocated through MDEC to implement an e-commerce ecosystem, the Digital Maker Movement and to introduce a new location category known as Malaysia Digital Hub. 37. The Government will allocate RM75 million to promote the development of SMEs by implementing programmes under the SME Master Plan. 38. A sum of RM1 billion will be provided by the Malaysian Communications and Multimedia Commission (MCMC) to widen broadband coverage and to enhance the quality of broadband up to 20Mbps per second throughout the nation. 39. To strengthen SME startups, a sum of RM 200 million from the Working Capital Guarantee Scheme (WCGS) will be allocated to startups. 40. The Government will allocate RM80 million to invigorate the arts and cultural sector by establishing a committee represented by artists. 41. A sum of RM200 million is allocated to continue with the Additional Food Assistance and Per Capital Grant to children enrolled in TABIKA and TASIKA programmes and to improve the daily nutritional food packages. 42. A sum of RM132 million is allocated to improve access to preschool education in Government schools for free. 43. To ensure every rakyat gets complete access to education, the following initiatives will be implemented in the primary and secondary schools: (i) RM570 million to reconstruct 120 destitute schools and to upgrade 1,800 science laboratories; (ii) RM478 million to complete construction of 227 primary and secondary schools throughout the country; and (iii) RM90 million to improve English language proficiency in schools through Cambridge English, Dual Language and Highly Immersive programmes. 44. The MCMC will provide free tablets to 430,000 teachers to lessen their workload with an allocation of RM340 million. 45. To reduce the children schooling expenses of parents, the Government will allocate the following amount to continue to implement the following programmes: (i) RM350 million for the Schooling Assistance Programme; (ii) RM1.1 billion for the Hostel Meal Assistance Programme; (iii) RM300 million for the 1Malaysia Supplementary Programme for primary school students; (iv) RM1.1 billion to include Additional Assistance Payment for School Fees, Textbook Assistance and Per capita Grant Assistance; (v) Provide monthly Special Needs Student Allowance of RM150 to 67,000 students and replace buses for 21 special education schools; and (vi) RM600 million to the Special Fund for Improvement and Maintenance of Schools of which RM250 million is for National Schools, RM50 million for National-type Chinese Schools and 77

5 RM50 million for National-Type Tamil Schools, RM50 million for Religious Schools, RM50 million for Fully residential schools, RM50 million for Government-aided religious schools, RM50 million for registered Sekolah Pondok and RM50 million for MARA Junior Science Colleges. 46. A sum of RM7.4 billion is allocated for 20 public universities to ensure that the standard of higher education will be at par with the global standards. 47. The Government will continue to strengthen higher education by awarding scholarships with allocations as follows: (i) RM1.6 billion through the Public Service Department; (ii) RM2 billion through Majlis Amanah Rakyat (MARA); (iii) RM250 million through the Ministry of Higher Education; (iv) RM208 million through the Ministry of Health; (v) RM194 million through the Ministry of Education; (vi) RM28 million through the Ministry of Human Resources; and (vii) RM21 million through the Ministry of Youth and Sports. 48. The Government will continue to protect the vulnerable groups through the following programmes: (i) Monthly General Assistance of RM300 and monthly Children Assistance of RM450 will continue to be provided to 69,000 poor families; (ii) Allocate RM424 million to senior citizens, including senior citizen socioeconomic assistance of RM300 monthly as living allowance and pocket money; and (iii) RM535 million is allocated to persons with disabilities (PWDs) including employee allowance, disabled children training allowance and assistance for PWDs who are unable to work. 49. To recognise the role of community leaders such as village heads in creating harmony and a prosperous society, including heads of New Villages and Orang Asli, the allowance is increased from RM800 to RM The Government will allocate a total sum of RM56.2 billion on the following infrastructure projects to upgrade public transport in rural areas: (i) RM55 billion for the implementation of the new East Coast Rail Line project connecting Klang Valley to the East Coast. This 600km rail will connect townships such as Port Klang, ITT Gombak, Bentong, Mentakab, Kuantan, Kemaman, Kerteh, Kuala Terengganu, Kota Bharu and Tumpat; (ii) RM100 million for restoring the East Coast railway line along Gua Musang Tumpat that was destroyed during floods; (iii) RM1.1 billion for purchasing 19 new train sets to increase the trip frequency of ETS for the Johor Bahru Padang Besar route. 51. A sum of RM222 million is allocated for water treatment projects in 42 Orang Asli villages, economic and entrepreneurship development programmes and Village Resettlement projects between Sungai Ruil, Cameron Highlands, Pahang. 52. A sum of RM20 million and RM30 million is allocated for the land survey in Sabah and in Sarawak respectively for the Native Customary Rights. 53. A sum of RM50 million is allocated for the development of Chinese New Villages 78

6 54. The Government will allocate a sum of RM50 million for SME loans through KOJADI as well as RM20 million for microcredit loans under the supervision of the Malaysian Chinese Women Entrepreneurs Foundation. 55. To provide loans to Chinese hawkers communities, a sum of RM20 million is allocated to 1Malaysia Hawkers and Petty Traders Foundation. 56. A sum of RM50 million is allocated for the Malaysian Indian community to increase capacity and income. 57. A sum of RM10 million is allocated for National-type Tamil schools for expanding pre-school programmes to 50 schools. 58. The Government will allocate a total sum of RM1.42 billion for the following infrastructure projects to empower the Bumiputeras: (i) RM100 million to SME Bank to increase opportunities to Bumiputera entrepreneurs; (ii) RM100 million to Amanah Ikhtiar Malaysis (AIM) for their various entrepreneurship programmes; (iii) RM300 million to TEKUN for assisting small scale entrepreneurs to develop their business; (iv) RM200 million to Perbadanan Usahawan Nasional Berhad to implement the Entrepreneurship and Business Premises Financing Programme; (v) RM120 million to MARA for various Entrepreneurship programmes, including among others, halal industry enterprises, and youth entrepreneur development and integrated entrepreneurship training programmes; (vi) RM500 million Facilitation Fund to be given to the Bumiputera Agenda Unit (TERAJU) to assist Bumiputera companies expand their businesses or to start a new business; (vii) RM100 million for the Export Fund under TERAJU to assist Bumiputera companies to penetrate international markets; and (viii) RM100 million through Yayasan Peneraju Pendidikan Bumiputera for Peneraju Skil dan Iltizam, Peneraju Professional and Peneraju Tunas programmes. 59. To appreciate the contribution of veteran Malaysian Armed Forces, a Special Insurgency Incentive Payment of RM55 million is allocated. 60. The Government will allocate RM16.4 billion to the Ministry of Defence (MINDEF) for the purchase and maintenance of defence assets. 61. An allocation of RM323 million will be made for personnel deployment at the eastern border of Sabah to enhance the effectiveness of the Eastern Sabah Security Zone (ESSZONE). 62. A sum of RM114 million is allocated for the armed forces to build and upgrade roads under the Jiwa Murni Programme in the interiors of Sarawak. 63. A sum of RM12.8 billion is allocated to the Ministry of Home Affairs (KDN) for the various programmes and projects. 64. The Government will allocate RM60 million to enhance the effectiveness of crime prevention in cities which include omnipresence and Motorcycle Patrol Units. 65. To ensure a safe and peaceful neighbourhood, a sum of RM40 million is allocated to reintroduce grants to registered Residence Associations. 66. For women s affairs and to bring women s role into the mainstream of the nation s development, the Government will allocate a sum of RM2.03 billion for the following programmes: (i) RM2 billion for the I-KIT, I-KeuNita and Women Career Comeback programmes; and (ii) RM30 million for women to undergo free mammogram screening and receive Human Papilloma Virus (HPV) vaccination to prevent cancer, for free. 79

7 67. To appreciate religious men particularly the Imams as well as mosque and surau Committee Members, the following initiatives will be taken: (i) Increase the monthly allowance of 15,000 Imams from RM750 to RM850; (ii) One-off payment of RM500 will be given to 16,000 Bilal and Siak; (iii) Increase the monthly allowance of 33,000 KAFA teachers from RM800 to RM900; and (iv) RM30 million is allocated to coordinate Tahfiz education through the National Tahfiz Education Policy. 68. To appreciate the contribution of 11,000 KEMAS assistants in teaching children, the allowance will be increased from RM400 to RM A sum of RM85 million is allocated for the PERMATA programme to establishing the Top STEM Talents Excellence Centre at Academy of Sciences Malaysia. 80

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