Budget 2024, which is termed “Second Belanjawan MADANI”, with the theme “Budget 2024: Economic Reforms, Empowering the People” was tabled by the Prime Minister and Minister of Finance, YAB Dato’ Seri Anwar Bin Ibrahim at Dewan Rakyat in Kuala Lumpur on Oct 13, 2023. Among the many allocations of Budget 2024 to various groups and sectors, the focus of this article is how Budget 2024 benefits the vulnerable groups, i.e. women (including single mothers), children, students, senior citizens and people with disabilities (OKU).
Budget 2024 which is a continuation of the Ekonomi MADANI framework, is the highest budget ever tabled (with allocations totaling RM393.8 billion). Out of the total allocation of RM393.8 billion, RM303.8 billion (77.15%) is allocated for operating expenditures whereas RM90 billion (22.85%) is allocated for development expenditure. A total of RM2 billion is set aside for contingency savings.
In Budget 2024, the Unity Government has proposed RM720 million (in the form of small Business Loan Facility under agencies such as TEKUN, BSN and BNM), to be set aside to encourage women and youth to venture into business as micro-entrepreneurs and small traders.
The operation of businesses has been changed due to the complexity of the economy and advancements brought by technological developments. Highly skilled new local talents are in demand by employers and the industry who are increasingly embracing digital transformation and IR4.0 technologies. To adapt to the evolving and fast-changing world, the Unity Government recognized the country’s needs of having more highly skilled new local talents. Thus, besides the mainstream tertiary education, the Government has also allocated a total of RM6.8 billion to revamp Malaysia’s Technical and Vocational Education and Training (TVET) education through collaboration with Government-linked Companies (GLCs) and private companies. Budget 2024 will allocate RM100 million to provide industry-recognized professional certification to TVET graduates and this initiative also serves as an incentive for the industry to collaborate with public TVET institutions.
Furthermore, Budget 2024 also sees an allocation of RM1.6 billion to train 1.7 million Malaysian workers via Human Resources Development Corporation (HRD Corp) in 2024. HRD Corp will reallocate a special fund by utilizing 15% of the total levy collection to implement the MADANI Training Programme that includes skills improvement and talent retaining programmes for micro, small and medium (MSME) entrepreneurs and vulnerable groups including retirees, senior citizens, OKU and ex-prisoners.
Budget 2024 places particular emphasis on channelling cash assistance directly to the underprivileged Malaysians as well as providing basic infrastructure, healthcare and education for all. Budget 2024 allocates RM30 million to encourage private employers to employ the vulnerable groups (including senior citizens, OKU and former inmates) via SOCSO who will provide a special incentive of RM1,500 per month for a period of 6 months to support the job entry of more than 3,300 job seekers. The One Percent Policy on Employment Opportunities for the OKU will be extended to senior citizens and former inmates via the MySTEP programme and MYFutureJobs job-matching. Vulnerable groups who join the MySTEP programme will be offered a contractual placement with a monthly allowance of RM1,500 for a period of 6 months in various government ministries, GLCs, Government-Linked Investment Companies (GLICs) as well as Government’s strategic partners.
Besides this, Budget 2024 also sees more than RM2.4 billion assistance channelled by the Department of Social Welfare to benefit more than 450,000 Rakyat, especially hardcore poor households, children, OKU, and the senior citizens. The Government will utilize a portion of the income generated from the sales of special licence plate numbers to the elites and superrich to lighten the burden of the underprivileged people. For example, a total of 10,000 helmets (including for children) will be distributed free of charge to underprivileged families. Besides this, the driving test fees for the B2 motorcycle licence category, taxis, and e-hailing will continue to be borne by the Government for the benefit of more than 40,000 youths from underprivileged families. Furthermore, in 2024, the FLYsiswa initiative will continue to benefit nearly 60,000 students from underprivileged families as a subsidy aid to purchase flight tickets to reduce the financial burden of students who wish to return to their hometowns (for example underprivileged students who study in West Malaysia who wish to return to their hometowns in Sabah and Sarawak).
To further encourage women to return to work after taking a career break (for example due to family commitments such as childbirth or taking care of terminally ill parents etc), tax incentives for women returning to work are extended until 31 December 2027.
Besides this, Budget 2024 sees the allocation of RM586 million to Jabatan Kemajuan Masyarakat (KEMAS) to build and upgrade KEMAS Early Childhood Education premises (including new TABIKA and TASKA). Furthermore, Budget 2024 also allocates RM82 million to Ministry of Education to build and construct new preschools. This showcases that the Government recognizes the importance and continues to pay attention to early childhood education development.
In 2024, the Government will continue to support the wellbeing of OKU on top of empowering the OKU to be self-sufficient. Budget 2024 allocates a total of RM1.2 billion to channel various forms of assistance including caregiving to chronically ill bedridden OKU and allowances to disabled workers. Besides this, Budget 2024 also sees an additional allocation of RM30 million that is expected to benefit more than 18,000 disabled trainees who participate in the Community Recovery Programme who will have their monthly allowance increased from RM150 per month to RM300 per month. Furthermore, a special financing facility by BSN that is worth RM50 million will be provided to benefit micro-disabled entrepreneurs.
To support and safeguard the wellbeing of senior citizens, Budget 2024 allocates a total of RM1 billion which includes providing cash assistance and channelling funds to senior citizens’ activity centres and care institutions.
The education sector is the sector that receives the highest allocation in Budget 2024, with a total allocation of RM58.7 billion specifically allocated to the Ministry of Education. The allocations are proposed to build new schools, upgrade and maintain buildings and infrastructure in schools all over the country, including special education schools with a focus on the needs of students with autism.
Beginning year 2024, the Government has agreed to extend the parents’ income requirement in the application of the Federal Small Scholarship (BKP) according to the poverty line income rate (PGK) of RM2,589 compared to the original RM1,500. The expansion of this criteria will enable an additional 35,000 children from underprivileged families to receive BKP.
To ensure that the children of poor/underprivileged families do not drop out of school due to financial issues, the Government has agreed to extend the provision of assistance under the Kumpulan Wang Amanah Pelajar Miskin to Form 3 students as compared with the original Form 1 students. In total, over 1 million students will get benefits amounting to RM150 million under Budget 2024 allocations.
Budget 2024 showcases that the Government continues to empower and safeguard the wellbeing of students with special needs by allocating RM180 million to build 18 new blocks of special education schools/facilities besides allocating RM30 million to provide special educational support equipment and disabled-friendly facilities to facilitate teachers and students in the special education schools.
To ensure the excellence of higher education which is measured in terms of the success in churning out successful young talents, besides recognizing Universities as essential knowledge hubs that need to be well-equipped and ready to supply quality graduates with the necessary relevant skills and knowledge of the job market, Budget 2024 allocates RM16.3 billion to the Ministry of Higher Education, as compared to RM15.3 billion in 2023 (an increase of RM1 billion or 6.54%). To solve the problem of slow/lagging internet access in universities, Budget 2024 allocates RM250 million to replace and extend the coverage of WIFI in all public universities. This allocation also includes RM5 million for the digitalisation project of the University Teaching Hospital. And to increase the level of safety and comfort in institutes of higher education (IPT), RM300 million is allocated to repair and maintain infrastructures as well as replacing spoilt/dilapidated equipment.
Budget 2024 also sees the Government emphasizing the importance of knowledge by continuing to promote knowledge by encouraging vulnerable communities, including single mothers, Orang Asli, OKU, and senior citizens to join the Lifelong Learning Programme in community colleges by allocating a total of RM5 million to benefit 5,000 focused communities in 105 community colleges throughout Malaysia.
To cultivate a responsible attitude among PTPTN loan borrowers, the Government has agreed to provide a discount on PTPTN loan repayment from 14 October 2023 until 31 March 2024 with the following rates: 10% discount on the balance of the debt for full settlement of the loan; 10% discount on payment of at least 50% of the remaining debt in a single payment; and 15% discount on payment by salary deduction or scheduled direct debit.
What Budget 2024 has in store for Malaysian tertiary students from underprivileged families include capping the registration fees for admission to public universities at RM1,500 effective from January 2024. This is in line with the value of the National Higher Education Fund Corporation (PTPTN) Advance Loan (WPP), which amounts to RM1,500 for all eligible prospective students. Besides this, existing tertiary students who cannot afford to pay their tuition fees will not be blocked from registering for subjects each semester, and payments can be made after subject registration. Any payment regulations set by universities should take into account the welfare of students. Going forward, the university’s relevant division, in collaboration with PTPTN or other relevant bodies, should play a role in simplifying the process and helping students and prospective students who face tuition fees payment issues. All these measures highlight the Government’s concern about protecting the welfare of tertiary students from underprivileged families, so that no poor students are denied access to receiving tertiary education at public universities (if they are being offered placements because they have met the minimum entry requirements) or being denied the rights to enrol simply because they cannot afford to pay the university enrolment entrance fees.
Last but not least, Budget 2024 provides an allocation of RM130 million to protect the Rakyat and ensure their well-being by intensifying disease prevention activities/initiatives through the Agenda Nasional Malaysia Sihat (ANMS), such as early screening for newborns, providing vaccines for pregnant women, as well as health screening. This smart move indicates that the Government adopts a preventive and pro-active approach instead of a reactive approach (i.e. not only seeking professional medical treatment when the symptoms become more severe or when the patient is in unbearable pain).
Foo Pik Yin, Chin Yoon Mei and Loh Chun T’ing
Lecturers
Department of Commerce & Accountancy
Faculty of Business and Finance
Universiti Tunku Abdul Rahman (Kampar Campus), Perak
Online Education Fair 线上教育展
Universiti Tunku Abdul Rahman (UTAR)
拉曼大学 (優大)
https://edufair.fsi.com.my/utar
