The outlook for the global economy in the coming year has become more uncertain and challenging because of geopolitical conflict, tightening of monetary policies and the prospect of weak economic growth, as well as the possibility of weak economic growth, he said in his speech in the Lower House on Friday afternoon.
Here are five main takeaways from Malaysia's 2023 budget:
What is in it for households and individuals?
Spending for social assistance and subsidies has doubled from just 5.2 per cent to 11.3 per cent of operating expenditure, despite the fact that the overall budget expenditure for 2023 is expected to be lower than the revised 2022 budget.
It is a move many observers have anticipated given the fact that a general election may be called in the short term.
Tengku Zafrul noted that low-income families with a household salary of less than RM 2,500 will qualify for cash handouts of between RM 1,000 and RM 2,500 depending on the size of the family. Senior citizens who are single will get handouts of either RM 350 or RM 600.
The tax rate will be reduced by 2 percentage points for middle-income families as there is a 2 percentage point reduction for those in the tax band from RM 50,001 to RM 100,000.
The tax rate for this income group will be lowered from 13 per cent to 11 per cent and a 3 percentage point reduction for those in the RM 70,001 and RM 100,000 tax band, from 21 per cent to 19 per cent.
The government has allocated 1 billion RM to help the poorest group under the existing Malaysian Family extreme poverty eradication programme BMTKM The programme will provide economic opportunities to around 50,000 extremely poor households across the country.
What is the best way to help small, medium businesses?
The government has reduced income taxes for small and medium enterprises from 17 to 15 per cent for the first RM 10,000. This is going to benefit 150,000 taxpayers employed in these firms, said Tengku Zafrul.
He said that the government plans to extend the stamp duty exemption by up to 100 per cent on loan or financing restructuring or rescheduling agreements until 2024.