The 2019 budget of Malaysian new government will be presented by the finance minister after some five months since it took power which was decided in a surprising election result. There are few items which can be featured in the budget presented by the new government of Malaysia stated by the research notes by analysts and also the reports given by the media. Following are some of the points which may be present in the upcoming budget.
It is expected by the Malaysian Rating Corporation that the government will be able to trim the operating costs and the possible cuts will be in pensions, emoluments, and gratuities. The reduction of the operating costs also includes cuts in debt service charges also.
The RHB Bank expects that the newly elected government will be introducing some of the taxes which are sector-specific like the consumption of soda and sugar which can again cover the e-commerce. There may also be a carbon tax for which the government revenue is likely to increase.
It was also cited by the analysts that they expect that the housing policy of Malaysia will be affordable that aims to boost the ownership of homes among the lowest wage earners of the country as well. It will also make the housing policy easier for the encouragement of buying more houses by the citizens and also to jump-start the property market.
Revision of Welfare Aid
The new government will gradually end an annual cash aid program and it will be replaced with a system which is dependent on targets so that the public can spend in check.
Subsidies on Fuel
Newly elected government of Malaysia will also maintain a blanket fuel subsidy scheme in the coming year as it will be working on a scheme which is set under some of the targets too like the revision of the welfare aid.