Highlights of Budget 2012 tabled by Prime Minister Datuk Seri Najib Razak in Parliament Friday:

1. Last year our FDI growth was the strongest in Asia and in the first 6 months of this year have already reached RM21.2bil


2. In 2012, private investment is forecast to climb 15.9%, supported by foreign and domestic investment


3. GDP in the first 6 months of 2011 was 4.4%, driven by strong domestic consumption


4. In 2011, the economy is forecast to grow by 5-5.5%


5. Private and public investment are forecast to increase by 15.9% and 7%, supported by foreign investment, the ETP and 10MP


6. In 2012, the service sector is expected to grow 6.5%, the construction sector 7% and GDP is forecast to be between 5 and 6%


7. Budget 2012 allocates RM232.8bil for Government plans, including RM181.6bil for management and RM51.2bil for development


8. RM29.8bil has been allocated for investment in infrastructure, industrial and rural development


9. RM13.6bil has been allocated for the social sector, including education and training, welfare, housing and community development


10. Total revenue for 2012 is forecast to increase 1.9% to RM186.9bil and the deficit to decrease to 4.7% of GDP from 5.4% in 2011


11. The theme for Budget 2012 is “National Transformation Policy: Welfare for the Rakyat, Well-Being of the Nation”


12. We will focus on accelerating investment and further liberalise 17 services sub-sectors, in places enabling 100% foreign equity.


13. RP2 will be implemented in 2012, and it will be allocated RM98.4bil, to be split evenly between 2012 & 2013


14. RP2 main projects will include the East Coast Highway from Jabor to T'ganu and road upgrades from Kota Marudu to Ranau


15. RM18bil of the RM20bil PPP Facilitation Fund will be used for high impact projects, with RM2 billion for bumiputra entrepreneurs


16. In 2012, the Government will allocate RM978mil to accelerate the development in five regional corridors


17. The Treasury Management Centre will be established and offer incentives to develop M'sia as a competitive financial center


18. We will develop the Kuala Lumpur International Financial District, with incentives including income tax exemptions for firms


19. We will develop the Kuala Lumpur International Financial District, with incentives including income tax exemptions for firms


20. Income tax exemptions for non-ringgit sukuk issuance and transactions will be extended for another 3 years


21. To promote the development of Exchange Traded Funds products I-VCAP will provide RM200mil for Shariah-compliant ETFs


22. Felda GVH will be listed on Bursa Malaysia by mid-2012 to raise funds for the company to become a global conglomerate. Felda settlers are expected to receive a windfall, and the amount will be announced before listing


23. A RM2bil shariah-compliant SME Financing Fund managed by selected Islamic banks will be established in 2012


24. A RM100mil SME Revitalisation Fund offering loans up to a maximum of RM1mil for entrepreneurs will be available from Jan 2012


25. Full exemption of import duty and excise duty on hybrid cars and electric cars will continue to be given until 2013


26. To promote tourism, the Langkawi Five Year Tourism Development Master Plan will be launched with an allocation of RM420mil


27. The real property gains tax will be reviewed so it doesn't jeopardize the ability of low- and middle-income groups to buy homes


28. The Malaysia Healthcare Travel Council will be privatized to promote and develop Malaysia as a healthcare destination


29. Budget focuses on developing human capital, creativity and innovation and 2012 will be the National Innovation Movement year


30. The Govt has allocated RM100mil promote innovation including the 1Malaysia Award (C1PTA) for innovative student inventions


31. To enable SMEs to commercialize research products a Commercialisation Innovation Fund totaling RM500mil will be established


32. RM50.2bil will be allocated to the education sector so that it can continue to develop talented, creative and innovative people


33. RM1bil will be provided through a special fund for the construction, improvement and maintenance of schools


34. We will abolish payments for primary and secondary education, making these free for the first time in our history


35. Private schools registered with the Education Ministry will be given incentives including an Investment Tax Allowance


36. The Govt will give tax exemption for contributions to educational institutions and all places of worship


37. To encourage private sector human capital development incentives including a double deduction on scholarships will be offered


38. Budget 2012 introduces a Rural Transformation Programme, so that rural areas can attract private investment and create employment


39. RM5bil to develop rural infrastructure, including RM1.8bil to the Rural Road Programme & Village-Link Road Project


40. RM500mil to expand the program to supply clean water to the rural community in Sabah


41. RM400mil to upgrade the water supply infrastructure in selected Felda areas


42. To provide greater access to bank services for the rural population, Bank Simpanan Nasional will appoint agents in rural areas


43. RM90mil for the Orang Asli for basic necessities, including the expansion of the clean water supply project. For the Orang Asli affected by the landslides at Sungai Ruil, RM20mil is provided for their relocation to new homes


44. 600,000 Govt pensioners will benefit from an additional annual pension increment of 2%


45. Civil servants get pay rise between RM80 to RM320


46. Govt will extend the compulsory retirement age from 58 to 60 years old to optimize civil servants' contribution


47. Civil servants will be offered tuition fee assistance for part-time studies, including 5,000 masters and 500 doctoral scholarships


48. A special program will be introduced for 175,000 army personnel who are not eligible for pensions


49. RM3,000 will be given to ex-members of the special constable and auxiliary police as well as widows and widowers


50. The Govt is mindful of the plight of the rakyat due to rising food prices and will take measures to address this


51. The National Agro-Food Policy 2011-2020 will be launched and RM1.1bil allocated for the development of the agriculture sector


52. In the spirit of “People First,” all subsidies, incentives and assistance totaling RM33.2bil will be continued


53. 500,000 will benefit from KAR1SMA, which provides assistance to poor senior citizens and children and disabled people


54. My First Home Scheme will be expanded to increase the limit of house prices from a maximum of RM220,000 to RM400,000


55. Govt will identify areas in the vicinity of MRT, LRT and other public transport to be developed by PR1MA


56. Govt will continue to implement the Program Perumahan Rakyat by building 75,000 units of affordable houses


57. Govt will establish the Special Housing Fund for Fishermen to build and refurbish houses


58. Healthcare will be allocated RM15bil operating expenditure and RM1.8bil development expenditure


59. Hospitals will be upgraded and constructed as well 81 rural health clinics upgraded and 50 new 1Malaysia clinics launched


60. Hospital Kuala Lumpur - the oldest in Malaysia – will be upgraded to be the country's premier hospital


61. Skim Amanah Rakyat (SARA) 1Malaysia will benefit 100,000 households with income below RM3,000 per month


62. To assist taxi owners facing increased operating costs, measures will be introduced including tax exemptions on taxi purchases


63. The National Legal Aid Foundation will ensure that every individual who is charged in court will be given free legal aid


64. To assist the homeless, the Govt established a social assistance center known as Anjung Singgah


65. A training allocation of RM10mil will be provided for women to develop leadership and managerial skills


66. To prevent cervical cancer, the Government will provide free Human Papilloma Virus immunization nationwide


67. MyCreative Venture Capital with an initial fund of RM200mil to be established


68. RM15mil will be allocated to build 150 futsal courts to achieve the “One Court for One Mukim” target


69. To ensure the welfare of retirees measures including a tax relief on Private Retirement Schemes contributions are introduced


70. Senior citizens aged 60 years & above will be exempted from outpatient registration fees in Govt hospitals & health clinics


71. One-off assistance of RM500 to households with a monthly income of RM3,000 and below will be provided


72. For those in private sector earning RM5000 and below, employers' EPF contribution will increase from 12% to 13%


73. Book voucher worth RM200 will be given to Malaysian students in all private and public institutions of higher learning


74. Civil servants will be given an additional bonus of half-month salary and pensioners