Budget 2022

1 Budget 2022 WJD21-0692 Title Page 1 WJD21-0692 Title Page 101/11/2021 8:47 AM01/11/2021 8:47 AM Copyright Reserved All rights reserved. No part of this publication may be reproduced, stored in retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording and/or otherwise without the prior permission of: Secretary General of the Treasury, Ministry of Finance Malaysia, Level 10, Centre Block, Kompleks Kementerian Kewangan, No. 5, Persiaran Perdana, Precint 2, Federal Government Administrative Centre, 62592 Putrajaya. E-mail: Budget Speech is an annual publication released on the same day as the Annual Budget . The 2022 edition is released on 29 October 2021. Layout and Printed by: Percetakan Nasional Malaysia Berhad, Jalan Chan Sow Lin, 50554 Kuala Lumpur. Tel.: 03-92366888/92366894 Fax: 03-92011008/92224773 E-mail: This publication is also available for download at: BYPERCETAKAN NASIONAL MALAYSIA BERHADKUALA LUMPUR, : 03-92366895 Fax: 03-92224773 WJD21-0692 Title Page 2 WJD21-0692 Title Page 201/11/2021 8:47 AM01/11/2021 8:47 AMContents2preamble2economic performance and challenges in 2021 and 20224budget 2022: keluarga malaysia, makmur sejahtera661828first focus : the rakyat s wellbeingstrategy 1: restoring lives and livelihoodsstrategy 2: cultivating keluarga malaysiastrategy 3: building a conducive living environment32333741second focus: resilient businessesstrategy 1: revive business capabilitiesstrategy 2: driving strategic investmentsstrategy 3: recovery for targeted sectors4748515456third focus: a prosperous and sustainable economystrategy 1: sustainability agendastrategy 2: bridging the economic gapstrategy 3.

2 Fiscal consolidation and revenue sustainabilitystrategy 4: supporting public service delivery60conclusion6395appendix i - touchpoints Budget 2022appendix ii - tax measures WJD21-0692 Title Page 3 WJD21-0692 Title Page 301/11/2021 8:47 AM01/11/2021 8:47 AMbudget 2022iv( petikan dari perenggan akhir Bajet 2022 )Let us all asKELUARGA MALAYSIA work together to restore normalityin our lives, pursue wellbeing of our people ad achieve success forour nation. YAB Dato Sri Ismail Sabri Bin YaakobPRIME MINISTER OF MALAYSIA WJD21-0692 Title Page 4 WJD21-0692 Title Page 401/11/2021 8:47 AM01/11/2021 8:47 AMbudget 2022v( petikan dari perenggan akhir Bajet 2022 )Let us all asKELUARGA MALAYSIA work together to restore normalityin our lives, pursue wellbeing of our people and achieve success forour nation. YAB Dato Sri Ismail Sabri Bin YaakobPRIME MINISTER OF MALAYSIA WJD21-0692 Title Page 5 WJD21-0692 Title Page 501/11/2021 8:47 AM01/11/2021 8:47 AMbudget 2022viThat this Budget is your budgetThat your voice is our guideThat our success is for you!

3 YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul AzizMINISTER OF FINANCEWJD21-0692 Title Page 6 WJD21-0692 Title Page 601/11/2021 8:47 AM01/11/2021 8:47 AMbudget 2022viiThat this Budget is your budgetThat your voice is our guideThat our success is for you!YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul AzizMINISTER OF FINANCEWJD21-0692 Title Page 7 WJD21-0692 Title Page 701/11/2021 8:47 AM01/11/2021 8:47 AMbudget 2022viiiTHE ECONOMY 2022in constant 2015 prices(share to total in %) ofServices change in stocks Source: Ministry of Finance, MalaysiaDEMANDRM 2,366,669 MILLIONSUPPLYRM 2,366,669 MILLIONWJD21-0692 Title Page 8 WJD21-0692 Title Page 801/11/2021 8:47 AM01/11/2021 8:47 AMbudget 2022ixTHE 2022 FEDERAL GOVERNMENT Budget WHERE IT COMES FROMWHERE IT GOESDEVELOPMENTEXPENDITUREOPERATINGEXPEN DITURE1 Consists of revenue and borrowings2 Excludes contigency reserves3 COVID-19 Fund under the Temporary Measures for Government Financing (Coronavirus Disease 2019 (COVID-19)) Act 2020 Source.

4 Ministry of Finance, MalaysiaIncome and Useof Government s and andSocial and Transfersto State 332,1001 MILLIONO ther Direct 332,1002 MILLIONCOVID-19 Fund3 Title Page 9 WJD21-0692 Title Page 901/11/2021 8:47 AM01/11/2021 8:47 AMWJD21-0692 Title Page 10 WJD21-0692 Title Page 1001/11/2021 8:47 AM01/11/2021 8:47 AMbudget 202212022 Budget SpeechByYB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul AzizMinister Of FinanceIntroducingThe Supply Bill (2022)Dewan RakyatFriday, 29 October 2021 Theme: Budget 2022: Keluarga Malaysia, Makmur SejahteraDatuk Speaker Sir,I beg to move the Bill intituled An Act to apply a sum from the from the Consolidated Fund for service of the Year 2022 and to appropriate that sum for service of that year be read a second Teks 1 1 WJD21-0692 Teks 1 101/11/2021 8:29 AM01/11/2021 8:29 AMbudget 20222 Preamble1.

5 Bismillahirrahmanirrahim. Assalamualaikum Warahmatullahi Wabarakatuh and a good Alhamdulillah, with Your blessing, O Allah, for the abundance of blessings; we surrender to your Mercy in all our endeavours. We extend this gratitude with salawat and salam for the Prophet Muhammad Sallallahu Alaihi Wa Sallam for he is a role model for mankind throughout Datuk Speaker Sir, Honourable Members of Parliament, as well as my beloved brothers and sister of our Keluarga Malaysia .4. The people have great hopes for Budget 2022, a Budget that is built upon our collective efforts as one Keluarga Malaysia as we rise again, healing the Therefore, in the tabling of Budget 2022, Insya-Allah, we hope that it will bring good tidings to everyone. Let Budget 2022 be the beacon of hope that shines at the end of this pandemic, and may the rakyat regain their prosperity in this new Performance and Challenges in 2021 and 2022 Datuk Speaker Sir,6.

6 In the face of this global pandemic, countries all over the world were forced to face two arduous challenges simultaneously, between saving lives and For Malaysia, it was evident that this year proved more challenging for us. We had initially anticipated that 2021 was to be the year of recovery; unfortunately, the recovery was delayed due to the worsening of the COVID-19 pandemic since the tabling of Budget 2021 a year Teks 1 2 WJD21-0692 Teks 1 201/11/2021 8:29 AM01/11/2021 8:29 AMbudget 202238. The COVID-19 virus continued to mutate and worsen. Malaysia was not spared from the resurgence of COVID-19 with its third wave resulting in over 24,000 daily cases. To-date, the total number of cases has exceeded million; with more than 28,000 fellow Malaysian lives lost. Here, I would like to extend my condolences to our dear family members, who have lost loved ones due to this Malaysia has had to endure a prolonged episode of Movement Control Order (MCO), however we have implemented the National Recovery plan (NRP) anchored by the National COVID-19 Immunisation Programme (PICK) as the way out of this vicious Alhamdulillah, we have now managed to fully vaccinate 95% of our adult population and 62% of teenagers.

7 Malaysia s vaccination rate is amongst the highest in the world. As a result, COVID-19 cases have been successfully reduced while the use of ICU wards for COVID-19 have been reduced to 42%. Thus, our public health system is no longer over burdened by The Government has never ceased to care for the people and the business sector. Even during these challenging times with limited fiscal space, the Government will always seek a way to aid those in need. Admittedly, this is not an easy task, but Alhamdulillah, the Government has to date announced eight economic assistance and stimulus packages totalling RM530 billion, separate from the allocation provided under Budget These packages have ensured that we have food on the table, our children continue to be educated, businesses continue to operate, jobs are being created and lives are Through these packages, the country s economic growth in 2020 which suffered a contraction of has now rebounded with a growth of as of the first half of 2021.

8 While the third quarter performance is expected to be slightly affected by the implementation of containment measures under MCO , growth is projected to recover in the fourth quarter during which almost WJD21-0692 Teks 1 3 WJD21-0692 Teks 1 301/11/2021 8:29 AM01/11/2021 8:29 AMbudget 20224all states will have transitioned to the fourth phase under the NRP, where all economic and social sectors are allowed to operate at full capacity again. Overall, our economic growth is expected to be between 3 to 4% for 2021, Next year, the country s economy is projected to expand between and based on strong fundamentals and a diversified economic base. However, this performance also depends on other factors including the success of our pandemic response, the effectiveness of our vaccination programmes as well as the robustness of the global economy and trade 2022: Keluarga Malaysia, Makmur SejahteraDatuk Speaker Sir,15.

9 As with previous years, Budget 2022 was formulated based on the tradition of #TeamMOF s openness. This Budget is the outcome of a series of on-the-ground engagements across various states in Malaysia, during which over 30 focus group meetings and consultations were held along with the analysis of over 1,100 memorandums and nearly 50 thousand proposals that were received through the dedicated Budget 2022 What s more meaningful is that Budget 2022 was formulated after 80 engagements with political leaders, traversing political doctrines, irrespective of whether Government or Opposition. Together, we discussed, exchanged views and contemplated national issues, putting our political differences In addition, to increase the transparency of our Budget preparation, for the first time, #TeamMOF has published a Pre- Budget Statement and four Public Consultation Papers covering topics on improving Government procurement, cash assistance, tax incentives and fiscal Teks 1 4 WJD21-0692 Teks 1 401/11/2021 8:29 AM01/11/2021 8:29 AMbudget 2022518.

10 I would like to express my deepest appreciation to one and all, who have spent time and effort to share their ideas and views. For us at MOF, this is the evidence of our togetherness in facing the challenges ahead as one Our focus in 2022 in on achieving a comprehensive recovery, encompassing all socioeconomic segments in the country. Efforts will also be undertaken to strengthen business resilience and the health system in order to face the challenges ahead. Moving forward, reform instruments will be activated to keep up-to-date with the landscape of a borderless world of technology while upholding the sustainability With this commitment, the theme of Budget 2022 will be Keluarga Malaysia, Makmur Sejahtera . The Budget builds upon three key pillars namely Strengthening Recovery, Building Resilience and Driving Reforms.