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Saturday, October 26, 2019

Fake News and Hard Truths


Balanced views: The print house of the daily newspaper Le Monde in France. When print media and television dominated the distribution of information, media could be trusted to give a balanced view to enable the reader to judge what is correct. — AFP

We live in an information age, or more likely, a disinformation age.

Growing up in a world that worships technology and knowledge, we have now entered a phase when we no longer are able to trust what information we receive is fake news or not. Worse, we don’t know whether the provider of the information is trustworthy or not.

Fake news has many definitions. Basically, fake news are manufactured with an intent to mislead, damage someone or to attract attention to a cause, and gain either financially, politically or higher media attention. Such information could be outright sensational, partial, incomplete, provocative, false or fabricated, with some journalists even paying for leaks or gossips. Today’s fake news also include tampered photographs and videos, or encouraging people to “act” in front of the cameras.

Up until the 1970s, when print media and television dominated the distribution of information, media could be trusted to give balanced views, setting out different sides of the argument to enable the reader to judge what is correct. Newspapers and television channels were rich enough to finance investigative journalism in uncovering the “truth”.

But with the arrival of digital information, these traditional channels lost advertising revenue to social media, so the quality of journalism deteriorated, and in order to attract attention, newspaper and television content became more and more sensational, as well as more biased to one side.

The battle over readership also affected social media, where the value (advertising revenue) of the media outlets depends on their ability to attract viewers and readers.

How important is fake news? When you click “fake news” in Google search, you get 1.48 billion results, versus 380 million for “Jesus Christ”. Trump gets 2 billion, which goes to show how successful he is in social media.

Is fake news damaging and should it be regulated?

Canadian think-tank Centre for International Governance and Innovation (CIGI) conducted an online survey in 25 countries on Internet Security and Trust and found that Facebook was the most commonly cited source of fake news, with 77% of Facebook users saying they had personally seen fake news there, followed by 62% of Twitter users and 74% of social media users in general.

The vast majority think that fake news is made worse by the Internet, with negative impact on their economy and worsened polarisation of views.

Significantly, one-third (35%) pointed to the United States as the country most responsible for the disruptive effect of fake news in their country, trailed significantly by Russia (12%) and China (9%).

There are clearly lots of bad online trolls & social media platforms who act to spread fake news, but it is very difficult to agree on who should regulate fake news and decide what is fake or not. Some people believe in self-policing by the social media platforms, but others want governments to be involved, but are also wary of censorship.

My own view is the apparently spontaneous protests in Hong Kong, Barcelona, Santiago, France, Indonesia and in the Middle East are clearly associated with the rapid spread of social media, including the tools to protest, organise and riot.

What is particularly disturbing is the huge divide of opinions, including violent action to stop the other party from presenting their points of view.

The opposing view is often labelled fake news with even the courts being questioned if they rule against the prevalent views.

Is free speech turbo-charged by social media promoting hate and divisions that increasingly verge on violence and social breakdown?

Australian philosopher Tim Dean has recently questioned whether free speech has failed us?

As he rightly points out, “Free speech is not an absolute good; it is not an end unto itself. Free speech is an instrumental good, one that promotes a higher good: seeking the truth.”

The real problem is that if we do not have facts, we cannot have rational debate on what is truth.

The rule of law works on the principle that if there is dispute in society, it is resolved civilly either through the courts or through the political process. But once violence is involved, the rule of law breaks down.

As Professor Dean says, “free speech only fulfils its truth-seeking function when all agents are speaking in good faith: when they all agree that the truth is the goal of the conversation, that the facts matter, that there are certain standards of evidence and argumentation that are admissible, that speakers have a duty to be open to criticism.”

If however, one side blocks out the opposing view through intimidation, insults, threats, violent action and the wilful spread of misinformation, then civil discourse disappears, as does the rule of law.

This is clearly the age not of information but of anger. As a result of financial capitalism, huge inequalities have been allowed to fester, breaking down rational discourse, engendering distrust of the establishment and old order, and pushing hate and divisions.

Should we allow social media to turbo-charge this process, not of healing but polarisation?

Singapore takes step to regulate fake news

The Singaporean government has taken the bold step of regulating fake news through the Protection from Online Falsehoods and Manipulation Act (Pofma), which came into effect this month. Under the act, the Singapore government can take action on false information on the Internet, either ordering that it be taken down, corrected or order technology companies to block accounts that are spreading untruths.

A wise friend told me that we are actually living in a fractured generational divide. The old wants to maintain the old order of stability. The young thinks that this is rigged against them and want to change the system that they will inherit. But something is seriously wrong when school children think that it is right to throw petrol bombs and that it is cool to beat up policemen and anyone that they think stand in their way.

For even reputable channels such as the BBC to start glorifying such action, one wonders whether fake news has truly won.

Andrew Sheng for Asia News Network

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Home Ministry bans B&RI comic book too quick. Is it really that dangerous?


Prime Minister Tun Dr Mahathir Mohamad giving the comic book to China's President Xi Jinping as a gift.

Image


Penang DAP chief defends ‘Superman’ Hew’s banned pro-China comic books

Ban on 'Belt and Road Initiative for Win Winism' too quick — ChowGEORGE TOWN, Oct 25 — The Home Ministry was hasty in banning former DAP member Hew Kuan Yau’s Belt and Road Initiative for Win-Winism comic as communist propaganda, Penang Chief Minister Chow Kon Yeow said today.

“The authorities need to look at the real intentions behind the comic and look at it in detail before banning it,” the Penang DAP chief said in a press conference today.

He said the authorities initially wanted to invite historians to scrutinise the comic book but banned it as communist propaganda before this could be done.

Chow suggested there was ulterior motives in the swift ban.

“They should have asked experts to review the comic and get their views before banning it,” he said.

Chow said authorities should consider that Hew wanted to introduce China as an alternative to the US as a global superpower.

He noted that aside from curating for the Asia Comic Cultural Museum, Hew had also been the chief executive officer of the Malaysia China Business Council.

Chow claimed China was misunderstood politically and Hew meant only to highlight the country’s economic success.

He further claimed that China has thousands of self-made billionaires who made their fortunes through socialism despite being a superficially communist state.

“It was his intention to give an alternative introduction to China regarding its economic development,” he said.

The Home Ministry officially banned the comic as it was deemed to be inappropriate as it promotes “communism and socialism” as well as spreading confusing facts” on its struggle here in the country.

When asked about the state government’s financial support for the Asia Comic Cultural Museum, Chow said the museum itself was not banned.

He also said the museum did not belong to the state government, which only supported it by paying for its rental.

“The museum was set up in 2016 and chose to set up in ICT Mall at Level Two of Komtar during a time when the state government was taking steps to rejuvenate Komtar,” he said.

He said at the time, the state government was bringing in businesses to Komtar including The Top, ICT Mall and Tech Dome, and the state decided to support the museum when it chose to move there.

“It is a tourism product that is unique in Malaysia and even Asia, it is a comic museum that promotes creativity and animation where various events were held by famous comic artists there,” he said.

He said this was the reason why the state decided to collaborate with the museum by paying for their rental but stated that the state did not fund the exhibits or infrastructure in the museum.

“We only support in terms of rental and the rental goes to Penang Development Corporation, this is the only link between the state and the museum,” he said.

He said the state has an agreement with the museum to support it until December 2020.

The issue of the state’s support for the museum was discussed at the state exco meeting this morning, he added.

But is it really that dangerous?

Titled Belt & Road Initiative for Win-Winism, the comic book was a collaboration between a curator from the Asian Comic Cultural Museum Hew Kuan Yau and Malaysian comic artist, Tomato.

Unless you've been living under a coconut shell, you would've probably heard of China’s Belt and Road Initiative.

It's a strategy by the economic powerhouse to take over the world. Business wise that is, through investments and development in a whopping 152 countries across Asia, Europe, Africa, the Middle East, and the Americas.

Malaysia has had some investments flowing in from the country through the development of the East Coast Rail Link (ECRL).

A super problem.

The curator of the museum, Hew, also known as Superman Hew, is a member of the Democratic Action Party (DAP) which forms part of the current Malaysian government.

Hew has been known for his vocal pro-China views. Although he no longer holds leadership positions in the party, he is still very much active as a member.

For Malay-Muslim hardliners, DAP is seen as a pro-Chinese party who is out to get them. The comic issue blew up because former Malaysian prime minister Najib Razak took to social media to quiz if the comic was a form of propaganda.
mej PM ke-7 turut digunakan sebagai bahan promosi untuk penjualan dalam talian komik propaganda DAP.

Najib also uploaded several images among which featured current Malaysian prime minister Mahathir Mohamad showcasing the comic to Chinese president, Xi Jinping.

Chinese propaganda?

China's economy has surpassed America's — and that's OK
China's economy has surpassed America's — and that's OK China is fast growing, economically.

The comic was not sold in news stands or bookstores unlike others. Instead, it was apparently distributed in several schools.

What's more, these books were sent to school libraries for free. This prompted Malaysian Education Minister Dr Maszlee Malik to ban the comic books in schools.

Critics of the ruling government claimed that the comic was used as a propaganda tool to brainwash the younger generation. The opposition's call to debate the comic was also recently dismissed.

This led the Malaysian Home Ministry to announce a total ban of the comic on the grounds that it could “endanger public order and security” and “distort the mind of the public”.

But should it have been banned?


The cover of the comic depicts Malaysian prime minister Dr Mahathir Mohamad and Chinese premier Xi Jinping. IMAGE: The Edge Markets

Not really as Malaysians have the freedom to read the comic book, according to renowned local cartoonist Zunar.

“Until today, I haven’t read the whole content of the comic. Personally, I may or may not agree with the content, but I am strongly against the banning of the comic,” he said in a statement to Free Malaysia Today.

Zunar, who has had his own cartoons banned during Najib's rule, said he agree that distributing the comic in schools was uncalled for. But Malaysians are capable of making their own decisions.

“The principle is simple: ‘Cartoons and comics are a matter of interpretation. If you do not agree with the content, no problem. But do not use your interpretation as a law to ban it. Don’t like? Don’t read!”

Hew and others are currently being investigated by the police in their involvement of producing the comic book and distributing some 2,500 copies in schools. 



Read more:

All you need to know about China's 'Belt and Road Initiative


Maritime Silk Road, China Sea Silk Road - China Highlights

'How did comic book end up with Xi?'  

Worst yet to come?

Superman Hew resigns as MCBC chief over comic book saga ...

Penang museum raided and comic books seize


Historians to be roped in for comic book  probe

 

'Only comic banned, not museum'




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Thursday, October 24, 2019

Malay Dignity: Whither Malaysia now?

 

THE Kongres Maruah Melayu, or Malay Dignity Congress, held in a stadium near Kuala Lumpur on Oct 6 raised a furore among Malaysians. Organised by four public universities – including Universiti Malaya, the nation’s premier institution of higher learning – the congress was attended by about 5,000 people, mostly students but also leading politicians from Umno and PAS.

Rather than a forum to discuss issues faced by Malays and ways to overcome them, the congress has been widely condemned as a racist gathering. In his speech, Zainal Kling, the chief convener of the conference, declared that Malaysia belonged to Malays and reminded other races of their “social contract” with Malays, claiming it was the basis for granting them citizenship rights which could be revoked if they breached the agreement (bit.ly/dignity_congress).
https://www.freemalaysiatoday.com/category/nation/2019/10/06/malaysia-belongs-to-malays-shah-alam-congress-warns-ahead-of-dr-ms-speech/

Prime Minister Tun Dr Mahathir Mohamad aroused public ire by attending the conference; critics saw his decision to participate as a betrayal of the ideals of the reformist Pakatan Harapan coalition which toppled the previous Barisan government in a shock landslide victory at the polls last year.

Dr Mahathir made his mark as a champion of Malay rights early on. In The Malay Dilemma published in 1970, he argued passionately that due to hereditary and geographical factors, the Malays could not keep pace with Chinese immigrants and advocated special rights for the Malays. He became the chief architect of Dasar Ekonomi Baru, or the New Economic Policy (NEP), which was unveiled in 1972 for a term of 20 years and was designed to accelerate the development of the Malay majority (comprising circa 60% of the population of 32 million now) through affirmative action.

The NEP failed to achieve its stated goals, and Dr Mahathir stepped down as PM in 2003, but after 20 years in place, NEP privileges came to be seen as entitlement and could not be dismantled. Meanwhile, the Malaysian economy trails behind smaller Asian territories with fewer natural resources such as South Korea, Taiwan or even Singapore (2018 GDP).

In his 50-minute speech at the dignity conference, Dr Mahathir pointed out that the NEP failed “because the effort by the Malays was less than expected or hoped” and warned that “as long as we do not change our lifestyle, as long as we are unwilling to strive to face challenges at work, we will be left behind”. He said, “Our dignity depends on our achievement, not on government aid. If we are capable of making good products and creating wealth, no one will look down upon us.

“I believe that the Malay people have the capability but there is a difference between capability and willingness to work. They can do it but don’t want to do it, ” he chided. “We can build our dignity with our achievements in all fields, ” he declared. “Otherwise there will be another 10 dignity conferences and nothing will change.

“What I am saying may be hard to accept... but this is the truth of what has happened and this is what will be inherited by the young generation of which there are many in this auditorium today.” (Video at bit.ly/dignity_video.)

Dignity comes from doing and not just asking, Dr M tells Malay congress

https://youtu.be/tdIXzkuZQm8


But his words fell on deaf ears and resolutions passed at the conference made no reference to his pleas. There were calls instead for key government positions including the prime minister, deputy prime minister, finance, education, defence and home ministries and the attorney general to be reserved for Malay Muslims only. Another resolution called for the abolition of vernacular (Tamil and Chinese medium) schools. (“Resolutions on five areas presented at Malay Dignity Congress, but PM says not all will be met”, The Star, Oct 6; online at bit.ly/star_dignity.)

At 94, Mahathir has little need to make polite speeches to cling to power. Time is not on his side. He loves his people and deserves praise for his tireless efforts to change them but he forewarned in The Malay Dilemma that because politics created for the Malays a soft environment which removed all challenge to their survival and progress, “political power might ultimately prove their complete downfall”. No other Malay leader has shown equal foresight.

To a significant degree, the previous government fell because of a massive corruption scandal involving the theft of billions of dollars by then prime minister Datuk Seri Najib Razak. But, partly through a lack of administrative experience and partly due to foot-dragging by civil servants loyal to the previous government (which had been in power for 61 years), the current Pakatan Harapan coalition has failed to deliver on much of its reform agenda and is far from certain to win the next general election.

Malaysia has often been held up as a model Muslim-majority country but in a society where it is all too easy to play the race and religion card, the economy will not realise its full potential and the political future of minorities will remain at risk.

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US ‘hegemonic tariff’ will not make America great again

Photo: VCG

Sustaining hegemony is selfish in nature, especially when hegemony is in decline. The nature of the US wielding the tariff baton, sanctioning other countries' officials and companies is a "hegemonic tariff."

This can be defined by a series of its behaviors, including cracking down on Chinese tech giant Huawei and lobbying its allies to reject Huawei's 5G technology without solid proof; blacklisting Chinese companies for their alleged connections with so-called human rights issues in China's Xinjiang Uyghur Autonomous Region; declaring trade wars against the world; frequent military interventions in other countries' domestic affairs, claiming human rights are superior to sovereignty, and overthrowing governments of other countries.

Take trade wars. China is not the only target of the US. Washington has not even cut its allies some slack. Since 2018, not only Venezuela, Cuba, Ukraine, Turkey have been hit by US sanctions. Quite a few of traditional US allies, including Canada, Japan and South Korea, have also been sanctioned by the hegemonic power. Washington's goal is simple: To protect its domestic market and expand foreign markets to maximize global trade. This philosophy is also called "America First," and the US believes it is able to seek more interests through hegemonic means.

While the US is busy charging its "hegemonic tariff," it is putting the blame on China. The Atlantic published an article on Saturday entitled "The NBA-China Disaster Is a Stress Test for Capitalism," claiming "Chinese companies, furious over [US] public sympathy for Hong Kong, were swift in their vengeance. They suspended licensing agreements with the NBA." It then concluded that firms with business in China pay "values tariff."

This is deliberately confusing right from wrong. It shows the US does not respect Chinese sovereignty, while even wishing to impose its own values and political views on the Middle Kingdom.

Hegemonic measures are no longer effective. Trade lasts only when based on mutual respect, equality and mutual benefit. When US companies make money from around the world, they can achieve their goals smoothly only by complying with others' laws and respecting their public opinion.

However, Washington is now becoming increasingly narrow-minded and selfish, regarding mutual benefit as US losses. Worse, it is asking the world to compensate for its losses, urging others to make contributions to "America First" through political, financial and military means.

The Atlantic article noted "the partnership between the NBA and China, which is worth billions of dollars over the next decade, is now in jeopardy." This is exactly the consequence of the US obsessing over hegemony as well as the US obsessing with its so-called moral high ground.

China will not pay a penny for the US "hegemonic tariff," and will take countermeasures to take back what the US has seized from it. The chances of the US profiting from its hegemony are dwindling.

The key to making America great again is to boost the country's competitiveness and innovation, rather than slapping "hegemonic tariffs."

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Tuesday, October 15, 2019

Budget that braces for tough times


Broad measures spelt out under Budget 2020 will likely sustain the economy, if there is no further escalation in trade fights.

A glimmer of hope emerged after the US outlined the first phase of a deal to settle some issues related to trade, but there is a lingering suspicion that China could be just buying time as it will most likely not concede to any loss of sovereignty.

China is developing its own ecosystem that could be “outside the reach” of the US, and it is possible that the time bought with such rearguard actions may allow China to achieve its aims.

Malaysia, a trade dependent economy, can only hope that it all works out well, if it can integrate into both ecosystems, said Inter-Pacific Securities head of research Pong Teng Siew.

More stimulus measures would be undertaken should the global economy worsen and in the worst case scenario, Malaysia would have room to spend more if it increases the budget deficit, currently at 3.2% of the gross domestic product (GDP).

The worry is that a further deterioration in global trade tensions may push the global economy into recession. If that does not happen, these Budget 2020 measures should be able to sustain the economy, according to RHB Research Institute chief Asean economist Peck Boon Soon.

Given the external headwinds that continue to pose more downside risks, it looks like Budget 2020, which attempts to spread out its positive effects, has been designed to brace for rough times.

Some positive impetus could be derived from measures to support tourism, construction and infrastructure, as well as small and medium scale enterprises (SMEs), said AmBank Research head Anthony Dass.

Tourism-related businesses such as food and beverage, accommodation, travel and transport, shopping and entertainment will likely benefit.

Recognising the importance of SMEs in driving growth, a string of measures to facilitate their financing needs, ease of doing business, faster adoption of high technology and green initiatives, should also bode well.

The bottomline is that resources are limited while the government still aims for fiscal consolidation and repayment of all debts.

Spreading out these scarce resources will probably succeed in paring off any broad-based slowdown, but it will be hard to make a dent when the sense of a loss in economic momentum is gradually settling in, said Pong.

More measures are required to stimulate the economy but in view of the gloomy global outlook and domestic issues, it is still overall, a good budget.

However, the allocation between capital and operating expenditure is still imbalanced; there is too little capital expenditure and there appears to be ‘little effort’ to reduce operating expenditure.

This will have a long term effect, especially in an aging society, according to Areca Capital CEO Danny Wong. In view of concerns over the lack of investments and falling revenue, efforts to boost foreign direct investments and tourism are welcome but more robust steps are required.

A correction in property prices may be a remedy for the overhang and inaffordability issues especially among young people.

The budget tries to forestall a price pullback, which would affect developers stuck with high land prices, by allowing foreigners to fill the demand gap.

But demand has evaporated, partly caused by the migration of mid-level talent and delays in household formation, the driver of long term demand and new home construction. Developers, lulled by the padding of demand through low interest rates for borrowers, high financing margins and easy access to debts, find it hard to lower prices.

They had thought the elevated level of demand was sustainable but it was not. Reduced prices may mean less profits but possibly a lifeline by way of cashflows, and may help restore delays in household formation and loss of talent, said Pong.

A worrying trend is that more and more young Malaysians are moving out of the country in search of jobs.Even mid-level expertise and talent is migrating; previously, it was mostly those who were highly mobile internationally.

A major cause is the lack of growth in real purchasing power.

Is the projected GDP growth of 4.8% achievable?

With the government continuing its spending and development initiatives, growth should remain robust, supported by services and construction, higher production from agriculture and mining. But manufacturing is expected to moderate.

Malaysia can achieve its 4.8% growth target, said Hong Leong Bank chief operating operating officer, global markets, Hor Kwok Wai.

However, in view of slower world GDP growth of 2.8%, AmBank Research expects growth of 4.0% with an upside of 4.3% for Malaysia.

Coming up with a further set of stimulus, should things worsen, may be a challenge.

Columnist Yap Leng Kuen is watchful of the tech war. The views expressed are the writer’s own.

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Viewing trade talks progress with rationality, calmness

Ending the trade war benefits whole world

Both China and the US still have resources to sustain a trade war, but further consumption of those resources is unnecessary since their goals have proved naive and absurd. The situation is still highly uncertain, but the historical indicators will gradually be corrected. China and the US will not get lost and the world will benefit from the implementation of the consensus reached by the two heads of state, assuming the responsibility to both countries and the world and moving steadily towards the final end of the trade war in stages.


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Sunday, October 13, 2019

Malaysia's Tax Budget 2020 highlights

https://youtu.be/sNyWxyVH9P4

https://youtu.be/_6GIsruxc8g

https://youtu.be/kRWGn_ynT8A

https://youtu.be/OPilvgkja9Q

https://youtu.be/iHJAwJvWmsQ

https://youtu.be/mBJogpYED8s

KUALA LUMPUR (Oct 11): The following are the highlights of Budget 2020:

Malaysian economy


Government

  • The Bureau of Public Complaints will be replaced by the Malaysian Ombudsman to enhance govt's governance and delivery systems
  • Govt to move forward with the formation of the Independent Police Complaints and Misconduct Commission (IPCMC) to increase public confidence and trust in police.
  • Japan Bank for International Cooperation (JBIC) offers to guarantee additional tranche of Samurai bonds with lower interest rate of less than 0.5% compared with 0.63% previously. The federal government plans to issue the bonds early next year. Issuance size to be determined after further discussion with JBIC.
  • Home Ministry to receive RM16.9 billion boost for 2020.
  • Allocation for Islamic affairs under PM's Dept increased to RM1.3 billion from 1.2 billion in 2019
  • Govt has set up National Committee on Investments (NCI), chaired by Minister of Finance and Minister of International Trade and Industry
  • Allocation for Defence Ministry raised from RM13.9 billion in 2019 to RM15.6 billion in 2020

1MDB


Corporate, finance and fintech

  • Govt will continue to ensure at least 30% of tenders of each ministry are reserved for only Bumiputera contractors
  • 50% matching grant of up to RM5,000 to increase the digitalisation of operations for Malaysian small and medium enterprises (SME)
  • RM50m allocation proposed to encourage SMEs to engage in more export promotion activities
  • Govt to provide extra RM50m for SC's My Co-Investment Fund (MyCIF) to assist SMEs that have difficulties in getting financing
  • Govt to merge Bank Pembangunan Malaysia, Danajamin Nasional, SME Bank and EXIM Bank Malaysia to restructure development financial institutions (DFI)
  • Govt allocates RM1 billion in investment incentives to attract Fortune Fortune 500 companies and global unicorns
  • Govt to offer special investment incentive package worth RM1b per year for five years to local companies capable of penetrating overseas market
  • Additional RM10m allocation to be set aside for MITI to increase monitoring to ensure approved investments are realised
  • Government evaluating Carey Island development feasibility for next growth phase
  • Govt intends to develop a 100-acre logistics hub at Special Border Economic Zone at Kota Perdana in Bukit Kayu Hitam to strengthen trade relations with Thailand
  • National Fiberisation & Connectivity Plan will adopt public-private partnership approach involving total investment of RM21.6b
  • RM20m allocation for Cradle Fund to train and offer grants to high-impact technology entrepreneurs
  • Licensing for digital banks to be opened for public consultation by year end. A framework is expected to be released in 1H2020
  • Digital bank licensing framework will be finalised by Bank Negara and open for application in the first half of 2020
  • Govt to allocate additional RM50 million to Malaysia Co-Investment Fund (MyCIF) to benefit equity crowdfunding platforms and peer-to-peer (P2P) financing platforms.
  • Ceiling on Market Development Grant (MDG) by Malaysia External Trade Development Corporation (Matrade) raised to RM300,000. Cap on entry to export exhibitions also raised to RM25,000. RM50 million allocated to encourage SMEs to join promotional activities.

Entrepreneur

  • RM445m Bumiputera entrepreneur development grant for access to financing, provision of business premises, entrepreneurship training
  • Govt to provide loans worth RM100m under Small Industries Entrepreneurs Financing Scheme for Chinese community
  • Govt to provide RM20m in loans under entrepreneur development scheme for Indian community Govt to allocate RM500m as guaranteed facility for women entrepreneurs via Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP)
  • Skim Jaminan Pinjaman Perniagaan will be enhanced, with the government guarantee raised to 80% of the loan amount while the guarantee fee is reduced to 0.75%. A RM500 million guarantee facility has been set aside especially for women entrepreneurs.
  • SME Bank will introduce two new funds: a RM200m fund specially for women entrepreneurs, and a RM300m fund to support SMEs with potential to become regional champs
  • Ministry of Entrepreneur Development to give RM10 million for advisory services and awareness for the halal industry
  • Tax incentives for venture capital and angel investors will be extended until 2023
  • Govt jobs worth RM1.3b dedicated for Bumiputera contractors

Internet and tech

  • Mandatory Standard on Access Pricing (MSAP) has successfully reduced broadband prices by 49% and increased speeds by three times
  • RM250m will be set aside by MCMC to prepare broadband access via satellite technology to increase connectivity in rural Malaysia, especially Sabah and Sarawak
  • Matching grant fund of RM25m will be set aside to encourage more pioneer digital projects that benefit fibre optic infrastructure and 5G
  • RM20m allocated to MDEC to groom local champions in producing digital content
  • RM50 million grant to develop 5G ecosystem to prepare for  5G transformation worldwide
  • Smart automation matching grant (up to RM2m) for 1,000 local manufacturers and 1,000 services companies to automate business processes
  • To boost use of e-wallets, govt to offer one-time RM30 digital stimulus to qualified Malaysians aged 18 and above with annual income less than RM100,000
  • 14 one-stop digital improvement centres to be set up in every state to faciltiate access to financing, development of business capacity
  • RM10m to be set aside for MDEC to train micro-digital entrepreneurs and technology experts to leverage e-market places, social media platforms
  • Digital Social Responsibility (DSR) is commitment from business sector to enhance workforce with digital skills needed by society. Contributions from the private sector to the DSR will be given tax
  • R&D in public sector to be intensified with RM524 million allocation to ministries, public agencies exemptions.
  • Government to up e-sports allocation to RM20m due to high potential
  • Green Investment Tax Allowance (GITA) and Green Investment Tax Exemptions (GITE) extended to 2023 in line with sustainable development

Palm oil

  • Govt has launched palm oil replanting loan fund worth RM550m for smallholders
  • Govt to implement B20 biodiesel for the transport sector by end-2020. This is expected to increase palm oil demand by 500,000 tonnes per annum.

Rubber

  • RM200m set aside for 'Bantuan Musim Tengkujuh' to eligible rubber smallholders under RISDA, Lembaga Industri Getah Sabah
  • RM100 million allocated for Rubber Production Incentive in 2020 to enhance income of smallholders faced with low rubber prices

Agriculture
  • Allocation for Agriculture and Agro-based Industry Ministry increased to RM4.9 billion, including RM150 million to support plant integration programmes such as for chilli, pineapple, coconut, watermelon and bamboo.
  • RM855 million allocation under Federal Government Padi Fertilizer Scheme to boost padi yield

Civil servants
  • Civil servants’ emoluments to exceed RM82 billion
  • Civil servant pension will cost RM27.1 billion
  • Civil servants' cost of living allowance or COLA to be raised by RM50 a month starting 2020 for support group, with an additional RM350 million a year
  • Civil servants will be allowed early redemption of accumulated leaves (gantian cuti rehat) for up to 75 days as replacement pay for those who have served at least 15 years
  • Govt announces RM500 special payment for civil servants Grade 56 and below. Govt retirees to get special payment of RM250, also extended to non-pensionable veterans
  • Govt to allocate RM330 million to the Property and Land Management Division under the Prime Ministers Department to repair and maintain the public service quarters. Meanwhile, RM150 million and RM250 million is set aside to repair and refurbish Malaysian Armed Forces family housing units (RKAT) and PDRM quarters.
  • Fire fighters to get a special allowance of RM200 a month, which will benefit 14,400 personnel under the Fire and Rescue Dept, amounting to RM35 mil.

Highway and tolls

  • The Cabinet has approved the proposed offer to acquire four highways in the Klang Valleyy – Shah Alam Expressway (KESAS), Damansara-Puchong Expressway (LDP), Sprint Expressway (SPRINT) and SMART Tunnel (SMART) to be funded via Government-guaranteed borrowings.
  • Citizens to enjoy average 18% discount on all PLUS highways
  • Effective Jan 1, 2020, toll rates for cars at the Second Penang Bridge will be reduced from RM8.50 to RM7.00.

Public transport
  • RM450 million proposed to acquire up to 500 electric buses for public transport in selected cities nationwide
  • Govt intends to proceed with the Rapid Transit System (RTS) between Johor Bahru and Singapore.
  • It will also invest RM85 million beginning 2020 to ease congestion at the Causeway and 2nd Link by enhancing vehicle and traffic flow through the Customs, Immigration and Quarantine Complex.

Fuel subsidy

  • Individuals owning not more than two cars and two motorcycles can get fuel subsidy for one vehicle. The qualifying criteria are:

    • A passenger car with 1,600cc engine capacity and below, or
    • Any car above 1,600cc must be more than 10 years old, or
    • A qualified motorcycle must be 150cc and below, or
    • Any motorcycles above 150cc must be more than 7 years old.

  • From January 2020, the targeted fuel subsidy or PSP will be launched in Peninsular Malaysia with two eligible categories as follows:

    • For eligible recipients of the BSH, the petrol subsidy receivable will be RM30 per month for car owners and RM12 per month for motorcycle owners. This subsidy will be in the form of cash transfer, deposited into the recipient's bank account every 4 months. The first payment will be made in April 2020 for the period January to April 2020; and
    • For all other motorists who are not BSH recipients, they will receive a special Kad95 which allows them to enjoy the fuel subsidy at a discount of 30 sen per litre limited to 100 litres per month for cars or 40 litres per month for motorcycles when purchasing RON95 at the petrol station. The Kad95 will be implemented progressively during the first quarter of 2020.

Taxes

  • Govt will merge Special Commissioner of Income Tax and Customs Appeal Tribunal into the Tax Appeal Tribunal, to be operational in 2021. Through this, taxpayers unhappy with the decision of IRB director-general or the Customs D-G can appeal
  • Govt proposes that a new band for taxable income in excess of RM2 million be introduced and taxed at 30%, up 2 percentage point from the current 28%. This will affect approximately 2,000 top income earners in the country.
  • Govt has repaid GST refunds amounting to RM15.9b to more than 78,000 companies, and income tax refunds of RM13.6b to 448,000 companies and 184,000 taxpayers

Medical and Healthcare
  • To support local medical device industry, government will introduce an initiative to encourage local producers to upgrade equipment and tools used in public clinics and hospitals, based on a minimum allocation of 30%.
  • RM227m to be set aside to upgrade medical equipment, and RM95m to renovate infrastructure and medical facilities, like in Hospital Pontian
  • RM1.6 billion to build new hospitals and upgrade existing ones. The hospital includes Tengku Ampuan Rahimah Klang, Hospital Kampar, Hospital Labuan and the Queen Elizabeth II Hospital, Sabah Heart Centre.
  • Govt to allocate RM60m for pneumococcal vaccination for all children
  • RM319m to build and upgrade health and dental clinics and quarters facilities; new clinics will be built in Setiu, Sg Petani, and Cameron Highlands, as well as Kudat and Tawau in Sabah, and Lon San and Sg Simunjan in Sarawak
  • Health Ministry to get RM30.6 billion allocation, compared to RM28.7 billion under Budget 2019

MySalam

  • MySalam to be expanded so that those with critical illnesses will get RM8,000 cash; those being treated in govt hospitals can also claim RM50 wage replacement a day for up to 14 days

Islamic finance
  • Islamic Economic Blueprint to be formulated to position Malaysia as centre of excellence for Islamic finance
  • Special Islamic Finance Committee to be set up to develop the Islamic finance ecosystem

FELDA

Property and housing

  • RPGT base year for asset purchase revised to Jan 1, 2013 for asset acquired before that date
  • To reduce supply overhang of condominiums and apartments amounting to RM8.3 billion in the second quarter of 2019, govt will lower the threshold on high rise property prices in urban areas for foreign ownership from RM1 million to RM600,000 in 2020.
  • Govt to extend Youth Housing Scheme administered by Bank Simpanan Nasional from Jan 1, 2020 until Dec 31, 2021. The scheme also offers a 10% loan guarantee via Cagamas to enable borrowers to get full financing and RM200 monthly instalment assistance for the first two years, limited to 10,000 home units.
  • Public Sector Home Financing Board to offer free personal accident insurance for up to two years to new government housing loan borrowers
  • To help those who can't come up with 10% deposit or get financing to buy homes, govt will collaborate with financial institutions to introduce the rent-to-own (RTO) financing scheme, where up to RM10 billion will be provided by the financial institutions, with the governnment supporting via a 30% or RM3 billion guarantee.
    • This RTO scheme is for purchase of first home up to RM500,000 property price.
    • Under this scheme, the applicant will rent the property for up to 5 years and after the first year, and the tenant will have the option to purchase the house based on the price fixed at the time the tenancy agreement is signed.

Gaming Industry

  • To curb illegal gambling, govt proposes a higher minimum mandatory penalty of RM100,000 for illegal gamblers, along with a minimum mandatory jail sentence of six months.
    • For illegal operators, a higher minimum mandatory penalty of RM1 million and a 12 month minimum mandatory jail sentence will be imposed.
  • To curb illegal gambling, govt proposes a higher minimum mandatory penalty of RM100,000 for illegal gamblers, along with a minimum mandatory jail sentence of six months.
  • Starting 2020, total number of special draws for Numbers Forecast Operator (NFO) will be reduced from 11 to 8 times a year..

Employment

  • Hiring fresh graduates: Two-year pay incentives of RM500 a month. Hiring incentive of RM300 a month.
  • Incentives to get women into the workforce:
    • Two-year pay incentive of RM500 a month
    • Hiring incentive of RM300
    • Tax exemption for women returning to work will be extended until 2023.
  • Govt revises Employment Act, including increasing maternity leave from 60 days to 90 days from 2021
  • Govt proposes to raise minimum wage in urban areas to RM1,200 a month in 2020
  • Govt to launch Malaysians @ Work initiative aimed at creating better employment opportunities for youth and women, reducing over-dependence on low-skilled foreign workers
  • Malaysians who replace foreign workers will get a monthly wage incentive of RM350/RM500 for two years, depending on the sector. Employers will get a monthly incentive of RM250 a month throughout the same period.

Tourism
  • RM25 million allocated to Malaysia Healthcare Tourism Council to strengthen Malaysia's position as the preferred destination for medical tourism in Asean for oncology, cardiology and fertility treatments.
  • Govt to contribute RM100 million towards construction of new cable car system to Penang Hill
  • RM1.1 billion allocated to Ministry of Tourism and Culture, of which RM90 million is specifically for VMY2020 promotion and programmes

Sabah and Sarawak
  • Govt plans to double special alowance for Sabah to RM53.4m and Sarawak to RM32m; this to be doubled further to 106.8m for Sabah and RM64m for Sarawak in five years
  • RM587 million allocation for rural water projects, of which RM470 million will be for Sabah and Sarawak
  • RM500 million for rural electrification benefiting more than 30,000 rural households, majority in Sabah and Sarawak

Aid and subsidies
  1. Govt to spend RM24.2 billion on subsidies and social assistance
  2. RM100 million grant proposed for Malaysian Indian Transformation Unit (MITRA) of which 80% will be programme-based
  3. RM57 million provided to Orang Asli Development Department (JAKOA), in addition to RM83 million allocation for the community’s economic development, education and infrastructure.
  4. RM575 million proposed for socio-economic assistance to senior citizens benefiting 137,000 seniors whose household income is below poverty level
  5. RM25 million allocated to manage, administer and expand food bank programme
  6. Allocation for subsidies and social assistance increased to RM24.2 billion, including welfare aid such as Bantuan Sara Hidup (BSH). BSH scheme expanded to cover 1.1 million single individuals aged above 40 earning less than RM2,000 per month.

Rural development
  • RM10.9 billion allocated for rural development projects in 2020, from RM9.7 billion in 2019
  • RM738 million provided for Risda and Felcra to implement income generating programme
  • RM1 billion set aside for rural roads throughout Malaysia, primarily targeted at Sabah and Sarawak

Education and training

  • Allowance for KAFA teachers increased by RM100 a month, to benefit 33,200 existing teachers
  • RM735 million proposed for school maintenance and upgrading works
  • Government allocates RM210m to expedite digital infrastructure establishment in public buildings like schools
  • Education Ministry to receive largest allocation of  of RM64.1 billion in 2020 from RM60.2 billion in 2019
  • Allocation for TVET programmes raised from RM5.7 billion in 2019 to RM5.9 billion in 2020
  • RM1.3 billion proposed for education institutions under MARA, a further RM2 billion for student loans benefitting 50,000 students
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