Income and Finance Tags | Motherhood Malaysia

It has been a few days since the announcement of Budget 2020 and the dust has settled enough for a clearer review on what these new fiscal measures mean to Malaysians, particularly women and children on the whole. As announced by Finance Minister Lim Guan Eng on Oct 11, 2019, Budget 2020’s theme of “Driving Growth and Equitable Outcomes towards Shared Propserity” features distributions focused on fairness for all. The thrusts of the budget are thus on levelling the playing field through inclusiveness and gender-equal opportunities while seeking to elevate the status of the rakyat with employability and financial wellbeing through education, skilling, reskilling and upskilling. For Children & Youth The Ministry of Education received the biggest allocation of funds amounting to RM64.1 billion in Budget 2020. The money is to be channeled to the improvement of schools, education and relevant skill development in the country for all children. (Image Credit: Malaysian Talk/The Star) 1. Funds for Students, Schools and Studies For children, they will have much to benefit from the RM64.1 billion given to the Ministry of Education for the continued development of students, schools and studies. School children will enjoy better facilities in that all existing schools will be maintained and upgraded while dilapidated ones, especially those in Sabah and Sarawak, will be repaired. Several new schools will also be built in Langkawi, Kulai, Hulu Langat, Putrajaya, Pasir Gudang, Tumpat, Marang and Johor Bahru to accommodate the growing population. National schools nationwide will also be made disabled-friendly. "This is in line with the Education Ministry's zero-reject policy, where no child is denied the right to education,” said Lim in his Budget 2020 speech. Vocational Training Out of the RM64.1 billion, RM5.9 billion has been allocated to Technical and Vocational Education and Training (TVET). Minister of Education Dr Maszlee Malik has said that the allocation is to ensure that TVET is taken as a serious career path henceforth. One of the first steps his ministry will be taking is to set up a task force to streamline TVET institutions. “We have a few plans, and we are coordinating with the industry so our TVET institutions can truly produce a skilled work force and every sen we spend will produce workers who are trained,” he said. TVET should not be seen as a “second option” he further said, adding that Malaysia should be seen like countries such as Germany, where 60% of its citizens opt for TVET courses while the other 40% pursue academic courses. The RM5.9 billion set aside for TVET is also to strengthen synergy between the public and private sectors to create job matches for vocational students and to prepare them for further studies. 2. Upskilling for the Digital Economy & Industry 4.0 To embrace the Fourth Industrial Revolution involving genetics, artificial intelligence, robotics, nanotechnology, 3D printing, and biotechnology, the Malaysian workforce will have to be reskilled and upskilled to avoid being obsolete in the new age. (Image Credit: jllapsites.com) As for furthering training to drive the digital economy, the Employees Provident Fund (EPF) will receive an allocation of RM20 million, matched by a RM20 million allocation from the Human Resources Dividend Fund to encourage working adults to take professional certification exams in Industry 4.0 related courses. 3. Enabling Further Education & Student Loans Lim announced at the Budget 2020 speech that the government will continue to emphasise learning opportunities under the MARA and the Bumiputera Education Leaders or Yayasan Peneraju Pendidikan (Leadership Foundation). It will allocate RM1.3 billion for educational institutions under MARA, and RM2 billion to finance loans for 50,000 students. “In addition, RM192 million will be allocated to professional certification programmes under the Yayasan Peneraju Pendidikan,” he said. 4. Healthcare and Free Immunisation for Children The most serious pneumococcal infections happen during the first two years of life. This means the pneumococcal vaccine protects children when they are at the greatest risk. Now children in Malaysia will receive it free. (Image Credit: Doctor.org) Budget 2020 has also laid out benefits for the very young. In terms of better healthcare, all babies born in 2020 including children who have been born earlier but have not taken the vaccine will receive free pneumococcal vaccination from 2020 onwards, thanks to the RM60 million allocation provided by Budget 2020 under the government’s Immunisation Programme. Before this, the vaccine had to be taken at private medical establishments and the cost of over RM200 for each vaccine had to be borne by the parents themselves. The number of doses a child needs depends on the age the child was when he or she started getting the shots. Pneumococcal diseases are caused by a bacterium called Streptococcus pneumoniae. It can lead to infections in the lungs (pneumonia), blood, and brain. This includes meningitis, blood infections (sepsis), and ear infections (sinus and otitis media). The greatest risk for infection is for children younger than the age of two, adults over 65, people with certain medical conditions, and cigarette smokers. The vaccine prevents the disease in both children and adults. 5. Tax Exemption for Parents who send Children to Registered Daycare Centres Further benefits for children’s welfare and wellbeing include more tax exemptions for parents who send their children to registered daycare centres and kindergartens. In light of this, the current exemption of RM1,000 will be raised to RM2,000. A further RM30 million will be allocated to set up more daycare centres, especially at hospitals and schools. 6. EPF Withdrawal and Income Tax Relief for IVF Budget 2020 has allocated for those who are trying for children using in-vitro fertilisation (IVF). These couples may now withdraw from their EPF for the procedure. The income tax relief of up to RM6000 given for expenses incurred for medical treatment of serious illnesses will be expanded to include expenses incurred for fertility treatment. For Women & Mothers It was reported in The Star that Ang Weina, global employer services leader of Deloitte Malaysia said: "Kudos to the Minister of Finance for a well thought Budget 2020 for women. It is without doubt that women may well be the dominant source of economic growth in the near future — and organisations that are able to capitalise on the roles women play as economic actors will most likely have a competitive advantage." (Image Credit: Freepik) 1. RM500 Monthly Incentive, Income Tax Exemptions for Women The government has set a target of achieving a 60% labour force participation rate (LFPR) for women. In consideration of those who have stopped working for a year or more, Budget 2020 has set up an initiative for women to return to the workforce, both to help them achieve better financial independence and to contribute to the economy. Because many women may have opted to give up their career to become stay-at-home mums, the government has pledged to give these women a RM500 monthly incentive (on top of their salaries) for two years if they return to work. Eligible women are those aged 30 to 50. The employer will also receive a monthly incentive of RM300 for hiring them for the duration of two years. Furthermore, women who return to work will enjoy extended income tax exemption from now until 2023. 2. 90-Day Maternity Leave from 2021 Apart from that, maternity leave has been proposed to be increased from the current 60 days to 90 days for the private sector to enable mothers to bond with their babies yet still return to the workforce after giving birth. This will take place in 2021, as announced by the Human Resources Ministry. 3. Encouraging Women Entrepreneurship The slew of initiatives offered to women entrepreneurs in Budget 2020 shows that the government is seriously paying attention to “Woman Power”, giving them ample opportunities to compete fairly in business. Studies have shown that increasing female entrepreneurship will increase gross domestic product, increase global income per person by 20% by 2030 in addition to increasing job opportunities. (Image Credit: SoraNews24) To encourage women entrepreneurship, Budget 2020 will see the government allocating 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 will be 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. ll in all, Budget 2020 has been said to be a budget that thinks of improving the lives of everyone ─ even the man in the street. Other extras that will be enjoyed by all in the year to come include: more and improved public transport, public toll rates at selected highways and expressways being reduced and fuel subsidies for cars and motorbikes. 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