The Malaysia Budget 2024, themed “MADANI Economy: Empowering the People,” is set to pave the way for a more prosperous and digitally-forward Malaysia. This budget is designed to address various facets of the nation’s economy, with a particular focus on benefits for both employers and employees. In this article, we will explore the key highlights of Malaysia Budget 2024 and how they impact businesses and the workforce.
Key Highlights of Malaysia Budget 2024 for Employers & Employees
Budget for Employers and Business
1. Digitisation Grants for SMEs
The government is allocating RM100 million for digitisation grants of up to RM5,000, benefitting over 20,000 SME entrepreneurs and micro-entrepreneurs. This financial support aims to accelerate the digital transformation of small businesses.
2. Business Productivity Boost
A substantial RM900 million has been earmarked to encourage SMEs to enhance business productivity through automation and digitisation. This investment will enable small and medium enterprises to harness the power of technology.
3. Shop Malaysia Online Program
To promote the growth of small traders, especially in the food sector, RM40 million has been allocated for the implementation of the Shop Malaysia Online program. This initiative empowers small businesses to operate from home and expand their online presence.
4. Support for Digital Economy Centres
RM25 million is set aside to strengthen the role of Digital Economy Centres. These centres will continue to support small entrepreneurs at the community level who sell products online, fostering local economic growth.
5. Capital Allowance Reduction
Effective from assessment year 2024, companies can now claim capital allowances on the purchase of ICT equipment and computer software packages over a three-year period, as opposed to the previous four years. This change is geared towards incentivizing businesses to invest in technology.
6. MYStartup Development
A total of RM28 million will be invested in the development of MYStartup, designed to serve as a single window facilitating business activities for start-up companies. Additionally, RM200 million will be available through various funding and venture capital agencies to nurture startups.
7. Encouraging High-Growth Startups
A noteworthy RM1.5 billion will be dedicated to funds from Government-Linked Companies (GLCs) and Government-Linked Investment Companies (GLICs) to encourage high-growth startups, including Bumiputera SME entrepreneurs, to venture into promising sectors.
8. MyCIF Initiatives
RM100 million will be allocated to MyCIF over three years to support initiatives related to the environment, society, and the development of Waqf assets by the State Islamic Religious Council.
9. Tax Incentives for Investors
The government has extended tax incentives for individual investors who invest in start-up companies through the ECF platform. This extension now includes individual investors through Limited Liability Partnership nominee companies until 31 December 2026.
Budget for Employees
1. Skills Enhancement Opportunities
All MySTEP appointees will have the opportunity to participate in skills improvement programs via MyFutureJobs. This initiative aims to enhance the employability and skill sets of job seekers.
Read top skill set to boost your career here
2. SOCSO Support
The Social Security Organization (SOCSO) will provide a special incentive of RM1,500 per month for six months to support over 3,000 jobseekers, totaling RM30 million. This support is geared towards facilitating job market entry.
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3. Career Building for Gig Workers
RM35 million will be allocated to the SOCSO Career Building Programme to fund training fees and income replacement incentives for 9,000 gig workers participating in training programs.
4. Self-Employed Social Security Scheme
A significant RM100 million will be allocated to the Self-Employed Social Security Scheme. This allocation encourages operating companies to cover the remaining 10% of contributions on behalf of their gig workers, enhancing the social security net for this workforce.
The ‘MADANI Economy: Empowering the People’ framework charted in Malaysia Budget 2024 sets a promising course for the country. With a focus on governance, economic restructuring, and improved living standards, this budget aims to address the evolving needs of the nation. As the government anticipates a robust GDP growth and improved fiscal deficit, Malaysia looks poised for a dynamic and prosperous future.