Key Initiatives in Malaysia’s Budget 2023 for the M40 Group
Budget 2023 in Malaysia introduces several initiatives specifically designed to benefit the middle-income group, also known as the M40.
Reduction in Personal Income Tax
The budget includes a two percentage point reduction in personal income tax for individuals earning between RM35,000 and RM100,000.
Increase in Investment Limits for Unit Trust Funds
It also raises the maximum investment per individual for Amanah Saham Bumiputera (ASB) and Amanah Saham Bumiputera 2 (ASB2) unit trust funds and expands the Amanah Saham Malaysia (ASM) fund by RM5 billion.
Boost for the Employees Provident Fund (EPF)
The Employees Provident Fund (EPF) receives a significant boost with an increase in the limit of voluntary contributions and tax relief for contributions.
Support for First-Time Homebuyers and PTPTN Loan Repayments
First-time homebuyers are supported through extended stamp duty exemptions, and discounts are offered on National Higher Education Fund Corporation (PTPTN) loan repayments.
Measures to Support Small and Medium Enterprises (SMEs)
The budget includes measures to support small and medium enterprises (SMEs) through grants and incentives.
Initiatives for Employee Upskilling Training Programs
There are also initiatives for employee upskilling training programs. The Human Resource Development Corporation (HRDCorp) and the Social Security Organisation (Socso) provide funding and assistance for skill training programs and upskilling opportunities for workers, including gig workers.