Budget 2022: Make the most of the goodies to get back on track

 

The much-awaited Budget 2022 was announced recently, and we weren’t disappointed. There was plenty in there to help the rakyat - both individuals and small businesses - get back on track after a long and trying period of upheaval. While the previous Budget centred around getting through the pandemic, Budget 2022 aims to fast-track recovery through improving liquidity and encouraging domestic spending.

A total of RM332.1 billion has been allocated for the Budget – the highest ever amount. Of that amount, RM8.2 billion has been set aside to benefit 9.8 million Malaysians under the B40 category.

In this article, we’ll break down each part of the budget that will bring you the most benefit, both personally and financially.

It’s time for a holiday


After almost two years at home, why not take a break and explore what our own backyard has to offer? Malaysia is truly a magnificent country, with lush jungles, crystal-clear waters, sandy beaches and quaint little towns to explore. To spur domestic tourism, the government has waived tourism tax until 31 December 2022.

If you’d like to go the extra mile to help local businesses in the area you are visiting, check out our list of #JomSapot merchants to find accommodation and dining options.

To make your holiday more exciting, new theme parks are opening up across the country. What’s great is that entertainment duty is waived on all theme parks until 31 December 2022.

Self-care is healthcare

We’ve all been through a lot of stress over the past two years. Some of us have lost our jobs, while others have seen a breakdown in family relations, experienced depression and anxiety, or lost a loved one. The government recognises the need to take care of ourselves not only physically, but mentally as well. It has expanded the scope of tax relief for medical expenses relating to self, spouse or child to include checkup or consultation services in respect of mental health, at registered clinics, so you can claim these costs in your annual tax returns.

It’s always good to talk to someone outside your circle of friends, who won’t judge you and will be objective in their advice. Don’t be afraid or ashamed to ask for help. You are important, and there is always someone to help you.

Meanwhile, at home, take some time out from your day to just sit and relax for a few minutes. Put away your computer and mobile phone to reconnect with the most important person – you.


Upgrade your most important asset

As we mentioned above, you are the most important person to yourself. You’re also your own most valuable asset when it comes to your work.

We’ve had to adjust to a different way of working in the new normal, and you might also find that this opens up new opportunities that require a new set of skills. You could upgrade your current set of skills for today’s job market, or if you have decided to learn something completely new to make a career change, this is a good time to do so. The government has provided tax deductions of RM2,000 and RM7,000 for upskilling courses to help Malaysians live up to their fullest potential.

Through the JaminKerja initiatives, the government also aims to create 600,000 job opportunities, allocating RM4.8 billion for the creation of these new jobs, some of which will be in new sectors.

Speaking of upgrades, a computer has become an essential item in today’s working world. With this in mind, you’ll get an additional tax relief of RM2,500 for the purchase of a mobile phone, computer, or tablet.


Helping your business grow

Everything is online now. Whatever you can find in stores, you can get online and delivered to your home. Many folks have taken the opportunity to start a small business, whether it’s for their main source of income or as a side gig.

In the Budget, the government has allocated RM40 billion in finance packages for micro enterprises, SMEs and even corporations. An additional RM1.8 billion has been allocated under Tekun’s Informal and Micro Financing Scheme. You can get loans of up to RM10,000 to get started, at 0% interest and a moratorium of up to 12 months, with priority given to informal and micro traders.

If you’re already the owner of a small business, you’ll get six months’ deferment of tax installment payments until 30 June 2022.

While online shopping has become the norm, some businesses still require a brick-and-mortar presence. When you renovate your premises before 31 December 2022, you can claim up to RM300,000 on renovation costs.


Time to start investing

So, you’ve managed to save up a small cash pile during the lockdown, and now is the time to put it to use. Like they say, “Make your money work for you”.

Tax deductions for Employee Provident Fund (EPF) contributions have been extended to include voluntary contributions, so you can start putting a little extra aside for your retirement fund.

Under the Budget, service taxes for brokerage activities will be waived, starting 1 January 2022. So, once you’ve gained enough knowledge of the markets and want to invest in share trading yourself, give RHB TradeSmart a try. Expand your trading portfolio to include foreign markets, get customisable views, charts, and earn SmartPoints for every local and foreign trade. RHB can also provide you with professional assistance to help you invest in your future. Talk to our Relationship Managers to find out what your risk profile is, and together you can put together a portfolio that best suits your needs and financial goals.


Treat yourself with a new green ride

Your car has served you well for many years, and you feel it’s time for an upgrade. Your kids are getting too big for the compact car you bought before they were born, and you’ve always wanted to take a road trip through the country with them. For an economical and environmentally-friendly option, opt for an electric vehicle.

The good news is, the Budget has included an extension the full waiver on import, excise and sales tax on EVs until 30 June 2022. The government has also extended the 100% sales tax waiver on CKD passenger vehicles and the 50% sales tax exemption of CBU passenger vehicles, including MPVs and SUVs, until 30 June 2022.

If you’re worried about charging your electric car, the government will introduce a new individual tax relief of up to RM2,500 for the purchase, installation, leasing and subscription fees for EV charging facilities for 2022 and 2023.

To get even bigger green savings, pair these Budget goodies with RHB’s Vehicle Financing-i (Variable Rate) for hybrid/plug-in/EVs. You’ll get a tenure of up to 9 years with up to 90% financing at a low rate of base rate+1.23% (as low as 1.99%) for financing of up to RM500,000.
Selling your home

The housing market is expected to stabilise from next year onwards. According to Knight Frank Malaysia, the market, particularly for landed properties, is expected to gradually rise throughout 2022 as the property market on the back of a more positive outlook, supported by record-low interest rates, lockdown savings, and attractive property deals.

For sellers, the Budget has included the extension of the 0% Real Property Gains Tax (RPGT) for individual disposals after the six-year mark. The government will also allocate RM2 billion under the housing credit guarantee scheme to assist those without a steady income, such as gig economy workers, to purchase homes.
Get your home loan/financing with zero cost on stamp duty, legal and valuation fees from RHB . To make getting a home loan a hassle-free experience, you can use RHB’s MyHome App. Get real time updates of your mortgage application, and check your eligibility without having to first submit your supporting documents. Then you can snap and submit your documents via the app, all from anywhere, at any time.
We hope this has helped you in planning for 2022. If you’d like to find out more options on how you can make the most of these budget goodies and invest for the future, feel free to drop in at your nearest RHB branch.


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