National Budget 2023: Five Benefits That Families in Malaysia Can Claim
by: The Beat Asia
April 07, 2023
Last year, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz presented the national budget for 2023. It is estimated to have a total value of RM385 billion, making it the second-largest budget ever enacted in Malaysia's history. The budget accounted for the fiscal support needed to secure the public and businesses from the global rise of inflation and the high cost of living.
Tengku Zafrul gave emphasis on the government’s provision to families in Malaysia to achieve “sustainable social-economic resilience.” To all parents, here are some important things to take note of that will benefit your families.
Tax Exemption on Income
For women who put their careers on hold while focused on raising their children, this could be a good time to start again. A tax exemption is provided in the national budget for 2023 for those who will make professional comebacks beginning this year until 2028.
This translates to a reduced tax rate for working individuals whose income falls between RM35,000 and RM50,000, RM50,001 and RM70,000, and RM70,001 and RM100,000. The gender disparity that still exists in Malaysia's labour sector is one of the motivations behind this comeback incentive.
Cash Assistance for Expectant Mothers
The national budget for 2023 made provisions for mothers expecting to give birth this year, regardless of whether or not it will be their first child. As part of the CahayaMata Keluarga Malaysia program, expectant moms would be eligible to receive one-time financial support worth RM500. A budget of RM150 million was set aside for this project to increase the country’s birth rate.
Financial Support for Mompreneurs
Raising a family and running a business simultaneously can be daunting. The Malaysian government allotted RM235 million to provide financial support to mom entrepreneurs to help them build, improve, and promote their businesses.
Health Check-ups for Women and Tax Relief for Medical Expenses
There’s a saying that prevention is better than cure. The government has allocated around RM11 million to fund breast cancer and cervical cancer screenings for all women residing in Malaysia. These health screenings include discounted expenses for mammograms and Pap smears.
Taxpayers (including their spouses and children) who have a serious illness, fertility concerns, a need for vaccination (up to RM1,000), mental health counselling, or a COVID-19 detection test are eligible for the tax relief. Also included in the tax relief are expenses up to RM8,000 for medical and dental care.
Dental treatment and examinations of up to RM1,000 shall be performed by dental practitioners registered under the Malaysian Dental Council.
Pre-school and Kindergarten Tax Relief
Saving money for your children’s future is important. The Malaysian government understands this struggle, which is why they’re offering tax relief for tuition fees for pre-school and kindergarten students. Parents may receive up to RM3,000 in tax relief for nursery and kindergarten fees for children aged six and below.
For education loans, the national budget for 2023 provides an extension of tax relief for the National Education Savings Scheme (SSPN) of up to RM8,000.
Financial Assistance and Benefits for Single Parents, Low-income Families, and Special Needs Community
Single parents can receive up to RM3,000 worth of one-time financial aid from the government, while families earning less than RM2,500 with more than five dependents can get RM2,500 cash assistance. Households that earn between RM2,500-RM5,000 are eligible to receive up to RM1,250.
For parents or children with special needs, the government has doled out RM20 million of the national budget to improve educational facilities and the provision of teaching aids or equipment. On the other hand, the government dedicated RM1.2 billion to persons with disability to provide security in jobs and careers.
Get the latest curated content with The Beat Asia's newsletters. Sign up now for a weekly dose of the best stories, events, and deals delivered straight to your inbox. Don't miss out! Click here to subscribe.