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incentives for the commercialisation of resource based r d findings be extended to commercialisation of non resource based findings which are products promoted under the promotion of investment act 1986 the tax incentives are as follows first the company which invests in its subsidiary company that undertakes the commercialisation of r d findings be given a deduction equivalent to the total investment made in that subsidiary and second the subsidiary company that undertakes the commercialisation of r d findings be given income tax exemption of 100 on the statutory income for a period of 10 years intensifying venture capital investment by individual investors 75 young entrepreneurs have innovative ideas and products that can be promoted at the international level however they are constrained by limited financial resources therefore as an alternative source of funding it is crucial to have direct participation of an angel investor in the early stage of a business to ensure the success of the investment and the competitiveness of the venture company in this respect the government proposes that a deduction equal to the amount of investment made by an angel investor in a venture company be allowed to be set off against all his income encouraging inclusive innovation 76 to ensure inclusive development the government will continuously plan and implement programmes and activities centred on knowledge creativity and innovation towards becoming a high income and developed nation by 2020 innovation will be further strengthened and made pervasive in all sectors and segments of society through the 2013 budget initiatives will be undertaken by the ministry of science technology and innovation with the collaboration of agensi inovasi malaysia and non governmental organisations ngos green technology development 77 in the 2010 budget the government established the green technology financing scheme gtfs with a fund of rm1 5 billion for three years ending 31 december 2012 the fund enables companies which are producers and users of green technology to obtain soft loans with the government subsidising 2 of the interest rate and providing a guarantee of 60 on the amount of financing to date approximately rm800 million has been approved to 50 local companies to further boost the production and utilisation of green technology based products the fund for gtfs will be increased by rm2 billion and the application period extended for another three years ending 31 december 2015 fourth focus fiscal consolidation and enhancing the public service delivery 78 the government is committed to ensuring the fiscal deficit continues to decline and achieve a balanced budget in this respect all ministries and agencies will ensure that development and operating allocations are spent on priority and important items to support the implementation of the national policies and programmes 79 the government will also ensure that the federal government debt will not exceed 55 of the gdp and fiscal deficit continues to decline to 3 by 2015 among the measures taken to ensure sound public finance are enhancing revenue collection by strengthening the tax system and ensuring all procurement and purchases by the government are based on the value for money principle 80 apart from the transition from bulk subsidies to targeted subsidies a review of malaysia s taxation system will be continued to ensure the taxation system better reflects the household s financial position the transition from income based taxation system to a more comprehensive and fair taxation system will eventually benefit the rakyat 81 the measure will not be implemented hastily but through a thorough study and in an orderly manner it will not affect the rakyat particularly the medium and low income groups as all the basic needs such as food housing or public transport will always to be protected 82 implementation of the new tax structure is a national imperative to ensure the government s finances remain strong for future generation the government will not shirk from taking the right action although it is challenging 83 however the government will give the sufficient time to all parties to make the necessary adjustment public acceptance of this new initiative will be solicited through information programmes education and extensive consultations 84 in providing excellent services civil servants must adopt a culture of productivity creativity and innovation the working culture must be swift accurate and with integrity the move will trigger a new paradigm and improve the rakyat s confidence in a more effective efficient and responsive public service 85 the government has not forgotten the contribution of pensioners in providing excellent services for the country in this regard the government will increase the minimum pension from rm720 to rm820 for pensioners who have served for at least 25 years the adjustment will be effective from 1 january 2012 this measure will involve an additional allocation of rm60 million a year benefiting 50 371 pensioners including derivative pension recipients 86 in appreciation of senior citizens the government proposes to reduce the processing fee of a 5 year passport by 50 from rm300 to rm150 meanwhile processing fee for the 2 year passport will be reduced from rm100 to rm80 these reductions will also be extended to children aged 12 and below the new rates will be effective from january 2013 improving the malaysian armed forces scheme of service 87 to ensure that the malaysian armed forces atm has knowledgeable and highly skilled human capital as well as to realise the vision and strategic direction of atm in line with the current demand the government will improve the atm service scheme in this regard recruitment to the armed forces has been improved where the entry requirement for officers has been raised to bachelor s degree with honours for servicemen minimum entry is raised to sijil pelajaran malaysia and diploma based on the scope of tasks 88 taking into account the uniqueness of the armed forces the government will improve career advancement opportunities through time based promotion for privates to lance corporals and for lance corporals to corporals within a period of eight years for those who fulfil the necessary requirements and based on their performance this will increase opportunities for career advancement as well as motivate the members of the armed forces the improvement in scheme of service and career advancement in the armed forces involves an allocation of rm107 million benefiting 78 123 members 89 in addition the government will provide a special incentive of rm200 per month to all military personnel totalling 125 708 effective from 1 january 2013 the measure will involve an allocation of rm301 million 90 the government appreciates the role of the military reserve force to complement and support atm personnel in appreciation of their contribution the government will revise the services allowance from rm4 00 per hour to rm6 00 for ordinary members and from rm5 80 to rm7 80 for officers this will involve 65 000 members of the military reserve force comprising territorial army regiment wataniah as well as reserves in the navy and air force this rate has already been in effect for rela jpam and pvr 91 the government has not forgotten the commitment and dedication of our national heroes the government will provide a one off rm1 000 to assist former members of the armed forces who have opted for early retirement served less than 21 years and did not receive any pension the allocation of rm224 million will be equally shared by the government and armed forces fund board which involves 224 000 former members of the armed forces 92 the government will introduce a group insurance coverage scheme to serving armed forces and police personnel involving an allocation of rm12 million the scheme will provide a maximum insurance coverage up to rm15 000 to almost 242 000 armed forces and police personnel 93 to date the government has borrowed rm6 billion to finance housing loans for civil servants which is managed by the housing loan division bpp ministry of finance as part of efforts to consolidate the fiscal deficit and to ease the government s financial burden bpp will be restructured the government will appoint panels from commercial banks to manage new housing loans effective from january 2013 civil servants will continue to enjoy the existing benefits and assistance which will be further enhanced civil servants will still pay the 4 interest rate on housing loan repayment 94 currently the processing fee for each housing loan application by civil servants is rm1 for every rm1 000 for first submission and rm2 for second submission to ease the financial burden and facilitate loan approvals the government agrees to fix the processing fee at rm100 for each application regardless of the loan amount 95 the government will reduce the cost of living of trainees undergoing the pre service courses at the first degree diploma and certificate level in this regard the government will increase the pre service allowance for 31 135 trainees the schemes of service involved are education services officer environmental health assistant officer medical assistant officer assistant pharmacist radiographer nurse dental nurse physiologist medical laboratory technologist dental technologist community nurse general medical assistant and dental surgery assistant for this rm84 2 million is allocated fifth focus enhancing the well being of the rakyat 96 in addition the government will allocate rm6 billion in 2013 under the private financing initiatives pfi 2 to implement various projects and programmes to ensure the well being of the rakyat and spur the nation s development among the projects identified include refurbishment and maintenance of schools and health clinics housing projects water tank projects flood mitigation plans and provision of sports facilities creating a safe and harmonious neighbourhood 97 the government has introduced measures to reduce the crime rate as one of the initiatives under the nkra efforts to further reduce the crime rate will continue to be enhanced with an allocation of rm591 million in 2013 to implement the following measures first increasing the number of polis diraja malaysia pdrm personnel for patrolling and combating crime upgrading infrastructure and providing modern equipment second establishing a motorcycle patrolling unit to monitor housing areas for this purpose the government will allocate rm20 million to provide 1 000 motorcycles third increasing the number of police volunteer reserve pvr by an additional 10 000 officers involving an allocation of rm70 million to assist the police in combating crime and fourth installing an additional 496 units of closed circuit television or cctv cameras in 25 local authorities in peninsular sabah and sarawak to prevent street crimes in urban areas 98 the government is aware of the duties and responsibilities of pdrm personnel to all pdrm personnel i hear your grievances on several anomalies that exist particularly in the scheme of service for pdrm officers the government will never take these matters lightly the government has already directed jpa to conduct a comprehensive study to enhance the career path of pdrm personnel the study will be inclusive consult all stakeholders and the issue will be addressed promptly 99 the government is committed to ensuring that every rakyat who is accused in a court receives a fair trial in accordance with their rights guaranteed by the constitution the government has provided a launching grant of rm14 million to national legal aid foundation for those who cannot afford legal representation for 2013 an additional allocation of rm20 million is provided 100 the involvement of the private sector and local communities is vital in ensuring malaysia remains a safe nation in this regard the following initiatives will be implemented by the government first supporting the role of resident associations to promote patrolling activities in neighbourhoods for this the government will provide a launching grant of rm40 million for 4 025 resident associations registered under the registry of societies malaysia with each association receiving rm10 000 second enhancing the role of neighbourhood watch rukun tetangga to assist in safeguarding the neighbourhood for this the government targets 6 500 neighbourhood watch locations kawasan rukun tetangga krt by 2013 the government will allocate rm39 million to finance krt activities third providing uniforms to 300 000 active members of people s volunteer corp rela with an allocation of rm90 million and fourth total deduction on the expenses on the installation of security control equipment in the same year the equipment is purchased as compared to the current deduction of 8 years under the accelerated capital allowance the government has agreed to extend this incentive to housing developers malaysian anti corruption commission 101 the government remains committed to combating corruption in 2013 a sum of rm276 million is allocated to malaysian anti corruption commission for this cause for this the government will increase an additional of 150 posts annually to reach a total of 5 000 personnel the measure is expected to help the government to improve malaysia s ranking in the corruption perceptions index driving community transformation 102 the government has launched the rural transformation programme or rtp as a platform to strengthen the development of rural areas for urban communities i am pleased to announce the urban transformation programme or utp a sum of rm200 million will be allocated for this purpose to ensure strategic coordination between rtp and utp a national strategic coordination unit will be established under the ministry of finance 103 the urban transformation programme is the government s initiative in the development of urban community to ensure seamless public and private services that are efficient fast and easily accessible the urban transformation centre utc is implemented by refurbishing existing vacant government buildings or optimising utilisation of buildings with minimum cost for example in the utc the rakyat will be able to apply for a passport within one hour pay zakat utilities and quit rent buy textiles and books and to undertake recreational activities such as futsal and gym the utc is unique in that it operates daily from 8 30 am to 10 pm including weekends 104 under the utp the government has launched two urban transformation centres or utcs namely in melaka and kuala lumpur on average the utc kl receives 4 000 clients per day the implementation of the utc will be expanded nationwide in stages to six major locations namely alor setar kuantan ipoh johor bahru kota kinabalu and kuching rural transformation programme 105 in rural areas the government has established the rural transformation centre or rtc in gopeng pera...
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