Driving Reforms

The Government is committed to rehabilitee and catalyse the reform of several targeted sectors.

These includes tourism, creative, retail, agriculture and commodity industries so that they will be able to resume operations at maximum capacity.

Tourism Industry

Under the National Budget 2022, here are several key initiatives with a total value of RM1.6 billion to be implemented in the tourism industry next year.

First: The implementation of the Wage Subsidy Program (WSP) targeted for the tourism industry players. The Government will continue the WSP Initiative specifically for tour operators whom experienced decline in revenue of at least 30 per cent. With an allocation of RM600 million, this initiative will benefit more than 26 thousand employers and 330 thousand employees.

Second: Specific financing for the tourism sector of RM600 million under PENJANA Tourism Financing and BPMB Rehabilitation Scheme.

Third: Special Assistance to more than 20, 000 tour operators registered under the Ministry of Tourism, Arts and Culture for a period of three months with an allocation of RM85 million.

Fourth: Maintenance of tourism infrastructure with an allocation of RM50 million including the Sultan Abdul Samad Building and Lembah Bujang in Kedah.

Fifth: Granting of matching grants for repair purposes to 738 budget hotels registered under MOTAC as well as repair grants for registered home stay owners with an allocation of RM30 million.

Sixth: Granting of matching grants to companies who organize programs related to arts and culture with an allocation of RM50 million.

Seventh: Incentive fund for the purpose of promotional activities as well as domestic tourism with an allocation of RM60 million.

Aside from that that, special individual income tax relief for domestic tourism expenses up to RM1, 000 be extended until year of assessment 2022.

“The Government will intensify efforts to revitalize the international health tourism industry at an immediate pace to strengthen Malaysia’s position as a preferred health tourism destination with an allocation of RM20 million to the Malaysia Healthcare Travel Council,” said Minster of Finance, YB Senator Tengku Dato’ Sri Zafrul Tengku Abdul Aziz when delivering the 2022 National Budget speech on 29^th October 2021.

The Government also proposed to extend several tax incentives including income tax exemption for organizers for arts and cultural activities as well as international sports and recreational competitions until the year of assessment 2025.

Exemption on entertainment duty for entertainment activities in all Federal Territories until 31 December 2022.

“State authorities are similarly advised to provide duty exemption on entertainment activities to support the recovery of this sector,” said Tengku Dato’ Sri Zafrul.

Creative Industry

Below are the programs provided for the creative industry under the National Budget 2022.

1. Creative industry initiatives (RM188 million)
2. Digital Content Fund (RM60 million)
3. Digital Multimedia Content Project (RM90 million)
4. Film incentive (RM15 million)
5. Perkasa Modal Insan programme (RM20 million)
6. Keluarga Malaysia Riuh Programme (RM20 million)
7. Investment Loan Matching Scheme for the National Animation Platform initiative (RM30 million)
8. SOCSO Social Protection Scheme for creative groups (RM5 million)

Retail Industry

In 2022, special focus will be given to help local social enterprises, halal, handicraft, agricultural and entrepreneurial enterprises to switch to digital services.

Below are the scheme and program provided under the 2022 National Budget to help reform the retail industry.

1.   Shop Malaysia Online and Go-eCommerce Onboarding (RM250 million)
2. Production and purchase of local products
3. Buy Made in Malaysia Campaign, Malaysia Sales Programme and Khazanah Alam Industry Direct Selling Programme (RM33 million)
4. The Made in Malaysia logo as the main reference to Government agencies and companies involved in Government procurement
5. Support the health Off-Take Agreement Programme as well as review the potential expansion for the security and defence sectors to promote the development of local industries
6. Business training and guidance programmes and easy financing scheme (RM74 million)
7. Easy financing scheme of 0 per cent for the first six months together with a moratorium under PERNAS

Agricultural Industry, Food Security and Commodities

“The Government will continue to drive modernization in the agriculture sector in improving food security and safety by increasing productivity, generating higher incomes and attracting more young generations of agropreneurs,” said Tengku Dato’ Sri Zafrul.

1. Providing subsidies and incentives for the agricultural and fishing industries (RM1.7 billion)
2. Food supply security
3. Various food security projects (RM66 million)
4. Food Security Strengthening Programme (RM20 million)
5. Ruminant Feed Incentive Assistance Programme through subsidized price scheme of palm oil bran (RM25 million)
6. SME Techno Entrepreneur Incentive Program (RM10 million)
7. Leasing of idle and underdeveloped land owned by the Federal Government and Malay Reserve land for agricultural or business projects
8. Financing Scheme Program SemarakNiaga
9. BNM – Agrofood Facility (RM500 million)
10. Agrobank – Agromakanan Financing Fund (RM200 million)
11. Commodity Development Programme (Rm2.5 billion)
12. FELDA settlers’ rehabilitation and development package (RM1.3 billion)
13. Initiative for the benefit of FELCRA participants (RM495 million)
14. Smallholder development for rubber industry under RISDA (RM699 million)
15. State Rubber Company Transformation Programme for 600 small rubber planters (RM5 million)
16. Rubber productivity enhancement programme (RM15 million)
17. Matching grant – RRIM Hydrobest technology to help improve the socio-economic status of smallholder in B40 category (RM5 million)
18. Monsson aid to 320, 000 smallholders (Rm190 million)
19. Farmers’ Smart Card Takaful protection Scheme to more than 920, 000 PPK farmers with a premium of RM5 for a one-year term coverage (RM5 million)
20. Smallholder Palm Replanting Stimulus Scheme (RM10 million)
21. Addressing the international anti-palm oil campaign (RM20 million)
22. Increase the windfall profit levy threshold on palm oil for Peninsular Malaysia from RM2,500 to RM3, 000 and for Sabah and Sarawak from RM3, 000 to RM3, 500.