The Budget 2013 Malaysia.

Malaysia announces its Budget 2013 tomorrow. 

Tomorrow, we will know of what our PM has in store for us in the Budget 2013. I would say, today's Budget 2013 announcement would likely be a very people friendly budget; based on what I have read so far, I would expect it to be rather neutral to the corporate world - perhaps a reduction in corporate income tax would be announced. But let's just see what is potentially in store for us all...

Take into account that there is already a global economic decline - particularly in Europe. Then, take into account also - that the 13th General Election is coming soon.

I reckon this Budget may include some nice 'giveaways'. The people would be asking for all the tax reductions, subsidies and further government spending to make the rakyat happy - but think of it from the overall view. What the rakyat should be expecting is a reduction of the budget deficit, the federal budget debt and the national debt in 2013. With rising demands and expectations from the rakyat - I would say the Government would be in a dilemma as to how to meet - giving out lesser for the bigger picture would result in a backlash, but giving out more would result in long term pain for the country.

As a rakyat, I would be asking for some priority to fight the rising inflation. Based on various reports, I believe various supply of goods and services are decreasing, hence creating a price increase. The Budget should provide a breather in the various supply chains - allowing a more seamless and bottleneck-free process. Further to that, to benefit the small businesses, perhaps the Budget could remove some taxes and duties for them. For the lower income group - I reckon more funds should be allocated for the PR1MA schemes, other low cost housing, affordable housing, and perhaps, some extra funds for 1Malaysia clinics to cater to them. Get rid of the irresponsible contractors or developers - especially those with a record of abandoned housing schemes - if everyone start pricing in the risks of this and that - likely that the house buyers are paying for this extra calculated risks.

Some of the other key pointers speculated to be in the Budget 2013 would include certain tax incentives to private retirement schemes. For the construction sector, I would expect to see the announcement or rather, the updates of various ETP projects - including the MRT, with a potential announcement of the Circle Line, the Petronas RAPID and its development, the kick-off of the 100 storey Wawasan Tower, and perhaps also the Gemas-JB and KL-Singapore train projects. 

For the Property sector, I believe certain tightening measures may be introduced - perhaps to cool down the market. With recent budgets had changes in RPGT and stamp duties, perhaps there might be a potential increase this time around - but then I may be wrong. 

So, whether I am right or wrong here, we shall see tomorrow - when our PM announces the Budget 2013.