1. From BR1M to BSH to BPN to BPR - Yang penting, increased handouts
FYI, Bantuan Prihatin Nasional (BPN) is now Bantuan Prihatin Rakyat (BPR). This time, gahmen has decided to make it more targeted. In total, RM6.5bn has been allocated for this!
Here are the various incentives:
- Spouses earning less than RM2,500 with one kid will get RM1,200. If they’ve 2 kids or more, they’ll get RM1,800
- Spouses earning between RM2,501 to RM4,000 with one kid will get RM800. They’ll get RM1,200 if they’ve more than 2 kids
- For spouses earning between RM4,001 to RM5,000, they’ll get RM500 if they’ve 1 kid, and RM750 if they’ve more than 2 kids
- Bachelors earning less than RM2,500 will get RM350 (age requirement to qualify for this is decreased to 21 years old)
Update: You can start applying or updating for BPR from 15 January until 15 February 2021. Just go to the BPR website to register - it’ll be easier to check that way. The first phase of payment will be done in either April/May 2021 and as for the second phase, it’ll be in either September/October 2021.
Before that, do know that not everyone needs to send in an application. Only those that are listed will need to apply:
- Applicants that didn’t receive BSH 2020 or BPN 2.0 and their household income is RM5,000 and below
- Orang Asli applicants that don’t register with Department of Orang Asli Development (JAKOA) - their applications are automatically based on the data.
- Applicants that are disabled that don’t register as e-voucher recipients under the Department of Social Welfare (JKM)
- For e-voucher recipients, their applications are also automatically based on the data.
Other than applying online, you can also do so by filling up Application Form BPR 2021 (BK-01) and send it to either one of these counters:
- Any IRB branches or at Revenue Services Centre (RSC) or Urban Transformation Centre (UTC)
- Office of Federal Development Department
- State’s Secretary Office or District/Resident Office
- You can also post it to “Peti Surat BPR, GPO Shah Alam, 40800 Selangor”
For any enquiries, you may contact…
- IRB: 1-800-88-2747 (Operation hour: 9.00am - 5.00pm)
- MoF: 03-8882 4565/4566 (Operation hour: 9.00am - 5.00pm)
- You can also walk-in to any branches of IRB, RSC or UTC
ALSO READ: COVID-19: List of Financial Aids You Should Know
2. You get tax exemptions for medical-ish reasons
Due to the global pandemic, it has been tough for many of us, financially. With that in mind, the gahmen has decided to increase the tax exemptions for these situations:
- RM8,000 tax exemption if any of your family members (read: spouse and kids) for medical treatment for serious diseases (before this RM6,000)
- You’ll also get RM8,000 (used to be RM5,000) tax exemptions if your parents’ medical check-up, special needs and treatments
- If you go for a full medical check-up, you can also get RM1,000 tax exemption
3. Income tax to decrease 1% and exempt limit to increase for some
Yup, it’s just 1% tax income decrease - it’s not much but at least ada! However kan, this is for those that earn between RM50,001 to RM70,000.
Also, for the years of assessment 2020 and 2021, it’s been proposed that the income tax exemption limit goes from RM10,000 to RM20,000 for each full year of services (hip hip hooray!).
According to data, many taxpayers have lost their job due to Covid-19. Imagine all the stress that they might’ve gotten now - we think this can help lessen the financial burden a bit.
4. Are you one of those front liners? You’ll get a one-off reward.
Since March 2020, our front liners have been working sweat and blood to save countless patients (thank you so much, guys). To appreciate their effort, they’ve been getting RM600 allowance per month since then. To top it off, Budget 2021 has allocated for medical officers to receive a one-off allowance payment of RM500. They deserve it!
5. B40 to get a voucher to buy insurance…?
For sure, the biggest life lesson for this year is that life is indeed precious. Unfortunately, not everyone will be able to afford life insurance. To help, gahmen will give an RM50 voucher as financial aid to buy Perlindungan Tenang.
The gahmen even give stamp duty exemption to all products of Perlindungan Tenang with no more than RM100 annually for the next 5 years.
6. FREE Money for Digital connectivity. Takkan dowan?
Work from home, online class, Zoom meeting and webinar, that’s been the norm in the last several months. This is why the gahmen is committed to ensuring the B40 group has secure internet access with the Jaringan PRIHATIN Programme.
In the first quarter of 2021, B40 will get RM180 in the form of credit so that they’ll have a good and stable internet connection. Even the telcos will provide RM1.5bn worth of free data. Say no more to crappy connections, guys!
7. Loan moratorium to continue but for B40 only…
Loan moratorium is pretty much the buzzword these days. We’ve even published an article regarding loan moratorium which is ‘4 Things You Need to Know About BNM’s Loan Repayment Moratorium’.
Starting from December 2020 onwards, the banks will improve these Targeted Repayment Assistances (TRA) to B40 borrowers that are also the BPR recipients. This includes micro-enterprises only for those that have a total loan of RM150,000. These 2 categories can either choose:
- Postpone the monthly repayment for the next 3 months
- Reduce 50% of monthly repayment for the next 6 months
For M40 that are affected, no worries. You guys can make a self-declaration that you’ve less income than before. This is so that you guys can request for loan repayment assistance.
Interested? Just pick up your phone and call the bank ASAP.
8. EPF Account 1 & 2? Both can keluar…
This definitely up to you as this is your retirement money. With the new budget, you can now use money from your Account 2 to buy insurance. If you do that, at least, you can tick off insurance from your monthly obligation to pay. The gahmen will also allow contributors to withdraw RM500 a month from their Account 1 starting from January 2021.
Do note that also starting in 2021, employees’ EPF contributions will be reduced from 11% to 9%. The cut will maintain up to for 12 months.
ALSO READ: Covid-19 & 7 Other Things You Can Use Your EPF for
9. Still looking for a job? You’ll still get paid by Employment Insurance Scheme (EIS)
Fret not, job seekers. You’ll still receive Job Search Allowance for the next 3 months under the enhancement of EIS. you’ll get 80%, 50% and 30% of your previous salary respectively.
Honestly, admin believes this is a great move. We don’t want them to lose hope while looking for work. Fingers crossed this help inspires them.
10. The gahmen don’t forget the farmers, fishermen, rubber tappers and Felda settlers
Without a doubt, all of them are the backbones of this country. Yet, some of them have suffered more this year due to the unstable economy.
Starting next year, they’ll get few incentives such as:
- Rubber Production Incentives will increase from RM150 million (mn) to RM300mn
- Allocation of RM1.7bn will be provided to farmers and fishermen in the form of subsidy, aid and incentive
- Fisherman’s allowance will increase from RM250 to RM300 in 2021
- Write off the interest for settlers’ debt with RM400mn
11. Company hiring these people? Got incentives liao!
Following up from previous hiring incentives programmes, the gahmen will continue it under PERKESO. The best news? The incentives got increased as well. Look at the incentives below:
- Employees that earn RM1,500 and above will get a flat rate of RM800 per month to 40% of monthly income (maximum is RM4,000)
- Employers will get total incentives of 60% (increase 20%) if the company hire disabled, long-term unemployed and retrenched workers
- Replace foreign worker with local ones for sectors with high reliance on them (think construction), they’ll get a special incentive of 60% of a monthly wage (40% go to the company, 20% go to the local worker)
- Hiring a fresh graduate for an apprenticeship? The gahmen will give RM1,000 incentive for 3 months
12. In need of reskilling and upskilling? Gahmen got you!
There’s never been more competition nowadays if you’re looking for employment or even a promotion. Why don’t you prepare yourself then? There are more to choose from, pick one or two:
- RM100mn is allocated to the Human Resources Development Fund (HRDF) to implement training with private workers
- Malaysia Digital Economy Corporation (MDEC) will get RM100mn to train the existing workforce with technology knowledge
- Entrepreneurship training worth RM30mn by PERHEBAT that will benefit Malaysia’s army veterans
If you’re interested to pursue a new career choice, the gahmen will cover your tuition expenditures up to RM1,000 for each year of assessment. Grab it while you can!
13. Extend the Wage Subsidy Programme
As many workers are still affected by pay cuts, the gahmen will extend the wage subsidy programme. It’s more targeted this time as it’s specifically for those that are working in the tourism and retail sector.
Therefore, if the worker is earning RM4,000 and below, they’ll get RM600 per month. Additionally, the limit of 200 employees per application is increased to 500 employees. Everybody wins, yeah!
14. E-wallet incentive but make it for youth
As the youth plays an important role in society, the gahmen wants to foster the spirit of using an e-wallet. With that, the gahmen will credit RM50 to youth aged 18 to 20 years old via the eBelia Programme. Other than that, nothing much has been said.
15. Lastly, first-time homebuyers? There’s something for you as well…
To encourage more first-time homebuyers, the gahmen will enforce stamp duty exemption with these 2 options:
- Full stamp duty exemption on instruments of transfer and loan agreement until December 2025. The limit is also increased up to RM500,000.
- There’ll also be stamp duty exemption on loan agreements and instruments of transfer given to rescuing contractors and the original house buyers for another 5 years. Do note that this is only for abandoned housing projects certified by the Ministry of Housing and Local Government (KPKT)
At the same time, the gahmen will continue to provide a Rent-to-Own (RTO) Scheme until 2022. This involves 5,000 PR1MA houses worth more than RM1bn. Don’t miss this if you’re looking to get your first house!
Honestly, all of the incentives are kinda to be expected with everything that has been going on. What are your thoughts on this year’s budget? Let us know here.
