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#BAJET2023: SOCSO, PTPTN, Subsidies, RM100 for M40 & More

BY Asrul Ash

Updated 03 Nov 2022

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Following the speculation of a possible snap election before the end of the year, some are dubbing this year’s RM372.3 billion Budget 2023 (now they call it Supply Bill 2023) an "election-friendly budget". So, people have been expecting some "added goodies" to be presented as carrots to voters.

With the theme of “Strengthening Recovery, Facilitating Reforms Towards Sustainable Socio-Economic Resilience of Keluarga Malaysia”, our Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz has declared that RM55 billion (walao!) are for essential supplies like petrol, diesel, cooking oil, flour and electricity, and other necessities.

But, the big question is, does it live up to people’s expectations? Have the suara rakyat been heard? Can it heal our dying economy? Well, tanpa buang masa, here are some of the Supply Bill 2023 highlights that we think REALLY matter the most for yalls!

(Kejap! If you are interested in reading the whole text, click here.)

What's covered in this article?

Image source: The Sun Daily

1. e-Wallet RM100 for M40, yesss!

Individuals in the M40 income bracket (earn less than RM100,000 per year) will receive RM100 in e-wallet credit. Gomen says this aims to encourage cashless purchases. Well, expect more people to carry less cash from now on.

2. Income tax rate is 2% lesser (and more)!

The taxable income range of RM50,001 to RM70,000 is cut from 13% to 11% and the taxable income range of RM70,001 to RM100,000 from 21% to 19%. Okay, we stan by this move. Kudos, Malaysia!

The Supply Bill 2023 also looks into three major tax relief changes:

1. Life insurance premiums soon are able to include EPF self-contribution (up to RM3,000)
2. SSPN tax relief will be extended to 2024 (up to RM8,000)
3. Tax relief on medical expenses (self, spouse & child) soon will include dental examination and treatment.

3. Bantuan one-off for families with 5 kids.

Families with five children or more (monthly income less than RM2,500) are eligible for Bantuan Keluarga Malaysia (BKM) of RM1,000 to RM2,000. While the household income of RM2,500 to RM5,000 will be granted between RM500 and RM1,250, depending on the number of children.

Single senior citizens and single individuals will also get a bantuan one-off of RM350 to RM600 (depending on income). How do you check your status? We will keep you updated.

4. More businesswoman opportunities in 2023!

The government gives an RM235 million cash fund to encourage more women to expand their business strategy. This financing will be provided through several programmes such as Semarak-Nita BSN, Tekunita TEKUN, Dananita MARA, and Bizlady Bank Rakyat.

The government also intends to make a tax exemption for five years (2023-2028) for women who take a "career break". But, none has yet been confirmed.

5. Students and youths to get RM200 e-Wallet

RM200 one-time credit into the e-Wallet account of adolescents aged 18 to 20, and full-time students aged 21 and above, under the e-Pemula Program. But, which e-Wallet is eligible? That remains a question…

6. Tax exemption of kindergarten fees!

Looks like parents can still enjoy the privilege of an RM3000 tax break on childcare and kindergarten fees until the assessment year 2024. This help, which amounts to RM3000 against individual income tax, stays the same as last year.


7. Mothers, wait and get birth in 2023 (joking!)

A total of RM500 one-off BKM aid will be given to mothers who give birth to a child in 2023. Looks like we will be expecting a lot more baby showers next year then…

8. ePemula increased to RM200, kaching!

Youths aged 18 to 20 years old and full-time students aged 21 and above will receive RM200 in e-cash credit, ePemula, up from RM150 before. So, choose your e-Wallets wisely, cuz like before, we might be expecting aids in terms of vouchers instead of cash.

If you forgot how to claim, you can go to last year’s ePemula for reference.

9. Cost of living will be reduced, says the government…

The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) makes ongoing efforts, in addition to law enforcement inspections, to lower people's living costs and provide customers with numerous choices for saving money through planned purchases.

Now, we wait… Hopefully, we see some changes.

10. RM150 aid for all primary students, no limit! Nice!

The Early School Assistance programme will be increased from RM100 to RM150 next year and made available to all pupils, regardless of their parent's financial level. So, if you have 3 kids, parents will get a total of RM450! Now, that’s what we call Malaysia Prihatin!

11. Now, you wished you studied better!

From November 1 this year until April 30, 2023, the government will offer a discount on PTPTN loan repayment (up to 20% discount!). Not only that, students who get a first-class bachelor's degree will be eligible for a PTPTN loan payback exemption.

So, keep your eyes open for updates, and don’t miss this opportunity! Go to PTPTN official portal for more information.

12. We still get My50! We stan public transport!

The MY50 Monthly Pass is still available to the 180,000 Klang Valley residents who commute by train and bus. Say no to traffic jams, say yes to trains!

13. Hurrah, electricity bill subsidy!

For the upcoming year, our gomen has announced that there will be a subsidiary of electricity bills up to RM40 for households with income of less than or equal to RM1,169. Now, that deserves applause! Yes to lesser commitments!

Image source: The Malaysian Reserve

14. Good news on SOCSO.

The government will pay 80% of Socso payments for gig economy employees. This will apply to farmers, fishers, Finas artists, and hawkers in addition to those involved in food delivery and ehailing. The government will also gradually make contributions to Socso's Self-Employed Social Security Scheme mandatory for all self-employed sectors.

15. EPF, ASB, and retirement things.

For 2023, the limit of EPF voluntary contributions will be increased from RM60,000 to RM100,00 per year. In addition to that, i-Saraan (extended to 2023) will be increased from RM250 to RM300 per month. As for ASB and ASB2, the good thing we get is that the holding limit will be raised to RM300,000.

At least this is better than nothing, right? We (those who are self-employed) can save up more for our retirement.

16. 2023 is a good time to buy a house?

Despite the recent jump in OPR from Bank Negara, it seems that our government is trying to make things less detrimental. Stamp duty for house purchases worth RM500,001 to RM1 million will be exempted, from 50% to 75%.

And, stamp duties for the transfer of property between family members are set at RM10. Do you think this is enough to convince Msians to buy more property in 2023?

Image source: Free Malaysia Today

17. Financial aid for OKUs, Orang Asli, women, and more.

In support to assist marginalised groups such as OKUs, ex-convicts, Orang Asli, and women to return to the workforce, our gomen will provide RM600 and RM700 worth of bantuan each month for three months

Job seekers from Sabah and Sarawak will also get a one-time RM1,000 mobility assistance payment to aid them in finding employment in Peninsular Malaysia. 

Aaanndd… that’s all.

So… What do yall think of this year’s Budget, oops sorry, Supply Bill 2023? Did it hit the mark? Or were there too many opportunities missed? Let us know your thoughts! We think our gomen has done (to put how we feel, either happy or unhappy with the initiatives)

With that said, share this with your mama, abi, meimei, thambi, or whoever you want. Who knows if they can claim their bantuan from this?

*The above article is intended for informational purposes only. Loanstreet accepts no responsibility for loss that may arise from reliance on information contained in the article.

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About the Author

Asrul Ash

Meet Asrul Ash, the Content Marketer of Finology. Growing up between the peak of Millenials and the beginning of Gen Z, he’s skilful at creating insightful, fun, and scroll-stopping content that brings value to the readers. Ash is also an adventurous cafe hopper. Need suggestions on good insta-worthy cafes? Ping him.


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