As everybody likes to say, “New year, new me!” Well, Malaysia is also hoping to embody the New Year spirit in 2022!
2021 has definitely been a difficult year all around. Unfortunately, heading into the new year doesn’t mean all these troubles and worries will disappear. As such, the government has come up with several new policies for 2022.
Curbing Covid-19
To begin with, the government is hoping to crack down on Covid-19 by making the the booster shot compulsory. Minister of Health Khairy Jamaluddin announced on 16th December that everyone over the age of 60 (regardless of vaccine) and those over the age of 18 who received both doses of the Sinovac vaccine are required to complete their booster shot by February 2022. Those who do not do so risk their vaccine status on MySejahtera being stated as incomplete.
Here‘s a list of places you can get it done.
Additionally, according to Budget 2022, there is a decoration subsidy for companies who intend to renovate their stores and offices. This is intended to encourage companies to curb the spread of Covid-19 by improving the seating distribution and indoor ventilations of their buildings.
Going Digital
Additionally, the 2022 policy indicates a desire to shift to digital economy. Cashless transactions will be fully implemented across all government service departments and institutions. Also, online passport renewal will be fully applied next year. As such, all passport renewals can now be done by simply visiting the Immigration Bureau website.
Aside from cashless transections and passport renewals, the radio frequency identification (RFID) system will be implemented at the North-South Highway tolls from Juru to Skudai on 15th January. Although Touch ‘n Go and SmartTAG will still be around in 2022, they hope to phase it out by the end of 2023. Additionally, the government will be introducing a national biometric registry called National Digital Identity (NDID) system.
Taxes, Tax Rebates & Subsidies
While the digital economy is important, others haven’t been forgotten. According to the recent 2022 Budget, there are plenty of changes coming our way. For starters, all Malaysians citizens over 18 will be given a Tax Identification Number (TIN) to expand the tax base. For Malaysians who earn foreign income, they were supposed to be taxed starting 1st January. However, today (31st December), the finance ministry stated income from foreign sources will be excluded from income tax till 31st December 2026. Those in a business partnership in Malaysia will still be subject to foreign source income (FSI) taxation.
Additionally, the government will be levying a 33% corporate tax on companies with revenues of more than RM100 million and 24% on companies with revenues less than RM100 million. The excise duty on sugar sweetened beverages includes chocolate/cocoa, malt, mixed coffee and tea, and liquid or gel products containing nicotine in e-cigarettes.
However, there were also several tax rebates listed in the 2022 Budget. Those who purchase, install or rent electric vehicles or pay for their charging facilities can receive a personal income tax deduction of up to RM2,500. For commercial real estate landlords who provide tenants with a minimum 30% rent discount between January and June 2022, they can enjoy special tax exemptions. Additionally, the Real Property Gains Tax (RPGT) for Malaysians and permanent residents will be abolished for those who dispose of residential property in the sixth year of ownership and beyond.
Aside from tax rebates, the government has set apart cash for citizens. Under the eStart program, youths will receive RM150 e-wallet. This includes those aged 18 to 20 and full-time university students. Additionally, RM600 million has been allocated for wage subsidies for those in the tourism industry.
Environmental policies
Malaysia has been focusing on reducing the use of plastics since 2018. The agenda continues into 2022, as housing and local governments plan to implement a single-use plastic bag charging policy involving 154 local authorities from January.
Also, the Sepang City Council is planning to reduce carbon emissions with their autonomous trackless trams otherwise known as the automated rapid transit (ART) system. The tram will run in Cyberjaya as a pilot programme for a period of three months starting January 2022. It can accommodate up to 307 passengers and has a speed of 70km/hr.
Sources: China Press, Free Malaysia Today, The Sun Daily, Soya Cincau, PaulTan.org, Lowyat.net
