KUALA LUMPUR: The government will allocate RM20 million to expand the skills and programmes that meet the national Technical and Vocational Education and Training (TVET) standards for prison inmates.
Finance Minister Lim Guan Eng, when tabling Budget 2020 in the Dewan Rakyat yesterday, said the allocation was specifically for training programmes such as in the areas of food & beverage, carpentry, laundromat operation and welding.
“During the installation ceremony for the 16th Yang di-Pertuan Agong, Raja Permaisuri Agong (Tunku Hajah Azizah Aminah Maimunah Iskandariah) had worn the Kain Tenun Pahang Diraja (Royal Pahang Woven Fabric) made by inmates of the Penor and Bentong Prisons,” he noted.
To support the growth of social enterprises, which could help improve the socio-economic status of the local communities, Lim said the Malaysian Global Innovation and Creativity Centre (MaGIC) would receive an allocation of RM10 million to support such enterprises.
An additional RM10 million will be allocated for the Malaysia Co-Investment Fund Scheme (MyCIF).
“This allocation is specifically for social enterprises to raise funds via the P2P (peer-to-peer) Financing platform, where the MyCIF will co-invest with private investors on a one-to-one basis, providing the financing at affordable rates,” he said.
To encourage the private sector to donate as part of their corporate social responsibility, Lim said effective Sept 5 this year, the government had increased the donation reporting threshold from RM5, 000 to RM10, 000 under Subsection 44 (6) of the Income Tax Act 1967.
This will subsequently be increased to RM20,000 next year.
“To inculcate philanthropy, the tax deduction on donations for welfare and sports activities, and projects of national interest currently capped at seven per cent from the aggregate income for taxpayers other than companies, will be increased to 10 per cent in line with the threshold given to companies,” he said.
According to Lim, the tax deduction is also extended to cash waqf (religious fund) contributions to state religious authorities or bodies established by the state religious authorities administering the waqf.
The tax deduction will also be extended to the cash waqf contributions to public universities approved by the state religious authorities to receive waqf, as well as to cash endowment to public universities.
Lim said currently, income tax exemptions were given for all income received by religious institutions or organisations established for the purpose of worship or advancement of religion, and registered with the Registrar of Societies Malaysia.
From 2020, the tax exemption will be extended to institutions registered as companies limited by guarantee with the Companies Commission of Malaysia (CCM). — Bernama