Helping the poor, revitalising businesses the main principles of Johor’s 2022 budget, says chief minister

JOHOR BAHRU: Johor’s chief minister Hasni Mohammad said that helping the poor people of Johor and revitalising businesses impacted by COVID-19 are the key principles for the state government’s 2022 budget. 

Announcing the budget at a state assembly sitting on Thursday (Nov 18),  Mr Hasni said all considerations for the budget are guided by these main principles. 

“Firstly, to address and alleviate the burden of the people who have suffered from the COVID-19 pandemic. Secondly, to intensify efforts in rehabilitating economic sectors extensively,” he said. 

Mr Hasni who is also Benut assemblyman said that for 2022, Johor’s expected revenue is set at RM1.67 billion (US$400 million) while its projected expenditure to be around RM1.95 billion. 

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“This scenario indicates that Budget 2022 will incur a deficit of RM286.47 million,” said Mr Hasni. 

He warned that these projected figures are subjected to a high degree of uncertainty because of various factors, such as whether the reopening of international borders - especially with Singapore will proceed, the overall COVID-19 situation and also on the performance of Malaysia’s economy and the global economy as a whole.  

Mr Hasni said that in the 2022 budget, the state government will set aside RM161 million to help the low income households in Johor cover their cost of living expenses, through monthly allowances of between RM150 and RM750.  

About 18,000 people are expected to benefit from the assistance, said Mr Hasni. 

The state will also spend RM21.4 million to be channeled for other programmes to help the low  income households. 

They include initiatives to help 32,000 school children of low income families to purchase school uniform and stationery, food baskets for the poor as well as subsidies for rent and utility bills. 

Among the initiatives to boost the economic sectors in Johor,  a total of RM100 million will be set aside for small and medium businesses across the state to obtain interest-free loans. The interest for these loans will be absorbed by the state government, said Mr Hasni. 

“This initiative will give some relief to entrepreneurs who are facing cash flow problems in their businesses,” said Mr Hasni. 

For the tourism sector in Johor, the state government will spend RM4 million as special incentives to help the industry players revive the sector.

Of this amount, RM621,000 would be given to 621 tour guides, RM414,000 to 207 budget hotel operators, RM372,000 to 186 tour agencies, RM233,000 to 232 chalet operators and RM82,000 to 82 tour boat operators.

As part of the 2022 Budget, Mr Hasni also stated that around 20,000 e-hailing drivers, taxi drivers and food delivery riders will receive a one-off payment of between RM100 and RM150. 

He said that RM2.7 million has been allocated for this programme.

Mr Hasni also announced that all civil servants in the state government will receive a special payment of half a month's salary or a minimum of RM1,000 at the end of 2021. 

He said the special payout would also include religious school teachers, those working at community-based rehabilitation centres, and religious kindergarten teachers.

All 56 state assemblymen in the state Johor will also be given  RM200,000 annually for them to take better care of their constituents, regardless of their political party. 

Each assemblyman would also receive an additional RM50,000 a year to help organise celebrations for major festivals such as Hari Raya, Chinese New Year and Deepavali.

On infrastructural development in the state, Mr Hasni said that the state government will embark on the upgrading works to improve the quality of water in Johor. 

The overall works which would involve RM1.6 billion will be spent to raise the capacity of water treatment plants, upgrading pipeline drainage system and rehabilitate assets in water facilities. 

In a media statement following the tabling of the budget, chief executive for Iskandar Regional Development Authority (IRDA) Ismail Ibrahim said the budget was "holistic", encompassing the economy, society and the environment. 

“This, and its inclusivity agenda that touches the various groups of people, clearly matches the goals and the ‘Boosting Johor's Prosperity’ theme for Budget Johor 2022," said Mr Ismail. 

"It is only natural for us to take up this challenge next year by expanding and accelerating our planned projects and programmes to meet the needs," he added. 

HOPEFUL FOR LAND VTL WITH SINGAPORE SOON

In his speech, Mr Hasni reiterated that Johor was looking forward to the resumption of cross-border travel between Malaysia and Singapore at the land border checkpoints. 

He noted that the Vaccinated Travel Lane (VTL) between Kuala Lumpur International Airport and Changi Airport is set to launch on Nov 29. 

“In line with that, the state government hopes that the VTL via land will be launched in the short term with the appropriate health procedures in place so that the cross-border travel between Singapore and Johor may resume soon,” said Mr Hasni. 

On Monday (Nov 15), Singapore’s Trade and Industry Minister Gan Kim Yong said that the land border between Singapore and Malaysia could reopen in “a few weeks time” under a “Vaccinated Travel Lane-like” arrangement.

Mr Hasni also outlined that the state government will set aside RM650 million next year to offer courses for Johoreans to develop themselves in railway and construction know-how, to support the Rapid Transit System (RTS) Link project between Singapore and Johor.