Saturday, 22 October 2016

Malaysia's 2017 Budget benefits Islamic finance firms, imams, religious teachers

The 2017 Budget for Malaysia has benefits for Islamic finance, religious teachers, imams as well as caretakers of mosques.

To maintain Malaysia as an international Islamic financial centre, Malaysia Prime Minister and Minister for finance YAB Dato' Sri Mohd Najib Tun Haji Abdul Razak announced as part of the 2017 Budget that the period of income tax exemption to entities carrying out Islamic banking and takaful business through the International Currency Business Unit (ICBU) in foreign currencies as well as stamp duty exemption on instruments of such activities, will be extended to the year of assessment 2020.

The government further recognised the work of imams by increasing their monthly allowance via JAKIM from RM750 to RM850. "This will benefit nearly 15,000 imams throughout the nation," he said.

A one-off payment amounting to RM500 will also be given to nearly 16,000 bilal and siak (Editor's note: the ones who perform the call to prayer and the ones who look after mosques respectively) throughout the nation to appreciate their service in managing mosques.

Kelas Agama Fardu Ain (KAFA, an organisation that conducts religious classes) teachers will see their allowance increased from RM800 to RM900 a month, benefitting nearly 33,000 KAFA teachers, PM Najib added, while tahfiz education (Editor's note: education around memorisation of the Quran) will be coordinated through the National Tahfiz Education Policy to the tune of RM30 million.

PM Najib also took the opportunity to welcome 23,000 Hajj pilgrims home.

Interested?

Read the full Budget speech