ACCCIS calls for higher Sarawak allocations in Budget 2027

KUCHING (Sept 23): Development allocations to Sarawak from the federal government should be increased and institutionalised, while the diesel subsidy mechanism should be further optimised under the 2027 National Budget, says the Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS).

Its president Kong Chiong Ung said higher allocations would enable the Sarawak government to accelerate infrastructure and economic development projects.

“This would help narrow regional development disparities and promote more balanced national growth,” he said in a statement.

On diesel subsidies, Kong said the mechanism should be assessed based on actual operational needs to ensure more targeted assistance and reduce resource misallocation.

“Given Sarawak’s vast geographical size, the operational requirements of sectors such as transportation, fisheries, agriculture, plantations and construction vary significantly,” he said.

Kong said fiscal policy should not only address immediate needs but also create room for future economic development.

“This will enable individuals to earn better incomes, businesses to invest and create jobs, and the government to maintain a sound fiscal position, thereby fostering a healthy and sustainable economic cycle,” he said.

On public welfare, he said government assistance should place greater emphasis on creating opportunities to increase incomes through high-quality employment, skills development and improved productivity.

“This will enable individuals to gradually strengthen their self-reliance and long-term earning capacity,” he said.

For businesses, Kong calls for greater attention to the practical challenges faced by small and medium enterprises (SMEs), including access to financing, operating costs and the tax framework.

He also called for efforts to reduce tax cascading throughout the supply chain under the Sales and Service Tax (SST).

“Should the government consider introducing an SST Plus model or a hybrid tax system in the future, compliance procedures should be simplified and a clear input tax treatment mechanism should be established,” he said.

Kong also proposed expanding the SME preferential corporate tax rate, saying the current 15 per cent rate on the first RM150,000 of chargeable income should be extended to the first RM500,000, with a 17 per cent rate applied to the next RM500,000, up to RM1 million.

He said this would allow SMEs to retain more resources for operations, investment and business expansion.

Kong also called for the current SME definition to be reviewed and updated, noting that it was last revised in 2013 and may no longer reflect current economic conditions and business scale.

“A revised definition would help ensure that medium-sized enterprises are not unintentionally excluded from SME-related incentives and support measures,” he said.