MBKS Mayor welcomes Budget 2027, urges policy consistency to avoid confusion, extra costs

Dato Wee Hong Seng

By Karen Bong

KUCHING, Oct 10: Kuching South City Council (MBKS) Mayor Dato Wee Hong Seng has welcomed the 2027 Budget but stressed that measures and policies must be thoroughly assessed and consulted on before implementation to avoid inconsistency, confusion and costly U-turns that could burden the public and businesses.

Sharing his views during his ShallWeeTalk live session today, Wee said policies should be guided by professional expertise, public feedback and careful consideration of their wider economic implications to ensure they were practical and sustainable.

He was responding to the 2027 Budget tabled by Prime Minister Datuk Seri Anwar Ibrahim yesterday (Oct 9), which increased federal allocations for Sarawak to RM16.2 billion from RM15.1 billion this year, while raising the interim special grant to RM1.5 billion.

Wee said the government should focus on measures that addressed people’s needs, particularly controlling inflation and easing the cost of living, rather than concentrating solely on announcing new initiatives.

He cautioned that frequent policy changes could force businesses to repeatedly adjust their systems and operations, resulting in additional costs and uncertainty.

Citing the transition from the Goods and Services Tax (GST) to the Sales and Services Tax (SST), he said businesses had invested in systems and operational changes to comply with the tax requirements, only to face further adjustments when the framework changed.

Similar concerns applied to other requirements, including e-invoicing, which could impose additional costs if implementation was not properly planned.

“Every new system or requirement creates additional costs for the public and businesses. If it is subsequently cancelled or changed, they have to start all over again,” he said.

Wee said the government should engage stakeholders and consult experienced professionals before introducing new measures, allowing potential consequences to be identified and addressed early.
On minimum wages, Wee said wage increases should be considered alongside employers’ ability to absorb higher labour costs, particularly among small businesses and microenterprises.

While acknowledging the importance of wages, he said businesses facing higher operating expenses might respond by increasing prices, reducing their workforce or, in some cases, shutting down if they could no longer operate sustainably.

“For example, if a company currently employs three people for a cleaning job, it might dismiss two and retain only one to do the work,” he said.

Anwar announced that the minimum wage rate will be raised from RM1,700 to RM2,000 effective June next year, which would benefit more than four million workers in Malaysia. However, micro, small and medium enterprises with annual sales below RM50 million will be exempted to allow them time to adjust their business models.

He said the implications were particularly significant for Sarawak, where small industries and microbusinesses, including home-based enterprises, formed an important part of the economy.

Unlike larger companies, smaller operators often had less financial flexibility to absorb higher costs. If expenses became unsustainable, they might have little choice but to scale down or cease operations, affecting both employment and livelihoods.

“When the economic outlook is uncertain, additional costs make it much harder for businesses to plan their budgets,” he said, adding that consumers could ultimately bear part of the burden if businesses passed on higher operating costs through price increases.

He said the focus should instead be on ensuring that regulations were clear, proportionate and consistently implemented, without placing avoidable pressure on people going about their daily lives.

Wee stressed that policymaking required a broader perspective than running a private company, as government decisions affected people across different income groups and economic circumstances.

While businesses might prioritise efficiency and profitability, he said the government had to weigh these considerations against their wider social and economic impact.

He emphasised that thorough assessment, professional input and meaningful public engagement would help policymakers anticipate unintended consequences and ensure that measures were appropriate for the country’s economic conditions.

“Ultimately, everyone needs to work together to ensure that policies are properly considered, consistently implemented and beneficial to the people,” he said. — DayakDaily