Premier hints at changes in Sarawak’s financial industry within next six months

KUCHING (Nov 26): Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has hinted at the forthcoming changes in Sarawak’s financial industry, particularly in relation to the housing sector.

He revealed that significant developments can be expected within the next six months.

“I can assure you, just wait and see what happens within six months in the financial industry. I cannot reveal it to you now, but I have a roadmap on that since there is some progress (financially),” he said.

Abang Johari said this in his speech in conjunction with Sarawak Housing and Real Estate Developers’ Association (Sheda) Annual Dinner and Excellence Awards at the Borneo Convention Centre Kuching (BCCK) here last night.

He was responding to Sheda president Augustine Wong’s financing requests, which among others, include federal financing for Sarawak housing to be directly channelled through the Ministry of Public Health, Housing and Local Government.

Wong, in his speech earlier, emphasised Sheda’s belief that the Sarawak government is best suited to distribute grants and financial assistance to benefit Sarawakians.

He also asked for bridging financing for private developers through Mutiara Mortgage and Credit, temporary waivers, or reductions in duties for construction materials, and incentives like exempting developers building affordable housing from Capital Contribution.

In this regard, Abang Johari emphasised that there is a need for Sheda to have a very strong financial institution to back the latter’s part.

“Mutiara Mortgage is just an interim on the government part to help the B40.

“But yours is across the board, so you need a very strong financial position owned by Sarawak government to help you. But just wait, six months,” he added.

Wong also proposed for the Housing Deposit and Repayment Scheme (HDRAS) to be expanded by increasing the household income threshold to RM15,000 per month to benefit more Sarawakians.

Adding on, Wong requested for the government to increase the HDRAS financial assistance to 10 per cent of SPA price from the current RM10,000, and allow purchasers to utilise the HDRAS grant to purchase any property from the open market as long as the applicant is eligible.

He also suggested adjustments to Sri Pertiwi policies, calling for the removal of zoning requirements that will allow all eligible Sarawakians to purchase one unit of their choice anywhere throughout Sarawak, as well as a revision of the selling price to reflect the current market conditions.

To this, Abang Johari said under the World Bank, RM15,000 household income is already a developed country.

“Though Sarawak is already categorised as high-income state, but our household income does not reflect the mean that is under the category of developed state, so I think your RM15,000 is still high.

“So what I (will) do (with) all your wish list, what we do (is) we will deal with it in package. I cannot respond to you one by one, but we are going to look at as a package including your affordable housing, threshold, and finance,” he added.

Meanwhile, on Wong’s request for Sheda to be included in deliberations on the mechanism and quantum relating to payment into the proposed Trust Fund in lieu of building affordable housing, Abang Johari said the state government will also consult Sheda on its implementation.

“We will work out the mechanism which is fair to Sheda as well as the government. The government under my leadership is very fair to our people,” he said.

Also present were Deputy Minister cum Minister of Public Health, Housing and Local Government Sarawak Datuk Amar Dr Sim Kui Hian, Sarawak Business Federation president Dato Sri Abang Abdul Karim Tun Openg, organising chairman Dato Bobby Ting, Sheda Excellence Awards 2023 chairwoman Angie Kueh.