Sheda advisor hails Budget 2025 as comprehensive, but still views Sarawak’s share as ‘rather small’

KUCHING (Oct 19): Budget 2025, tabled by Prime Minister Datuk Seri Anwar Ibrahim in Parliament on Friday, is comprehensive and being the largest one so fat, the goal is to support nation’s growth, said advisor to Sarawak Housing and Real Estate Developers Association (Sheda) Dato Sim Kiang Chiok.

However, he observed that Sarawak’s allocation of only RM5.9 billion out of the RM86 billion slated for the development budget, as being ‘a relatively small portion’.

The Sarawak United People’s Party (SUPP) Stakan branch chairman also takes note of the raise in the minimum wage from RM1,500 to RM1,700, starting Feb 1 next year, with a provision of a six-month delay for businesses with fewer than five employees.

“This increase will significantly impact the cost of doing business, and may lead to higher prices for goods.

“Additionally, the wage hike will likely create a ripple effect, requiring other wages to be adjusted as well,” said Sim in his reaction to Budget 2025.

He also talked about the targeted subsidies for RON95 petrol, set for implementation in the middle of next year.

“This decision should be carefully considered to avoid further inflation, especially coming just four months after the minimum wage increase.”

On the continuation and increase in cash aid for the B40 (low income) and M40 (medium income) groups, including single individuals, Sim viewed this as a positive step towards easing the cost of living.

“However, with the expected rise in fuel prices, the minimum wage increase, and the expanded SST (Sales and Services tax) as announced, prices are likely to go up.

“Hopefully, with the ‘give and take’ of this budget, the impact on the cost of living would be minimal.

On housing support, Sim noted that the support for it in the budget was limited.

“While there are loan guarantees for 57,000 first-time homebuyers and RM900 million allocated for affordable housing, there is no ‘Home Ownership Campaign’ (HOC).

“Under the HOC, developers would provide at least a 10 per cent discount, and the government would waive stamp duties for property purchases, including loan documents.

“The Budget also lacks a deposit assistance of RM30,000 for first-time buyers to help them meet the initial deposit.

“However, there is a RM7,000 individual tax relief for housing loan interest payments of up to RM500,000, which can be claimed for three consecutive assessment years.

“While helpful, this relief is small in comparison to other possible measures.”

On support for autistic children, Sim – also the advisor to Kuching Association of Talent Development and Welfare of Special Needs (KATSN) – expressed his enthusiasm.

“As a parent of an autistic son, I am encouraged by the specific assistance provided for autistic children under this Budget, which includes support for early training centres, schools, cash allowances, tuition fee assistance, grants for private autistic schools, autism service centres, and also an increase in the tax exemption for parents, from RM4,000 to RM6,000, for medical treatment of autistic children.

“These measures give hope that the special needs of autistic children and adults will continue to be cared for by the federal government,” he added.