KUCHING: Sarawak Housing and Real Estate Developers’ Association (Sheda) Kuching branch chairman Sim Kiang Chiok has pointed out several disappointing aspects of Budget 2021 such as the targeted wage subsidy extension which is limited to only the tourism and retail sectors.
“This is disappointing because being in this Covid-19 pandemic many sectors are affected including factories and other services. The wage assistance should be for all affected by the lower turnover of their business.
“Now we can foresee many lay-offs due to this very narrow assistance in wage subsidy,” he said today.
According to him, another disappointing aspect of the 2021 budget was the targeted loan repayment which would only assist the B40 (low-income) and M40 (medium-income) groups with three more months of moratorium or 50 percent reduction of their monthly repayment for six months, starting Dec.
Pointing out that many businesses were negatively impacted during this third wave of Covid-19 infections and resulting start/stop restrictions, he said small and medium enterprises (SMEs) needed more assistance on the repayment of loans and many still needed automatic loan moratorium.
“When they have started to repay their loans, which include the loan capital, banks are very strict in lending out again in adverse economic situation.
“It will not be easy to re-loan for the recapitalisation of their businesses again which are much needed in this poor cash flow period to help them to cover their overheads and fixed cost,” Sim said.
He hoped the government would grant automatic loan moratorium, otherwise more bankruptcies and winding-up of businesses would be seen – resulting in more negative spin-offs.
On measures to increase home ownership, he said the extension of stamp duties exemption for instruments of transfer and loan agreement for first time home buyers would assist the property market in Sarawak, which he described as very slow since the lockdown in March due to market uncertainties and job security affecting housing demand.
He hoped that Sarawak would benefit from the social housing initiatives in the 2021 budget such as the Program Perumahan Rakyat, Rumah Mesra Rakyat, repair of dilapidated houses, and the Malaysia Civil Servants Housing Programme.
“The Rent-to-Own Scheme involving 5,000 Prima houses with selected financial institutions with a total value of RM1 billion for first-time homebuyers is good and we hope that some allocation will be for Sarawak too,” said Sim.
“There are no other initiatives in this budget for the property sector such as My First Home Scheme to help out in the deposit, no stamp duty waivers for other types of properties, no Real Property Gains Tax (RPGT) waiver for property more than five years old – we can expect a slow year for the property sector,” he said.
On another note, he lauded the Employees Provident Fund (EPF) withdrawal facility and the enhancement of the Employment Insurance Scheme (EIS).
He also said the Bantuan Prihatin Rakyat cash assistance was important to help those in need, but might be inadequate when second income such as overtime and jobs were difficult to come by during this pandemic.
He foresaw that next year would be a slow and difficult year for the economy even with this expansionary 2021 budget.
“We hope that the federal government will respond to the people’s needs if there are further infection spikes, like now with the third wave that is affecting the country’s economy,” said Sim.
