KUCHING:There are still some weaknesses in the 2021 Budget as it is geared towards economic recovery but does not cater for the third wave of Covid-19 infections whereby numerous states in Malaysia are still affected by lockdown restrictions, said Datuk Sim Kiang Chiok.
The Sarawak Housing and Real Estate Developers’ Association (Sheda) Kuching branch chairman noted that the third wave of infections had put the operation of businesses and factories under Covid-19 prevention standard operating procedures (SOPs), thus affecting business volume, cash flow and productivity.
“Borders are still closed and many businesses are still adversely affected,” he said when contacted today.
He said that while some restrictions had eased, the major economic driver states are still under the conditional movement control order (CMCO) that would bring about negative economic consequences.
He noted that there had been requests from both sides of Parliament to have additional assistance in the 2021 Budget, but so far, the major requests are still not added.
“(These are) such as wage subsidies for a wider range of sectors instead of just tourism and retail, Employees Provident Fund (EPF) withdrawal from Account 1 up to RM10,000 without any conditions, and blanket loan moratorium for all loans for six months instead of targeted loan moratorium,” he said.
“The new Budget seems to be catering for economic recovery from the initial lockdown. As we are still going through the third wave and further extensions of lockdowns due to further spikes, our productivity is down and yet cost is maintained,” said Sim.
He pointed out that the third wave had not only affected tourism and retail sectors but also had a negative spinoff effect on other industries as well.
“If the new Budget does not assist all business sectors that are experiencing lower turnover, there will be more retrenchment and unemployment which will put more Malaysians through hardship,” he said.
He said the government should also allow blanket bank moratorium for another six months to give breathing space and time for companies to revive and recapitalise and for individuals to have extra funds to spend, thereby assisting in pushing the sluggish economy forward.
He pointed out that a recent survey by RAM Holdings Bhd (RAM Ratings) on small and medium enterprises (SMEs) found that many requested for longer wager subsidies and blanket loan moratorium as well as lowering and relaxing tax collection.
Nevertheless, Sim congratulated the federal government on the passing of the 2021 Budget at the Dewan Rakyat on Tuesday with 111 members of Parliament (MPs) voting in favour, 108 against, and one MP absent.
He said this showed that the present government’s members are responsible and voted for the 2021 Budget, also proving that the government had the majority to continue to run the country.
“If it were to fail to pass the Budget, the country might have to hold a general election in this pandemic during the current third wave of Covid-19 infections,” he said, pointing out that this could worsen the Covid-19 situation and even cause a fourth wave.
