KUCHING: The increase in service tax from 6 percent to 8 percent is expected to raise prices and may have a dampening effect on domestic economic growth, according to Datuk Sim Kiang Chiok.
“The luxury tax, ranging from 5 percent to 10 percent, affects local residents only and could slow down the demand for luxury goods in Malaysia.
“While the 10 percent capital gain tax from March 1 this year for sales of shares for unlisted local companies will dampen such transactions and might slow down entrepreneurship and increase cost in doing businesses in Malaysia,” said the Sarawak Housing and Real Estate Developers’ Association (SHEDA) Kuching chairman
Sim said the allocation of RM5.8 billion by the federal government will ensure that development expenditure in Sarawak is maintained.
He expressed hope that the development expenditure would be used to build more roads and bridges including improvement for rural utilities.
Sim also welcomed the allocation of RM330 million under TEKUN (The National Entrepreneurial Group Economic Fund) to finance facilities for small traders, emphasising the need for inclusivity for all races in Sarawak.
“It’s good that TEKUN has included all Bumiputera from Sarawak and Sabah and also for the Indian Community. We hope that this fund will be inclusive for all races in Sarawak,” he told New Sarawak Tribune when contacted.
Sim said he welcomed the ongoing negotiation and handover of Bintulu Port to the Sarawak Government under the Malaysia Agreement 1963 agenda.
“For the Bintulu port , it’s good that our budget reflects the ongoing negotiation to handover to the Sarawak Govt which is under MA63 agenda,” he said, adding that the Rural Air Service (RAS) handover to the state government will strengthen the service and development of rural areas, including support for the proposed Sarawak Airline.
Additionally, Sim praised the RM44 billion loan and financing fund for micro, small, and medium enterprises (SMEs) as a positive support for the economy and businesses, especially in the challenging business environment outlook for 2024.
