KUCHING: Sarawak United People’s Party (SUPP) Stakan chairman, Datuk Sim Kiang Chiok, has called for the 2025 Budget to address the escalating cost of living.
“The 2025 Budget will be the third under the Unity Government. Given the global economic uncertainty fueled by conflicts like the war in Ukraine and unrest in the Middle East, this will remain a significant challenge for the coming years,” he said in a statement today (Oct 4).
While the ringgit has strengthened slightly in the past two weeks, Sim noted that this is primarily due to the easing of US interest rates.
“Nevertheless, the ongoing supply chain disruptions caused by global conflicts will likely continue to put pressure on domestic prices,” he added.
To address the cost of living, Sim suggested that several taxation policies be reconsidered to prevent further burdening households.
“The introduction of new taxes such as the proposed Luxury Tax, the Low-Value Goods Tax, and the increase in Sales and Service Tax (SST) from 6 to 8 per cent may have unintended inflationary consequences,” he said.
However, Sim welcomed the government’s recent announcement of civil servant salary increases, describing it as a positive step.
He said the pay raise will help stimulate domestic demand and could provide some economic relief by boosting spending power, particularly among the lower and middle-income segments.
Regarding fuel subsidies, Sim proposed tightening enforcement to prevent leakage and monitoring petrol dealers for compliance instead of removing the subsidies entirely.
He said this would prevent unnecessary price hikes while maintaining subsidies for those who need them most.
Additionally, Sim said the implementation of e-invoicing presents additional challenges for micro and small businesses.
“The current proposed threshold of RM150,000 annual turnover should be increased to at least RM500,000. This would help alleviate the digital invoicing costs for smaller businesses that may not have the resources to comply,” he suggested.
He also called for the revival of the Home Ownership Campaign (HOC) with a stamp duty exemption for properties priced up to RM2.5 million and a mandatory 10 per cent developer discount, along with extending the stamp duty waiver for first-time homebuyers beyond 2025.
“Further support could be offered through the reinstatement of the RM30,000 deposit incentive for first-home purchases, as well as reductions in housing loan interest rates,” he said.
He further suggested lowering Real Property Gains Tax (RPGT) rates in the first three years of ownership and reducing import taxes and levies on building materials to alleviate construction costs.
Furthermore, he proposed grants for Strata Title Management Corporations to help with their running costs, noting that these buildings typically require less maintenance than landed housing estates, where road repairs and landscaping contribute to expenses.
