KUCHING: As blanket subsidies have grown costly, the 2024 Budget will prioritise targeted subsidies to improve Malaysia’s financial health.
Sarawak Business Federation (SBF) secretary-general, Datuk Jonathan Chai, noted that some discomforting reactions were anticipated following the new subsidies policies in the budget presented by Prime Minister Datuk Seri Anwar Ibrahim.
“In 2024, the projected subsidy and social assistance expenses will be 52.8 billion ringgit, down from this year’s expected 64.2 billion ringgit. It’s a positive step for Malaysia.
“Special grant amounts for Sabah and Sarawak will increase. Sarawak’s will rise from RM16 million to RM300 million. Sabah’s will go up slightly from RM125.6 million,” Chai told New Sarawak Tribune recently.
Regarding the development fund, Sarawak will receive RM5.8 billion, a slight rise from RM5.6 billion. Meanwhile, Sabah’s allocation has been bumped up from RM6.5 billion to RM6.6 billion.
Chai felt these amounts aren’t enough for Sarawak, especially when compared to West Malaysia, in terms of Sarawak’s vast land and the current state of its infrastructure.
The 2024 Budget will also introduce higher taxes to boost government earnings. Starting March 1 next year, a 10 per cent tax will apply to the sale of unlisted shares. Specifics haven’t been provided yet, but Chai hoped some exemptions might be available for SME restructuring and takeovers.
Additionally, a luxury goods tax ranging from 5 per cent to 10 per cent will be introduced, though the goods that fall under this category aren’t defined yet.
The service tax will increase from 6 per cent to 8 per cent. However, some areas, like food and drinks and telecommunications, will be exempted. Chai said that this could affect some businesses.
On the education front, RM 930 million is allocated to improve 450 schools nationwide, including 185 projects in Sarawak.
“This issue has been pending for a while. We need a bigger budget to ensure our students have a good learning environment,” he added.
Chai also pointed out that while Prime Minister Datuk Seri Anwar Ibrahim mentioned a new cancer centre for Sarawak, no funding details were given.
“It is hoped that the project could begin next year,” he said.
