Putrajaya takes the right approach with the 2022 budget – Sheda Kuching, President

Datuk Sim Kiang Chiok

KUCHING (October 30): The government is taking the right approach with the 2022 budget to tackle the economic slowdown caused by the Covid-19 pandemic, said the president of the Kuching branch of the Sarawak Association of Real Estate and Property Developers (Sheda) Datuk Sim Kiang Chiok.

In a statement yesterday, he said the budget is very comprehensive and has taken into account the views and demands of many industries.

Sim said the announcement of the Real Estate Gains Tax (RPGT) would not apply to assets being disposed of after the sixth year is good and very well received.

He added that the RM2 billion guarantee for the purchase of real estate for those who do not have proper proof of income is good for the real estate market.

However, he noted that there had been no announcement on the extension of the stamp duty exemption, which will end on December 31 for real estate transactions as in the home ownership campaign. which is still very much needed by the real estate market.

“The real estate gains tax (RPGT) will not be applied to goods sold after the sixth year. The existing RPGT structure for properties sold before year six is ​​maintained.

“The government will provide RM 2 billion in guarantees to on-demand workers who seek housing loans,” he said in a statement yesterday.

For small and medium-sized enterprises (SMEs), Sim said the allocation of Ringgit 40 billion for bank loans will help them recapitalize their businesses.

However, he added, there was no mention of the lending guidelines which should also be relaxed so that even loss-making businesses can qualify.

Apart from this, Sim also noted the allocation of 1.8 billion ringgit for microcredit financing programs through Tekun, Agrobank, Bank Simpanan Nasional, Bank Rakyat and Bank Negara Malaysia, 20 million ringgit. for the i-Tekad program and 40 billion ringgit for entrepreneur financing programs.

At the same time, he said the new e-commerce sales tax and the service tax on the delivery of items would be able to give the government a new source of revenue, adding that the sales tax would be imposed. on low value items from overseas that are sold online.

“A service tax will be imposed on the delivery of items sold on online platforms, with the exception of food and drink and logistics services,” he added.

Regarding the cash aid announced in the budget, Sim said it will continue to help B40 and M40 households get through the period of economic recovery – with RM500 for parents earning less than RM5,000 per month and RM300. for households with elderly people.

Under the direct cash assistance program to Malaysian households called Bantuan Keluarga Malaysia (BKM), he said it would benefit some 9.6 million Malaysians with an allocation of RM8.2 billion, of which 2 000 RM to households with more than three children. and earn less than 2,500 RM per month.

As part of the JaminKerja job placement program, he said he aimed to put 600,000 people to work, which in turn would reduce unemployment from 4.6% to 4%.

“Under this program, the government will subsidize 20 percent of the salary for the first six months and 30 percent for the following six months. However, this scheme is limited to salaries below RM 1,500 only.

“JaminKerja will also encourage the hiring of people with disabilities with higher subsidies – 30 percent for the first six months and 40 percent for the following six months. This is limited to wages below RM 1,200 only, ”he said, adding that Malaysia’s poverty line is a monthly income of RM 2,280.

“The pandemic has affected many livelihoods as our incomes and businesses shrink. With an expansionary 2022 budget, we hope to be able to overcome this unprecedented challenge and overcome it with the least possible disruption to our lives and livelihoods, ”he said.

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