Covid-19 measures, 12MP to dominate Budget 2021

We are fortunate that in Sarawak, we have very low infection (rates) due to the prompt action of our government in closing our border with strict quarantine rules and testing for those who want to enter Sarawak, be it from Malaya, Sabah or rest of the world.

Dato Sim Kiang Chiok

KUCHING: In light of the third wave of Covid-19 infections hitting West Malaysia and Sabah, most hope that the government will review and revise financial assistance to the people by extending these schemes till March next year.

Sarawak Housing and Real Estate Developers’ Association Kuching branch chairman Dato Sim Kiang Chiok recapped that since March 18 this year, Malaysia has gone through the Movement Control Order (MCO) or lockdown phase, Conditional MCO (CMCO) and the current ongoing Recovery MCO (RMCO) which ends on December 31.

“We are fortunate that in Sarawak, we have very low infection (rates) due to the prompt action of our government in closing our border with strict quarantine rules and testing for those who want to enter Sarawak, be it from Malaya, Sabah or rest of the world,” Sim said.

“The federal government have put out several assistance for us to pull through this pandemics such as Prihatin Raykat Economic Stimulus Package and National Economic Recovery Plan.

“Most of these assistance ends at the end of year and with the current third wave its wise that the government review and revise the Covid-19 assistance by extending the wages subsidy and reintroduce the carpet bank loan repayment moratorium again till March next year.

“The cash assistance should also be increased and extended till March next year to ensure that the ‘start stop’ of the economic disruption and negative spinoff by the Covid-19 infection would not affect the people too harshly.”

On the construction industry, Sim opined that it is facing slow progress. This is due to the standard operating procedures (SOPs) to prevent the virus infection and entry of new foreign workers as the country’s quarantine rules are very strict.

“Most borders are still closed so to increase more workforce will be difficult in the next few months. The state government is also pump priming our economy with more infrastructure works such as road and bridges.”

However, Sim noted that the industry will be facing labour shortage till the state’s borders are open again.

“In development industry, we don’t expect much improvement in sales as most commercial banks are still very strict in their lending guidelines which subject the borrower to proven income lending.

“The banks should relax the lending guidelines by allowing longer lending tenure, staggered repayments when initial repayments are low to match the borrower income, allow assets lending instead of just proven income lending where properties could be used to raise capital to fund businesses and overheads.”

For the upcoming federal budget in November, Sim highlighted that apart from the above wishlist, his hope is that the federal government will relax the income and cooperate tax collection and perhaps, even reduce the tax rates to assist all business amid this low volume business environment.

“The Covid Law on extension of time in most contracts in the country can be extended from the present approved August 31 to end of December 2020.

“Extend additional funding for more small and medium enterprise (SME) loans at low interest rates so that more companies can be assisted in this start stop business environment.”

On the state budget which is also in November, Sim hopes that the state government will extend the Sarawakku Sayang cash assistance for the Bottom 40 per cent (B40) and Middle 40 per cent (M40) groups, the self employed, small traders, hawkers and pump prime the state economy with more infrastructure, telecommunication, public transport and modern agricultural works.

“In Malaysia we need a clear and strong leadership in overcoming this pandemic and political stability is very crucial to reduce infection and death rates in our country.

“We can’t afford another change of leadership in our country now and we pray that the politician will unite from both sides to fight this pandemic first, the invisible enemy that doesn’t choose which sides to strike down.

“The most perfect plan is when it can accommodate all eventualities. Our economy assistance against the pandemics must be able to be adjusted to take into account of the third and subsequent waves to assist all Malaysian against all eventualities till an effective cure or vaccine is found.

“The government must help the people to strike the balance between lives and livelihoods in this unprecedented pandemic as it has been seven months and its looks like no proven vaccine is still available till third quarter of next year.

“As caring federal and state governments, their Covid-19 economic assistance must be extended to help all Malaysian in need.”