Latest news with #SimKiangChiok
Borneo Post
12-07-2025
- Business
- Borneo Post
Sheda advisor: Interest rate cut offers relief, but property market needs more than just OPR reduction
Dato Sim Kiang Chiok KUCHING (July 12): The lowering of bank interest rates is generally a positive move for cost-of-living relief, particularly for those with housing, personal, or business loans, said Sarawak Housing and Real Estate Developers' Association (Sheda) advisor Dato Sim Kiang Chiok. He said the reduction eases monthly repayment burdens and could free up disposable income at a time when households are grappling with rising expenses due to the expanded Sales and Service Tax (SST) and ongoing subsidy rationalisation. Sim was commenting on Bank Negara Malaysia's (BNM) decision to reduce the Overnight Policy Rate (OPR) from 3.00 per cent to 2.75 per cent. 'For businesses, it helps reduce financing costs and preserve cash flow in a slower growth environment, but this comes with a trade-off. 'Savers, particularly retirees or individuals dependent on interest income, will see lower returns on fixed deposits and savings accounts,' he said. 'As such, while borrowers benefit, those relying on passive income from savings may feel financially strained.' The BNM decision to reduce the OPR from three per cent to 2.75 per cent is a strategic, preemptive step to support domestic demand in the face of rising global and domestic uncertainties, Sim said. 'While Malaysia's economy continues to grow, there are clear signs of softening in certain sectors, particularly property, where Q1 2025 data showed a 6.2 per cent drop in total property transactions and an 8.9 per cent fall in value, according to the JPPH report.' 'Coupled with external pressures such as the recent increase in US tariffs on Malaysian exports (from 24 per cent to 25 per cent), weakening ringgit, and rising cost of living due to the expanded SST and the impending targeted RON95 fuel subsidy in Q4, the rate cut aims to preserve domestic consumption and support business sentiment. It is not a stimulus, but a timely cushion against downside risks,' he said. While a lower OPR may marginally reduce borrowing costs, its impact may be dampened by broader affordability challenges, Sim said. The Q1 2025 report indicates that even though construction and new launches remain active, residential property transactions also declined in volume and in value, pointing to a cautious buyer landscape, he said. For Sarawak, where household incomes are generally more modest and sensitive to inflation, the combined effect of higher SST, weaker ringgit, and rising living costs could offset the benefit of lower interest rates, he said. 'So, we may not see an immediate surge in first-time home buying unless additional supportive measures are introduced — such as reviving the Federal Government's 'My First Home Deposit' initiative or offering stamp duty exemptions for all residential property transactions.' Sim said Sarawak buyers tend to be price-sensitive and financially conservative. 'While interest rates do matter, income stability, employment security, and inflation expectations weigh more heavily on purchasing decisions.' He added that the recent dip in property transactions reflects that broader economic uncertainty, rather than interest rates alone, is shaping buyer sentiment. 'Sentiment in early 2025 has been mixed to cautious. After seven quarters of steady growth, the market experienced a correction in Q1 2025, as shown by the decline in transaction volume and value.' Sim said the OPR cut may offer short-term psychological and financial relief, but overall consumer confidence remains tempered by uncertainties surrounding global trade, the weak ringgit, and upcoming subsidy reforms. 'Therefore, while the rate cut helps support sentiment, more holistic interventions are needed to sustain demand, particularly in the residential market.' He noted that developers are unlikely to reduce prices significantly, as input costs remain elevated due to the SST expansion, higher logistics and compliance costs, and volatile prices for imported materials. However, he said some developers may respond by offering innovative financing packages, down payment assistance, or interest absorption schemes to attract buyers. 'There may also be a strategic shift towards smaller units and affordable housing, aligning with strong demand in the sub-RM300,000 segment, which accounted for more than half of residential sales in Q1 2025.' overnight policy rate property market Sim Kiang Chiok
Borneo Post
03-07-2025
- Business
- Borneo Post
Sheda advisor: Developers brace for higher costs as SST expansion hits Sarawak's construction sector
Dato Sim Kiang Chiok KUCHING (July 3): Sarawak developers are already experiencing noticeable cost increases across the property and construction sector following the introduction of the expanded Sales and Services Tax (SST). The expanded SST, implemented on July 1, 2025, broadened the sales tax to include a wide range of goods—such as over 240 steel-related products and industrial machinery—and extended the service tax to several new sectors, including six per cent to non-residential construction services. In a statement, Sarawak Housing and Real Estate Developers' Association (Sheda) advisor Dato Sim Kiang Chiok, highlighted that the costs have risen for both building materials and construction services provided by subcontractors. He lamented that the property and construction sector is currently going through 'profound challenges' stemming not only from the expanded SST but also from the mandatory e-invoicing system. Sim, who is also Sarawak United People's Party Stakan chairman, explained that the e-invoicing requirement introduces additional layers of administrative work for property and construction companies. It requires an investment of time and resources in updating accounting systems and staff training to ensure seamless integration of e-invoices with their financial records. Sim added that the combination of the expanded SST and e-invoicing mirrors the previous Goods and Services Tax (GST) system, but with increased complexity and the potential for double taxation. 'Unlike GST, SST does not provide tax credits along the supply chain, which opens the possibility of double taxation at multiple stages and increases the final cost borne by the consumers without clear visibility of tax components in pricing,' he shared. 'This lack of transparency means buyers cannot see where taxes are applied, creating confusion and undermining the efficiency such systems aim to achieve,' he stressed. While the e-invoicing system may improve overall record-keeping and tax compliance, Sim argues that these measures alone will drive construction costs higher, eventually contributing to increased property prices and a higher cost of living. Additionally, compliance and operational costs are expected to rise further with the upcoming mandatory Employees Provident Fund (EPF) contributions for foreign workers. Starting in October 2025, foreign workers in Malaysia will be required to contribute two per cent of their monthly wages to the EPF, with employers contributing an additional two per cent. 'These additional costs inevitably impact our budgeting processes, forcing developers to adjust tender pricing upwards to maintain profitability,' he stressed. He cautioned that without targeted support from the government, these cumulative changes could stifle industry growth and place significant strain on both companies and consumers. lead Sales and Services Tax Sheda Sim Kiang Chiok
Borneo Post
28-06-2025
- Politics
- Borneo Post
More seats, better representation: SUPP Stakan branch chief supports potential Sarawak redelineation
Sim says social and economic issues can be heard and tackled more effectively, ultimately improving the quality of life for all Sarawakians. KUCHING (June 28): Sarawak United People's Party (SUPP) Stakan branch chairman Dato Sim Kiang Chiok believes that an increase in the number of state and parliamentary seats in Sarawak would be a positive development, even though talks on redelineation remain speculative at this stage. 'As for how potential new boundaries could impact the next election, I believe that having more constituencies will enhance representation for Sarawakians. 'With more elected representatives, we can better address the unique challenges faced by both urban and rural communities. 'Social and economic issues can be heard and tackled more effectively, ultimately improving the quality of life for all Sarawakians,' he said in a statement todau. Sim was responding to news reports speculating that a motion to increase the number of constituencies in Sarawak could be tabled during the State Legislative Assembly (DUN) special sitting this July 7. He clarified that only the redelineation of state constituencies could be tabled and decided in the DUN, whereas parliamentary constituencies would fall under the federal jurisdiction and require action at the national level. 'Beyond redelineation, it is also possible that the Sarawak government during the July 7 special DUN sitting may have other pressing priorities to address first, such as matters relating to Malaysia Agreement 1963 (MA63) or Sarawak's rights over oil and gas resources, both of which are fundamental to our state's autonomy and economic future,' he said. 'Regarding the timing of a redelineation, our laws stipulate that redelineation exercises must be carried out within a certain time frame to ensure fair and updated representation. 'Therefore, if the timeline under the Federal Constitution is approaching while also taking into account of the adjustment for one third of parliamentary seats for Sarawak and Sabah, it would be both necessary and timely to conduct a redelineation to reflect current realities on the ground and agreement in our MA63,' he added. Asked about how many new state seats would make sense for Sarawak, Sim believed that the Election Commission (EC) would propose a number based on established criteria, including population size, the number of voters, and geographical considerations. 'These objective measures will help ensure a fair and balanced representation across our vast state. However, it is critical to recognise that population numbers alone should not be the only factor guiding redelineation in Sarawak.' Sim pointed out Sarawak's unique geography, marked by expansive rural areas with low population density, meant that many communities were spread far apart and infrastructure in some of these areas remained underdeveloped. 'As such, redrawing boundaries solely based on population without considering physical size and accessibility would place an undue burden on the elected representatives, who would struggle to effectively serve constituents across vast, sparsely populated territories. 'While the prospect of a redelineation exercise has generated understandable interest, it is vital that we approach this issue with clarity, patience, and a firm commitment to fair representation. 'Thus, I urge all stakeholders to stay engaged and informed as developments unfold, so that any decision made truly serves the best interests of our beloved Sarawak.' redelineation Sim Kiang Chiok
Borneo Post
11-06-2025
- Business
- Borneo Post
‘Cakap tak serupa bikin': SUPP Stakan chief says DAP's 30 pct Petronas stake proposal is political hypocrisy
Sim describes the proposal as a 'recycled promise in new packaging', branding it a political manoeuvre disguised as a policy proposal. KUCHING (June 11): Sarawak United People's Party (SUPP) Stakan branch chairman, Dato Sim Kiang Chiok, has dismissed Sarawak Democratic Action Party's (DAP) recent proposal for Sarawak to acquire 30 per cent equity in Petronas as a political gimmick aimed at shoring up its support base in the state. In a statement today, he described the proposal as a 'recycled promise in new packaging', branding it a political manoeuvre disguised as a policy proposal. 'DAP's proposal for 30 per cent Petronas equity is just a new version of the same old tactic. In their first term in federal power, they promised 20 per cent oil royalty, 50 per cent tax return to Sarawak, and UEC (Unified Examination Certificate) recognition. 'None of it happened. Even now, in their second term in government, there's no progress,' he said. Sim urged Sarawakians to see through what he called 'empty promises and false premises' meant to sustain DAP's political relevance, rather than bring real change. He also criticised Sarawak DAP's elected representatives, accusing them of underperforming while drawing salaries from both Parliament and the State Legislative Assembly (DUN). 'The people of Sarawak have been misled before. This 30 per cent equity narrative is no different. It is simply a ploy to protect DAP's vote bank, not a genuine commitment to Sarawak's rights. 'We cannot afford to keep DAP politicians who don't deliver. Their excuse of acting as check and balance is weak because they're more concerned about ATM card designs than real issues that affect Sarawakians,' said Sim. Sim also highlighted what he sees as contradictions in DAP's stance on political appointments. While the party claims its members should not hold state agency positions, it currently chairs federal bodies such as the Commercial Vehicle Licensing Board (CVLB) and the National Institute of Occupational Safety and Health (Niosh). 'DAP leaders say one thing and do another. It's the classic 'cakap tak serupa bikin' (talk does not match action),' he said. Sim pointed to a recent policy in Penang where the DAP-led state government came under fire after introducing a five per cent homeownership discount for Indian Muslims under the Madani Home Ownership Campaign. 'DAP has always sold itself as a party of meritocracy and equality, but this shows otherwise. They'll say anything to gain power, then do the opposite to hold on to it,' he said. In recent reports, Penang's Housing and Environment Committee chairman, S. Sundarajoo, defended the move, saying it was meant to increase homeownership among communities with low participation in the open market and does not infringe on the rights of others. 'This discount is offered by developers as a form of social responsibility and does not involve any financial support or subsidy from the state government,' said Sundarajoo. Sim thus called on Sarawakians to reject DAP's political theatrics and demand real action from those seeking their mandate. 30 per cent equity stake dap Petronas Sim Kiang Chiok SUPP Stakan
Borneo Post
09-05-2025
- Politics
- Borneo Post
Reject political narratives undermining Sarawak autonomy, says SUPP man
Sim voices concerns over recent actions by Malayan-based parties, particularly the DAP and PKR, which he said cast doubt on their commitment to Sarawak's rights. KUCHING (May 9): The Sarawak United Peoples' Party (SUPP) Stakan Branch has urged Sarawakians to stay vigilant against political narratives that appear to prioritise Peninsular Malaysia's interests over Sarawak's autonomy and development. The branch's chairman, Datuk Sim Kiang Chiok, voiced concerns over recent actions by Malayan-based parties, particularly the Democratic Action Party (DAP) and Parti Keadilan Rakyat (PKR), which he said cast doubt on their commitment to Sarawak's rights. He pointed out that the situation is becoming increasingly apparent as Sarawak DAP continues to criticise Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, while PKR repeatedly defends Petronas. 'The public will realise from Singapore's example that all in Singapore became one when outsiders interfered with their politics in the recently concluded General elections. 'We ask DAP and PKR in Swk to become like the opposition in Singapore that defended their land.' he said in a statement today. He stressed that Sarawak belongs to all Sarawakians, and even the opposition should serve in the interests of the state rather than what he described as their 'Malayan masters.' He advised the public to take note of this and choose wisely in the coming Sarawak state elections and 'be rid of Malayan interests once and for all.' 'Sarawak is not short of locally based opposition parties and if we must have opposition why not opt for them instead of Malayan parties,' he said. He also recalled the words of former chief minister, the late Pehin Sri Adenan Satem, who once said he could not ban Malayan parties because they were already represented in the Sarawak Legislative Assembly (DUN). 'As such, let's all be loyal Sarawakians and be rid of Malayan influence in Sarawak once and for all in the coming Sarawak and Malaysian General elections,' he added. dap pkr Sarawak autonomy Sim Kiang Chiok SUPP
