Sim says one of the main challenges in the coming year will be the uncertainty surrounding the global economy, driven by ongoing conflicts. KUCHING (Oct 5): The Budget 2025 should focus on addressing Malaysia’s rising cost of living amid global economic uncertainties and domestic taxation challenges, said Sarawak Housing Estate Developers Association (Sheda) advisor Dato Sim Kiang Chiok. In a statement yesterday, he said one of the main challenges in the coming year will be the uncertainty surrounding the global economy, driven by ongoing conflicts.
He noted that while the ringgit has strengthened slightly over the past two weeks, it was largely due to the easing of the United States (US) interest rates. “Ongoing global conflicts such as the war in Ukraine and unrest in the Middle East continue to disrupt supply chains, which will likely maintain pressure on domestic prices,” he said. Sim also said that the recent announcement of salary increase for civil servants is a positive move.
He added that the pay raise would help stimulate domestic demand and provide some economic relief by boosting spending power, particularly in the lower and middle-income segments. “In addressing the cost of living, however, several taxation policies deserve reconsideration. “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 six per cent to eight per cent, may have unintended inflationary conseque.