KUCHING: The increase in development allocations for Sarawak and Sabah under Budget 2026 is a positive step that reflects the federal government’s commitment to the Malaysia Agreement 1963 (MA63).
Sarawak Housing and Real Estate Developers’ Association (SHEDA) adviser Datuk Sim Kiang Chiok said he welcomed the move, noting that Sarawak’s development allocation has more than doubled from RM2.9 billion in 2022 to RM6 billion, while the special grant for Sabah and Sarawak has also doubled to RM600 million.
“While the increase is commendable, Sarawak’s share of RM6 billion out of the total RM81 billion national development budget still accounts for less than 10 per cent. Given the state’s vast land area and significant infrastructure needs, this proportion remains relatively small,” he said in a statement today (Oct 12).
Sim said a fairer allocation would accelerate efforts to close the development gap between East and West Malaysia.
On housing, he welcomed the extension of the full stamp duty exemption for first-time homebuyers on properties priced up to RM500,000 until Dec 31, 2027, saying it would ease the financial burden of young Malaysians and encourage homeownership.
However, he expressed concern over the new flat stamp duty rate of 4 to 8 per cent for residential properties purchased by non-citizens and foreign companies, saying it may not be timely given the mixed outlook of the housing market.
“The property sector needs to remain competitive and attract investment, particularly in the higher-end segment where foreign participation supports the overall market,” he said.
Sim also suggested reviving the national Home Ownership Campaign (HOC) to stimulate demand and reduce property overhang, adding that such initiatives have proven effective in boosting property sales and making homes more attainable.
Apart from that, he urged the federal government to emulate Sarawak’s Home Deposit Assistance Scheme, which helps first-time buyers with housing deposits of up to RM30,000 for homes priced up to RM500,000.
On the government’s call for financial institutions to support rent-to-own (RTO) and build-then-sell (BTS) schemes, Sim said the policy direction was positive but required more concrete incentives and frameworks to ensure active participation from banks and developers.
As adviser to the Kuching Association of Talent Development and Welfare of Special Needs (KATSN), Sim also commended the government’s expanded support for persons with disabilities (OKU) and special needs, including autistic individuals.
He welcomed the establishment of the Autisme Centre, the extension of Private Pensioners Administrator (PPA) services to Labuan, Sabah, and Sarawak, and allocations benefiting 13,000 handicapped and autistic families as meaningful progress.
Sim also praised the provision of 100 wheelchair-accessible mobility vehicles by Prasarana and the increase in tax relief from RM6,000 to RM10,000 for medical tests and early intervention programmes for children under 18.
“These measures will ease the burden of families caring for special needs children and promote inclusivity,” he said.
