The quit rent for land and landed or commercial properties to be increased effective from 1 January 2023 is not justified at present economic situation. Businesses are yet to pick up caused by Covid-19. The GPS government should consider that many businesses had closed down during the Covid-19 pandemic and citizens are struggling and have weak purchasing power to turn the economy around.
How could business people who owns property could be able to make money to pay the increased quit rent when the people in the market has weak purchasing power?
It is observed that some goods and services in many places in Sarawak are expensive by at least ten to twenty percent than in Malaya.
In some property the increase of quit is five folds effective 1 January 2023.
Quit rent for shophouses is to be increased from RM0.22 to RM1.62 per sq.metre while some commercial properties the rate is increased from RM0.20 to RM1.46 per sq.metre.
If businesses cannot pick up it may have domino effect in many industries.
Given the current circumstances, it does not make sense for the Lands and Survey Department to say the increase is justified on reason that the quit rent in Sarawak is the lowest in Malaysia.
In Malaya the quit rent which is higher than in Sarawak at the moment is justified because goods and services in Malaya are very much cheaper than in Sarawak.
Further Sarawak government does not need the money from the quit rent because Sarawak government is rich and has suplus budget.
For business to pick up perhaps the government needs to reduce or absorb the quit rent for 2023
Voon Lee Shan
Parti Bumi Kenyalang
27 Dec 2022
Quit rent for shophouses in Sarawak revised from RM0.22 to RM1.62 per sqm, effective Jan 1