By DayakDaily Team
KUCHING, Jan 15: The Sarawak government’s new 50 percent levy payment, in lieu of constructing SPEKTRA Lite, SPEKTRA Medium, and PUTERA Housing, could place a significant strain on developers’ cash flow during the early stages of project development.
Sarawak Housing and Real Estate Developers’ Association (Sheda) president Augustine Wong raised concerns about the new stipulation, noting that developers will be required to pay 50 percent of the levy upfront, even before obtaining approval for the Advertisement and Sales Permit.
“Practically speaking, the implications of the proposed mechanism means that even before marketing of the property can take place, developers will face increased upfront cashflow requirements,” he said in a statement today.
Sheda has urged the Sarawak government to offer developers the option to either construct affordable housing—such as SPEKTRA Lite, SPEKTRA Medium, and PUTERA Housing—or opt to pay the levy instead.
This request followed a circular issued by the Sarawak Planning Authority (SPA) informing industry stakeholders that the levy payment in place of construction will take immediate retrospective effect.
Wong emphasised that financial sustainability is essential for the success of any development project.
In light of the immediate impact of the circular and its potential ripple effects on the property development industry, Sheda strongly urges the Sarawak government to provide developers with the flexibility to choose between constructing affordable housing or opting for the levy.
While advocating for this adjustment, Sheda reiterated its support for the Sarawak government’s goal of achieving housing parity and ensuring a prosperous future for the region.
“We are confident that under the steady leadership of Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, this vision can be realised for all Sarawakians,” he added. — DayakDaily
