Will Sarawak BN pay the price of GST at the polls?

ANALYSIS Tell BN lawmakers or ministers that the goods and services tax (GST) is bad, and there's a good chance they would reply: “If you don't like it, vote us out in the next election.”

Well, the time to put that retort to the test is coming, with the GST expected to be an important factor in the looming Sarawak state election.

Unlike concerns over 1MDB, which pundits say are limited to urban areas, the rising cost of living affects everyone, whether they live in a longhouse in the interiors or in houses and apartments in the towns and cities.

“Most people are affected by bread and butter issues. Pressures on life outweigh 1MDB or the RM2.6 billion scandal,” Universiti Malaysia Sarawak (Unimas) professor Jeniri Amir (photo) told Malaysiakini.

Universiti Malaya analyst Awang Azman Awang Pawi said the effects of the GST are especially felt by the low-income group and rural residents.

East Malaysia is at the long end of the stick when it comes to economic prosperity.

Goods are more expensive due to a cabotage policy where goods must first be sent to Port Klang before being shipped to Sabah or Sarawak.

Despite this, the minimum wage in both states is lower than in the peninsula at RM920, compared with RM1,000 as specified under Budget 2016.

The average household income in Sarawak as of the latest statistics in 2014, is RM4,934 compared with the national average of RM6,141.

And, the average income for those earning below RM2,500, or the B40 group, in Sarawak is RM2,044 a month.

It's not surprising then that the opposition is leveraging on how much economic pressure the GST is putting on Sarawakians to turn the tide against the sitting state government.

Feeling the pinch

Sarawak DAP chief Chong Chieng Jen recently claimed that businesses have dropped, and prices of goods have soared, leaving many people unable to cover their cost of living.

A top member of the leading Parti Bumiputera Bersatu Sarawak (PBB), Peter Minos, said even he is feeling the pinch.

“Of course, the GST and high cost of living affect us all. Like me, I have to tighten my belt,” the PBB information chief said when contacted.

But just like the scandals surrounding Prime Minister Najib Abdul Razak, Minos said the GST is a “KL” issue for Putrajaya to fix, not the Sarawak BN.

However, he pointed out that Sarawak Chief Minister Adenan Satem is doing his best to alleviate the people's burden by reducing electricity tariffs, ferry rates and abolishing tolls. And on March 15, Adenan announced the abolishment of certain quit rents for land.

Adenan had also announced last year that GST for local authorities and government services would be absorbed by the state.

Universiti Malaya’s Awang Azman said the chief minister has also managed to pacify voters angered by GST with his efforts to gain more autonomy for Sarawak, and by playing up 'ethno-nationalist' sentiments.

“This strategy has clearly succeeded in 'hypnotising' Sarawakians. This is how Adenan smooths out national issues that make Sarawakians angry,” he said.

These moves, Jeniri said, had boosted Adenan's approval rating to 85 percent, according to a survey he conducted.

So, even if the opposition squeezes hard on GST issues and paints BN as a band of thieving pirates, Sarawak BN appears to have a solid chance of victory, thanks almost entirely to Adenan.

However, Awang Azman said, how big this win will be is still open to question. -Mkini