If Sim only plan is cheaper now, why are some people still holding on to contract?

It depends on an individual's needs. Generally, SIM only plan does not come with a new handset. As a result, you need to have the upfront cash available to buy the handset yourself, or to continue using your existing handset.

At the end of the day, it is all about a dollar vs value. If the value matches the price point, consumers will gladly pay for it.

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Sim only plans are generally much cheaper because it just covers the basic, even though the basics they covered might be very attractive (eg. high GB data plan). New phones are not part of the Sim only plans.

Sim plans subsidies the phone cost, resulting in a short term savings when in comes to get a new phone. Another attractive thing about Sim plans is that the plan itself might comes with additional freebies. For example, Singtel now provides free subscriptions with HOOQ.

And of course, there are also some people who continue to stick to Sim plans because their mobile bills are covered by their company. It is a win win situation for these people because they do not need to worry about their monthly bill, and they can get a subsidies phone at the same time.