KUALA LUMPUR — The government should not resort to taxation as a shortcut to increasing national revenue but instead focus on strengthening governance to stimulate sustainable economic growth, says former Prasarana Malaysia Berhad chief executive officer Datuk Ridza Abdoh Salleh.
He criticised the proposed hikes in the sales and services tax (SST) and electricity tariffs, calling them inhumane at a time when Malaysians are already grappling with rising living costs.
“Taxation is the easiest way to boost revenue. Anyone can do it — just review and raise rates for food, clothing, electricity, and water. Mission accomplished. But this is not a long-term solution,” he said, according to Harakah.
Ridza noted that Malaysia had previously achieved rapid development despite maintaining low tax rates.
Citing the period from the 1980s to the early 2000s, he pointed out that the SST rate was only five per cent during the construction of major infrastructure projects such as the North-South Expressway (PLUS), Kuala Lumpur International Airport (KLIA), the Light Rail Transit (LRT) system, Telekom Tower, Putrajaya, Cyberjaya, and the Penang Bridge.
“If we could build the nation with lower taxes then, why should the rakyat be burdened now? The answer lies in poor governance and a failure to generate fresh ideas,” he said.
He also questioned why large profits made by utility companies like Tenaga Nasional Berhad (TNB) were not returned to the people through lower tariffs or targeted subsidies.
“If the government truly prioritises the rakyat, it must immediately scrap the proposed SST and TNB tariff hikes. Stop burdening the already-struggling B40 and M40 groups,” he said.
Ridza urged the government to re-evaluate its approach and not rely on taxes or subsidy cuts as quick fixes for fiscal challenges.
“What we need is not higher taxes, but the courage to pursue structural reform and to improve integrity and administrative efficiency,” he added. — June 29, 2025