LUMUT – Prime Minister Datuk Seri Anwar Ibrahim today defended the Madani government’s decision not to reintroduce the goods and services tax (GST), insisting that a shift to the broad-based consumption tax would place undue burden on the poor and working Malaysians.
Instead, he said the government would continue focusing on expanding the existing sales and services tax (SST).
Anwar criticised opposition figures who have repeatedly called for the reinstatement of GST, urging them to better understand economic realities.
“If you ask me, (GST) is a good system — it’s easy to implement and it taxes all goods. But let me ask you: should fishermen, smallholders, low-wage workers, and janitors also be taxed?” he said during his speech at the closing ceremony of the Madani Rakyat programme at Lumut Waterfront.
“That’s why we (the government) are not yet ready for GST. Only when the economy improves and wages rise — say when the minimum wage reaches RM4,000 — will it make sense to implement the tax.
“Now is not the time. I think some of these opposition MPs need to take an economics course.”
Anwar, who is also the Finance minister, acknowledged public criticism over the SST being applied to certain imported fruits and food items, but said the tax only applies to premium goods typically enjoyed by the wealthy.
“People got upset about bananas being taxed, but those are imported (fruits). We import them even though we grow plenty of varieties here in Lumut — like awak, emas, rastali, and berangan — and these are not taxed. Please read the government’s announcements first. Don’t criticise blindly,” he said.
He emphasised that tax collection is vital to the government’s ability to improve infrastructure and public services, including better roads, schools, military facilities, and defence assets — all crucial to Lumut, home of the Royal Malaysian Navy.
Anwar also revealed that tax revenues had enabled the government to disburse RM13 billion in Sumbangan Tunai Rahmah (STR) assistance to eligible Malaysians this year alone.
Separately, he addressed the overcrowding issue at Hospital Seri Manjung, saying he had spoken to the Treasury secretary-general to prioritise funding for the hospital’s expansion beginning next year.
Anwar also said that the government has instructed the Malaysian Communications and Multimedia Commission (MCMC) to address poor internet connectivity in local institutions, including Universiti Pendidikan Sultan Idris (UPSI) in Tanjung Malim.
He said it was inconsistent to attract high-tech investors and promote artificial intelligence (AI) advancement while local schools and colleges remained poorly equipped.
“How are we going to train our children if we don’t provide the necessary facilities? That’s why these improvements are crucial.
“But we must also be prudent in our spending, especially with rising expenditures,” he said. — June 15, 2025