No GST: Anwar reaffirms stance as Dewan Rakyat ends sixth week, with deficit cut to 3.7pc

Detailed summary

The government’s firm stance against reintroducing the Goods and Services Tax (GST), alongside positive progress in reducing the fiscal deficit and ...

KUALA LUMPUR, Nov 13 — The government’s firm stance against reintroducing the Goods and Services Tax (GST), alongside positive progress in reducing the fiscal deficit and new national borrowing, were among the key highlights during the sixth week of the Dewan Rakyat session.

This week’s proceedings also saw the allocations for four more ministries approved at the committee stage, following the conclusion of debates and the winding-up speeches for the Supply (Budget) Bill 2027 and the 2027 Development Expenditure Estimates, which subsequently secured majority support via a voice vote.

The four ministries are the Ministry of Natural Resources and Environmental Sustainability, the Ministry of Higher Education, the Ministry of Domestic Trade and Cost of Living, and the Ministry of Home Affairs.

During the two-day session held following the Deepavali holiday on Monday and Tuesday Prime Minister Datuk Seri Anwar Ibrahim appeared during the Ministers’ Question Time on Thursday to address issues concerning the national debt, fiscal management, and trade and investment relations between Malaysia and Taiwan.

Anwar reiterated that the government has no plans to reintroduce the GST, emphasising that this decision is not driven by political considerations, but rather by a desire to avoid imposing an additional burden on the public, particularly those in the low-income group.

Touching on the nation’s fiscal position, Anwar said the fiscal deficit has been successfully reduced from 6.4 per cent in 2021 to 3.7 per cent in 2025, with a projected further decline to 3.3 per cent by 2027, thus enabling a reduction in new government borrowing from RM100 billion in 2021 to RM75.6 billion in 2025.

He noted that new borrowing under the Madani Government is utilised to fund national development, including schools, hospitals, roads, as well as water and electricity supply.

“We are also compelled to meet inherited financial obligations. In 2023 alone, RM13 billion was required to settle 1MDB…

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