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

The Malaysian government has firmly stated its opposition to reintroducing the Goods and Services Tax (GST), amidst positive strides in reducing the fiscal deficit and securing new national borrowing. The ongoing sixth week of the Dewan Rakyat session saw the approval of funding for four additional ministries, following the completion of discussions on the Supply (Budget) Bill 2027 and the 2027 Development Expenditure Estimates.

Prime Minister Anwar Ibrahim addressed the nation's fiscal status, highlighting a significant decrease in the deficit from 6.4% in 2021 to 3.7% in 2025, with a further projected drop to 3.3% by 2027, thereby enabling a reduction in new borrowing from RM100 billion in 2021 to RM75.6 billion in 2025. The PM emphasized that the government's decision against reintroducing GST is not politically motivated, but rather aimed at avoiding an additional financial burden on the public, especially the low-income group.

The government also utilises new borrowing for national development projects, including schools, hospitals, roads, water, and electricity supply. Anwar assured that Malaysia's 'One China' policy, established in 1974, may cause unease among certain quarters in Taiwan, but Malaysia will maintain its foreign policy principles, ensuring economic and investment links with Taiwan remain intact.

Home Minister Saifuddin Nasution Ismail detailed strict conditions for the house arrest of former Prime Minister Najib Razak, set to last until August 23, 2028. The Home Minister also reported that Kuala Lumpur City Hall (DBKL) can now issue early flood warnings up to an hour before an event, a substantial improvement from the previous five-minute lead time.

As of August 31, 1,322 participants under the People's Income Initiative-Agro-Entrepreneur (IPR-INTAN) programme, representing 65% of the 2,034 participants, had achieved a monthly income of at least RM2,000, showcasing the government's success in aiding low-income families to increase their earnings. The committee-stage debate on the 2027 Budget is set to continue until November 26, with 16 additional ministries expected to conclude their respective sessions. The Fifth Session of the 15th Parliament is scheduled for 37 days, ending on December 8.