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Former Rembau Member of Parliament Khairy Jamaluddin has called on Prime Minister Anwar Ibrahim to reinstate the Goods and Services Tax (GST), arguing that Malaysia’s current Sales and Services Tax (SST) system is insufficient to strengthen the country’s long-term revenue base.
Speaking at the RIMBUNAN 2.0 National Roundtable Forum at the World Trade Centre Kuala Lumpur, Khairy stressed that economic management should not be influenced by political sentiment, warning that the rakyat would ultimately bear the consequences of weak fiscal policies.
“As a former economic adviser, I have always maintained that GST should never have been abolished,” he said. “I appeal for GST to be brought back. Even if the government wants to rename it, call it ‘Madani Tax’ if necessary.”
Khairy emphasized that the issue should not revolve around which political coalition introduced the policy, but rather whether the nation possesses a sustainable and resilient revenue framework.
“What matters is ensuring the country has a strong financial foundation. If economic policies continue to be politicised, the people will eventually suffer,” he added.
He also defended the GST system against claims that it burdens ordinary Malaysians, noting that essential sectors such as education and healthcare were previously zero-rated under GST implementation.
“GST does not necessarily oppress the people. Critical sectors like education and health services were exempted or taxed at zero percent,” he explained.
Khairy further highlighted concerns raised by small and medium enterprises (SMEs), many of which reportedly struggle under the SST framework because businesses are unable to reclaim input taxes.
“Do not politicise the country’s economic management simply because the policy was introduced by Barisan Nasional,” he said.
“In politics, difficult decisions may carry short-term consequences for one or two years, but the long-term benefits are far greater. The government should act now. Unfortunately, at this moment, I still do not see the political courage to implement it.”
The GST system was introduced in Malaysia in 2015 before being abolished in 2018 and replaced with SST after the change of government. Since then, economists and business groups have continued debating whether GST should return as part of broader fiscal reform efforts.
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