M'sian opposition promises to abolish the GST if it wins the next general election

GST dominates political talk on both sides of the Causeway.

Sulaiman Daud | March 09, 2018, 05:11 PM

While Singaporeans go back and forth over the proposed hike to the Goods and Services Tax (GST) for Budget 2018, the same thing is happening in Malaysia.

The opposition coalition Pakatan Harapan (PH or Pact of Hope) has released its manifesto for the upcoming general election, and they've promised to abolish the GST entirely -- if they win.

Main aims

PH's secretariat head Datuk Saifuddin Abdullah launched the full manifesto in Shah Alam on March 8.

Its five main aims are:

  1. Reducing the cost of living.
  2. Reforming institutions and policies.
  3. Encouraging a sustainable economy.
  4. Giving rights to Sabahans and Sarawakians according to the Malaysia Agreement of 1963.
  5. Creating a moderate and inclusive Malaysia.

Saifuddin rejected claims that PH's manifesto was overly ambitious, saying:

"Our manifesto is a practical manifesto to improve and build Malaysia and can be implemented. We are not promising the moon and the stars."

Shaking up the status quo

The promise to abolish the GST is arguably one of the most eye-catching things published in the manifesto.

Malaysia's GST rate currently stands at six per cent. It was introduced in 2015 by current Prime Minister Najib Razak amidst a budget deficit, replacing a sales and service tax.

While certain "essential" goods and services are exempted from the tax, such as foodstuffs like oil, salt and flour and water for domestic use, the tax has still been blamed for increasing the cost of living in Malaysia.

In other moves to help the underprivileged in Malaysia, the PH also plans to revive fuel subsidies for certain groups and raise the national minimum wage.

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Promised reformations

There are other proposals too that focus on non bread-and-butter issues.

PH pledged to limit the tenures of the Prime Minister and the Menteris Besar (Chief Ministers for Malaysian states) to two terms, and prevent the PM from holding other portfolios, such as the Finance Ministry.

Incidentally, Najib currently holds both posts of Prime Minister and Finance Minister.

The PH also pledged to abolish the Sedition Act and the National Security Council, a federal agency under the Prime Minister's Department.

In 2015, the Malaysian Bar released a press statement criticising the National Security Council Bill that gave the Prime Minister vast new powers in the name of national security.

In addition, the PH pledged to open investigations not only into the scandal-hit 1MDB fund, but also the Federal Land Development Authority (FELDA).

Just rhetoric

The ruling Barisan Nasional (National Front) coalition wasted little time in criticising the manifesto's aims.

On March 9, BN's Strategic Communications Director Datuk Seri Abdul Rahman Dahlan said that the manifesto was "nothing more than rhetoric" and:

"There are no fresh and realistic promises that can benefit the people."

You can visit PH's website and read the manifesto for yourself (in Malay) at this link.

Top image via Mahathir Mohamad's Facebook.