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Malaysia prime minister Anwar Ibrahim told parliament on Feb. 14 that the country has no plans to implement a goods and services tax (GST) or any other broad-based consumption tax.

The government will instead look to reduce subsidies enjoyed by the wealthy, he added, according to Reuters.

Anwar, who took office in November 2022 and is also finance minister, said he has ordered a review of Malaysia's subsidy programme to prioritise aid for low-income groups.

Malaysia offers subsidies to all citizens amid high government debt levels and rising living costs.

Transport fuel and cooking oil account for the biggest expense.

Electricity, sugar and flour are also subsidised.

Government debt and liabilities currently stood at RM1.5 trillion (S$460 billion), or about 82 per cent of GDP, Anwar said.

"We need to find ways to increase revenue and conduct a public expenditure review without burdening the people," he said.

Anwar is expected to present a revised government budget on Feb. 24.