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Malaysians face ‘economic triple threat’, urges PM to get tax facts right — Saifuddin Abdullah

Former minister slams prime minister’s misstatements on GST and SST, warning of public hardship from July’s fiscal changes

9:04 PM MYT

 

I am deeply concerned and disappointed by a recent video of the YAB Prime Minister, which has gone viral, in which he clearly misrepresented the meanings of GST and SST.

He stated that GST stood for “general sales tax” and applied to all goods, while SST was imposed only on imported items. Both assertions are categorically incorrect.

In fact, GST refers to the goods and services tax, covering both goods and services, not merely “general service” as claimed. SST, or sales and services tax, is not limited to imported goods, but also applies to selected domestic goods and services.

What is particularly troubling is that this misunderstanding comes from the prime minister himself, who also holds the finance portfolio. If the head of government is unable to accurately explain the country’s tax system—one he is responsible for—how can the public have confidence that Malaysia’s fiscal policies are on the right track?

I would like to pose a question to the YAB Prime Minister: Are you aware that, starting July 1, 2025, the rakyat will be burdened by what I call the “penyakit ekonomi tiga serangkai” (economic triple threat)”

No, I am not referring to heart disease, diabetes or high blood pressure. But rather a form of economic strain that is no less painful:

The“ache” of increased and expanded SST;

The“betrayal” felt with the targeted subsidy removal for RON95 petrol;

The “pressure” of higher electricity bills squeezing both B40 and M40 households.

This is the reality the people are facing — and will continue to bear.

Do not compound the rakyat’s hardship with flawed policies or ill-informed narratives. The people of this country are not guinea pigs for economic experimentation. They are individuals with families to support and lives to sustain. — June 16, 2025

Datuk Seri Saifuddin Abdullah is the Member of Parliament for Indera Mahkota and former president of the Malaysian Youth Council

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