KUALA LUMPUR – Malaysia’s current tax system may be ill-equipped to weather future economic shocks, pandemics, or geopolitical crises, according to former Health Minister Khairy Jamaluddin, who has called on the government to reconsider reintroducing the Goods and Services Tax (GST).
Speaking at the National Roundtable Discussion (Rimbun 2.0) at the World Trade Centre Kuala Lumpur, Khairy emphasised that the focus should not be on the tax’s name, but on creating a sustainable and equitable revenue system capable of supporting long-term government spending, local media reported.
“Reintroduce GST. You can call it whatever you want… the important thing is that our tax system must be strong and fair. You can call it anything, like Fair and Equitable Tax. Madani Tax! Why? Because our revenue is insufficient,” he said.
The panel included former Bank Negara Malaysia Governor Tan Sri Muhammad Ibrahim, former MMC Corporation Berhad Managing Director Tan Sri Che Khalid Mohd Noh, and former Treasury Secretary-General Tan Sri Dr Mohd Irwan Serigar Abdullah.
Khairy highlighted that Malaysia needs stable revenue streams to manage unexpected challenges that could place immense pressure on national finances.
“Our taxes are not enough, and our revenue is also insufficient. I say, what if something happens? Like Covid-19, it never happened before, and now it has. For example, a war in West Asia. So I say, the government cannot rely on SST (Sales and Services Tax),” he said.
The former Rembau MP, who also served as UMNO Youth Chief, stressed that discussions on GST should remain above politics. He urged the government to take tough but necessary economic decisions early in its administration, rather than deferring them until election preparations begin.
“So, what I want to say briefly is don’t politicise the country’s economic affairs. Just because BN (Barisan Nasional) implemented GST before… don’t refuse to do the right thing because of that. Unfortunately, there is no courage to implement it,” he said.
Khairy further dismissed claims that GST unduly burdened the public, noting that during its implementation, essential goods and key sectors such as education and healthcare were either zero-rated or exempted.
GST was first introduced in Malaysia on April 1, 2015 under Datuk Seri Najib Razak’s administration at a rate of six per cent, replacing the previous Sales and Services Tax (SST). – May 9, 2026