Although criticised, GST now more well-received — Najib

PUTRAJAYA: Although it was heavily criticised when it was implemented on April 1 last year, more people have now accepted the Goods and Services Tax (GST) after realising that it saved the national economy, said Prime Minister Datuk Seri Najib Tun Razak.

He said the implementation of the GST was seen as an unpopular decision by the government and it was used as a political weapon, but economic experts feel that it was the most appropriate step by the government.

With the global economic uncertainty and without the GST, Malaysia would have faced a very serious economic crisis like Greece, he said.

“Generally, we are not a government that runs away from the responsibility of implementing any decision which is thought to be right for the nation and the people.

“However, our good and noble intentions were misunderstood by certain parties and made into a political issue, whereas rationally-speaking, it was something that could not be avoided.

“The strong national revenue contributed to a resilient economy which ensured the welfare of the people could be continued to be looked after,” he said.

Najib was speaking at the Treasury’s Excellent Service Awards Ceremony 2015 held at the Finance Ministry Complex here yesterday.

Also present were Second Finance Minister of Datuk Seri Ahmad Husni Mohamad Hanadzlah, Deputy Finance Ministers Datuk Chua Tee Yong and Datuk Johari Abdul Ghani and Treasury Secretary-General Tan Sri Dr Mohd Irwan Serigar Abdullah.

On April 1, 2015, Malaysia began implementing the GST at the rate of six per cent.

Najib said the net GST collection for nine months last year was RM27.01 billion and this year, it was expected to be RM39 billion.

“The GST collection has been returned to the people in the form of major projects such as the MRT, LRT, Pan Borneo Highway, Rapid Pengerang and we are still carrying out the ICU (Implementation Coordination Unit) projects.

“In the meantime, we can still afford to look after the welfare of civil servants including a special raise this year,” he said.

Najib said the Malaysian economy was influenced by external factors such as economic uncertainties following the drop in the price of oil, the shrinking of the Chinese economy and the increase in interest rate in America, which were beyond the government’s control.

As such, he said, it was necessary to have domestic controls and to make the right decisions which would contribute and encourage the growth of the national economy even though external factors threatened and put pressure on its performance.

“Therefore, the national economic achievement at a rate of five per cent last year and 4.2 percent in the first quarter this year can be considered very good based on the external scenario which is uncertain and weak,” he said.

Meanwhile, Najib said the launch of the St Regis Langkawi Hotel was an iconic project to spearhead the national tourism industry and generate immediate income besides providing job opportunities for the locals.

“With its big multiplier effect, we should give the national tourism sector a strong push,” he said, adding that the project was under the Finance Ministry through the Ministry of Finance Incorporated. — Bernama