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Daily Express
4 hours ago
- Business
- Daily Express
Debt reduction key to investor confidence, says Anwar
Published on: Friday, June 20, 2025 Published on: Fri, Jun 20, 2025 By: Anne Muhammad, FMT Reporters Text Size: Putrajaya brought the deficit down from 5.5% in 2022 to 5% in 2023, and 4.1% last year. PETALING JAYA: Prime Minister Anwar Ibrahim today reiterated the government's commitment to gradually reducing the national debt while ensuring continued development and investor confidence. Speaking at the finance ministry's monthly assembly in Putrajaya, Anwar said continuous efforts had been made since 2022 to bring down the country's fiscal deficit from 5.5% to the latest projection of 3.8% this year. Advertisement 'Some people ask why we are so focused on reducing it. They say we should just give more to the people. But without this effort, there will be no (investor) confidence,' he said. Anwar, who is also finance minister, added that investor confidence would translate to investments, which could help raise the national revenue, provide job opportunities, and contribute to the nation's overall development. Putrajaya brought the deficit down from 5.5% in 2022 to 5% in 2023, and 4.1% last year. The Treasury had said this would slow the growth of the national debt with a drop in new government borrowings each year, from nearly RM100 billion in 2022 to RM92.6 billion in 2023, and around RM77 billion last year. Advertisement Anwar also dismissed claims that the government's debt reduction efforts had compromised public welfare, saying the approach should be seen as a long-term strategy. 'Since we took over, the debt has been reduced by RM20 billion. 'It's like someone inheriting a company after his father passes away. The company owes RM50,000. The son can't be expected to settle the debt in a year – it has to be done in stages,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Sinar Daily
7 hours ago
- Business
- Sinar Daily
Expanded SST not new tax, just smarter one, says Treasury sec-gen
SHAH ALAM - The expanded sales and service tax (SST) set to take effect from July 1, 2025 is not a new tax imposed on everyday goods despite the common misconception, but a carefully considered extension of the existing tax framework. Secretary General of Treasury Datuk Johan Mahmood Merican said SST was aimed at improving national fiscal stability without overburdening the public. Clarifying public confusion over the SST expansion, Johan stressed that only about 3,332 new items were being added to the list of taxable goods and services. This represented just 20 per cent more than the existing 6,297 taxable items. "The expansion is being misunderstood as a new tax. "But the reality is many of these items have been subject to SST all along — just not visible to consumers because the tax was absorbed at the manufacturer or supplier level," he said. Chief Secretary of Treasury Datuk Johan Mahmood Merican visiting the Customs Call Centre under the Corporate Planning Division at the Royal Malaysian Customs Department, Kuala Lumpur on Wednesday. He added that the confusion was exacerbated by viral claims on social media suggesting that bizarre items such as seawater, human hair and bones were being taxed. "This tax domain is technical. Yes, these terms exist in the gazette, but they refer to industrial inputs, not items meant for daily consumption," he said. In response to claims that seawater is being taxed, Johan clarified that the items listed in the Customs gazette pertained to pharmaceutical-grade seawater, not ordinary seawater from local beaches. Similarly, human hair was only taxed if it was imported for wig-making or industrial use, not from local barbershops. "Table salt that Malaysians use every day remains tax-free. Only certain premium or industrial salts are taxed. "The same applies to milk, sugar, bread and other essentials — all remain zero-rated," he said. He added that while optional dairy products like yoghurt and butter were taxed at five per cent. This, he said has been in place under the previous SST framework. He said these were not new additions adding that consumers may just now be realising it due to the public attention. Chief Secretary of Treasury Datuk Johan Mahmood Merican during his visit to the Customs Call Centre under the Corporate Planning Division at the Royal Malaysian Customs Department, Kuala Lumpur on Wednesday. While some economists and business groups advocate a return to the goods and services tax (GST) due to its comprehensiveness and higher potential revenue, Johan said SST was a more progressive and balanced approach at this time. "If we reinstated GST, it would generate over RM20 billion annually. "But SST expansion is projected to bring in around RM10 billion for a full year — less than half of GST," he said. He added that GST, by design, passed the full tax burden to the end-user consumer, making it favourable for businesses but more costly for everyday Malaysians. As such, he said the government should widen the revenue base without disproportionately impacting the people or the economy instead. Items newly taxed under the SST included imported fruits and premium seafood such as salmon, cod, lobster and king crab, which will now carry a five per cent tax. These goods, by default, were considered non-essential and as seen in the country's current economic landscape, alternatives existed. "For instance, local fruits remain zero-rated and there's an opportunity here to stimulate local production. "In cases where local supply is insufficient, such as coconuts, imported versions are still tax-free," he said. He dismissed rumours that common seafood like mackerel or tuna would be taxed, further affirming that basic seafood items — prawns, squid, mackerel — all remained zero-rated. Beyond the horizon, Johan assured that the SST expansion will not significantly affect inflation, with the impact estimated at around 0.25 per cent — in line with government projections. "These figures are based on detailed modelling. The idea is to raise essential revenue while ensuring affordability," he said. The additional revenue will in turn support critical government programmes, including Sumbangan Asas Rahmah (SARA) which provided RM100 monthly to over five million Malaysians. Despite an overall positive outlook thus far, one area of concern has been the inclusion of rental and logistics services under SST, which some feared could increase consumer prices. To clear any lingering doubts, Johan said rental services were only taxed for businesses earning over RM500,000 annually, thereby exempting small traders. Chief Secretary of Treasury Datuk Johan Mahmood Merican during an interview with Sinar. Business-to-business exemptions were in place to avoid double taxation, such as between shopping malls and anchor tenants. "For example, if a mall rents to a department store, that transaction is taxed. But smaller kiosks operating under the department store will not face an additional tax," he said. Summing up the rationale behind the expanded SST, Johan said the government has adopted a "targeted, progressive" tax strategy that supported national fiscal policy while protecting lower-income households. "The idea is not to burden the people but to empower the government to fund better public services. "We must be realistic about our country's fiscal needs. But at the same time, we are ensuring basic needs are protected and that choices exist for consumers to avoid any additional cost," he said.
New Straits Times
8 hours ago
- Business
- New Straits Times
PM: We're cutting debt gradually to keep investors' trust
PUTRAJAYA: The government is committed to gradually reducing the national debt while safeguarding economic growth and maintaining investor confidence, said Prime Minister Anwar Ibrahim. In his address at the Finance Ministry's monthly assembly, Anwar said efforts had been ongoing to reduce the fiscal deficit from 5.5 per cent in 2022 to a projected 3.8 per cent this year. "Some people ask why we must reduce it so sharply — why not just channel more to the people? "But if we don't, we lose trust from investors, and trust is critical. Leadership and economic stewardship require making policies we genuinely believe in. "With trust comes the ability to solve wider issues — from revenue generation and job creation, to overall economic development," he said. Anwar, who is also the finance minister, rejected claims that the government's focus on reducing debt came at the expense of the people's welfare, saying it was part of a long‑term strategy that required prudent and measured management. He said the total national debt had decreased from RM100 billion in 2022 to RM90 billion in 2023, RM85 billion in 2024, and was expected to drop to RM80 billion this year. "Since we came into office in 2022, we have reduced the debt by RM20 billion," he said. Anwar added that resolving the national debt could not be done hastily, and required patience and a gradual approach. "It's like when a son inherits a company after his father's death and finds RM50,000 in debts. He can't wipe it out in a year — it has to be resolved step by step," he said. In March, Finance Minister II Datuk Seri Amir Hamzah Azizan announced the government's commitment to reducing the fiscal deficit to 3.8 per cent in 2025, in line with its long‑term goal of bringing it down gradually and consistently — from 5.5 per cent in 2022, to five per cent in 2023, and 4.1 per cent last year. He said this approach would also slow the rise in total debt by reducing new borrowings each year — from nearly RM100 billion in 2022, to RM92.6 billion in 2023, and roughly RM77 billion last year.
New Paper
21 hours ago
- Business
- New Paper
Johor looking to raise levy on property purchases by foreigners
The Johor state government is proposing to raise the levy on property purchases by foreign buyers from 2 per cent to 3 per cent as part of efforts to strengthen land administration and support ongoing system upgrades, said Menteri Besar Onn Hafiz Ghazi. This marks the first proposed revision to the levy since its introduction in 2014 and comes in tandem with a major overhaul of the Johor Land and Mines Office (PTG) to improve efficiency and transparency in land dealings. "The state is looking to raise the approval levy from 2 per cent (minimum RM20,000) to 3 per cent (minimum RM30,000). These adjustments are necessary to support operational costs and reflect the upgraded level of service being offered to the public and investors," Datuk Onn Hafiz said in a Facebook post on June 18. RM20,000 and RM30,000 are equivalent to S$6,000 and S$9,000 respectively. He also revealed that the proposal includes revising the land transfer registration fee for properties valued over RM500,000. Under the proposal, an additional RM500 will be charged for every RM100,000 increment in property value. The current levy and land transfer fees have been in place since 2014 and 2004 respectively, without any revision, he added. "These proposed changes were discussed between PTG, Johor Real Estate and Housing Developers Association and Johor Bar Committee to ensure the adjustments are fair and justifiable," he said. Mr Onn Hafiz, who is Machap assemblyman, said the revisions are part of a broader overhaul initiative within PTG, which is scheduled for completion by July 31 in 2025. THE STAR/ASIA NEWS NETWORK
Daily Express
a day ago
- Daily Express
UiTM professor fined RM20,000 for false research claims
Published on: Thursday, June 19, 2025 Published on: Thu, Jun 19, 2025 Text Size: SHAH ALAM: A professor from Universiti Teknologi Mara (UiTM) was fined RM20,000 by the Sessions Court on Tuesday after pleading guilty to submitting false salary claims for non-existent research work in 2021, the New Straits Times reported. Prof Datin Dr Hapizah Md Nawawi, 65, changed her plea to guilty on six alternative charges and was sentenced by Judge Datuk Mohd Nasir Nordin. Advertisement The court ordered 21 months' imprisonment in default of payment, but she paid the fine. Hapizah admitted to conspiring with Amirah Mohd Ariff to falsify documents for RM14,000 in salary claims for research work never carried out. The claims were linked to a project titled Mechanism of Drone-assisted Technology on Efficiency of Mass Disaster Victim Identification, conducted between April and October 2021. Twelve other alternative charges were taken into consideration under Section 171A of the Criminal Procedure Code. Advertisement The charges were framed under Section 109 of the Penal Code read with Section 471 and punishable under Section 465, which provides for up to two years' jail, a fine, or both. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
