The National Chamber of Commerce and Industry of Malaysia (NCCIM) calls for the Goods and Services Tax (GST) to be reintroduced as the best measure to increase government revenue.
NCCIM president, Tan Sri Soh Thian Lai said, GST is comprehensive for all parties compared to the current introduction of various new taxes which are only focused on a few groups.
He said, the NCCIM which is also a combination of five chambers of commerce namely Malaysian Malay Chamber of Commerce (DPMM), Malaysian Chinese Chamber of Commerce and Industry (ACCCIM), Malaysian Indian Chamber of Commerce and Industry (MAICCI), Federation of Malaysian Manufacturers (FMM) and The Malaysian International Chamber of Commerce and Industry (MICCI) also agreed that GST 2.0 should be introduced at a rate of four percent.
He said that the government’s move to introduce various new taxes to increase government’s income ultimately puts pressure on businesses, therefore it is appropriate to have a clear political view by reintroducing GST.
“If GST 2.0 is implemented again, all parties will be taxed, including foreign workers in this country. Currently, they are not taxed. In fact, the amount obtained by GST is also higher than the existing tax. The government can also give this GST revenue back to the needy through giving rebates or giving petrol, energy or retail vouchers.
“One tax for all. The government can increase income, the people can return tax payments through the re-giving of vouchers or rebates and businesses can also continue to be competitive,” he said at the National Economic Forum (NEF) 2024 themed “Strategic Innovation and Global Alliances: Propelling Malaysia to the Forefront of the Global Economy” in Petaling Jaya today.
Meanwhile, Soh said, Malaysia is now facing various challenges that demand joint attention and concerted action. The leap in technology with advances in artificial intelligence, automation and digitisation not only increases efficiency, but also hinders the industry. The adoption of technology and digital innovation, he said, also made businesses vulnerable to cyberattacks.
“The interconnectedness of global markets exposes all parties to vulnerabilities stemming from external shocks and economic fluctuations, emphasizing the need for resilience and strategic planning,” he said.
He added that the International Monetary Fund (IMF) has raised Malaysia’s economic growth forecast, reflecting better prospects for the developed economy. The main driver for global growth in 2024 is the possibility of a recovery in global trade jumping to 2.6 percent from a contraction of 1.2 percent in 2023.
“In 2024, Malaysia’s economy is poised for an export-led recovery as well as increased investment and the tourism sector. However, consumer spending may be more limited in 2024 with the weak ringgit exchange rate, the increase in service tax rates and the government’s subsidy rationalisation program putting pressure on inflation and the cost of living,” he said.
Separately, Soh said the government needs to have a clear long-term policy concept, for example, the Progressive Wage Policy (PWP) and the Minimum Wage Policy.
“After the trial of 1,000 companies for the pilot implementation (PWP), will the government adopt this policy, and what are the criteria and measures to help small and medium-sized enterprises (SMEs)?
“What is the government’s stance on minimum wage? And how would SMEs survive as the current weak ringgit and increased cost of operations weigh on their businesses?” Soh asked.
