NAJIB SHOCKER: Under pressure PM slams Malaysians - just because prices rise 'a little’, you complain

PUTRAJAYA - Datuk Seri Najib Razak expressed disappointment in Malaysians today, saying many were quick to complain when the prices of goods increased only marginally but conveniently stayed silent when receiving financial assistance, like that given under the 1Malaysia People’s Aid (BR1M) initiative.

The prime minister said it was never his administration’s intention to burden the public with higher living costs, insisting again that the newly-introduced Goods and Services Tax (GST) is a more effective and efficient taxation system than the Sales and Services Tax (SST) system it replaced.

“We introduced GST and increased BR1M. Unfortunately, when they received the money, many were quiet, but when prices of things increased a little, they complained a lot,” he said in his speech at the Finance Ministry’s monthly gathering here.

Since the GST was implemented from April 1, consumers and opposition lawmakers here have been complaining that the prices of daily essentials have spiked, despite Putrajaya’s repeated assurance that this would not happen.

To explain the spike, the government has levelled much of the blame on errant traders, claiming that some have arbitrarily raised their prices in order to profit from the newly-implemented tax system.

But despite suggestions to postpone the GST, the government has insisted on staying the course, saying the tax system is necessary to help broaden the country’s tax revenue.

“We also hope that all parties understand that the GST is a more effective and efficient taxation system, a reform measure that will us strengthen our fiscal position,” Najib said today.

PM Najib

The prime minister added that the government cannot continue to rely solely on the SST as there would this would pose a potential risk to Malaysia’s fiscal deficit.

“We can go with populist moves, which will cause us to lose in the long term.

“If we eat antibiotics, we have to finish the course and only then will we heal... as the English will saying goes, we have to stay on course,” Najib said referring to the implementation of GST.

Public unhappiness continues to manifest over the new tax that is seen as welcome reform by economists but widely panned by critics and opposition politicians as a purportedly regressive system.

On May 1, an estimated crowd of 10,000 Malaysians rallied in Kuala Lumpur to protest the GST, leading to the arrests of at least 32 people including several activists and opposition lawmakers. - Malay Mail