The government has increased the tax refund allocation from RM2 billion to RM4 billion to expedite outstanding payments to taxpayers, said Prime Minister Anwar Ibrahim.
Anwar, who is also the finance minister, said this was necessary as the government should not owe money to the public, and as such, the Inland Revenue Board (IRB) will commence the phased processing of refunds to eligible taxpayers starting tomorrow.
He added that the Finance Ministry is reviewing whether the RM4 billion allocation is sufficient and, if necessary, will increase the amount.
“If the amount is insufficient, Finance Minister II Amir Hamzah Azizan and Treasury secretary-general Johan Mahmood Merican are working with the IRB CEO to assess how the sum should be adjusted,” he said.
Anwar was speaking at the closing of the Rancakkan Madani Bersama Malaysiaku programme in Putrajaya today.
He emphasised that this is a matter of conscience, compassion, and respect, adding that those who owe the country should pay promptly and without delay.
Anwar also said the government’s debt to companies must be settled as quickly as possible, highlighting the need to change past practices where large companies could negotiate reductions, while smaller businesses were required to pay in full without negotiation.
He added that the increase in the allocation follows complaints from small business owners about delays in tax refunds.
Rolling out reform initiatives
Regarding the national debt, Anwar said that it is a legacy from the previous administration and cannot be resolved in the short term.
At the same time, he reaffirmed that institutional reforms remain a priority for the government, including the implementation of the Fiscal Responsibility Act (FRA) to strengthen public financial management and boost investor confidence.
He also highlighted that parliamentary reforms are being expanded, including granting more space and authority to opposition MPs to chair committees - an initiative that was previously unconsidered or unimplemented.
“Several reform initiatives will be rolled out next year, including the establishment of an ombudsman, which is currently being drafted by the relevant ministries, to enhance public sector accountability,” he said.
In addition, the Government Service Efficiency Commitment Act 2025 will apply pressure on civil servants to be more accountable and improve their performance.
The three-day Rancakkan Madani programme, which began on Friday, offered more than 300 touchpoint services, a career carnival, interactive exhibitions, family entertainment, and special promotions for visitors.
It is a continuation of the “One Year with the Madani Government” and the “Two Years of Madani Government” programmes, which serve as the administration’s annual platform for reporting its achievements directly to the people.
Yet to discuss cabinet vacancies
Meanwhile, Anwar said he will not rush to fill the four vacancies in the cabinet.
The prime minister said he needs to discuss the matter with party leaders in the government before making a decision, although he has already considered several suitable names.
He also confirmed that he has yet to discuss the matter with Deputy Prime Minister Ahmad Zahid Hamidi and DAP leaders.
“I’m thinking about it. I don’t rush, and of course, I need to reflect after listening. I have not discussed with all party leaders yet. Of course, the final decision is my prerogative,” he said.
He told reporters this after the launch of his latest book, “Rethinking Ourselves: Justice, Reform and Ignorance in Postnormal Times”, at Tsutaya Books, Pavilion Bukit Jalil, Kuala Lumpur, today.
Asked whether it would be a cabinet reshuffle or merely filling the vacant posts, Anwar said: “Filling the gaps - when filling the gaps, it results in a minor reshuffle.”
On MCA’s call for Education Minister Fadhlina Sidek to be dropped from the cabinet, the prime minister said it was merely the party’s suggestion.
“Thank you for MCA’s view, but it’s all right, as this is their opinion,” he said.
The cabinet vacancies are for the:
Economy Ministry
Natural Resources and Environmental Sustainability Ministry
Entrepreneur Development and Cooperatives Ministry
Investment, Trade, and Industry Ministry
- Bernama
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