Najib suggests bringing back Najib-era GST, HSR

 

PARLIAMENT | Backbencher Najib Abdul Razak (BN-Pekan) has proposed that the government reinstate the Goods and Services Tax (GST) once the country recovers from the Covid-19 pandemic.

He also suggested that Putrajaya overhaul several megaprojects like Bandar Malaysia and the Kuala Lumpur-Singapore High-Speed Rail (HSR).

The former prime minister had introduced GST and these projects back when he was in power from 2009 to 2018.

Speaking in the Dewan Rakyat during his turn to debate the 12th Malaysia Plan (12MP) this afternoon, Najib (above) touted GST’s ability to generate more income for the government.

He also underscored the tax system’s ability to target the “shadow economy”.

“Tax collection from GST can be distributed to the B40 and M40 in the form of cash assistance to the rakyat, at a value far higher than the amount of GST they pay.

“That is why we need to implement GST again, as soon as the country recovers from Covid if we want to achieve the target of reducing income inequality, attract investors, and improve the government’s fiscal position,” he said.

Najib introduced GST in 2015. Pakatan Harapan scrapped it in 2018 and replaced it with a Sales and Services Tax (SST).

Despite not being given permission, Najib was interrupted several times by RSN Rayer (DAP-Jelutong) who pointed out that the government’s fiscal position would be better if not for the 1MDB scandal.

Rayer also chided the former premier on his own tax issues.

Get EPF, PNB to revive projects

During his speech, Najib proposed Putrajaya reinstate the KL-Singapore HSR to its previous KL-Singapore alignment.

Earlier this year, the then Perikatan Nasional federal administration cancelled Malaysia’s bilateral deal with Singapore and changed the HSR to a KLIA-Johor Bahru alignment.

“Changing the HSR project from Singapore-Kuala Lumpur to KLIA-Johor Bahru will make the project not viable and the country will end up suffering losses when we have to pay billions in subsidies.

“Reviving the HSR project to its original plan will also revive the Bandar Malaysia project which is worth RM140 billion in Gross Development Value.

“I propose that the responsibility and ownership for developing this project be given to funds like the Employees’ Provident Fund (EPF) and Permodalan Nasional Berhad (PNB),” Najib said.

He further mooted for Bandar Malaysia to be rebranded as “Bandar Asean”.

“I suggest it be rebranded as Bandar Asean so it places Malaysia as a hub for Asean in attracting the attention of the international community,” he said.

Najib launched the HSR in 2016.

In its original plan, one of the HSR's stations was to be inside Bandar Malaysia - 1MDB’s flagship infrastructure development that was first unveiled back in 2011.

A decade on, the project still struggles to secure a master developer.

In July, a deal for IWH CREC Sdn Bhd to acquire a majority stake in a Finance Ministry-owned company to develop Bandar Malaysia fell through after the parties could not agree on terms. - Mkini