KUALA LUMPUR, Nov 13 – The government’s decision not to reintroduce the Goods and Services Tax (GST), efforts to reduce the national fiscal deficit and new government borrowing were among the main issues discussed during the sixth week of Parliament.
The Dewan Rakyat also continued its examination of Budget 2027. Four more ministries secured approval for their allocations at the committee stage.
The ministries were Natural Resources and Environmental Sustainability, Higher Education, Domestic Trade and Cost of Living, and Home Affairs.
Their allocations received majority support through a voice vote after the completion of debates and ministers’ winding-up speeches.
Government Maintains Position Against GST
Prime Minister Datuk Seri Anwar Ibrahim reaffirmed that the government has no immediate plans to bring back GST.
He explained that the decision was not driven by political considerations. Instead, the government wants to avoid placing additional financial pressure on the public, especially lower-income households.
Anwar addressed the issue during Ministers’ Question Time on Thursday.
He also discussed Malaysia’s fiscal position and the government’s efforts to manage national debt.
Fiscal Deficit Falls as Borrowing Declines
Malaysia has made progress in reducing its fiscal deficit.
According to Anwar, the deficit fell from 6.4 per cent in 2021 to 3.7 per cent in 2025. The government expects it to decline further to 3.3 per cent by 2027.
At the same time, new government borrowing decreased from RM100 billion in 2021 to RM75.6 billion in 2025.
Anwar explained that the government uses new borrowing to finance national development projects.
These include schools, hospitals, roads and essential water and electricity infrastructure.
However, Malaysia must also meet financial commitments inherited from previous administrations.
Anwar cited the RM13 billion required to settle 1MDB bonds in 2023 as one example.
Malaysia Maintains Its One China Policy
The Dewan Rakyat also discussed Malaysia’s foreign policy towards China and Taiwan.
Anwar reaffirmed that Malaysia has maintained its One China policy since 1974.
He acknowledged that this position could create concerns among certain groups in Taiwan. Nevertheless, he stressed that Malaysia would not compromise its foreign policy principles for trade benefits.
At the same time, the government intends to protect Malaysia’s economic and investment relationships with Taiwan.
Najib’s House Arrest Conditions Explained
Another major issue involved the proposed house arrest arrangements for former Prime Minister Datuk Seri Najib Tun Razak.
Home Minister Datuk Seri Saifuddin Nasution Ismail outlined the restrictions that would apply during Najib’s house arrest period, which is scheduled to last until Aug 23, 2028.
The conditions cover four main areas:
- Residence and social activities: Restrictions on where Najib can stay and his social interactions.
- Movement and visitors: Limits on leaving the approved premises and receiving visitors.
- Communication devices: Controls on telephone and telecommunication use.
- Rehabilitation: Mandatory participation in rehabilitation and intervention programmes.
The Malaysian Prison Department will also impose additional supervision requirements.
Kuala Lumpur Improves Flood Warning System
Parliament also received updates on Kuala Lumpur’s flood preparedness.
Kuala Lumpur City Hall (DBKL) can now issue flood warnings up to one hour before an incident.
Previously, the warning system provided only about five minutes of advance notice.
The improvement follows upgrades to the Kuala Lumpur Control Centre.
The longer warning period could give residents and emergency teams more time to prepare for possible flooding.
More Than 1,300 Participants Earn RM2,000 Monthly
The government also reported progress under the People’s Income Initiative – Agro-Entrepreneur programme (IPR-INTAN).
As of Aug 31, a total of 1,322 participants had achieved monthly incomes of at least RM2,000.
This represents 65 per cent of the programme’s 2,034 participants.
The initiative aims to help people from lower-income groups increase their earnings through agricultural entrepreneurship.
Budget 2027 Debate Continues
The committee-stage debate on Budget 2027 is scheduled to continue until Nov 26.
Another 16 ministries are expected to complete their respective winding-up sessions.
The Third Meeting of the Fifth Session of the 15th Parliament runs for 37 days and will conclude on Dec 8.
Source : BERNAMA | Rewritten By Minutesmy
