As prices go up, calls to reduce GST grow

JOHOR BARU: The Goods and Services Tax (GST) should be reduced as the prices of most goods in Malaysia have gone up since its implementation in April.

Johor Indian Business Association president P. Sivakumar said the Government had promised there would be no hike in prices of essential goods with GST in place.

“Go around and ask any average wage earner in the country and most of them will complain that the cost of living has gone up,” he said.

Sivakumar said GST should be reduced from 6% to 3% and all food items including the processed ones should be GST-free.

He said the Government should also reduce its budget on buying arms as Malaysia is not at war with any country and instead channel the money to boost the economy including assisting the small and medium enterprises (SMEs) to expand their businesses.

“Give better incentives to the SMEs which are investing in automation to reduce their dependency on foreign workers,” he said.

The Johor Baru Chinese Chamber of Commerce and Industry president Datuk Loh Liam Hiang concurred with Sivakumar that the GST should be reduced.

He said apart from the GST, the Government should also reduce the personal income tax and the corporate tax.

“When the people have extra money to bring home, they will spend and this will bring the multiplier effect to our economy,” he said.

He said the weakening of the ringgit against the greenback and Singapore dollar was not good for manufacturers, as they have to pay more to import raw materials.

Marrybrown Sdn Bhd managing director Datin Nancy Liew hoped that the Government would allocate more incentives to local companies to expand globally.

She said it was challenging for the local franchising companies to compete against global brands from the United States and Europe.