Sharp, essential news and analysis from Malaysia.
Prime Minister Anwar Ibrahim has categorically rejected any consideration of reintroducing the Goods and Services Tax, emphasizing the government's commitment to protecting lower-income households. However, he remains open to refining the current Sales and Service Tax system.
Malaysia's Dewan Negara has concluded a ten-day parliamentary sitting by passing the National Trust Fund Bill 2026 and Statistics Bill 2026, alongside discussions on fiscal reforms, energy security and investment attraction.
Malaysia's Economy Minister Akmal Nasrullah has signalled the government's preference for raising worker incomes ahead of broadening the tax base, despite OECD recommendations for tax system reform including a consumption tax reintroduction.
Malaysia has passed legislation closing regulatory gaps exposed when RM5 billion was withdrawn from the State Fund (KWAN) in 2021. Future withdrawals now require parliamentary approval.