Malaysia gives top priority to ensuring good governance

Kuala Lumpur (VNA) – Malaysian Prime Minister Datuk Seri Anwar Ibrahim has said priority must be given to ensuring good governance before considering new types of taxation.

Speaking at a symposium on the Path Towards Greater Prosperity for Malaysia on October 18, the leader said the focus is not taxation, adding he always believes that taxation should be secondary in any reasonable public and economic policy initiative.

Good governance is to ensure no unnecessary leakages and corruption, he continued.

Anwar, who is also Finance Minister, said that discussions regarding Value Added Tax (VAT) and Goods and Services Tax (GST) are relevant, but it should not be forgotten that this country had inherited a significant governance problem, endemic corruption and deficit figures to grapple with.

It is not because the economy has lost its capacity to grow or the fundamentals are weak – it's how to govern and tolerate this, noted Anwar.

Among the policies to be implemented to address leakages include targeted subsidies.

Anwar spoke about the importance of clarity of policies, namely the New Industrial Master Plan (NIMP) 2030, National Energy Transition Roadmap (NETR) and Mid-Term Review (MTR) of the 12th Malaysia Plan (12MP) as well as political stability were also important to ensure the government could embark on radical policies and reform economy.

On the tax of sugary products, including drinks, he proposed that taxes accrued would be allocated purely for medical treatment of diabetes and treatment for sugar-related diseases and not to the Treasury./.