No need for GST as Malaysia has enough revenue: Dr Mahathir

KUALA LUMPUR — Malaysia has enough revenue to remove the Goods and Services Tax (GST), Prime Minister Mahathir Mohamad said on Sunday (May 13) as he reiterated a promise to keep key campaign pledge of the newly-elected Pakatan Harapan (PH) coalition government.

Speaking during a special televised address to the nation, he touched on various topics, ranging from the new government's focus on stamping out corruption to relooking a law against "fake news".

Dr Mahathir did not elaborate on his comments about the government's fiscal position, but his comments are at odds with his previous statements.

At a press conference on Friday after he was sworn in as the country's seventh prime minister, Dr Mahathir claimed that existing government debt has reached RM 1 trillion (S$335 billion).

Addressing concerns that the new government will not be business friendly, Dr Mahathir emphasised that it would welcome investment, and that its system of governance would be more open.

He noted that there are "too many restrictions" that prevent businesses from operating freely in Malaysia, and pledged to examine the issue.

But he also said that foreign investment must also bring in capital and technology as well as set up factories for domestic distribution or export, adding that foreign companies can only partake in large infrastructure projects if Malaysia does not have the expertise.

Turning once again to corruption - a topic he has touched on incessantly since he was sworn in - he said that there will be a new "anti-corruption movement" within the government to stamp out graft. For instance, he pointed out that government officers cannot receive expensive items as gifts.

"We want to establish early on that corruption is not accepted," he said.

Any government officers as well as ministers who break the law will be penalised, said Dr Mahathir. "We do not only aim at those who receive any monies, but those who gave it as well," he added.

The anti-corruption drive and promises to take former leaders to task if found guilty, he said, contain no element of revenge. Clean government is a necessity, he said, to win over the populace, as corruption in Malaysia "has reached the point where the people no longer believe in the government".

On fake news laws, Dr Mahathir said the Bill that was passed in April by the previous government would be examined so that certain aspects can be defined clearly to avoid any confusion, said Dr Mahathir.

He noted that reporting by the media will not be curtailed, even if it is critical of the government, as long as it is factual. "The fake news law will be given proper definitions so that media organisations and the public are clear on what is fake and what is not," he added.

Concluding the 20-minute broadcast, Dr Mahathir said that Malaysians should not feel "anxious about the intention of this government". He added: "Our intention is to have a clean country and reduce the economic challenges that our country faces."