PUTRAJAYA: The implementation of the Goods and Services Tax (GST) and the rationalisation of subsidies gave the Government income to spend in times of economic uncertainty, said Datuk Seri Najib Tun Razak (pic).
The Prime Minister said these â€œproactive measuresâ€ had enabled the Government to still give civil servants a pay rise and build the Pan Borneo Highway despite the slow economy.
â€œThe price of oil went down drastically. Other commodities are priced at a low level.
â€œYet, we are still able to implement many development projects and take care of civil servants’ welfare.
â€œThe pay rise for civil servants and the increase in minimum wage will still be implemented this July. The Pan Borneo Highway, which costs RM16bil for Sarawak and RM12bil for Sabah, we can still build.
â€œWhy? Itâ€™s due to the proactive measures we took.
â€œI spoke with the new Bank Negara governor recently and he said if the Government did not introduce the two â€˜braveâ€™ measures which is the GST and subsidy rationalisation, Malaysiaâ€™s economy could have ended up like Greeceâ€™s,â€ said Najib, in his address at the Prime Ministerâ€™s Departmentâ€™s monthly assembly.
Najib added that the recent Sarawak election results showed that the rakyat understood the necessity of implementing the GST.
â€œIn Sarawak, the Opposition used the GST as an issue, but it didnâ€™t work for them. The people have begun to understand that it is a fair move and itâ€™s purpose is only for the peopleâ€™s future,â€ he said, adding that the Government had also given the 1Malaysia Peopleâ€™s Aid (BR1M), tax exemptions and introduced zero-rated items to lessen the impact of GST.
On Barisan Nasionalâ€™s victory in the Sarawak state election, Najib said the Government must find solutions for the problems of the people of Sabah and Sarawak.
â€œThe development divide between Peninsular Malaysia with Sarawak and Sabah is our top agenda.
â€œThey gave us their trust because we had a clear plan which we showed we could execute and deliver.
â€œAlthough developing the two large states will obviously take more time and cost more, it is morally wrong for us to not provide their people with basic necessities. We must find creative ways to solve their problems,â€ he said.
In the recently-concluded election, Barisan won 72 seats out of 82 in the Sarawak state assembly.