Tun Dr Mahathir Mohammad revealed today that new taxes may be introduced as one of the steps to pay off the accumulated national debt. He was quoted saying;
Malaysia was once an Asian tiger, but has now become a “small kitten” due to problems left behind by the previous administration
He further revealed that the new government would have to consider certain steps to pay off the inherited national debt, including the introduction of new taxes.
Although bringing in new taxes will be seen an unpopular move by the new government, Dr M insists that the strategy may be necessary. He was further saying;
I don’t think that is something welcomed by the people, but we may have to devise new taxes in order to have the money to pay our debts
The Finance Minister Lim Guan Eng said that members of the public should expect new tax measures to be announced during the tabling of the upcoming Budget 2019 on 2 November.
Dr Mahathir also said that another way to raise funds is to sell off some of its assets, such as land. He said;
I don’t think that would be good for us, but we can still send land to locals so that they can develop the housing projects and settlements that they believe will give them returns
These statements were made at the Pakatan Harapan government’s first investor conference on 9 October, themed “Malaysia: A New Dawn”. It was attended by over 1,200 institutional investors from 10 countries, including Hong Kong, Japan, the UK, and the US.