Singapore has given solid economic reasons why it has opted for a Goods and Services Tax or GST hike.
The question is whether the Malaysia will use the same reasoning to hike the GST?
The other question is whether the GST will increase in the Budget 2019, that is this year?
The Singaporean Finance Minister Heng Swee Keat said there is the need to generate new funds due to rising expenses.
In Malaysia, the Umno is campaigning on an almost daily basis to justify the implementation of the GST.
It is using cartoons (see above) – which illustrates the cartoonic situation they are in.
It shows the government is still struggling to shrug-off the GST negation on the political stage.
Umno is sending the ‘GST cartoons’ to stake holders, the media, while spamming WhatsApp groups with the cartoons.
The campaing is to tell the masses the GST is not going away.
It is also a reminder to the people that the GST has helped Malaysia in times of crisis.
They won’t say it bailed the regime of PM Najib out in the face of the 1MDB scandal.
The Umno is telling the people that Arab countries have failed without GST.
It is also telling its crowd that the government did nothing but follow the crowd, since 180 countries has the GST.
They are also denying the fact that the GST has spiked the cost of living in Malaysia.
And in Singapore, the citizens questioned the Minister over the corresponding cost of living increase due to the GST hike.
Singaporeans are concerned with the possible increase of childcare expenses.
As a result of the hike, Mr. Heng was asked if there would be a rise in salaries as well!
In the first place the Umno skips the questions over salary rise on every turn of the circus.
Not only this is to their detriment say experts.
“They add it is fodder to the opposition.”
Singapore says security, infrastructure and healthcare continued to be financial priorities.
Correspondingly, because of these new sources of revenue were needed and the GST was the starting point.
“It is important to bear in mind that we are doing this for a very important purpose,” said the Minister.
Well, Malaysia too has a very important purpose to hike the GST. The government’s revenue is falling drastically.
It’s expenditure and debt contraction has risen drastically too.
These will need to funded and paid for by additional taxes.