KOTA KINABALU, March 21 ― Malaysians should not be feeling the pinch by now from the Goods and Services Tax (GST) as it was implemented almost three years ago, Prime Minister Datuk Seri Najib Razak said today.

He said that unscrupulous traders instead have been trying to take advantage of the broad-based consumption tax to increase prices. 

“It’s not true that GST is to be blamed for living costs. It’s been two years now, there should be no more effect,” he said during his speech while launching the “Program Jualan Sentuhan Rakyat (PJSR)” and a business fair here.

Najib defended the government’s decision to implement GST, saying that 164 countries in the world have imposed the tax and Malaysia had the lowest rate at six per cent.

“India did this April and it will go through four phases, first it will be five percent, then 12 per cent, 18 per cent and finally 28 per cent. Singapore’s GST is set to go up to nine per cent in 2021,” he said.

He also said that Malaysia exempted 578 basic necessities from the tax so as not to burden the people.

“You cannot blame us. In the end it goes back to people,” he said, adding that the government gave out nearly RM7 billion in 1Malaysia People’s Aid handout (BR1M) last year.

Sabahans received RM600 million in BR1M.

Najib said that the government was concerned about the people’s hardship and the prices of goods in the free market and decided to come up with intervention programmes like the PJSR to help ease their burden.

“We have to help Sabahans. That’s why I want to announce that this programme will be held twice monthly in all Parliamentary constituencies,” he said.

Prices of goods like chicken, rice, cooking oil, flour and eggs are expected to be sold at five to 20 per cent less than market price at these fairs, which began in January this year all over the country.

He announced several special promotions just for the launch today ― a 10kg sack of Beras Super that sells at RM23.80 in the market is only RM20 at the fair. For today, buyers get one free sack with every purchase.

The same “buy one free one” promotion also applies to Super VWR rice, which is sold at RM10 per sack.

The price of chicken which is normally RM8.50 per kilo is being sold for RM10 during the fair, and only RM5 per bird today; beef is being  sold for RM5 cheaper at RM20 per kg but only RM15 today; and a 400g pack of Milo, normally at RM8.40, is being sold for RM6.40 during the fair, but only RM5 today.

Najib also announced an additional RM5 million for the Biz Fair programme, which sponsors RM3,000 worth of appliances for 300 entrepreneurs based on a selection process.