GST Rejection, National Debt Reduction, And Budget 2027 Approvals Dominate Sixth Week Of Parliament

KUALA LUMPUR, Nov 13  – Putrajaya’s firm rejection of reintroducing the Goods and Services Tax (GST), steady progress in narrowing the fiscal deficit and reducing new national borrowing, and committee-stage approvals for four ministries under Budget 2027 highlighted the sixth week of the Dewan Rakyat sitting.

During the truncated two-day parliamentary week following the Deepavali public holiday on Monday and Tuesday, Prime Minister Datuk Seri Anwar Ibrahim appeared at Thursday’s Ministers’ Question Time (MQT) to address fiscal consolidation, national debt obligations, and bilateral trade ties with Taiwan.

Anwar reiterated that the government has no plans to reinstate the GST, stressing that the stance is rooted in protecting low-income households from regressive cost-of-living pressures rather than political motives.

Fiscal Deficit Narrowing and Debt Management

Providing an update on national finances, the Prime Minister highlighted consistent fiscal consolidation achieved under the MADANI administration:

• Fiscal Deficit Reduction: Narrowed from 6.4 percent of GDP in 2021 to 3.7 percent in 2025, with a further decline projected to 3.3 percent by 2027.
• Lower New Borrowing: Annual new government borrowing decreased from RM100 billion in 2021 to RM75.6 billion in 2025.
• Development & Legacy Commitments: Anwar noted that new borrowing funds essential public infrastructure—including schools, hospitals, roads, water, and electricity supply—while servicing inherited debt obligations, including RM13 billion paid in 2023 alone to settle 1MDB bonds.

Foreign Policy, Najib House Arrest Rules, and Public Welfare Updates

• Malaysia-Taiwan Economic Ties: The Dewan Rakyat was briefed on Malaysia’s adherence to the ‘One China’ policy—its official diplomatic stance since 1974—with Anwar affirming that while Putrajaya will not compromise its foreign policy principles, it will ensure trade and investment flows with Taiwan remain intact.
• House Arrest Conditions: Home Minister Datuk Seri Saifuddin Nasution Ismail outlined the strict supervisory conditions governing former Prime Minister Datuk Seri Najib Tun Razak’s house arrest lasting until August 23, 2028. Alongside Malaysian Prison Department supervision, four primary Pardons Board conditions prohibit Najib from leaving the gazetted residence, engaging in political activities, or participating in media coverage, while enforcing controls on movement, visitation, telecommunications, and mandatory rehabilitation and intervention programmes.
• DBKL Flood Warning Upgrade: MPs were informed that Kuala Lumpur City Hall (DBKL) can now issue early flood warnings up to one hour in advance—up from five minutes previously—following upgrades to the Kuala Lumpur Control Centre.
• IPR-INTAN Income Milestone: As of August 31, 2026, 1,322 participants—representing 65 percent of the 2,034 enrollees in the People’s Income Initiative-Agro-Entrepreneur (IPR-INTAN) programme—successfully achieved monthly incomes of at least RM2,000.

Budget 2027 Committee-Stage Progress

Following debates and winding-up speeches on the Supply (Budget) Bill 2027 and the 2027 Development Expenditure Estimates, the House approved committee-stage allocations via voice vote for four ministries:

1. Ministry of Natural Resources and Environmental Sustainability
2. Ministry of Higher Education
3. Ministry of Domestic Trade and Cost of Living
4. Ministry of Home Affairs

Under the Dewan Rakyat calendar, committee-stage debates on Budget 2027 will continue until November 26 with 16 remaining ministries scheduled to wrap up their allocations, before the 37-day Third Meeting of the Fifth Session of the 15th Parliament concludes on December 8.

Parliamentary Highlights, Fiscal Indicators, and Legislative Schedule

Key legislative approvals, economic figures, and policy briefings from Week 6 include:

• Fiscal Consolidation Metrics: Fiscal deficit reduced from 6.4% (2021) to 3.7% (2025), targeting 3.3% (2027); annual new borrowing cut from RM100 billion (2021) to RM75.6 billion (2025).
• Legacy Debt Servicing: RM13 billion spent in 2023 to settle inherited 1MDB bond obligations.
• Budget 2027 Committee Approvals (4 Ministries): Natural Resources and Environmental Sustainability, Higher Education, Domestic Trade and Cost of Living, and Home Affairs (16 ministries remaining until Nov 26).
• House Arrest Enforcement (Until Aug 23, 2028): Strict bans on leaving gazetted premises, political activity, and media engagement, plus visitation/telecom curbs and mandatory rehabilitation.
• Session Timeline: 37-day sitting of the Third Meeting, Fifth Session of the 15th Parliament runs until December 8, 2026.

–NMT