Is Malaysia quietly preparing for the return of GST?
Over the past few weeks, whispers about GST making a comeback have grown louder. While the government hasn’t officially reintroduced it yet, many economists believe it’s no longer a question of if — but when.
And if history is any guide, GST doesn’t come without consequences.
SST vs GST: What Most Malaysians Don’t Realise
Malaysia has been here before.
We started with SST (Sales & Service Tax)
Switched to GST (Goods & Services Tax) under Datuk Seri Najib
Then reverted back to SST after the change of government
On paper, SST sounds simpler. In reality? It’s less efficient.
Here’s the key difference:
SST taxes only certain goods and services
GST is a flat-rate tax across the supply chain, with exemptions for essentials
Most tax experts agree on one thing:
GST is more transparent, more efficient, and generates more revenue.
When GST was implemented, the government collected around RM40 billion a year.
After reverting to SST? Revenue dropped by almost RM20 billion.
That’s not a small number. That’s money that could’ve gone into healthcare, education, and infrastructure.
Why Was GST Abolished in the First Place?
Politics.
Businesses had already spent millions preparing for GST systems, training staff, and upgrading infrastructure. Then overnight — it was scrapped.
The result?
Massive sunk costs
Lost investor confidence
Billions in economic opportunity cost
Malaysia became one of the very few countries in the world to reverse GST after implementing it.
The Real Problem With Bringing GST Back Now 🚨
Timing.
When GST was first introduced, inflation was trending downward. That softened the impact.
Today?
Subsidies are being rationalised
Prices are moving closer to market rates
Inflation pressure is already building
Reintroducing GST now could cause an inflation spike — and data from the past clearly shows GST does increase inflation, at least in the short term.
That’s why many economists say:
“GST is necessary — but not yet.”
Most expect reforms to roll out gradually over 3 years, not overnight.
So… Will GST Return?
Realistically? Yes.
No matter which party governs, GST is hard to avoid in the long run. The tax base is wider, revenue is stronger, and the system is more sustainable.
Many analysts predict GST could return as early as 2025 or 2026 — once inflation stabilises and subsidy reforms settle.
When that happens, Malaysians who are financially prepared will feel less pain.
Smart Money Moves Before GST Returns 📈
When taxes rise and inflation follows, your money must work harder.
That’s where ethical, diversified investing becomes critical.
🎁 Get FREE RM20 When You Start Investing with Wahed
If you’re looking to prepare your finances before GST returns, Wahed is a solid place to start.
Wahed is a Shariah-compliant digital investment platform trusted by thousands of Malaysians.
👉 Wahed is giving you a FREE RM20 bonus when you sign up.
How to claim:
Download the app
Use referral code: MOHISM487
Start your investment journey
🔗 Download here:
https://app.wahedinvest.com/referral
Final Thought 💭
GST may be unpopular — but financial reality doesn’t care about emotions.
The question isn’t “Will GST return?”
The real question is: Will you be financially ready when it does?
Start early. Invest smart. Protect your future.
