Malaysia’s economy is being called “stable” in 2025.
GDP growth is strong. Inflation is under control. The ringgit is strengthening.
But here’s the real question Malaysians are asking online 👇
If the economy is doing so well… why does life still feel expensive?
GST vs SST: The Tax Debate Is Back 🔥
One of the hottest topics making a comeback is GST (Goods & Services Tax).
Right now, Malaysia uses SST (Sales & Service Tax) — a system only a handful of countries still rely on.
Globally, over 175 countries use GST or VAT because it’s more transparent and easier to track.
So what’s the real difference?
GST / VAT
Tax is visible on your receipt
Businesses can claim tax refunds (rebates)
Captures the grey economy
More transparent, but only works if refunds are fast
SST
Tax is hidden in prices
Consumers don’t know how much tax they’re paying
Can lead to “tax on tax on tax”
Prices go up, but nobody knows why
The biggest reason GST failed in 2018?
👉 Slow and inefficient tax refunds, especially for small businesses.
When cash flow suffers, businesses raise prices — and consumers pay the price.
Strong Ringgit, Same Prices? 😑
The ringgit has strengthened significantly.
In theory, imported goods should be cheaper.
But many Malaysians say:
“Prices at the grocery store are still the same.”
Why?
Because Malaysia imports nearly RM70 billion worth of food every year.
Any global price increase gets passed down the supply chain — and savings often don’t “trickle down” to consumers.
Is GST Really Unfair to the Poor?
This is the biggest fear — especially for the B40 group.
But economists argue:
GST is not regressive if essentials are zero-rated
Those who spend more, pay more
Government can offset the impact with targeted aid (like SARA & BUDI)
The real key isn’t whether GST exists —
it’s how well it’s managed.
Employment Looks Good… But There’s a Catch 🎓➡️🧾
Unemployment is low, but underemployment is rising.
Many graduates:
Have degrees or master’s qualifications
End up in jobs that don’t match their skills
Accept RM1,700 salaries just to survive
Malaysia creates jobs —
but not always the right jobs.
So… Is Malaysia Really “Stable” in 2025?
Yes — macro-economically.
Growth is solid. Inflation is controlled. Foreign investments are coming in.
But for everyday Malaysians?
The benefits are slower to reach the ground.
Stability doesn’t automatically mean comfort.
What Can YOU Do While the Economy Evolves? 💡
While policies, taxes, and systems take time to change, your personal finances shouldn’t be left behind.
That’s why smart Malaysians are turning to ethical investing — even with small amounts.
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Bottom line:
You can’t control national policies overnight…
but you can take control of your financial future — starting today. 💪📈
🔥 Share this article if you feel the economy looks good on paper, but life still feels tough.
