NEWS: Targeted subsidies, pension reform and GST on KJ’s fix it list

The Edge TV

Targeted subsidies, pension reform and the reintroduction of the GST are the three things that former Health Minister Khairy Jamaluddin says he would prioritise if he were the one in charge of structural reform.

Transcript

00:00 For structural reform, the top three things I would do is I would finish what everyone

00:06 speaks of in terms of subsidy rationalisation.

00:10 That's number one.

00:11 So that's really introducing the subsidised quota for petrol goods every month.

00:23 So that's done on a means-tested basis.

00:25 However you do it, I think the RFPZ is doing something with a bunch of stats from different

00:30 data departments.

00:31 But you have to do it.

00:32 You have to rationalise subsidies.

00:34 That means it's means-tested, especially your petrol goods and your utilities.

00:38 Secondly, tax base has to be increased.

00:42 In a sentence, it's bring back GST, full stop.

00:44 That's it.

00:46 We can argue until the cows come home, whether it's regressive or otherwise.

00:50 But my view has been that since I was 2018, at Guaneng.

00:54 I debated it many times in Parliament.

00:56 I said there's a huge mistake.

00:57 There's one thing that you should renege on in your manifesto is don't touch GST.

01:02 And of course, come in together slowly with the biggest exclusion list in the world.

01:09 We have the biggest exclusion list in the world, or zero rated item in the world.

01:12 You can go Pasar Malam, Pasar Tani, no GST.

01:15 No other country has that.

01:17 But we did.

01:18 And it still contributed, I don't know, 20 plus billion additional to the KT, which is

01:22 needed.

01:23 So that's number two.

01:24 Pension reform.

01:25 Absolutely 100%.

01:26 I told the, I brought this up in cabinet many times when I was minister.

01:31 I told Anwar this when I met MOF.

01:33 I said, every day that you delay pension reform, you are adding to the pension bill.

01:41 This is a government pension bill.

01:42 So everyone needs to move to EPF.

01:45 Apart from those who are already in government.

01:48 You cannot touch people who are already government officers.

01:52 Once they're in there, you can't change the contract.

01:55 It can't be retrospective.

01:56 That's bad.

01:57 But for new hires into government, for permanent staff, no more pensions.

02:03 Including politicians.

02:04 I've always felt that if you are there, you should make the tough decisions, even at your

02:11 own expense.

02:12 And that's why I said you have to have a policymaker that doesn't really care what happens to them.

02:20 And again, I would try to make it as irreversible as possible, because nothing is irreversible.

02:26 But if you do these three things, then I think your fiscal space, okay lah.

02:30 Apart from your rationalising programmes, too many government departments, wastage,

02:35 all that kind of stuff.

02:36 That's all important, all that.

02:37 Anwar talks about good governance and all that.

02:39 But that only takes you so far.

02:42 These are the three big ticket items.

02:43 Do you agree?

02:44 These are the three big ticket items.

02:46 That's it.

02:47 It's not rocket science.

02:48 [end]

02:48 [BLANK_AUDIO]

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