Government Will Not Introduce New Taxes Until Governance Reforms Are Complete: Anwar

Putrajaya, The Gulf Observer: Prime Minister Datuk Seri Anwar Ibrahim reaffirmed that the government will not rush to impose new taxes, emphasizing that fiscal reforms must first focus on eliminating leakages, corruption, and weak management within the administration.

Speaking at the Monthly Assembly with staff of the Prime Minister’s Department on Monday, Anwar said the government’s priority is to strengthen existing governance systems to prevent national revenue from being siphoned off by unscrupulous parties.

“Before we think about taxes, which sometimes burden the people, we must first correct the mistakes in our administration,” he said.

Anwar, who is also Finance Minister, noted that the government had already achieved substantial savings through efforts to curb smuggling and corruption, proving that effective management can enhance national revenue without imposing additional taxes.

“In two years, we saved RM15.5 billion from smuggling, leakage and corruption,” he said, attributing the success to the coordinated efforts of the Malaysian Anti-Corruption Commission (MACC), the Inland Revenue Board (IRB) and the Royal Malaysia Police.

He added that the funds saved have been redirected towards improving civil servants’ salaries and social welfare initiatives such as Sumbangan Tunai Rahmah (STR) and the SARA assistance program.

“From the money saved, we can increase civil servants’ salaries and provide aid like STR and SARA. It may not look like a lot, but it is the result of efficient management,” he said.

Anwar stressed that transparent and responsible resource management is crucial to ensuring that government assistance reaches those in need without increasing the fiscal burden.

The Prime Minister also touched on the recently announced Madani Budget 2026, tabled in the Dewan Rakyat last Friday, which allocates RM470 billion—up from RM452 billion last year. Of this, RM338.2 billion is for Federal operating expenditure, RM81 billion for development expenditure, RM30 billion in investments by government-linked investment companies, RM10 billion in public-private investments, and RM10.8 billion from Federal statutory bodies and Ministry of Finance Incorporated companies.

Addressing civil servants, Anwar reminded them to uphold integrity, discipline, and accountability in carrying out their duties to ensure that every government policy benefits the people.

“There must be personal resolve to earn a halal income and to do our work as well as possible,” he said. “We have another one or two years, so serve well.”

He emphasized that integrity and honesty must underpin the public service work culture, noting that the success of combating corruption depends not only on enforcement agencies but also on the commitment of every civil servant.

“Do not rely only on the MACC or other authorities. Responsibility must lie with heads of department and every civil servant,” he said, warning that no protection will be given to those who shield wrongdoing.

Anwar concluded by reminding all government employees that a clean and efficient administration rests on moral awareness and sincerity in serving the nation.

“What we do now will determine our country’s future. May we do our best for our families, society and the nation,” he said.