THE unpopular decision to introduce the goods and services tax (GST) has proven to be the right one in keeping the country afloat, Prime Minister Najib Razak said today.

“People say GST has made the government unpopular but I was willing to do it because I felt it was the right decision for the country’s economy,” Najib said during the Treasury Excellence Award ceremony in Putrajaya.

He said the decision proved to be the right one as it had helped the government stay afloat when the oil price went down and caused the country to lose RM35 billion.

“If not for GST, the economy would have collapsed,” he said.

He said the government expected to collect RM45 billion from GST this year and this would be used for development and provide services to the people.

Unlike the opposition, Najib said every decision by the government had to be realistic and not just making promises for popularity.

“When we make decisions we have to make sure it is the right one or else it will affect the economy and the people,” he said.

He added that Putrajaya was also being prudent in spending to keep the country’s debt below 55%.

“We spend wisely and prudently within our budget.”

He said the country’s debt was at 52.6% of GDP last year.

“We have to be wise in whatever we do. When we borrow money, it is for productive investment. We are on the right track,” Najib said.

He said Malaysia had reduced its fiscal deficit from 6.7% in 2009 to 3.1% in 2016.

Putrajaya hopes to reduce it to 3% by year-end. – April 27, 2017.