Anwar Says Government Will Not Rush New Taxes Before Plugging Leakage

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PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim says the government will not rush to introduce new taxes.
Anwar said that no new taxes will be introduced until the administration is free of leakage, corruption and weak management.
He added that the priority now is to correct weaknesses in the existing system so that national revenue does not continue to leak to the unscrupulous.
“Before we think about taxes, which sometimes burden the people, we must first correct the mistakes in our administration,” he said at the Monthly Assembly with staff of the Prime Minister’s Department on Monday (Oct 13).
He said major savings achieved by curbing smuggling and corruption show that efficient administration can raise resources without extra taxes on the people.
Anwar then said that the money saved is being channelled to civil servants’ salaries and assistance such as Sumbangan Tunai Rahmah and the SARA initiative.
“If we want to give more to the people, there must be more revenue,” he said.
“But before thinking about taxes, first consider our work, implementation and the system we have inherited,” added Anwar.
Anwar, who is also Finance Minister, expressed appreciation to enforcement agencies.
He cited the Malaysian Anti‑Corruption Commission, the Inland Revenue Board and the police for coordinated action.
“We have managed to control leakage, corruption and smuggling. In two years we saved RM15.5bil, from smuggling, leakage and corruption,” he added.
He said transparent resource management is essential to channel more assistance to the people and added that this can be done without increasing the fiscal burden.
“From the money saved, we can increase civil servants’ salaries, STR, Sara,” he said.
“It may not look like a lot of money, but it is the result of efficient management,” added Anwar.
Last Friday, the government announced an allocation of RM470bil in Budget 2026, up from RM452bil last year.
Anwar said the Madani Budget 2026 was presented in the Dewan Rakyat.
He said it comprises RM338.2bil in Federal operating expenditure and RM81bil in Federal development expenditure.
It also includes RM30bil in investments by government linked investment companies.
It involves RM10bil in public private investments and RM10.8bil from Federal statutory bodies and MoF Inc companies.
Meanwhile, Anwar reminded civil servants to carry out their duties with trust and responsibility.
He said this ensures 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 added.
He said integrity and honesty must underpin the public service work culture.
They determine the success of fighting corruption and closing avenues for leakage.
He said strengthening national governance cannot rest on enforcement agencies alone.
It requires commitment from every civil servant at all levels.
“Do not rely only on the MACC or other authorities,” he said.
“Responsibility must lie with heads of department and every civil servant,” added Anwar.
He said efforts cannot succeed if a head of department protects wrongdoing.
“If heads of department know and act as protectors, we cannot defend them,” he said.
The Prime Minister said a clean, efficient administration depends on moral awareness and sincerity in public service.
He said every individual must serve the people and 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 added. - Star

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