DAP adviser Lim Guan Eng has called for more benefits to be accorded to Sabahans and Sarawakians to bridge the development gaps between East and West, as the country celebrates Malaysia Day next week.
The former finance minister submitted a memorandum by hand to Prime Minister Datuk Seri Anwar Ibrahim with recommendations which can boost national unity and integrity between both West and East Malaysia.
The suggestions also cover points for fiscal pumping to boost the economy.
The main point is for the Federal side under Anwar to channel 40 per cent of the revenue earned from both East Malaysian states through a special payout.
The Federation also needs to respect the 18-point and 20- point agreement sealed as preconditions for Sabah and Sarawak to join Peninsular Malaya to become part of the Federation in 1963, said Lim in a statement.
Lim also urged Anwar to approve the additional allocation for foreign skilled workers in special-needs sectors such as digital and to issue visas online.
Lim also suggested that the small and medium industries (SMIs) nationwide be exempted from interest payments on their bank loans for one year.
This is to improve cash flow standing and to boost domestic consumption in the face of wobbly global economic growth, said the Bagan Member of Parliament.
He also asked for a loan scheme amounting to RM25 billion to be accorded to the SMIs with no interest or collateral imposed by the lenders.
The scheme can benefit up to 50,000 SMIs operating in the country.
He also asked for Anwar to allocate 10 per cent from the Bumiputra allocations to the non-Bumiputras to boost domestic consumption and economic activities.
Lim, who was instrumental in discarding the then unpopular Goods and Services Tax (GST), has now called for Anwar to review the Sales and Services Tax (SST).
He also called for a nationwide campaign to buy Malaysian goods and services.
To protect the local industries, Lim called for a 10 per cent SST to be imposed on imported and local iron ore, and to abolish SST on steel scrap.
He also wants the government to abolish the two per cent Employers' Provident Fund (EPF) imposed for foreign workers and raise the income tax exemption for the middle class (M40) from RM3,000 to RM12,000.
Lim also called for a uniform university entrance examination to replace the existing three entry examinations of STPM, Matriculation and Basic.
Lim said that the SMIs are suffering from the prolonged effects of the Middle East conflict.
Their role in driving the economy cannot be ignored, as they contribute 40 per cent to the gross domestic product (GDP), secure 49 per cent of jobs and aid in 15 per cent of the total exports for the country.
"Their plight needs undue attention," said Lim. - September 10, 2026.
