Malaysia

Anwar: Clean up public finances before burdening people with new taxes

“Why should we impose taxes when the revenue collected so far has not been spent well? Why should we assume that the revenue collected has been spent perfectly and without leakage?”

Updated 11 months ago · Published on 21 Oct 2025 2:58PM

Anwar: Clean up public finances before burdening people with new taxes
Prime Minister says Malaysia must not consider new taxation while public funds continue to suffer from mismanagement and leakages, insisting that governance reform must come first - October 21, 2025

PRIME MINISTER Datuk Seri Anwar Ibrahim has reaffirmed that the government will not introduce new taxes until Malaysia addresses chronic financial mismanagement and seals ongoing revenue leakages.

Speaking at the Permodalan Nasional Berhad (PNB) Knowledge Forum 2025 on Tuesday, Anwar — who also holds the Finance Ministry portfolio — stressed that transparency, integrity, and good governance must be firmly established before asking the public to shoulder additional fiscal burdens.

“Why should we impose taxes when the revenue collected so far has not been spent well? Why should we assume that the revenue collected has been spent perfectly and without leakage?” he said.

Anwar argued that any tax policy must be anchored in moral accountability, noting that without a credible commitment to clean financial management, public trust cannot be expected.

He revealed that RM15.5 billion in public funds had been recovered over the past two years, largely through enforcement against smuggling syndicates and financial misconduct — a figure he said demonstrated the extent of previous misappropriation.

“The surprising matter is that there are still parties, including the opposition bloc, who disparage the government's efforts to curb corruption and misappropriation,” he said, lamenting the lack of bipartisan support in Parliament for anti-corruption initiatives.

Anwar also criticised past leadership and systemic silence over endemic abuse of power, which he claimed had left Malaysia saddled with unnecessary debt and weakened institutions.

“Before the government considers any new taxation measures, the main priority must be to fix the administrative system and ensure that every ringgit of the people's money is spent with full accountability,” he stated.

Trade and Security Matters on the table with Trump

Turning to foreign affairs, Anwar confirmed that trade and security matters — including the ongoing situation in Gaza — would be discussed in an upcoming closed-door meeting with United States President Donald Trump.

He said Trump had shown strong support in previous communications and played a “major role” in halting airstrikes in Gaza.

“We had exchanges, phone calls twice. He has been extremely cordial, very supportive, and listens quite well,” said Anwar.

“I want to make use of this opportunity to protect Malaysia's trade and investment interests, but also to express my views on what I think will be good for Malaysia, the US, and the world.

“This includes issues affecting Palestine. Whatever reservations you may have, you must commend the fact that Trump did a major service in stopping illicit bombings in Gaza,” he added.

Anwar Hails New Chapter in Japanese Democracy

Meanwhile, Anwar extended his warm congratulations to Sanae Takaichi following her appointment as Japan’s new prime minister, describing the development as a defining milestone in the nation’s political landscape.

Takaichi’s elevation to become the first woman to lead Japan’s government, Anwar said, reflects not only her resilience but also the growing maturity of Japan’s democratic system.

“Takaichi’s appointment marks an important milestone in Japan’s political landscape, symbolising her steadfast spirit and the positive evolution of the country’s democracy,” Anwar said in a Facebook post on Monday.

He noted that her leadership represents a new chapter for Japan and serves as a testament to the country’s democratic progress.

Anwar, who also serves as ASEAN Chair this year, emphasised Malaysia’s deep appreciation for the Comprehensive Strategic Partnership shared with Japan, which is built on mutual trust, innovation, and a shared commitment to regional stability and sustainable growth.

“I look forward to welcoming Prime Minister Takaichi to Kuala Lumpur next week for the ASEAN-Japan Summit, where both nations will continue to strengthen this important relationship,” he added.

Anwar also took a moment to thank outgoing Japanese Prime Minister Shigeru Ishiba, praising his visit to Malaysia earlier this year as a gesture that had further solidified the long-standing friendship between the two countries. - October 21, 2025

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