Bersama party proposes 5% GST, welfare overhaul in shadow budget

Bersama has released its shadow budget proposals, positioning a 5% goods and services tax (GST) as a cornerstone of its fiscal strategy to strengthen the nation's social safety net while gradually reducing the budget shortfall.

The opposition coalition argues that the proposed GST, combined with a comprehensive overhaul of existing cash assistance programmes, would enable more efficient and targeted welfare delivery to vulnerable populations. The party contends that this approach would prove more effective than current spending mechanisms in addressing social protection gaps across the country.

According to the proposals, the combined measures are designed to produce measurable improvements in Malaysia's fiscal position over a ten-year horizon. Bersama suggests that the restructured assistance framework would allow government resources to be directed more precisely toward households most in need of support.

The shadow budget reflects broader policy thinking within the coalition on taxation and social spending. By coupling revenue measures with welfare reform, Bersama seeks to demonstrate an integrated approach to managing both public finances and social obligations during a period of economic uncertainty.