18 July 2018

Press statement by MCA Publicity Bureau Chairman Senator Dato’ Chai Kim Sen


Ensuring SST’s implementation won’t lead to price increases, govt should disclose details as soon as possible

I urge the Pakatan government to ensure that prices will not rise nor increase the people’s burden when the sales and service tax (SST) is implemented on 1st September 2018.


The government should also disclose the details on implementation of the 10 per cent sales tax and 6 per cent service tax to the public as soon as possible. Only when the people have a deeper understanding of the taxation system can they protect their rights as consumers.  

The Pakatan government has repeatedly claimed that the 6 per cent Goods and Services (GST) implemented by the previous administration was the main cause of price hike and increased burden on the people. However, when the Pakatan government announced that it would zero rate the GST from June to August 31, 2018, the people did not feel the price cut effect which burden them. On the contrary, the Minister of Domestic Trade, Cooperative and Consumerism (MDTCC), Datuk Saifuddin Nasution further claimed that 70 per cent of the prices for necessity goods have dropped, but later admitted that some did not fall.

Thus, the government should have known that GST was not the reason for price hikes. If the problem really lies in GST, prices should have gone down with the zero-rated GST. Now the government should know that the reason for price hikes is due to slack law enforcement which have made the consumers the targets of profiteers.

In this respect, we urge the MDTCC to not expect businesses to not increase the price through ‘‘soft talks’’. On the contrary, MDTCC should ensure that law enforcement is fully implemented to strengthen the supervision of prices of goods in the market.

I also hope that the Pakatan government will also disclose the calculation method for the sales and service tax (SST) as soon as possible. This is so that the consumers can grasp the full details earlier and understand its impact on prices of goods. Then only the merchants can adjust their respective operations according to people’s expectations. Embracing transparency will help cultivate a fair business operating environment. The Pakatan government is responsible to ensure that the prices will not rise because of the implementation of SST.

Senator Dato’ Chai Kim Sen
MCA Publicity Bureau Chairman
MCA Deputy National Organising Secretary

-MCA online-