Dilemma over tax reforms but it is a necessity: PM Anwar

Prime Minister Datuk Seri Anwar Ibrahim admitted that his government is facing a dilemma over tax reforms but it is a necessity.

He said that the reforms were needed to cater to costs brought about by new emerging challenges facing the nation.

“I said that it is a dilemma and to paraphrase Hamlet; ‘To tax or not to tax’.

“Yet, you have to expand the revenue base to ensure public services, education and healthcare reforms.

“The new challenges such as Artificial (AI) technology and digitisation, all this demands funds and disbursements of more funds.

“But no one wants to pay, including the very rich,” he said when launching the Digital Asset Sandbox and Sasana Symposium 2025 here on Tuesday (June 17).

Anwar, who is also Finance Minister, said that the tax reforms were also necessary as it would expand the revenue base to improve enforcement efforts while addressing leakages without burdening the poor.

On another matter he said that a joint ministerial committee has been formed to look at reforms in the national healthcare systems.

“For many Malaysians, private healthcare is becoming increasingly inaccessible due to escalating medical costs and inflation.

“This is not just an alarming concern but also a question of the national wellbeing,” he said.

“We are not looking for minor adjustments or minor paradigm shifts.

“We must be prepared to undertake a fundamental shift towards value-based private healthcare systems that prioritise outcomes, transparency and fairness.

“Key reforms include clearer pricing, stronger digital healthcare and expanded access to affordable options such as universal base medical insurance products,” he said.

Anwar gave his assurance that the joint committee would deliver on the reforms unlike attempts by previous committees which were unsuccessful.

The joint committee is made up of representatives from Bank Negara, Finance Ministry and the Health Ministry.