FORMER Finance Minister and DAP adviser Lim Guan Eng has written to Prime Minister Datuk Seri Anwar Ibrahim, calling for urgent fiscal, monetary, and tax reforms to rebuild confidence among PH supporters in the unity government.
In the letter, Lim Guan Eng compared the current withholding of tens of billions in excess taxes by the Inland Revenue Board (LHDN) to the over RM30 bil in unpaid GST refunds under the 2018 Barisan Nasional administration.
“There is no moral, ethical or legal right for government departments to withhold paying back full refunds when this is the taxpayers’ own money,” he said in a statement on Facebook, adding that both bureaucratic failures of full refunds by LHDN now and Kastam in 2018 have caused untold hardship to Malaysian companies.
Lim noted that the previous PH government repaid the GST refunds starting in 2019, but withholding resumed under the PN administration in 2020. Howerver, he acknowledged the current unity government’s efforts to begin full refunds.
Estimates of outstanding amounts, derived from published data and complaints to DAP representatives nationwide, range from RM100,000 held over five years to over RM100 mil since 2020.
Proposing RM20 bil in refunds disbursed in January 2026 ahead of Chinese New Year, Lim argued this would alleviate cash flow pressures and foster substantial business goodwill toward the Prime Minister, with full resolution targeted by year-end.
Additionally, amid global tariff disputes under Donald Trump causing foreign goods dumping and order declines, Lim suggested mandating 50 per cent local product purchases in government procurement to boost domestic demand and support SMEs in generating new orders.
He warned that ongoing delays are exacerbating cash flow problems for Malaysian businesses and undermining confidence in the unity government. —Dec 14, 2025
Main image: Sinar Harian
