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Malaysia prioritises wage growth over GST return, says economy minister after OECD call - The Edge Malaysia

Malaysia prioritises wage growth over GST return, says economy minister after OECD call The Edge Malaysia

Source: The Edge Malaysia · July 28, 2026 at 9:38 PM · AI-assisted report

Malaysia prioritises wage growth over GST return, says economy minister after OECD call - The Edge Malaysia
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KUALA LUMPUR, 29 JULY 2026 —

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Malaysia's economy minister has stated that the country prioritises wage growth over the reintroduction of the Goods and Services Tax (GST). This announcement was made following a call with the Organisation for Economic Co-operation and Development (OECD). The minister's statement indicates a shift in focus towards improving income levels for Malaysians.

The emphasis on wage growth is significant for Malaysia as it aims to boost domestic consumption and reduce income inequality. Details not yet available on the specific measures to be implemented to achieve wage growth. The decision not to reintroduce the GST may also impact the country's revenue streams, although the government has not provided further information on this aspect. The OECD's input is likely to have influenced the minister's decision, given the organisation's expertise in economic policy.

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