COMMENT | SST expansion threatens food security, trade credibility

COMMENT | As Malaysia prepares to roll out a sweeping expansion of the Sales and Services Tax (SST) on July 1, 2025, policymakers must confront an uncomfortable question: Are we compromising national food security in pursuit of short-term revenue gains?

The Finance Ministry argues that the expanded SST, which broadens the tax base and updates taxable goods and services, is necessary to strengthen the government’s fiscal position.

But in doing so, it risks overlooking deeper vulnerabilities in our economic structure, especially in the realm of food imports and household food access.

For a country that imported over RM75.6 billion in food in 2022, according to the Department of Statistics Malaysia (DOSM), this new tax regime could be a costly misstep.