It is the third month running since the Goods and Services Tax (GST) was enforced, resulting in a shift in Malaysia’s traditional tax system. While its implementation was largely smooth, the new tax regime has undeniably impacted both segments of community be it households or businesses, especially in coming to terms with the mechanics of GST which is predominantly dependent on individual consumption patterns.

Be it bad or good, the fruits of GST will certainly unveil in coming times and it may take years before the concept matures in Malaysia, as it has in some other parts of the world. Perhaps if our economic condition was slightly better, the scenario and adaptation of GST would probably have been more encouraging than current.

At least for now, the GST has caused the nation to grapple where many especially the lower and middle income groups are struggling to keep up with high cost of living. To further compound this situation, many businesses are beginning to rationale their own operation cost by downsizing workforce which has resulted in many losing their jobs.

The current economic outlook does not look any promising either. Oil and commodities prices continue to remain low while the ringgit is declining. All of these elements are pointing to an impending recession.

The government would probably think that introducing the GST is a right strategy as it would provide a more sustainable income but is taxing Rakyat the only solution? Was there never an urgency to diversify into other areas of trade which would have minimised over reliance on revenue generated from export of commodities? Didn’t the government anticipate an economic scenario such as current?

How is it now wise to consider increasing the prices of toll? Is merely pushing up prices of goods and services means to generate more income? Why must the rakyat’s be further burdened with additional cost at a time when people are yet to come to terms with GST?

It is indeed saddening that real actions are still lacking in aid of the masses. The Malaysia Consumers Movement (MCM) calls on the government, alongside business to synergise efforts in bringing more competitive solutions for the people.

Increasing daily prices of goods and services by passing over cost to the people lacks intelligence. The time has come for the government and businesses to redefine their notion of revenue by reassessing their value chains, aiming for greater operational efficiency by strategically scrutinising ineffective business models. Let us not opt for easy quick-fixes, for such acts are unsustainable.

Likewise, the MCM encourages consumers to relook at their own patterns of consumption. It is now to prioritise what truly matters and don't subscribe to goods or services if it puts a toll on your income. It is your call and you can make a difference.

Focus on longer term value creation, being mindful that decisions and actions today matter.

DARSHAN SINGH DHILLON is president, Malaysia Consumers Movement (MCM).