KUALA LUMPUR (Mar 17): High household indebtedness should not be the reason for the government to defer the implementation of the goods and services tax (GST), said Barisan Nasional Backbenchers' Club (BNBBC) chairman Tan Sri Shahrir Samad.

This was because the current level of household debt — at 87.4% of gross domestic product (GDP) — is backed mostly by assets, he said, like individuals or households who borrow to buy property, which is also a form of private investment.

He also said there are mitigations measures in place, like the goods under the tax exempt list, lower corporate tax and income tax, which will cushion the impact of GST, which will be enforced on April 1, on the people.

More importantly, said Shahrir, the government can save RM21 billion a year from the fuel subsidy rationalisation, as the fuel subsidy has previously been a burden on the government's financial situation.

He was speaking to reporters who asked him to comment on Umno veteran Tengku Razaleigh Hamzah's speech in Parliament during the debate on the royal address this morning.

The Johor Bahru MP also came to the government's defense on the nation's indebtedness and said that the level is still within its self imposed limit of 55% of GDP.

He argued that the Malaysian economy has also not reached the critical level, as the government has not defaulted on any payment of interest and bonds.

Nevertheless, he is in agreement with Razaleigh's call for all past and present Cabinet Ministers, MPs, as well as public and private sectors decision-makers, to declare their assets.

"All the MPS should declare assets, interests and benefits, such as the travel trip sponsored by foreign company, to ensure that you (MP) are not representing foreign interests in the chamber," said Shahrir, adding that MPs can declare their assets to the Malaysian Anti-Corruption Commission (MACC).

He added that all the MPs should also sign an "Integrity Pledge", together with the declaration.