KUALA LUMPUR, Oct 13 — The Budget 2024 will increase the financial pressures on Malaysia’s middle-income group (M40), Malaysian United Democratic Alliance (Muda) president Syed Saddiq Syed Abdul Rahman said.

He said the four elements of reduced subsidies, raised taxes, continuous wastage, and forgotten promises showed that the M40 would be the most affected by the Budget tabled today.

"If you look at the taxes, as we heard earlier, the Sales and Services Tax (SST) will be raised by 25 per cent, from 6 per cent to 8 per cent.

"Which means, if you are a Malaysian and if you make 20 transactions in a day, each transaction will have a 2 per cent increase.

"It’s not a small amount, for example if you look at items such as toiletries, (sanitary) pad, clothing, trousers, shoes, school equipment, all these will be affected,” Syed Saddiq told a press conference here at the Parliament building today.

While the SST increase excludes the food and beverage sector, the Muar MP said the restaurant owners will be affected by purchases of equipment needed to run their businesses.

"When the restaurant owners’ cost increase, they will transfer these costs to the consumers — that’s all of us here,” he said adding that it will contribute to spike in cost-of-living expenses.

Syed Saddiq claimed the increase in the SST was simply the Goods and Services Tax (GST) in disguise.

"Why I say that it’s because the government — who previously were the Opposition — refused to implement the GST, and when they don’t want GST they increase the SST,” he said.

On the issue of wastage, he said the current government leaders appeared to have forgotten their criticism of predecessors for using Toyota Vellfire vehicles in place of Proton models.

"There was huge argument in the Parliament regarding this. Today, it was announced that the government officials will use luxury EV (electric vehicles).

"Why all of a sudden when the change of government it is allowed?

"What about the RM2 billion used as a bail out for Boustead Plantation Berhad? They said it’s a loan, but it’s obvious that it was mismanagement... don’t be a hypocrite, it’s a bailout,” he added.

On Monday, the government agreed to provide a government guarantee tot he Armed Forces Fund Board (LTAT) to buy out Boustead Plantation Bhd shares.

Syed Saddiq also raised the reduction of the National Higher Education Fund (PTPTN) repayment discount, saying it will be halved from the previous 20 per cent.

"They also promised that the graduates will only need to make repayment once their salary hit a certain bracket.

"What happened to those promises?” he said.

In 2020, the Pakatan Harapan (PH) administration then had agreed to allow borrowers of PTPTN to defer repaying their loans only after their monthly salary exceed RM4,000 but this was not implemented as the government collapsed shortly after.