KUALA LUMPUR, March 26 — The government will implement the transformation of government-linked companies (GLCs) and government-linked investment companies (GLICs) including boosting strategic domestic investments and strengthening governance, said Prime Minister Datuk Seri Anwar Ibrahim.

The effort is expected to improve dividend yields from GLICs and GLCs.

"I agree with additional efforts including the transformation of GLCs and GLICs to ensure increased domestic investments. When domestic investment is boosted, hopefully non-tax revenue can also be increased,” he said during the Ministers Question Time at the Dewan Rakyat today.

Anwar, who is also the finance minister, said 50 per cent of non-tax revenue was from investment income including dividends from Petronas, Bank Negara Malaysia and Khazanah Nasional Bhd.

He said this in response to a proposal from Datuk Mohd Shahar Abdullah (BN-Paya Besar) who suggested that the government focus on non-tax revenue from GLC and GLIC investments to increase the country’s revenue, as opposed to raising the service tax rate from six per cent to eight per cent.

Earlier, Anwar said the government expects to collect revenue amounting to RM3 billion through raising the service tax rate from six per cent to eight per cent.

He said the increase in tax rate starting from March 1, 2024 focuses on activities related to discretionary services and activities between businesses that do not directly involve the people.

"The service tax for food and beverages and telecommunications has not been increased and remains at six per cent. Utility expenses such as water and petrol remain exempt from sales and service tax,” he said. — Bernama

* An earlier version of this article contained an error by Bernama which has since been rectified.