Lim Guan Eng points to high SST on tuition, businesses as factor in Sabah Chinese voters’ discontent

Lim Guan Eng points to high SST on tuition, businesses as factor in Sabah Chinese voters’ discontent



Bagan MP Lim Guan Eng today highlighted that higher SST on private college fees and million-ringgit businesses contributed to Chinese voters turning away from Pakatan Harapan in the Sabah elections. — Bernama pic

Wednesday, 03 Dec 2025 12:02 PM MYT


KUALA LUMPUR, Dec 3 — Bagan MP Lim Guan Eng today suggested the revised sales and services tax rate for private college fees and businesses earning more than a million ringgit were among the reasons Chinese voters shunned Pakatan Harapan in the Sabah polls.

The DAP was wiped out while PKR won just one seat from the 12 it contested in an election that saw Chinese voters in urban areas swining towards the Sabah-based Warisan, marking the coalition’s worst performance since 2018.

“I hope the prime minister is listening to Sabah voters and heed the lessons from the polls, particularly about the problems with SST,” Lim said at a press conference in Parliament.

“One is the 6 per cent SST on tuition fees exceeding RM60,000. This caused so much discontent. Many parents feel because of the current education system they are discriminated and left with no choice but to send their children to private colleges. No choice,” he added.


“But then they are slapped with a 6 per cent SST. If the fee is RM80,000, imagine how much extra they’d have to pay: RM4,800.”

Lim then alleged Chinese voters likely deem the tax rate unfair, and is calling for the tax to be reviewed.

“Because this tax is a tax on our future. Please don’t tax the future of our children,” the Bagan MP, also a former finance minister under the first Pakatan Harapan-led federal government, said.


“The same can be said about the 8 per cent SST rate for businesses earning more than RM1 million. This should also be reviewed because there are so many complaints. From zero to 8 per cent tax could be the equivalent to a month’s rent, and this is bad when (small) businesses aren’t doing too good,” he added.

The Anwar administration revised its sales tax rate and widened the scope of its services tax from July 1, as the government looks to boost its revenue and strengthen its fiscal position.

The services tax scope expansion included property rentals or leasing, construction, financial services, private healthcare, education and beauty services.