Economy will be paralysed without GST - PM Najib

The nation's economy will be paralysed without the Goods and Services Tax (GST), stressed Prime Minister Datuk Seri Najib Razak.

He said the Opposition's claims that GST has caused domestic economic downturn is not true.

"GST causing domestic economic downturn is the Opposition's reading. The truth is, GST has saved Malaysia's economy," he said.

"Without GST, the nation's economy will be paralysed," he said to an additional question by Liew Chin Tong (DAP-Kluang) at the Parliament today.

Liew had asked if the government is ready to reduce GST to 3 per cent because the tax system has allegedly caused economic downturn.

On the matter of South China Sea, the prime minister said any dispute involving international matters must be resolved through dialogues and consultation.