GST, subsidy rationalisation for more development - Najib

He said revenue obtained from GST and the reduced expenditure for subsidy could be spent for rural development, improve the quality of the country's education, build houses, increase the skills of the Malays and other development plans.

"Allocation for rural areas has to be given priority, (allocation) for education we have to increase further. Why is the income of the Malays low, it is because most of them are SPM (Sijil Pelajaran Malaysia) holders, we have to provide them with upskilling training," said the Umno president during the winding up session at the 2014 Umno general assembly today.

He said Majlis Amanah Raya (Mara), as an institution which symbolised the Malays and bumiputera, should also be given additional allocation so that more Malays could be given scholarship by the agency.

Najib, who is also Finance Minister, said GST, which had been adopted by more than 160 countries, was fairer as it could prevent traders from avoiding to pay tax.

"They get service from the government for free. It is not fair, they should pay tax because they should also bear the expenses for the people," he added.

On complaints of the country's economic growth not being felt by the people, Najib said economic growth meant increase in the country's revenue and enabled the government to cover administration cost.

Najib also touched on Malay reserve land where he said there were problems in terms of the law, to enable access to Islamic financial instruments to develop the land.

"A committee had already been set up and its report had been prepared. I want all laws that needed to be amended to be carried out so that the Malay reserve land can be developed into a valuable asset for the owner," he added.

To increase the marketability of Malay graduates, the prime minister announced a 100 per cent increase in the number of participants for the 1Malaysia Training Scheme.