“If the subsidy rationalisation had not been implemented, our country could have faced the same fate as Greece,” Najib said at the monthly Finance Ministry meeting, referring to the financial crisis that crippled the European nation’s financial system in 2015.

He said the governor told him recently that the two moves were proactive and timely.

The GST was implemented on April 1, 2015.

“A year on, people understand the implication (of the GST) on all of us.”

He said even though the prices of goods had gone up slightly, the GST had helped the country to carry out various projects and development.

Najib added the government would focus on increasing productivity to 3.7 per cent under the 11th Malaysia Plan which started this year. Under the 10th Malaysia Plan, the country’s productivity was 2.3 per cent.

He said despite economic uncertainties caused by the drastic drop in price of oil and other commodities, the government had successfully looked into the welfare of the people.

For instance, the new minimum wage for workers would be implemented on July 1, which will see an increase from RM900 to RM1,000 in Peninsular Malaysia and from RM800 to RM920 in Sabah and Sarawak.

He added the government was also determined to develop the Pan-Borneo Highway which would cost RM27 billion.

“It looks like the people are beginning to understand GST. The need to implement it was reasonable and appropriate. It is for the future of the country and for the people,” he said.