From Nasi Lemak to Netflix: How the New SST Affects You

You used to binge Netflix after grabbing your RM4 Nasi Lemak from the neighbourhood warong at 11 a.m. Now? That same Nasi Lemak is RM5, and the comfort is slightly interrupted by the quiet creep of your monthly bills. Your Grab rides feel pricier. That matcha latte suddenly bites your wallet a bit harder. Even your once-trusty Spotify subscription feels suspiciously expensive.

No, it’s not just inflation. It’s SST 3.0, a newly revamped Sales and Service Tax policy that Malaysia is rolling out from July 1st.

Starting July 1st, Malaysia is expanding its Sales and Service Tax (SST) system, raising the service tax from 6% to 8% and adding more services and imported items to the taxable list. The changes, first introduced during Budget 2025, are aimed at broadening the nation’s tax base, increasing government revenue, and enhancing social protection mechanisms.

Most of us hear the word “tax” and instantly tune out, assuming it only affects business owners, high-income earners, or some ministry meeting in Putrajaya. But SST 3.0 is different. It’s more like a shadow creeping quietly into your daily routines. Your Netflix, your latte, your beauty appointments, your ride to class, those are all fair game now.

Let’s paint a picture together. Meet Abdul, a 23-year-old law student in KL. After class, he grabs a latte — what used to be RM14 now costs RM15.20. He books a Grab to his internship, which went from RM18 to RM19.44. He goes about his day streaming Spotify Premium and ends the night with an episode of Stranger Things. On their own, those increases seem minor. But over a week, a month, a semester? It’s no longer pocket change, it’s a quiet squeeze on youth spending power. And for a generation constantly told by parents, teachers, and self-help books that we should be growing our spending power, this feels less like a minor inconvenience, and more like a quiet betrayal.

The Sales and Service Tax (SST) is not new. It replaced the unpopular GST (Goods and Services Tax) back in September of 2018. But SST 3.0 is a major upgrade, or depending on how you see it, an expansion. While the original SST only covered select goods and services, this version spreads its net far wider, catching more of the items and services you interact with every day.

SST consists of two components: a Sales Tax of 5% or 10%, applied at the manufacturer or import level; and a Service Tax, now raised from 6% to 8%, applied to a growing list of services , from grooming to logistics to digital streaming.

The result? A subtle but growing tax footprint in the lives of young Malaysians. While earlier versions of SST focused more narrowly, SST 3.0 is now knocking on the doors of all things that matter to youth. 

Among the newly taxed or higher-taxed items are things like imported fruits, avocados, salmon, olive oil, beauty treatments, fitness classes, bicycles, camera rentals, and even event gear. At one point, the government even considered taxing imported apples and oranges. Ironically, while the Ministry of Finance classifies imported fruits as luxury goods, they’re often more affordable than their local counterparts on supermarket shelves. 

Datuk Seri Amir Hamzah Azizan, Finance Minister II

In a recent interview with The Edge, Finance Minister II, Datuk Seri Amir Hamzah Azizan, explained that the government needs a broader revenue base to tackle long-standing national challenges like healthcare, education, and infrastructure. He emphasized the importance of good fiscal discipline and planning ahead for a “future-proof” Malaysia.

That’s a valid policy goal.Taxes, after all, fund the very systems we rely on. But it begs the million-ringgit question: if the same people who are already grappling with rent hikes, low starting salaries, and unstable jobs now have to cut back on their coffee, haircuts, or side hustles,  is that really something us Malaysians would deem a fair trade-off?

Let’s flip the lens to Alyssa, a 22-year-old psychology student living in Johor. Her weekday routine is simple: a packed meal from home, a crowded bus ride to campus, lectures in the day, and part-time work in the evening. On weekends, she earns a bit extra tutoring or helping out at the night market. With SST 3.0 in place, even basic things like topping up her mobile data, buying second-hand textbooks, or getting an affordable meal after work now come with added cost. For Alyssa, it's not about cutting back on wants, but managing rising costs on needs.

It doesn’t happen in one big hit, and that’s exactly why it slips under the radar. It’s a slow bleed , not a dramatic blow , but one that chips away at her wallet over time. The weekly mobile top-up? That’s a few ringgit more each month. The affordable meals she grabs after a long shift? Add another RM10–15. The printing credits for her assignments or supplies from the pasar malam? They’re quietly creeping up too. Multiply that across all her daily needs, and suddenly, she’s losing RM30–50 a month, without spending on anything new.

To the government’s credit, many essentials remain untouched. Local staples like rice, eggs, vegetables, basic cooking oil, water, and electricity under 600kWh are exempted. So are books, school supplies, and basic medicine. These exemptions are designed to protect the B40 and M40 groups,  and to give them credit,  they do.

But here’s the catch. SST 3.0 doesn’t go after what you need to survive. It goes after what you need to live. Your lifestyle, your productivity tools, your side hustles, your small comforts ,  those are the things now carrying the weight of national budget reform. And when you’re just starting out in life, juggling studies, side gigs, and maybe even supporting family,  every ringgit goes a long way. It’s not that young people are against taxes. We get it,  taxes fund schools, roads, hospitals. What feels unfair is being taxed more without being clearly told why, or without seeing the impact in real-time. Most youth are willing to contribute ,if they feel heard and not cornered, which brings us back to having actual youth voices getting a seat at the table. 

Whether we like it or not, SST 3.0 is here,  and it’s reshaping how we spend, what we buy, and how far our money goes. This isn’t just another dry tax policy update. It’s a real issue for youth in Malaysia.

We are the generation that will live the longest under the effects of these policies. We deserve to be part of the conversation, to understand where our money is going, and to ask tough questions. If the future is being built on our backs,  then we deserve more than just the bill. We deserve a seat at the table.

So the next time your Grab fare creeps up, or your salon bill feels suspiciously high, don’t just assume it’s the price of avocado toast or the rise in minimum wage. It’s policy. It’s SST 3.0. And it’s shaping your present and your future.

By,

Mahessan Suresh,

Journalist,

Charisma Movement 2025

About Author

Despite the serious look in the photo (he swears he was just thinking about lunch), Mahessan is a Harry Potter nerd, sports addict, a student, and someone who loves digging into data to make sense of the world — all while doing increasingly random and chaotic things to stack up the lore.