ADVERTISEMENT

Malaysia can meet fiscal deficit target even after GST is removed


Alliance Bank Malaysia Bhd chief economist Manokaran Mottain said, "“If the new government can plug the holes in the country’s fiscal management, particularly in the procurement process, then the revenue shortfall can be met eventually.  “One of the areas which may lead to cost savings is the reduction in allocation to the Prime Minister’s Office."

Alliance Bank Malaysia Bhd chief economist Manokaran Mottain said, "“If the new government can plug the holes in the country’s fiscal management, particularly in the procurement process, then the revenue shortfall can be met eventually. “One of the areas which may lead to cost savings is the reduction in allocation to the Prime Minister’s Office."

PETALING JAYA: The audacious move by the Pakatan Harapan government to abolish the goods and services tax (GST) may not necessarily derail Malaysia from its fiscal deficit target, as feared by many economic pundits.

While credit rating agency Moody’s described the removal of the consumption tax regime as “credit negative”, several economists expect Malaysia to remain largely on track of its fiscal deficit target, provided the government fulfils its election promises for reforms in national expenditure.

Economy , Taxation , MSia

   

ADVERTISEMENT