Malaysia needs to widen SST coverage to rebuild fiscal buffers

KUALA LUMPUR: The government needs to diversify and increase its revenue resources, including widening coverage of the sales and services tax (SST) to rebuild fiscal buffers, says the World Bank Group.

In its October 2019 edition on the Economic Update for East Asia and the Pacific, themed,"Weathering Growing Risks” released today, the World Bank said exercises towards diversifying revenue resources were needed, as Malaysia’s comparatively high level of government liabilities would continue to exert constraints on fiscal space available in the event of macroeconomic shocks.