Malaysia should focus on building robust tax base

MARC said rationalising subsidies remains a key factor in capping government expenditure.

PETALING JAYA: Fiscal sustainability is crucial for Malaysia’s economic stability and Malaysian Rating Corp Bhd (MARC) believes the country should focus on building a robust tax base and containing expenditure to ensure long-term fiscal health.

The ratings agency said rationalising subsidies remains a key factor in capping government expenditure, as subsidies have increased as a share of Malaysia’s operating expenditure from 4% in 2003, to 25% in 2023.