No need for economic crisis team yet, says LGE as trade war rages

  • Nation
  • Thursday, 29 Aug 2019

KUALA LUMPUR: There is no need to set up a crisis management team to shore up the nation's economy in the face of a possible economic slowdown, says Finance Minister Lim Guan Eng.

"If there is a crisis, then I think we will think about it.

"But for now we have the National Economic Action Council (NEAC, of) which Tan Sri Rafidah Aziz is a member," he said.

Lim made the remark when met after attending the National Economic Forum 2019 here on Thursday (Aug 29).

He was asked to comment on a suggestion by Rafidah that the government establish a crisis management team to take preemptive measures and weather the economic headwinds that were expected to happen.

The former International Trade and Industry Minister made the suggestion on Wednesday (Aug 28), saying proactive actions should be taken to counter any slowdown caused by external factors.

Lim said Malaysia was not the only country affected.

"It is not just Malaysia alone, but every other country, so I think we know what the root cause is.

"What we can do is try to mitigate the effects and also hope that there is some resolutions," he said.

During the forum, Lim acknowledged that a prolonged US-China trade war could be a drag factor on the economy.

However, said there was room for the government to take preventive measures to minimise the effect.

In his speech, Lim said the government was repaying income tax and goods and services tax refunds as promised.

"As of the end of June, the government has returned about RM24.7bil to various taxpayers," he said.

On the coming Budget 2020, Lim said that was a need to have an expansionary budget to mitigate the negative effects of the US-China trade war.

However, he said the introduction of new taxes was unlikely, adding that there was no plans to enact an inheritance tax.

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