World Economy

Malaysia PM Strongly Defends GST

Malaysia PM Strongly Defends GSTMalaysia PM Strongly Defends GST

Removing the goods and services tax will paralyze Malaysia’s economy, says Prime Minister Najib Razak.

He said the GST was among the factors that helped spur the country’s growth despite a sluggish global economy, Bernama reported.

“I want to reiterate that without the GST, our economy will suffer tremendously,” he said when replying to a supplementary question at the Dewan Rakyat, or the House of Representatives.

MP Liew Chin Tong asked if the government planned to lower the current 6% GST rate as it did not promote domestic spending.

“This is a negative perception raised by the opposition parties,” said Najib, who is also the finance minister.

Earlier, Najib said the nation’s economy remained firm and had grown at a modest rate despite the global economic slowdown.

Malaysia recorded a 5% gross domestic product growth last year as compared to Indonesia (4.8%), Thailand (2.8%), South Korea (2.6%) and the global GDP growth of 3.2%.

However, Najib said slower global economic growth, weak international market, drop in commodity prices such as petroleum, gas, palm oil and minerals was affecting the country’s economic growth this year.

He also cited circumstances that were out of the nation’s control and Brexit as factors affecting the local economy.

Najib said the GDP growth was forecast to be between 4% and 4.5%, with growth of 4.1% recorded for the first six months of this year.


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