Malaysia Can Still Hit Its Revenue Requirement Without GST, Says Zeti
The former BNM governor said certain measures must be put in place.
By John Lim — 15 May 2018, 08:53 AM
In a statement yesterday, 14 May, former governor of Bank Negara Malaysia (BNM) Tan Sri Zeti Akhtar Aziz said that Malaysia can safely hit its revenue requirement despite shelving the Goods and Services Tax (GST)
Zeti, who is part of Tun Dr Mahathir's Council Of Elders, said this is possible if the newly-formed government prioritises on new projects, cut down on wastages, explore new forms of revenues, and increase public sector efficiency.
Pakatan Harapan has pledged in its manifesto that it will be abolishing the controversial tax.
Bernama also reported Zeti as saying that the 100-day timeframe is adequate to implement effective changes and implementations that will help the country's economy
"I think that is what the markets want too. They want to see the commitment and the clarity in what is going to be done (by the government)," she told the news agency.
Zeti then cited previous situations during Tun Mahathir's tenure as Prime Minister in 1990s, when the government shifted its focus on completing mega projects
"During that time we advised him to reprioritise the mega projects and stagger their implementation into the future.
"Within two years, the current account deficit of the balance of payments improved to 4.6% of GDP against more than 10% previously. We have done it before and we will do it again," she added.
The former banker's statement echoed Tun Dr Mahathir's sentiment. The newly-minted Prime Minister has assured the public that the government has enough wealth to abolish GST: