The Malaysian Insight

THE implementation of the goods and services tax (GST) is a blessing in disguise as the nation’s economy cannot survive without its revenue, said Treasury Secretary-General Mohd Irwan Serigar Abdullah.

He said the government had made a tough call to introduce GST, but the implementation was timely after Malaysia’s revenue from the oil and gas industry took a hit during the oil crisis.

“It’s a blessing in disguise because when we implemented GST, oil prices went down.

“From US$100 per barrel, it went down to below US$50, and suddenly more than RM20 billion in oil-related revenue was lost.

“Luckily, we implemented GST. Part of the revenue loss was covered by GST, and we survived the oil crisis. Until today, the economy is performing,” he said at the GST Conference 2017 in Kuala Lumpur today.

He said the collection from GST and other taxes was being enjoyed by the people through subsidies for healthcare and other services.

“For the long-term fiscal policy… we structure it so that we don’t borrow too much, but the deficit is also going down, and this year, we are on track to achieve a 3% deficit.

“Next year, it will go down even lower. Hopefully, one day, we will get a balanced budget.”

He added that the government aimed to corporatise the Customs Department by January next year.

“They are undertaking a lot of initiatives. That’s why we want to corporatise them. When we corporatise them, they will do a better job.”

In March, Prime Minister Najib Razak announced that the Customs Department would be corporatised with a better service scheme.

He said the move had been delayed following the implementation of GST in April 2015. – September 18, 2017.