Malaysia should reintroduce GST at rate that won’t burden people, says economist

AI Summary

Economist Datuk Dr Madeline Berma advocates for the reintroduction of the Goods and Services Tax (GST) in Malaysia at a rate that doesn't burden the public. She argues GST provides a sustainable and predictable revenue stream crucial for development and fiscal resilience, helping reduce the fiscal deficit and government debt. While acknowledging the expanded Sales and Service Tax (SST) is less revenue-generating but more manageable, she notes it primarily affects high-income earners directly but indirectly impacts low and middle-income earners through new service categories. The SST expansion on services like leasing, construction, and healthcare could increase investment costs and hinder business growth.