Malaysian Economy is slowing down due to these factors: "First, the Malaysian economy is undergoing a terms-of-trade shock, with the prices of key commodity exports falling sharply. In this environment, expenditure restraint could raise downside risks to our GDP growth forecasts of around 5%, year-on-year, in 2013-2014. "If this were to materialise, slowing growth could also lower tax receipts, making it that much more difficult to achieve the medium-term government deficit target of 3% of GDP by 2015," it said. Fitch said the second reason was that the political position of the ruling coalition has weakened following the May election. "This means the government is likely to continue to encounter difficulties in implementing far-reaching, and much delayed, revenue-enhancing reforms such as the Goods & Services Tax (GST)," it said. The government has hinted it will table laws for the GST in the coming Budget 2014 session, as part of its plans to reduce the deficit to 3% of the GDP by 2015. - September 3, 2013.
Posted on: Tue, 03 Sep 2013 13:12:32 +0000
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