Business & AI Conference Empowering Malaysia's SMEs: Unlocking AI Innovations for Future-Ready Growth
Malaysia Business & Economic Outlook:
SME Challenges and Opportunities
Malaysia needs a sustainable and predictable source of revenue to meet our growing development expenditure needs and strengthen fiscal resilience to build a fiscal buffer against economic shocks.
The Government has indicated that it will prioritise improving the current tax system before assessing the need to reintroduce Goods and Services Tax (GST). Businesses and manufacturers have called for a reintroduction of GST as it is a more transparent and efficient tax system compared to SST. SST has some inherent structural limitations given its narrow base to enhance revenue growth, sustainability and also its compounding effect on businesses and consumers. Businesses do not get to claim a credit for incurring it; it creates a tax-on-tax effect along the supply chains.