FMT - ‘Wiping out GST, toll and subsidies will have serious consequences’:
PETALING JAYA: Populist calls to abolish the goods and services tax (GST), toll collections and reintroduce fuel subsidies would have serious fiscal consequences for years to come on Malaysia’s economy, Khazanah director Andrew Sheng said.
He said the International Monetary Fund’s April 2018 “Fiscal Monitor” put Malaysia’s general government overall balance (deficit) at 2.9% of gross domestic product (GDP) in 2017 — one-third below the emerging market average of 4.4% deficit.
“Achieving this feat at a time when oil prices had collapsed was due to the implementation of the broad-based, internationally-accepted tax framework, including the GST,” the well-known former central banker said in an article published by the Asian Correspondent news website.
“This was a key policy reform that enabled Malaysia to diversify and broaden its revenue streams to ensure that the country will be able to transit into an advanced income status with a broader revenue base.”
Sheng also said there was also a misconception now that the Malaysian economy was not performing.
On the contrary, he said the World Bank in April upgraded Malaysia’s GDP growth forecast for 2018 to 5.4%, from 5.2%, on strong private sector spending and private consumption — the fourth upward revision since April 2017.
“Similarly, in line with global recovery and continued expansion in domestic demand, the Malaysian central bank’s forecast for 2018 has been revised upwards to 5.5-6%, from 5-5.5% previously.
“That trajectory would make Malaysia one of the faster growing middle-income economies in the world.”
Growth higher than Singapore
Sheng said Malaysia’s growth had consistently been higher than that of Singapore since 2012, more than double that of emerging markets in the Latin American countries and one-third faster than the Middle East, North America emerging markets.
“Part of the recovery has been due to rising oil prices as well as rebounding exports of commodities, such as natural gas and palm oil, but not all.
“Such sustained growth is a result of deliberate planning.
“Malaysia has learnt significantly post the 1997/98 Asian Financial Crisis, basing growth on prudent monetary policies, responsive fiscal policies and strong foreign reserves.
“Despite the meltdown in oil prices in 2014/2015, tighter fiscal discipline and anticipatory action have kept Malaysia’s economy adaptive to very complex challenges at the global and regional levels.”
Sheng said Malaysia’s debt currently stood at RM685 billion, or 51% of GDP, the lowest level since 2012.
The standard rule of thumb is for the government debt to GDP ratio to not exceed 60% (the level imposed on European Union Maastricht Fiscal Compact), he added.
“The most important point to note is that 96.7% of the federal government debts are in ringgit.
“Malaysia has a diversified debt profile, with more than 70% held by domestic investors such as the pension, insurance and provident funds. Foreigners hold only 28.5% of the debt papers.”
Balasubramaniam informed us through a most scandalous sordid salacious revelation that he was informed by Razak Baginda who in turn was informed by Najib Razak who in turn was informed by Altantuyaa Shariibuu who in turn confessed she liked ‘getting it’ in her behind, etc etc etc.
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Andrew Sheng |
He said the International Monetary Fund’s April 2018 “Fiscal Monitor” put Malaysia’s general government overall balance (deficit) at 2.9% of gross domestic product (GDP) in 2017 — one-third below the emerging market average of 4.4% deficit.
“Achieving this feat at a time when oil prices had collapsed was due to the implementation of the broad-based, internationally-accepted tax framework, including the GST,” the well-known former central banker said in an article published by the Asian Correspondent news website.
“This was a key policy reform that enabled Malaysia to diversify and broaden its revenue streams to ensure that the country will be able to transit into an advanced income status with a broader revenue base.”
Sheng also said there was also a misconception now that the Malaysian economy was not performing.
On the contrary, he said the World Bank in April upgraded Malaysia’s GDP growth forecast for 2018 to 5.4%, from 5.2%, on strong private sector spending and private consumption — the fourth upward revision since April 2017.
“Similarly, in line with global recovery and continued expansion in domestic demand, the Malaysian central bank’s forecast for 2018 has been revised upwards to 5.5-6%, from 5-5.5% previously.
“That trajectory would make Malaysia one of the faster growing middle-income economies in the world.”
Growth higher than Singapore
Sheng said Malaysia’s growth had consistently been higher than that of Singapore since 2012, more than double that of emerging markets in the Latin American countries and one-third faster than the Middle East, North America emerging markets.
“Part of the recovery has been due to rising oil prices as well as rebounding exports of commodities, such as natural gas and palm oil, but not all.
“Such sustained growth is a result of deliberate planning.
“Malaysia has learnt significantly post the 1997/98 Asian Financial Crisis, basing growth on prudent monetary policies, responsive fiscal policies and strong foreign reserves.
“Despite the meltdown in oil prices in 2014/2015, tighter fiscal discipline and anticipatory action have kept Malaysia’s economy adaptive to very complex challenges at the global and regional levels.”
Sheng said Malaysia’s debt currently stood at RM685 billion, or 51% of GDP, the lowest level since 2012.
The standard rule of thumb is for the government debt to GDP ratio to not exceed 60% (the level imposed on European Union Maastricht Fiscal Compact), he added.
“The most important point to note is that 96.7% of the federal government debts are in ringgit.
“Malaysia has a diversified debt profile, with more than 70% held by domestic investors such as the pension, insurance and provident funds. Foreigners hold only 28.5% of the debt papers.”
Wikipedia tells us that:
Andrew Sheng is a Distinguished Fellow of Fung Global Institute, a Hong Kong-based global think tank. He started his career as an accountant. He served as Chairman of the Hong KongSecurities and Futures Commission (SFC) before his replacement by Martin Wheatley in 2005.
Following his graduation, Sheng moved to London and joined Arthur Andersen to train as a chartered accountant. After seven years in England, he came back to Malaysia in 1972, and four years later took up a position at Bank Negara Malaysia, where he did work involving banking regulation.
Following his graduation, Sheng moved to London and joined Arthur Andersen to train as a chartered accountant. After seven years in England, he came back to Malaysia in 1972, and four years later took up a position at Bank Negara Malaysia, where he did work involving banking regulation.
In 1989 he was seconded to the World Bank office in Washington, DC; he came back to Asia in 1993 to serve as the deputy chief executive of the Hong Kong Monetary Authority.
After that, he was appointed to his position on Hong Kong's SFC in October 1998; Tung Chee Hwa re-appointed him in October 2003 for a further two years. In 2005, he stepped down in favour of Wheatley, who had joined the SFC the year prior after being removed from his position at the London Stock Exchange.
Sheng became president of Fung Global Institute, an independent, global think tank based in Hong Kong, in 2011.
As of 2013, Sheng is also the Chief Adviser to the China Banking Regulatory Commission and a Board Member of Khazanah Nasional Berhad, Malaysia. In addition, he serves as a member of the International Advisory Council of the China Investment Corporation, the China Development Bank, the Advisory Council on Shanghai as an International Financial Centre and the International Council of the Freie University, Berlin.
As of 2013, Sheng is also the Chief Adviser to the China Banking Regulatory Commission and a Board Member of Khazanah Nasional Berhad, Malaysia. In addition, he serves as a member of the International Advisory Council of the China Investment Corporation, the China Development Bank, the Advisory Council on Shanghai as an International Financial Centre and the International Council of the Freie University, Berlin.
He is also an Adjunct Professor at the Graduate School of Economics and Management, Tsinghua University, Beijing and the University of Malaya, Kuala Lumpur.
In 2013, Sheng was awarded by the Hong Kong Securities and Investment Institute (HKSI) as Honorary Fellow.
In 2013, TIME named Sheng as one of the 100 most influential people in the world.
Since 2011, Sheng has written columns for Project Syndicate, a non-profit international media organization.
In 2013, Sheng was awarded by the Hong Kong Securities and Investment Institute (HKSI) as Honorary Fellow.
In 2013, TIME named Sheng as one of the 100 most influential people in the world.
Since 2011, Sheng has written columns for Project Syndicate, a non-profit international media organization.
WTF does Andrew Sheng knows about Malaysia's financial-economic standing when compared to the all-knowledgeable PH supporters like CK, Monsterball, JJ andDAPooops sorry PKR politicians like Tony Pua and Rafizi Ramli.
Our local experts just mentioned that Malaysia's financial-economic standing has gone to the dogs.
Don't argue with them or they'll set their dogs on you, wakakaka.
They'll also tell you Najib Razak murdered Shaariibuu Altantuyaa, and fck the evidence when PI Balasubramaniam had given his gospel truth words that Najib did it after fcking the model in her rear.
All solely on the words of one man, PI Balasubramaniam.
Balasubramaniam first penned his gospel truth SD after meeting Sivarasa of PKR in the Backyard Pub in Bangsar - see my postWill 'neutrality' of Mr 'Neutral' be neutralised?.
Or when they are feeling a tad sorry for Najib, that it was Rosmah Mansor who did it a la turun padang in her 4 inches high heel shoes, double beehive-hairdo and carrying seven Birkini handbags whilst wearing a pink diamond the size of a Musang King to personally C-4-ed the Mongolian model to smithereens.
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wakakaka, it's me again and again and again and again and again ............. again |