Malaysia – World Bank: More can be done to raise government revenue
KUALA LUMPUR: The World Bank believes the Malaysian government can do more to raise its revenue, forecasted to be at 15.2% of GDP in 2020, without affecting low-income households.
The key areas include making personal income taxes more progressive and broadening consumption taxes, it said in its 21st edition of the World Bank’s Malaysia Economic Monitor, launched here on Monday.
“This will help create fiscal space for development and social spending to boost shared prosperity, ” it added.
It said that amidst global uncertainty, Malaysia’s growth continues to be sustained with GDP projected to expand by 4.5% in 2020, largely driven by the expected expansion of private consumption of 6.5% and despite weaker-than-anticipated investment and export growth in recent months.
“Given the outlook, preserving fiscal space will be vital to mitigate the impact of any shocks, ” it said in the report, but this would include measures to increase the government revenue.