KUALA LUMPUR (May 17): Malaysia's Finance Ministry said today the nation's fiscal reform initiative is already underway. The ministry said the shortfall from the goods and services tax, which will be zero-rated effective June 1, 2018, will be cushioned by specific revenue and expenditure measures that will be announced in due course.
In a statement today, the ministry said the sales and services tax will be re-introduced while expenditure reduction will begin with rationalisation, efficiency measures and reduction in wastages.
"Of significance, oil prices have been higher than the US$52 per barrel estimated for Budget 2018. This provides fiscal buffers for the immediate future. Fiscal responsibility, transparency and governance will be a paramount consideration in rolling-out the fiscal reform," the ministry said.