What impact does global oil price rout have on Malaysia?

Question

Accepted Answer

Global Oil Price Rout's Impact on Malaysia's Economy

The global oil price rout has significantly impacted Malaysia's economy by affecting a key revenue channel previously reliant on oil and gas exports. In response to this economic pressure, the Malaysian government introduced the Goods and Services Tax (GST) as a measure to ensure economic stability.
Revenue Channel Disruption

Malaysia's economy has historically depended heavily on revenue generated from oil and gas exports. However, a prolonged downturn in global oil prices has adversely affected this crucial source of income for the nation. This situation necessitated the exploration of alternative revenue streams to maintain economic stability.
Introduction of Goods and Services Tax (GST)

To counteract the economic strain caused by the decline in oil and gas revenues, the Malaysian government implemented the Goods and Services Tax (GST) in the preceding year. Prime Minister Datuk Seri Najib Razak stated that the GST was introduced not to burden citizens but to serve as a measure to save the country's economy.
Economic Stability Amidst Price Rout

Despite the challenges posed by the global oil price rout, Malaysia's economy has remained relatively stable due to the introduction and collection of the GST. The Prime Minister highlighted that the GST collection has reached RM51 billion, exceeding initial expectations and contributing significantly to the nation's financial resilience. The Customs Department reported a collection of nearly RM30 billion within the first nine months of the GST's rollout.

Reading history

Hide →

This history is cleared when the page is closed.

What impact does global oil price rout have on Malaysia?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends