Economic Research | 28 May 2018 | |||
Malaysia | ||||
Economic Update | ||||
From GST to SST_Return Of SST – Impact On Economy And Equities The move to zero-rate the Goods and Services Tax (GST) from 1 Jun onwards would result in a revenue loss. However, fast-tracking the Sales and Services Tax (SST) reimplementation, higher oil prices and potential cuts in expenditure may bring this loss to a more manageable MYR1.7bn, or 0.1% of GDP. This may result in a budget deficit of 2.9% of 2018F GDP, vs 2.8% presently, if our assumption on the cut in government expenditure and the timing of the SST implementation comes through. For equities, we identify sectors that may win or lose as the transition from GST to SST takes place. Economist: Vincent Loo Yeong Hong | +603 9280 2172 Peck Boon Soon | +603 9280 2163 Alexander Chia | +603 9280 8889 | ||||
To access our recent reports please click on the links below: 23 May: Subdued Inflation In April; 2018 Forecasts Slashed 17 May: Slower 1Q GDP Growth; 2018 Forecast Retained 17 May: GST Zero-Rated; Transitioning To SST 14 May: March IPI Growth Steady, GDP Forecast Retained 14 May: OPR Unchanged, Rate Outlook At Risk Post-GE14 08 May: Forex Reserves Retreat In April | ||||
Economics Team | ||||
Arup Raha | Group Chief Economist | +65 6232 3896 | ||
Peck Boon Soon | Chief ASEAN Economist | +603 9280 2163 | ||
Vincent Loo Yeong Hong | Malaysia, Singapore | +603 9280 2172 | ||
Ahmad Nazmi Idrus | Indonesia | +603 9280 2179 | ||
Aris Nazman Maslan | Thailand, Philippines , Vietnam | +603 9280 2184 | ||
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