*

CLOSE
LATEST NEWS

19 November 2015

GST: RM15,000 compound to be slapped on errant companies, says Ahmad Maslan Read More

THE VALUE?

WHAT IS

GST

Get a better understanding and the full perspective on GST. Choose any of the sections below to begin.

NUMBER OF COMPANIES
REGISTERED WITH GST

WHAT IS GST

The GST will replace Malaysia’s Sales Tax (SST) (10%) and Service Tax (6%). It is only one of the measures that the government is taking to enhance the financial system of the country and find new sources of revenue by improving the efficiency of tax collection - but why now?

GST: ADDING VALUE TO THE ECONOMY

With the implementation of GST, the government aims to earn RM23.1 billion. This revenue will contribute to the nation’s development expenditure of RM50.5 billion which will be channelled into infrastructure investment.

As part of the government’s financial overhaul, the GST will help our nation achieve its economic goals. Has the implementation of GST in other countries contributed to their economies?

GST Implementation In Other Countries

160 countries* around the world have the GST as part of their revenue stream. Here are eight examples of how the GST is implemented in our neighbouring countries:

Click the pins to read more

SINGAPORE

Singapore

INITIAL RATE

3%

CURRENT RATE

7%

IMPLEMENTED SINCE

1993

The Singapore government revises GST during periods of high growth: 3% (1994) 4% (2003) 5% (2004) 7% (2007).

Singapore spent S$4 billion (US$3.1 billion) over five years to offset GST. This offset package consisted of:

01.

Direct transfer benefits in the form of cash payouts (GST credits, growth dividends, senior citizens’ bonuses).

02.

CPF top-ups (post-secondary education account top-ups for students, Medisave top-ups for older Singaporeans).

03.

Rebates (on utilities and public housing services and conservancy charges.)

INDONESIA

Indonesia

CURRENT RATE

10%

IMPLEMENTED SINCE

1985

01.

VAT and GST are applied to most goods and services in Indonesia, as well as imports.

02.

Domestic consumption makes up for 55% of Indonesia’s GDP. This helped to protect Indonesia from the global economic crisis.

03.

Indonesia’s exports are GST free.

04.

Reduction in VAT:
8.4% reduced VAT on VAT and GST supplies on most goods and services in Indonesia, including imports
4% reduced VAT rate on in-house construction

CHINA

China

CURRENT RATE

17%

IMPLEMENTED SINCE

1984

01.

Administered by the State Administration of Taxation.

02.

In 2007, the revenue from VAT was 15.47 billion yuan (US$2.2 billion) which made up 33.9% of China's total tax revenue for the year.

03.

Reduction in VAT:
13% that applies to products such as books and types of oils.

AUSTRALIA

Australia

CURRENT RATE

10%

IMPLEMENTED SINCE

2000

01.

Most basic foods, as well as selected education courses and healthcare products are exempted from GST.

02.

All the money raised by the GST was to be provided to the states and territories, supposedly ending their dependence on the federal government's assistance.

NEW ZEALAND

New Zealand

INITIAL RATE

10%

CURRENT RATE

15%

IMPLEMENTED SINCE

1986

HISTORICAL RATES: 10% (1986) 12.5% (1989) 15% (2010)

01.

New Zealand’s ongoing tax reform has resulted in surplus forecasts for 2015 and a projection of 4% economic growth across the next 12 months.

02.

In 2010, the New Zealand tax reform package increased its GST rate from 12.5% to 15% and made the tax broader than most other developed countries.

03.

New Zealand’s GST represents 10% of its gross domestic product (GDP), compared with 3.3% in Australia.

JAPAN

Japan

INITIAL RATE

3%

CURRENT RATE

10%

IMPLEMENTED SINCE

1989

HISTORICAL RATES: 3% (1989) 5% (1997) 8% (2014), 10% (2015)

01.

The stepped tax increase in 2014 and 2015 are aimed at covering rising social welfare costs linked to Japan' ageing population.

02.

Japan requires taxpayers to either maintain books and records to support amounts claimed for the credit or to use a simplified system for estimating the credit.

SOUTH KOREA

SOUTH KOREA

CURRENT RATE

10%

IMPLEMENTED SINCE

1977

01.

VAT (equivalent to GST) was introduced in South Korea to consolidate the 8 indirect taxes previously in place to streamline the Korean tax system.

02.

It is similar to the European Union’s VAT system, requiring re-calculation and payments to the tax authorities at each transaction point in the onward sales chain.

03.

These taxes are collected and invested in social welfare for Korean residents. Non-residents and visitors to Korea may be eligible for a tax refund on purchased goods they will take out of the country.

THAILAND

Thailand

INITIAL RATE

10%

CURRENT RATE

7%

IMPLEMENTED SINCE

1992

HISTORICAL RATES: 10% (1992) 7% (2010)

01.

GST in Thailand was revised to 7% in 2010 at the request of business operators who felt the rate was too high.

02.

The Fiscal Economics Office in Thailand earlier this year suggested that the old 10% GST rate to be reintroduced as every one percent increase would generate 70-80 billion baht (US$2.14 billion US$2.45 billion) in revenue annually.

*As of 24 January 2014. Source: http://gst.customs.gov.my/en/gst/Pages/gst_ci.aspx

*As of 24 January 2014. Source:http://gst.customs.gov.my/en/gst/Pages/gst_ci.aspx

SINGAPORE

SINGAPORE

The Singapore government revises GST during periods of high growth: 3% (1994) 4% (2003) 5%(2004) 7% (2007).

INITIAL RATE

3%

CURRENT RATE

7%

IMPLEMENTED SINCE

1993

Singapore spent S$4 billion (US$3.1 billion)over five years to offset GST. This offsetpackage consisted of:

01.

Direct transfer benefits in theform of cash payouts (GST credits,growth dividends, senior citizens’bonuses).

02.

CPF top-ups (post-secondary education account top-ups for students, Medisave top-ups for older Singaporeans).

03.

Rebates (on utilities and public housing services and conservancy charges.)

INDONESIA

INDONESIA

CURRENT RATE

10%

IMPLEMENTED SINCE

1985

01.

VAT and GST are applied to most goods and services in Indonesia, as well as imports.

02.

Domestic consumption makes up for 55% of Indonesia’s GDP. This helped to protect Indonesia from the global economic crisis.

03.

Indonesia’s exports are GST free.

04.

Reduction in VAT:
8.4% reduced VAT on VAT and GST supplies on most goods and services in Indonesia, including imports
4% reduced VAT rate on in-house construction

CHINA

CHINA

CURRENT RATE

17%

IMPLEMENTED SINCE

1984

01.

Administered by the State Administration of Taxation.

02.

In 2007, the revenue from VAT was 15.47 billion yuan (U$2.2 billion) which made up 33.9% of China's total tax revenue for the year.

03.

Reduction in VAT:
13% that applies to products such as books and types of oils.

AUSTRALIA

AUSTRALIA

CURRENT RATE

10%

IMPLEMENTED SINCE

2000

01.

Most basic foods, as well as selected education courses and healthcare products are exempted from GST.

02.

All the money raised by the GST was to be provided to the states and territories, supposedly ending their dependence on the federal government's assistance.

NEW ZEALAND

NEW ZEALAND

HISTORICAL RATES: 10% (1986) 12.5% (1989) 15%(2010)

INITIAL RATE

10%

CURRENT RATE

15%

IMPLEMENTED SINCE

1986

01.

New Zealand’s ongoing tax reform has resulted in surplus forecasts for 2015 and a projection of 4% economic growth across the next 12 months.

02.

In 2010, the New Zealand tax reform package increased its GST rate from 12.5% to 15% and made the tax broader than most other developed countries.

03.

New Zealand’s GST represents 10% of its gross domestic product (GDP), compared with 3.3% in Australia.

JAPAN

JAPAN

HISTORICAL RATES: 3% (1989) 5% (1997) 8% (2014), 10% (2015)

INITIAL RATE

3%

CURRENT RATE

10%

IMPLEMENTED SINCE

1989

01.

The stepped tax increase in 2014 and 2015 are aimed at covering rising social welfare costs linked to Japan' ageing population.

02.

Japan requires taxpayers to either maintain books and records to support amounts claimed for the credit or to use a simplified system for estimating the credit.

SOUTH KOREA

SOUTH KOREA

CURRENT RATE

10%

IMPLEMENTED SINCE

1977

01.

VAT (equivalent to GST) was introduced in South Korea to consolidate the 8 indirect taxes previously in place to streamline the Korean tax system.

02.

It is similar to the European Union’s VAT system, requiring re-calculation and payments to the tax authorities at each transaction point in the onward sales chain.

03.

These taxes are collected and invested in social welfare for Korean residents. Non-residents and visitors to Korea may be eligible for a tax refund on purchased goods they will take out of the country.

THAILAND

THAILAND

HISTORICAL RATES: 10% (1992) 7% (2010)

INITIAL RATE

10%

CURRENT RATE

7%

IMPLEMENTED SINCE

1992

01.

GST in Thailand was revised to 7% in 2010 at the request of business operators who felt the rate was too high.

02.

The Fiscal Economics Office in Thailand earlier this year suggested that the old 10% GST rate to be reintroduced as every one per cent increase would generate 70-80 billion baht (US$2.14 billion US$2.45 billion) in revenue annually.

GST REGISTRATION

All businesses with a sales turnover of RM 500,000 or more must register for GST (voluntary for businesses with turnover of less than RM500,000) before 1 March 2015.

Despite this, only 62% of companies in Malaysia has registered.

NUMBER OF COMPANIES REGISTERED FOR GST

out of

500,000

(*As of 19 May 2015)

45%

ARE VOLUNTARY
REGISTRATION

Companies with annual taxable turnover of less than RM500,000 can choose to register by 1 March 2015 to enjoy the benefits of being registered such as claiming back incurred input tax as well as increasing credibility of their business.

OUT OF THESE:

55%

ARE MANDATORY
REGISTRATION

Companies with annual taxable turnover of more than RM500,000 is required to register before 1 March 2015 or risk imprisonment and fine, as well as the inability to claim back their incurred input tax.

AND

60%

MEDIUM-SIZED
BUSINESSES

According to Bank Negara Malaysia, a medium-sized business is defined as:

Manufacturing industry:
Business sales turnover from RM15 Million to not more than RM50 million or full-time employees from 75 to 200 people.

Services and other industries:
Business sales turnover from RM3 Million to RM20 million or full-time employees from 30 to 75 people.

40%

SMALL
BUSINESSES

According to Bank Negara Malaysia, a small business is defined as:

Manufacturing industry:
Business sales turnover from RM300,000 to less than RM15 million or full-time employees from 5 to less than 75 people.

Services and other industries:
Business sales turnover from RM300,000 to less than RM3 million or full-time employees from 5 to less than 30 people.

THE 3 TYPES OF GST

There is a lot of confusion on what goods and services are affected by GST. With more than 900 items in the list, how do we know which items are standard-rated, zero-rated or exempted?

  • STANDARD-RATED GST

  • ZERO-RATED GST

  • EXEMPT-RATED GST

GST: THE BREAKDOWN

CLICK TO EXPLORE WHAT ITEMS ARE ZERO-RATED, CHARGED AND EXEMPTED FROM GST.

SELECT A CATEGORY

Groceries

  • Baking powder
  • Biscuit
  • Canned mushroom
  • Canned sardines
  • Cheese slice
  • Chicken essence
  • Chilli paste
  • Cocoa powder
  • Coconut milk
  • Corn flour
  • Creamer
  • Fish ball
  • Instant noodle
  • Jam
  • Olive oil
  • Soy sauce
  • Soybean
  • Tom yam paste
  • Vinegar
  • Yeast
VIEW & DOWNLOAD FULL LIST

Food & Beverages

  • Biscuit
  • Cake
  • Candy
  • Cereal
  • Cheese
  • Chocolate
  • Crackers
  • Drinking water
  • Horlicks
  • Ice Cream
  • Kit Kat
  • Milo
  • Nestea
  • Pizza
  • Porridge
  • Pringles
  • Twisties
  • Yakult
  • Yogurt
VIEW & DOWNLOAD FULL LIST

fruits &vegetables

  • Dried dates
  • Dried mushroom
  • Dried banana
VIEW & DOWNLOAD FULL LIST

Toys and Games

  • Ball
  • Balloon
  • Barbie doll
  • Checkers
  • Chess game
  • Congkak
  • Dart
  • Dice
  • Flash cards
  • Lego
  • Marbles
  • Modeling clay
  • Monopoly
  • Party mask
  • Puzzle
  • Skipping rope
  • Sahibba
  • Water Gun
  • Whistle
  • Yo Yo
VIEW & DOWNLOAD FULL LIST

Household

  • Air freshener
  • Adaptor
  • Basin
  • Bleach
  • Broom
  • Chair
  • Clock
  • Detergent
  • Fabric softener
  • Feather duster
  • Fertilizer
  • Hanger
  • Mirror
  • Pail
  • Tissue
  • Towel
  • Umbrella
  • Vase
  • Wallpaper
VIEW & DOWNLOAD FULL LIST

Medicine

  • Balm
  • Bandage
  • Bird's nest
  • Bonjela
  • Breacol
  • Condom
  • Cool Fever
  • Deep Heating Rub
  • Eno
  • Lozenge Batuk Ganho
  • Medical plaster
  • Medicated oil
  • Oxy 10
  • Pill Chi Kit Teck Aun
  • Plaster
  • Pregnancy test kit
  • Scott's Emulsion
  • Strepsils Max Pain Relief
  • Ubat Batuk Cap Ibu dan Anak
  • Ubat Batuk Cap Kelapa Laut
VIEW & DOWNLOAD FULL LIST

Garment, Footwear, Bag & Accessories

  • Belt
  • Bracelet
  • Cap
  • Clothes
  • Hair band
  • Handbag
  • Luggage
  • Napkin
  • Necklace
  • Pants
  • Raincoat
  • Sarong
  • Scarf
  • Shawl
  • Shoes
  • Slippers
  • Socks
  • Ties
  • Undergarment
  • Workers uniform
VIEW & DOWNLOAD FULL LIST

stationeries

  • A4 paper
  • Ball pen
  • Bill book
  • Book wrappers
  • Brush set
  • Calculator
  • Cellophane tape
  • Clip
  • Colour pencils
  • Comics
  • Compact disc
  • Envelopes
  • Eraser
  • Examination pad
  • Glue
  • Note Book
  • Pencil
  • Pencil box
  • Ruler
  • Scissors
VIEW & DOWNLOAD FULL LIST

Pets

  • Cage
  • Cat sand
  • Pet accessories
  • Pet food
  • Pet grooming set
  • Pet soap/shampoo
  • Pet toiletries
VIEW & DOWNLOAD FULL LIST

Hardware

  • Battery
  • Bolt & nut
  • Brush
  • Car battery
  • Dustbin
  • Flashlight
  • Fuse
  • Glove
  • Hammer
  • Hoe
  • Lightbulb
  • Lighter
  • Nails
  • Paint
  • Pipe
  • Plastic hose
  • Saw
  • Scope
  • Screw
  • /
  • Sponge
VIEW & DOWNLOAD FULL LIST

Kitchenware

  • Aluminum foil
  • Candles
  • Chopping board
  • Chopstick
  • Cling wrap
  • Cups
  • Dishes rack
  • Fork & spoon
  • Kettle
  • Kitchen glove
  • Knife
  • Ladle
  • Peeler
  • Plastic Bag
  • Plates
  • Polystyrene container
  • Pot
  • Straws
  • Toothpicks
  • Wok
VIEW & DOWNLOAD FULL LIST

Health & Beauty

  • Beauty cream
  • Comb
  • Cotton buds
  • Deodorant
  • Dettol
  • Diapers
  • Facial cleanser
  • Floss
  • Hair gel
  • Lipstick
  • Listerine
  • Lotion
  • Perfume
  • Sanitary pad
  • Shampoo
  • Soap
  • Talcum
  • Tissue
  • Toothbrush
  • Toothpaste
VIEW & DOWNLOAD FULL LIST

Others

  • Battery water
  • Car charge kit
  • Car wash & wax
  • Cigarette
  • Emergency light LED
  • Fishing rod
  • Windscreen Cleaner
  • Windshield Cleaner
VIEW & DOWNLOAD FULL LIST

SELECT A CATEGORY

groceries

  • Chicken
  • Clove
  • Coffee
  • Cooking oil
  • Duck
  • Fish fillet
  • Garlic
  • Ginger
  • Green tea
  • Infant milk powder
  • Onion
  • Pepper
  • Potato
  • Rice
  • Salt
  • Spices
  • Sugar
  • Tamarind
  • Turmeric
  • Wheat
VIEW & DOWNLOAD FULL LIST

food & beverages

  • White bread
  • Wholemeal bread
VIEW & DOWNLOAD FULL LIST

fruits & vegetables

  • Banana
  • Bean sprouts
  • Broccoli
  • Cabbage
  • Cherry
  • Chilli
  • Corn
  • Cucumber
  • Eggplant
  • Grapes
  • Guava
  • Honey dew
  • Lemongrass
  • Mushroom
  • Orange
  • Pear
  • Pumpkin
  • Spinach
  • Tomato
  • Watermelon
VIEW & DOWNLOAD FULL LIST

Medicine

  • Calamine lotion
  • Cough syrup
  • Creobic cream
  • Hurix’s laxative pill
  • Medon 500
  • Panadol tablets
  • Three Legs Yellow lotion
  • Uphamol tablet
  • Weng Heng tablet
  • Zentel tablet
VIEW & DOWNLOAD FULL LIST

stationeries

  • Children colouring books
  • Children drawing books
  • Dictionary
  • Exercise book
  • Newspaper
  • Science practical book
  • Story book
VIEW & DOWNLOAD FULL LIST

SELECT A CATEGORY

Land

  • Agriculture
  • Residence
  • Car Park
  • Religious buildings
VIEW & DOWNLOAD FULL LIST

precious metals

  • Gold/Silver/Platinum bar, coins ingot or wafer (pure to 99.5%)
VIEW & DOWNLOAD FULL LIST

financial services

  • Bank account operations (current, savings deposit or investment)
  • Credit instalment facilities
  • Currency exchange
  • Life insurance
VIEW & DOWNLOAD FULL LIST

transportation services

  • Trains (LRT, ERL, MRT, Monorail)
  • Buses (Metro, Transnasional, RapidKL, RapidPenang)
  • Cabs (Sunlight Taxi, Blue Cab, Comfort Taxi)
  • Tolled highways (LDP, KESAS, Penchala Link)
VIEW & DOWNLOAD FULL LIST

healthcare services

  • Private dental service
  • Private mortuary service
  • Private maternity home
  • Private psychiatric clinic
  • Private hemodialysis centre
VIEW & DOWNLOAD FULL LIST

educational services

  • Private child care, pre-school, primary school and secondary school
  • Tertiary education
VIEW & DOWNLOAD FULL LIST

GST: CALCULATOR

How might GST affect your expenses?**

Disclaimer:
*Subject to change. Estimated data as of 25 March 2015.
Source: http://gst.customs.gov.my/en/rg/Pages/rg_ig.aspx
**The calculation is only an estimated value.

  • 1

    Fill in the fields below and click on the left or right icon

  • 2

    Navigate to the "total" section to view or download your total expenses + GST amount

  • 1

    Select any of the category
    tabs and key in your expenses

  • 2

    Click on the “total” tab to view or
    download your total expenses + GST amount 

ITEMS AMOUNT BEFORE GST [RM] GST AMOUNT [RM] AMOUNT AFTER GST* [RM]
Telephone bill
Total
ITEMS AMOUNT BEFORE GST [RM] GST AMOUNT [RM] AMOUNT AFTER GST* [RM]
Groceries
Total
ITEMS AMOUNT BEFORE GST [RM] GST AMOUNT [RM] AMOUNT AFTER GST* [RM]
White bread/ Wholemeal bread
Total
ITEMS AMOUNT BEFORE GST [RM] GST AMOUNT [RM] AMOUNT AFTER GST* [RM]
Dine In
Total
ITEMS AMOUNT BEFORE GST [RM] GST AMOUNT [RM] AMOUNT AFTER GST* [RM]
Petrol (RON'97)
Total
ITEMS AMOUNT BEFORE GST [RM] GST AMOUNT [RM] AMOUNT AFTER GST* [RM]
Clothes
Total
ITEMS AMOUNT BEFORE GST [RM] GST AMOUNT [RM] AMOUNT AFTER GST* [RM]
Movies
Total
AMOUNT BEFORE GST [RM] GST AMOUNT [RM] AMOUNT AFTER GST* [RM]
TOTAL EXPENDITURE
PERSONAL
AMOUNT BEFORE GST [RM]
GST AMOUNT [RM]
AMOUNT AFTER GST* [RM]
HOUSEHOLD
AMOUNT BEFORE GST [RM]
GST AMOUNT [RM]
AMOUNT AFTER GST* [RM]
Groceries
AMOUNT BEFORE GST [RM]
GST AMOUNT [RM]
AMOUNT AFTER GST* [RM]
FOOD & DRINKS
AMOUNT BEFORE GST [RM]
GST AMOUNT [RM]
AMOUNT AFTER GST* [RM]
TRANSPORT
AMOUNT BEFORE GST [RM]
GST AMOUNT [RM]
AMOUNT AFTER GST* [RM]
SHOPPING
AMOUNT BEFORE GST [RM]
GST AMOUNT [RM]
AMOUNT AFTER GST* [RM]
ENTERTAINMENT
AMOUNT BEFORE GST [RM]
GST AMOUNT [RM]
AMOUNT AFTER GST* [RM]
DOWNLOAD (PDF)
  • 1/8 PERSONAL
Telephone bill
RM
Price after GST
RM
GST amount
RM
Personal Total
RM
Price after GST
RM
GST amount
RM
  • 1/8 PERSONAL
SHOW ALL RESULTS
  • 2/8 HOUSEHOLD
Groceries
RM
Price after GST
RM
GST amount
RM
Food & Drinks Total
RM
Price after GST
RM
GST amount
RM
  • 2/8 HOUSEHOLD
SHOW ALL RESULTS
  • 3/8 GROCERIES
Groceries
RM
Price after GST
RM
GST amount
RM
Food & Drinks Total
RM
Price after GST
RM
GST amount
RM
  • 3/8 GROCERIES
SHOW ALL RESULTS
  • 4/8 FOOD & DRINK
Dine In
RM
Price after GST
RM
GST amount
RM
Food & Drinks Total
RM
Price after GST
RM
GST amount
RM
  • 4/8 FOOD & DRINK
SHOW ALL RESULTS
  • 5/8 TRANSPORT
Petrol (RON'97)
RM
Price after GST
RM
GST amount
RM
Transport Total
RM
Price after GST
RM
GST amount
RM
  • 5/8 TRANSPORT
SHOW ALL RESULTS
  • 6/8 SHOPPING
Clothes
RM
Price after GST
RM
GST amount
RM
Shopping Total
RM
Price after GST
RM
GST amount
RM
  • 6/8 SHOPPING
SHOW ALL RESULTS
  • 7/8 ENTERTAINMENT
Movies
RM
Price after GST
RM
GST amount
RM
Entertainment Total
RM
Price after GST
RM
GST amount
RM
  • 7/8 ENTERTAINMENT
SHOW ALL RESULTS
  • 8/8 TOTAL
TOTAL EXPENDITURE
Amount Before GST [RM]
GST Amount [RM]
Amount After GST* [RM]
AMOUNT BEFORE GST [RM]
GST AMOUNT [RM]
AMOUNT AFTER GST* [RM]
AMOUNT BEFORE GST [RM]
GST AMOUNT [RM]
AMOUNT AFTER GST* [RM]
AMOUNT BEFORE GST [RM]
GST AMOUNT [RM]
AMOUNT AFTER GST* [RM]
AMOUNT BEFORE GST [RM]
GST AMOUNT [RM]
AMOUNT AFTER GST* [RM]
AMOUNT BEFORE GST [RM]
GST AMOUNT [RM]
AMOUNT AFTER GST* [RM]
AMOUNT BEFORE GST [RM]
GST AMOUNT [RM]
AMOUNT AFTER GST* [RM]
AMOUNT BEFORE GST [RM]
GST AMOUNT [RM]
AMOUNT AFTER GST* [RM]
  • 8/8 TOTAL
DOWNLOAD RESULTS
CALCULATE AGAIN

THE ECONOMIC VALUE OF GST FOR MALAYSIA

For many countries, the implementation of GST has brought positive improvement to their GDP, tax revenue and a reduction in their inflation rate. How will Malaysia's economy fare with it’s implementation?

OUR ECONOMIC HEALTH: AN OVERVIEW

Click on any point in the chart to explore in detail our economic health. You can also toggle between GDP Growth, fiscal deficit and inflation rate.*

  • 8.0%
  • 6.0%
  • 4.0%
  • 2.0%
  • 2010
  • 2011
  • 2012
  • 2013
  • 2014
2010
7.4%
GDP GROWTH

Malaysia's economy charted a solid growth due to higher domestic demand and foreign trading.

2011
5.1%
GDP GROWTH

Malaysia's economy charted 4.7% growth despite being influenced by weak outside factors and unstable global economy. This growth is highly

2012
5.6%
GDP GROWTH

Malaysia's economy charted 5.6% growth, helmed by the Services and Manufacturing Sector. The Construction Sector also contributed significantly and recorded the highest growth since 1996.

2013
4.7%
GDP GROWTH

Although the global economic environment became increasingly more challenging and uncertain in the second half-year, Malaysia’s economic growth improved due to stronger domestic demand, driven by both household and business spending, and higher public sector consumption.

2014
6%
GDP GROWTH

Encouraging economic growth are noted in most countries including the Asian region. Malaysia charted a strong 7.4% increase in growth, spurred by the Services and Manufacturing Sector.

2010
5.6%
FISCAL DEFICIT

Reduced fiscal deficit proved that the government’s efforts to bring down the figure is working and that it would continue with its prudent spending.

RM86.5 Billion
DIRECT TAX REVENUE

Tax collection capability is directly linked to the country's economic standing, as well as the performance of other prime revenue sources such as petroleum, corporate organizations and many others.

2011
5.4%
FISCAL DEFICIT

Reduced fiscal deficit proved that the government’s efforts to bring down the figure is working and that it would continue with its prudent spending.

RM109.6 Billion
DIRECT TAX REVENUE

Tax collection capability is directly linked to the country's economic standing, as well as the performance of other prime revenue sources such as petroleum, corporate organizations and many others.

2012
4.5%
FISCAL DEFICIT

Reduced fiscal deficit proved that the government’s efforts to bring down the figure is working and that it would continue with its prudent spending.

RM124.9 Billion
DIRECT TAX REVENUE

Tax collection capability is directly linked to the country's economic standing, as well as the performance of other prime revenue sources such as petroleum, corporate organizations and many others.

2013
4.0%
FISCAL DEFICIT

Reduced fiscal deficit proved that the government’s efforts to bring down the figure is working and that it would continue with its prudent spending.

RM128.9 Billion
DIRECT TAX REVENUE

Tax collection capability is directly linked to the country's economic standing, as well as the performance of other prime revenue sources such as petroleum, corporate organizations and many others.

2014
3.5%
FISCAL DEFICIT

Reduced fiscal deficit proved that the government’s efforts to bring down the figure is working and that it would continue with its prudent spending.

RM133.7 Billion
DIRECT TAX REVENUE

Tax collection capability is directly linked to the country's economic standing, as well as the performance of other prime revenue sources such as petroleum, corporate organizations and many others.

2010
1.7%
INFLATION RATE

Higher inflation rate due to increasing inflation in transportation, housing, water, electricity, gas and other fuels.

2011
3.2%
INFLATION RATE

Main contributors of inflation are food and beverages, transportation, as well as housing, water, electricity, gas and other fuels. All these three categories made up 87% of the total increase in consumer price in 2013.

2012
1.6%
INFLATION RATE

Pressure from weak global price due to slow growth and base effect from the previous year's high inflation also contributed to lower inflation.

2013
2.1%
INFLATION RATE

Main contributor to inflation comes from food and beverages as well as transportation that made up 67.1% of the total domestic price hike.

2014
3.2%
INFLATION RATE

Main contributor to inflation comes from food and non-alcoholic beverages as well as transportation that made up 59.2% of the total domestic price hike.

  • (The monetary value of all goods and services produced in the country within a time period)

  • (Government's total expenditures versus the revenue that it generates)

  • (% Change of Consumer Price Index)

GDP GROWTH
(The monetary value of all goods and services produced in the country within a time period)

7.4%

Malaysia's economy charted a solid growth due to higher domestic demand and foreign trading.

FISCAL DEFICIT
(Government's total expenditures versus the revenue that it generates)

5.6%

Reduced fiscal deficit proved that the government’s efforts to bring down the figure is working and that it would continue with its prudent spending.

DIRECT TAX REVENUE
(Income that is gained by governments through taxation)

RM86.5 billion

Tax collection capability is directly linked to the country's economic standing, as well as the performance of other prime revenue sources such as petroleum, corporate organizations and many others.

INFLATION RATE
(% Change of Consumer Price Index)

1.7%

Higher inflation rate due to increasing inflation in transportation, housing, water, electricity, gas and other fuels.

GDP GROWTH
(The monetary value of all goods and services produced in the country within a time period)

5.1%

Malaysia's economy charted 4.7% growth despite being influenced by weak outside factors and unstable global economy. This growth is highly attributed to the Services and Manufacturing Sector.

FISCAL DEFICIT
(Government's total expenditures versus the revenue that it generates)

5.4%

Reduced fiscal deficit proved that the government’s efforts to bring down the figure is working and that it would continue with its prudent spending.

DIRECT TAX REVENUE
(Income that is gained by governments through taxation)

RM109.6 billion

Tax collection capability is directly linked to the country's economic standing, as well as the performance of other prime revenue sources such as petroleum, corporate organizations and many others.

INFLATION RATE
(% Change of Consumer Price Index)

3.2%

Main contributors of inflation are food and beverages, transportation, as well as housing, water, electricity, gas and other fuels. All these three categories made up 87% of the total increase in consumer price in 2013.

GDP GROWTH
(The monetary value of all goods and services produced in the country within a time period)

5.6%

Malaysia's economy charted 5.6% growth, helmed by the Services and Manufacturing Sector. The Construction Sector also contributed significantly and recorded the highest growth since 1996.

FISCAL DEFICIT
(Government's total expenditures versus the revenue that it generates)

4.5%

Reduced fiscal deficit proved that the government’s efforts to bring down the figure is working and that it would continue with its prudent spending.

DIRECT TAX REVENUE
(Income that is gained by governments through taxation)

RM124.9 billion

Tax collection capability is directly linked to the country's economic standing, as well as the performance of other prime revenue sources such as petroleum, corporate organizations and many others.

INFLATION RATE
(% Change of Consumer Price Index)

1.6%

Pressure from weak global price due to slow growth and base effect from the previous year's high inflation also contributed to lower inflation.

GDP GROWTH
(The monetary value of all goods and services produced in the country within a time period)

4.7%

Although the global economic environment became increasingly more challenging and uncertain in the second half-year, Malaysia’s economic growth improved due to stronger domestic demand, driven by both household and business spending, and higher public sector consumption.

FISCAL DEFICIT
(Government's total expenditures versus the revenue that it generates)

4.0%

Reduced fiscal deficit proved that the government’s efforts to bring down the figure is working and that it would continue with its prudent spending.

DIRECT TAX REVENUE
(Income that is gained by governments through taxation)

RM128.9 billion

Tax collection capability is directly linked to the country's economic standing, as well as the performance of other prime revenue sources such as petroleum, corporate organizations and many others.

INFLATION RATE
(% Change of Consumer Price Index)

2.1%

Main contributor to inflation comes from food and beverages as well as transportation that made up 67.1% of the total domestic price hike.

GDP GROWTH
(The monetary value of all goods and services produced in the country within a time period)

6%

Encouraging economic growth are noted in most countries including the Asian region. Malaysia charted a strong 7.4% increase in growth, spurred by the Services and Manufacturing Sector.

FISCAL DEFICIT
(Government's total expenditures versus the revenue that it generates)

3.5%

Reduced fiscal deficit proved that the government’s efforts to bring down the figure is working and that it would continue with its prudent spending.

DIRECT TAX REVENUE
(Income that is gained by governments through taxation)

RM133.7 billion

Tax collection capability is directly linked to the country's economic standing, as well as the performance of other prime revenue sources such as petroleum, corporate organizations and many others.

INFLATION RATE
(% Change of Consumer Price Index)

3.2%

Main contributor to inflation comes from food and non-alcoholic beverages as well as transportation that made up 59.2% of the total domestic price hike.

*This chart is only a representation of the nation’s economy landscape.
Source: Ministry of Finance, Bank Negara Malaysia
Compiled by: Astro AWANI’s Business/Economy desk

GDP BREAKDOWN BASED ON SECTORS

Discover the contribution of each of the sectors below for the past five years.

5.6%
RM 2,555 Mil
REAL ESTATE & BUSINESS SERVICES

YEAR

2010

2014

2013

SECTORS

THE FUTURE WITH GST

The implementation of GST is expected to be a turning point for our country's economy as it will add value to the country, people and businesses.

GST IMPACT: AN OVERVIEW

NATIONAL

national

GROWTH THROUGH ECONOMIC REVAMP

With GST, the government is expecting a revenue of RM23.2 billion in 2015. RM4.9 billion of this revenue will be pumped into programmes to cushion the impact of GST on the country. The implementation of GST would yield additional revenue following the fall in the price of oil, of which the country is highly dependant on.

INDUSTRIES

industries

GROWTH THROUGH CHANGE

All business inputs are now claimable, avoiding the cascading effect of tax through savings in non-capital inputs and special refunds. GST also mean less red tape and special tax packages from the government. For the tourism and its related industries, the government is expecting growth as tourists can now claim GST when they spend in Malaysia.

INDIVIDUALS

individuals

A CHANGE FOR THE GOOD

Although it requires some adjustment at first, consumers stand to gain from the implementation of GST. With a growing list of exempted as well as zero-rated items, consumer can expect a price reduction on selected goods and services. The government is helping with initiatives such as reduction of the tax bracket as well as support in the form of BR1M.

  • NATIONAL

  • INDUSTRIES

  • INDIVIDUALS

THE GST EFFECT ON THE NATION

With the aim of addressing our widening income disparity and making our economy more sustainable, the government hopes that GST will push our manufacturers and businesses to be more competitive, on par with the growth of other Asian countries. But how do we measure the success of GST’s implementation?


FORECAST FIGURE

20
15
GDP GROWTH
4.5 - 5.5%

Export demand is forecasted to be weaker, therefore domestic demand is forecasted to be stronger as public consumption and investment are expected to pick up the slack of the weaker private counterparts.

DIRECT TAX REVENUE
142.6
(RM Billion)

GST will raise tax receipts by an additional amount on top of the current earnings derived from existing sales and service tax.

FISCAL DEFICIT
3.2%

The introduction of GST will make the taxation system more efficient, effective, transparent, and business friendly, therefore generating a more stable source of revenue.

INFLATION RATE
3.8 - 4.2%

Inflation rate will be higher following the adjustment of prices with the implementation of GST.

20
16
GDP GROWTH
5.5 - 6.0%

Same trend from 2015 but stronger from domestic demand from public consumption and investment.

DIRECT TAX REVENUE
32(GST)
(RM Billion)

GST will boost the country’s income which in turn will translate into additional public funds towards the people’s benefit.
*Estimated revenue from GST alone.

FISCAL DEFICIT
3.0%

The more effective GST will help reduce the fiscal deficit in Malaysia for the long run.

INFLATION RATE
3.0%

Inflation rate will be lower due to the stabilisation of prices in the market.

Source: Ministry of Finance, Bank Negara Malaysia
Compiled by: Astro AWANI’s Business/Economy desk

THE PEOPLE'S VOICE

What value will GST add to businesses, enterprises and the people?

GST TIMELINE

The government has mobilised selected governing bodies, as well as established implementation programmes to monitor price movements before, during, and after GST's implementation. What other mechanisms are in place to ensure that GST will truly benefit the nation?

GST IMPLEMENTATION:
THE GOVERNMENT’S ROLE

ASSISTANCE TO THE RAKYAT

  • One-off cash assistance of RM300 to BR1M recipients.
  • Reduction of income tax by 1-3%, which means 300,000 will no longer have to pay tax.

ASSISTANCE TO BUSINESSES

  • Corporate income tax will be reduced by 1% to 24%.
  • SME income tax will be reduced by 1% to 19%.
  • Tax deduction for training in accounting and ICT related to GST.
  • Accelerated Capital Allowance given for purchase of ICT equipment and software.

TIMELINE

Implementation of GST

LATEST FROM ASTRO AWANI

Click for more stories

YOUR PERSPECTIVE

Take part in our poll as well as share your thoughts in the comment section below.

QUESTION:

JOIN THE CONVERSATION

Your comments are provided at your own free will and you are responsible for any direct or indirect liability. You hereby provide us with an irrevocable, unlimited, and global license to use, reuse, delete or publish your comments. Comments will only appear after moderation by our admins.