Finance Minister, Lim Guan Eng, indicated the direction of the upcoming Budget 2020 by saying that one cannot take sides between development expenditure and managing debts.

Despite having a fiscal deficit, Malaysia has enjoyed a current account surplus and Guan Eng said development expenditure must continue

While focusing on restoring the country’s fiscal health, Budget 2020 will give emphasis on creating more jobs with reasonable pay and has identified Industry 4.0 as its new source of productivity and economic growth.

Digital tax is also set to commence by 1 January 2020 and is expected to rake in RM 2.4 billion a year

At the same light, MIER has urged the government to re-introduce the Goods and Services Tax (GST) in Budget 2020 at lower rate of 3%. Tan Sri Kamal Salih, MIER chairman, said GST is a fair system because there is an exclusion clauses that will protect the B40 income group.