Malaysia: GST leaves behind a large gap to fill

The decision today by the new Malaysian government to effectively abolish the Goods and Service Tax (GST) from the start of next month should provide a fiscal boost to the economy, but it will leave the government with a big hole in its coffers to fill. With higher-than-anticipated oil revenues only set to make up some of the shortfall, the budget deficit is set to rise to around 4% of GDP this year.

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