Malaysia Faces Revenue Crunch as Spending Mounts on Virus Woes
- Government faces ‘urgent’ need to expand narrow revenue base
- Lower oil prices, green push will hit Malaysia revenue growth
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Malaysia will enter 2021 with its biggest spending plan yet to spur its virus-hit economy, but concerns are focusing on how to foot the bill after a sovereign-rating downgrade earlier this month.
The government expects revenue to rise 4.2% next year, counting on higher tax collections -- without raising taxes or introducing new ones -- coupled with a move to slash its dependence on oil. The plan hinges on one key assumption: that tax income will rise as economic activity returns close to normal.