Kuala Lumpur, Oct 30- The Goods and Services Tax (GST) scheduled for implementation from April 1, 2015, will have a neutral impact on Malaysian exports in the long term.
Principal consultant, DB Dynamics Consultancy, Dr S Mahadevan said in the initial stage, there would be some impact on exports as businesses adapt to the GST which was announced in the recent Budget 2014.
“The GST has been implemented successfully in other countries,” he added.
He told the media this at the seminar on, “An Analysis on Budget 2014 in Relation to Government Grants and Financial Assistance for the Corporate Sector”.
It was organised by the Malaysian Exporters Association and Malaysian Institute of Export and International Trade.
Mahadevan said overall, the government had provided a better working environment for businesses in the Budget 2014.
“It is a good and balanced budget,” he added.
He said the Budget 2014 is formulated to ensure the economy continues to expand at a strong pace, and reduce the fiscal deficit, with the objective of prospering the nation and promoting the well-being of the people.
Infrastructure projects, announced in the budget, he added, will create spin-off activities in businesses.
The Budget 2014 outlined infrastructure projects such as the construction of the Ipoh-Padang Besar double-tracking project and its extension to Johor Baharu, as well as upgrading of rail tracks nationwide with an allocation of RM2.9 billion.
Other initiatives included an allocation for Bumiputera small and medium enterprises to spur business activity in the economy.
– Bernama
