Malaysia exerts efforts to improve financial situation

Finance Minister Lim Guan Eng said the Public Finance Committee and the Tax Reform Committee would be set up. (Source:https://www.thestar.com.my)

Kuala Lumpur (VNA) - The Malaysian government announced on August 29 that it will set up two committees to help reduce the country's fiscal deficit to 2.8 per cent of the Gross Domestic Product, according to Malaysian Finance Minister Lim Guan Eng.

He said the setting up of the Public Finance Committee (PFC) and the Tax Reform Committee (TRC) was also part of the continuous fiscal consolidation agenda without undermining the economic growth and prosperity of the people.

The PFC will provide a medium-term fiscal plan, while pursuing a fiscal consolidation agenda by taking into account the government's needs to improve the well-being of the people and support economic growth through its expenditure.

Meanwhile, the TRC will review the overall tax system to make it more efficient, neutral and progressive to help spur high-quality economic growth without burdening the people. It will seek measures to minimise tax losses and evasion.

He said the government was considering several proposals such as releasing its stakes in some non-critical and non-strategic companies without compromising market stability, while conducting public land auctions through a planned system and open tender.

Public lands had been sold at very low prices to parties with political connections by the previous government and this act has reduced the government revenues, he added.

In terms of macroeconomics, Lim said the government would always ensure that the economy and local markets would be developed in a stable manner.-VNA

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