JOHOR BAHARU: The government will continue to strengthen the country’s financial position and economic structure even though it faces the challenges of the fall in the value of the ringgit.
Minister in the Prime Minister’s Department, Datuk Seri Abdul Wahid Omar, said the country’s economic structure continued to strengthen and moved away from dependence on commodities, services, manufacturing and oil and gas sectors.
“The trade surplus last year rose to RM83.1 billion and the current account of the balance of payments increased to RM49.5 billion, or 4.8 per cent, of gross national income.
“The country’s economic situation is strong, and that is our aim,” he told a media briefing after flagging off ‘Jelajah Johor’ cycling expedition at Danga Bay here yesterday.
Abdul Wahid said this in reply to a question from the media on the fall in the value of the ringgit which has increased the traders’ concern rather than that of the implementation of the Goods and Services Tax (GST) today.
He said the GST was the government’s effort to widen to tax base and this has been encouraged by analysts.
“Malaysia’s economic fundamentals are strong. The market movements, either currency or shares, depend on those involved. If we handle the matter well, we will achieve appropriate growth rate,” he said.
Abdul Wahid said the government was ready to implement the GST today, despite the initial hiccups.
“Like other tax system, initially there will be hiccups which I think can be overcome,” he said.
He said all information and problems on GST could be channelled to the ‘war rooms’ which had been set up.
On the car dealers’ association’s request to seek the refund of 10 per cent on the sales tax for invoices issued before the implementation of GST, he said the Ministry of Finance has been informed of the matter.
The Perodua Dealers Association was reported to have asked the government to allow its members to reclaim the 10 per cent sales tax on invoices issued prior to the implementation of the GST. — Bernama