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Tax Espresso (Special Edition 2.0) Highlights in Budget 2016

Global Tax Update:November 2015/Malaysia

On 23 October 2015, the National Budget was tabled by our Prime Minister and Minister of Finance. Budget 2016 is the first of a series of five budgets under the 11th Malaysia Plan towards transforming the nation into a high-income advanced economy. (Global Tax Update: November 2015/Malaysia)

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Despite the strong headwinds brought by slowdown in global economy especially China, decline in oil and commodity prices, Ringgit depreciation and political instability, our economy is still holding up modestly well due to its diversity, resilience and solid fundamental, judging from the following projected economic data:-

  • Relatively strong Gross Domestic Products (GDP) Growth between 4% to 5.0 % for 2016 vis-à-vis 4.5% to 5.0% this year compared with some major economies globally
  • Continuous decline in fiscal deficit to 3.1% of GDP for 2016, a reduction from 3.2% and 3.4% in 2015 and 2014 respectively
  • Marginal growth in federal government revenue collection to RM225.7 billion for 2016, an increase of RM3.2 billion from 2015
  • Higher projected Goods and Services Tax (GST) revenue of RM 39 billion in 2016 compared to the original estimated collection
  • Rebound in exports by 1.4% in 2016 after a 0.7% drop this year
  • Manageable inflation of 2% to 3% in 2016 compared to 2% to 2.5% this year

 

>> Click for Japanese [マレーシア 2016年度税制改正の主なポイント]

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