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Malaysia’s credit ratings in focus after consumption tax removed

Mimi Sabreena 3:06:00 PM Informasi

SINGAPORE/KUALA LUMPUR (May 17): Malaysia’s move to scrap the 6% rate on a goods-and-services tax was greeted with caution by credit ratings companies.

S&P Global Ratings, Moody’s Investors Service and Fitch Ratings said reducing the rate to zero percent from June 1 will curb government income, if not offset by other revenue-raising measures. But higher oil prices and stronger economic growth will limit the losses in the interim.

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