PUTRAJAYA, Dec 19 — The Ministry of Finance (MoF) continues with its commitment to reform the country’s financial system in 2019, hence, making Malaysia a country free of kleptocracy.
Even though faced with various internal and external challenges, the MoF always ensured the financial administration system is efficient, accountable and transparent so that the nation’s economy continues to be sustainable and competitive.
Its Minister Lim Guan Eng said 2019 was not an easy year but the team cooperation given by the other ministries had facilitated the Pakatan Harapan (PH) government to savour various achievements.
He said among the noticeable accomplishments this year were the Goods and Services Tax (GST) refunds, expediting the approval for investment applications, implementation of the open tender system, reduction of fuel price, as well as the National Health Protection Scheme for B40 (mySalam).
“We carry out the accounting base from cash (up) to accruals, we have also set up a committee to monitor debts not only in MoF but also involving other government agencies.
“We make sure that institutional reforms (take place) by carrying out legislative amendments so that what made Malaysia a kleptocratic country will not be repeated again,” he told Bernama in an exclusive interview recently.
The manifesto promise to abolish the GST was considered fulfilled when the tax was charged at zero per cent on the 23rd day the PH government took over the country’s administration, and replaced it with the Sales and Services Tax (SST) which was implemented on September 1, 2018.
Lim had previously said the PH government would refund the GST claims totalling RM19.4 billion involving 121,429 companies, including the biggest conglomerates in Malaysia such as Petronas, Shell and Tenaga Nasional Bhd, which failed to be addressed during the administration of the Barisan Nasional (BN) government.
Up to March 3, 2019, a total of RM4 billion in GST claims had been paid involving 54,603 accounts registered with the Royal Malaysian Customs Department, while income tax refunds by the Inland Revenue Board amounted to RM3.9 billion as at February 28.
The income tax refunds involved 75,776 claims comprising 38,104 company cases and 37,672 non-company cases.
Meanwhile, Lim said the other commendable achievement was that the government succeeded in convincing the international rating agencies to maintain Malaysia’s credit rating even though the country’s projected growth rate was lowered.
He said the affirmation of Malaysia’s credit rating at A- (Standard & Poor’s and Fitch) or A3 (Moody’s Investors Service) was a recognition whereby the new government had addressed and managed the economy successfully amidst a challenging fiscal position.
“The previous government had covered up many things that were not good including implementing the GST. But we (PH) had abolished all, in fact, (we) collect tax that does not burden the people.
“Although the government’s revenue is lower, facing a challenging global economic environment, forced to assume previous debts including 1Malaysia Development Bhd... with all these challenges, they (rating firms) are still confident with Malaysia’s economic management under the leadership of the new government led by Prime Minister Tun Dr Mahathir Mohamad,” he said.
Lim said the PH government was forced to inherit the financial problems and debts left by BN which had crippled Malaysia’s efforts to become a developed nation in 2020.
Nevertheless, he was confident the fiscal reform and financial process undertaken by PH would be able to put Malaysia back on the right track to become a developed nation. — Bernama
