![]() ![]() In 2019, federal government’s revenue is forecast at RM261.8 billion, or 17.1% of GDP. ![]() The main contributors to direct tax collections are companies income tax, followed by individual and petroleum income tax. The deficit is expected to reduce to RM52.1 billion or 3.4% of GDP in 2019.įederal government’s revenue in 2018 is expected to increase 7.3% to RM236.5 billion, contributed by higher direct tax collections and non-tax revenue.These helped offset the withdrawal of goods and services tax (GST) and the 3-month tax holiday during the year, which resulted in an estimated forgone revenue of RM21 billion. Sources:Economic Outlook 2019 Mid-term review of the Eleventh Malaysia Planįiscal deficit as a share of GDP for 2018 has been revised upward to 3.7% (RM53.3 billion). The country is expected to achieve this income threshold by 2024, with aspirations for earlier realisation of this target if growth conditions improve significantly. Gross national income per capita is expected to reach RM47,720 (US$11,700) in 2020, approximately 6% below the estimated minimum income threshold of a high-income nation. Inflation rate will be contained between 2% and 3% per annum throughout the period. The revised Eleventh Malaysia Plan projects full employment and stable labour market conditions for the remaining period up to 2020, with the unemployment rate below 3.5%. The labour force is projected to grow by 2.2% in 2018 to 15.3 million persons (2019: 1.9%, 15.6 million persons). This is a slight improvement compared to the 3.4% seen for the first half of 2018. Inflation is projected to increase between 2.5% and 3.5% as a result of the base effect of the GST zerorisation followed by the implementation of sales and services tax (SST).įor both 20, the labour market is forecast to remain favourable, with the unemployment rate holding steady at 3.3% for both years. In 2018, inflation is expected to grow at a moderate pace, between 1.5% and 2.5%, mainly due to fixed RON95 petrol and diesel prices and the implementation of zero-rated goods and services tax (GST) from June to August 2018. ![]() Sources: Economic Outlook 2019 Mid-term review of the Eleventh Malaysia Plan These include rising trade conflict, volatility in global financial markets and oil prices and geopolitical tension. The services sector will grow by 6.3% in 2018 (2019: 5.9%), while the manufacturing sector is estimated to grow by 4.9% (2019: 4.7%).ĭespite the projected resilient economic performance, risks to growth remain, resulting from heightening global uncertainties. On the supply side, growth will be be driven by the services and manufacturing sectors, which account for 55.3% and 23% share of 2018 GDP respectively. This is expected to cushion the impact of lower public sector spending in 20 (+0.1% and -0.9% respectively) as the government moves to review and re-prioritise expenditure and rein in the fiscal deficit. Private sector expenditure will continue to be the key driver of growth for the economy, with sustained private sector expenditure at 6.5% for 2018 (2019: 6.4%). This puts the economy’s growth at the midway point of the government’s target annual GDP growth range of 4.5% to 5.5% for the period from 2018 to 2020, which was set out in the mid-term review of the Eleventh Malaysia Plan unveiled on 18 October 2018. Growth is forecast to pick up slightly to 4.9% in 2019. Real gross domestic product (GDP) is forecast to expand 4.8% for the full year 2018, a slight dip compared to the 4.9% growth seen in the first six months of the year. ![]()
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