GST Would Impact GDP, Recession Expected in 2016

SHAH ALAM, 16 Dec: The implementation of the goods and services tax (GST) by the Federal Government on 1 April 2015 will impact the gross domestic product (GDS) and eventually lead to households being adversely affected.

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Economic amalyst, Azrul Azwar Ahmad Tajudin, said that although inflation will only increase by 4 percent onwards, the reality of life for the average citizen will be terribly affected.

He said that this will cause the public to buy less and cause the economic transactions to be slow and eventually collapse.

“I do not like being the bearer of bad news, but a risk is a risk. Economic recession will happen, at latest, by 2016, and it will be very high, in my opinion,” he said.

“Malaysia’s economy will become worse and the government’s move, through the Subsidy Rationalisation Plan (SRP) and the GST will lead us to an economic recession in less than three years,” said Azrul.

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He said this during the “What is wrong with our economy?” forum organised by the Movement to Reduce the Cost of Living (TURUN) in the country’s capital last night.

Azrul Azwar, who is also the Special Task Manager, Economic and Financial Analyst for the Selangor Chief Minister’s Office, said that he believes that it is closely related to the property bubble burst.

“This will happen because not many people can afford to buy property because of the increasing financial burden of households,” he said.

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