THE government will ensure that the removal of the goods and services tax (GST) and the reintroduction of fuel subsidies will not negatively affect the economy, Daim Zainuddin said yesterday.

Daim said he is confident that the Council of Elders, of which he is a member, has the necessary expertise and experience to implement the policies.

He said those in the finance sector were worried that the scrapping of GST will increase the government’s debt but he brushed it off as unnecessary speculation.

“Basically, the fund managers are more worried about GST. They are afraid that the debt would increase. We are not going to increase the debt any more. We are not stupid.

“This is unnecessary speculation. This is a normal reaction when a new government takes over. How could there be uncertainty as the manifesto is there and everything is there,” he told Bernama after the council met yesterday.

However, the council had not revealed how the shortfall from eliminating the GST and reintroducing fuel subsidies would be mitigated.

On reopening investigations into 1Malaysia Development Bhd, a key Pakatan Harapan campaign promise, Daim said the council would set up a task force for the purpose and they had already identified those who could assist in the probe.

He said the investigative team, which will be under the purview of the council, would submit a report to the council once the probe was completed.

Other members of the council include former Bank Negara Malaysia governor Zeti Akhtar Aziz, former Petronas CEO Mohd Hassan Marican, economist Prof Jomo Kwame Sundaram and billionaire Robert Kuok. – May 13, 2018.