PUTRAJAYA is not relying on Petronas’ RM30 billion special dividend to reduce its fiscal deficit, said Finance Minister Lim Guan Eng.

Speaking at Invest Malaysia 2019 earlier today, Lim said the special dividend will be used to settle the RM37 billion outstanding goods and services tax (GST) and income tax refunds.

The total outstanding GST refunds amounted to RM19.4billion whereas income tax and real property gain tax refunds stood at RM16.04 billion, bringing the total to RM37 billion.

“(Around) 121,000 companies are owed the RM19.4 billion (GST refunds), including some of the top companies in the world – Petronas itself is owed a substantial sum,” said Lim.

The refunds will be over 10 months, adding that those who have yet to receive their share can expect the refunds in the next seven months.

Lim said “the real challenge” for the government is to narrow its fiscal deficit from 3.4% to 3% next year.

He remains confident that with continued economic growth, inflow of foreign direct investments and the increase in confidence as a result of institutional reform, the government will be able to achieve its target.

“This government is clean and we intend to implement reforms to ensure that future governments will also be clean.

“A clean government will always outperform a corrupt government. That is why I am 100% confident that we will outperform the previous government.”

Lim added that he was confident that Malaysia will have the capability to regain its stature as an Asian Tiger. – March 19, 2019.

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