FROM February 13 to yesterday, the Dewan Rakyat of the 15th parliament session’s second term sat, with several key economic issues receiving attention, including the reintroduction of the goods and services tax (GST) and 1Malaysia Development Bhd (1MDB) debt.

The unity government under Prime Minister Anwar Ibrahim insisted on not reintroducing the GST. 

Anwar said this is because local incomes are still lower than in countries that impose GST like Singapore and Canada. He said the government is confident that revenue collection and efficient enforcement can increase national income. 

The issue of whether the country will experience economic turmoil was also discussed. Deputy Finance Minister I Ahmad Maslan said Malaysia is not expected to experience economic turmoil this year despite the uncertain global situation. 

He said the technical definition of economic turmoil or recession is when a country experiences economic contraction, which is negative quarterly growth, twice in a row. 

“Based on our economic growth of 8.7% last year, the government has forecast Malaysia’s growth to be around 4.5% this year. 

“The International Monetary Fund (IMF) and World Bank have forecast Malaysia’s economy to grow by 4.4% and 4%, respectively,” he said. 

The Dewan Rakyat was told the government has so far paid RM43.8 billion in 1MDB debt, with RM9.7 billion still unpaid (RM5 billion in principal and RM4.7 billion in interest). 

Ahmad said the payment was made through a shareholders’ advance of RM24.5 billion and a trust account (RM19.3 billion).

He said the government obtained RM33.6 billion from the recovery of 1MDB assets and RM8 billion from a settlement with Abu Dhabi investment firm International Petroleum Investment Company. 

Ahmad said the principal debt from 1MDB was RM33.6 billion, while the interest is RM14.9 billion. 

During the sitting, 12 bills were approved, including the RM388.1 billion Supply Bill 2023 (Budget 2023), with RM289.1 billion for operating expenses and RM99 billion for development spending, including RM2 billion for contingency savings, approved on March 28.

Budget 2023 was passed in Dewan Negara without amendment with a verbal majority of ayes this evening.

During the closing session of the debate on the royal address for the Finance Ministry in Dewan Rakyat on February 22, Ahmad said the Fiscal Responsibility Act is to be presented this year.

The act will cover a government debt limit – not exceeding 65% of the gross domestic product and bearing debt service payments not exceeding 15% of the federal government’s annual budget.

The calendar on parliament’s official website shows the Dewan Rakyat will reconvene on May 22 until June 15. – Bernama, April 5, 2023.