This Selected Issues paper examines the implications of lower crude oil prices on Malaysiaas economy. Although Malaysiaas net oil exports are now very small as a share of GDP, its gas exports are sizeable. The paper provides some background on the structure of energy production and trade in Malaysia, and presents results from empirical analysis of the oil prices on Malaysiaas growth. It is concluded that the decline in prices is likely to have a net negative impact on growth, even though the recent decline in oil prices partially reflects supply considerations.The next section discusses principles of a good Value Added Tax (VAT) and Malaysiaa#39;s GST. ... International good practice is to not provide GST exemptions beyond standard ones for margin-based financial services, health care and education and zero-rates only exports. It is important to have an expeditious GST refund procedure to deal with excess net credits, an adequate threshold to exclude smallanbsp;...
|Title||:||Malaysia: Selected Issues Paper|
|Author||:||International Monetary Fund. Asia and Pacific Dept|
|Publisher||:||International Monetary Fund - 2015-03-03|