FMM: Isn't 6pct GST a little high for starters?

Starting the country on a Goods and Services Tax (GST) of 6 percent is high as compared to the region, for example Singapore, that had started its GST at 3 percent.

The Federation of Malaysian Manufacturers (FMM) in a statement said yesterday the rate announced in Prime Minister Najib Razak's Budget 2014 this week was "higher than anticipated".

The group call for the government to ensure that this rate would therefore not be raised for at least five years from the date of implementation.

"We note that regional countries with (currently) higher rates of GST had increased their rates incrementally over a period of time, for example Singapore took nine years to increase their GST rate from 3 percent to 4 percent, and another four years to 7 percent," said FMM. 

[More to follow]