Scrapping GST may take longer than 100 days

Abolishing the GST might take longer than the 100 days promised in Pakatan Harapan's manifesto, indicated former Bank Negara governor Zeti Akthar Aziz.

However, she said the advisory council would reveal what are the steps and measures to be taken towards realising this promise.

These steps and measures, she added, would be disclosed during the 100-day timeframe.

Stressing that abolishing GST was final and the decision would not be reviewed, Zeti pointed out that the issue was how this would be done, including zerorising the GST rate.

"We will make an announcement of what we want to do within this 100 days. [....] the people will know what is going to be done and how it is going to be done.

"Prime Minister Dr Mahathir Mohamad has mentioned many times that we will follow the rules existing in our country and we are not going to deviate from any of the rules and process when undertaking this kind of changes," she told reporters in Kuala Lumpur.

Zeti is part of the five-member advisory council known as the “council of elders” appointed by Mahathir.

She said the council is looking into comprehensive ways of improving the people's buying power and not just from a piecemeal perspective.

She had earlier met with 180 fund managers at Bank Negara.

"We will announce what we are going to do, whether is by zero-rising or other processes. We will announce the strategy and the required technology or whether it has to go to Parliament. It will take time," she added.

The government intends to scrap the three-year-old GST and bring back the sales and service tax (SST).

Zeti also denied the scrapping of GST would lead to a downgrade in ratings for Malaysia.

"As long as our fiscal position improves, which we are working towards. When the fiscal position improves, I believe we will get a better rating," she said.

Reducing wastage in public sector and the re-prioritising of projects were among the methods to strengthen the country's fiscal position, according to her.

Zeti declined to comment on the impact to the economy if a swift transition of power from Mahathir to Harapan de facto leader Anwar Ibrahim were to take place.

"I am not going to answer any political question, I'll leave that to the politicians and I will only be involved from the economic perspective. That was what the people care about the most," she said.

Earlier, together with other council members, Zeti, assured the fund managers of the stability of the economy despite the change in government.

She explained the state of the economy as well as the financial system and fiscal policies that would be undertaken by the new government.

"The few that I spoke to while leaving the room seemed to be very positive and found the meeting helpful and reassuring," she said.

The ringgit will perform better following the government's effort in addressing all areas of concern to restore confidence, she added.

She opined that the country had the potential to be rated a double A instead of just a single A by the international rating agencies. -Mkini