goods and services tax (GST)

Cautious Budget spending necessary for long-term planning: Heng Swee Keat

SINGAPORE (Mar 4): Singapore may have accumulated huge surpluses during the current term of government, but that does not indicate an upcoming spending spree. The surpluses will also not be used to stall an impending Goods and Services Tax hike due to happen from 2021 to 2025.

On Feb 28, in rounding up parliamentary debate on the broad fiscal principles of this year’s Budget, Finance Minister Heng Swee Keat explains that the planned increase in the Goods and Services Tax is necessary, and reiterated the government stance on saving for a rainy day.

Singapore plans cautious budget ahead of election

SINGAPORE (Feb 18): Singapore Finance Minister Heng Swee Keat will aim to strike a delicate balance in Monday’s budget: preaching fiscal prudence while doling out more social spending ahead of elections that could come as early as this year.

Is Malaysia's farewell to its GST a little too rushed?

SINGAPORE (May 16): Yesterday, the new Pakatan Harapan (PH)-led government announced that Malaysia’s 6% goods and service tax (GST) will be zero-rated from Jun 1 onwards, effectively abolishing it.

Malaysia’s newly elected prime minister, Mahathir Mohamad, had vowed during his campaign period to abolish Malaysia’s 6% GST, which was implemented by the previous government led by ousted leader Najib Razak back in 2015.

See: Mahathir keeps true to promise, scraps 6% GST

Malaysia's special advisory council committed to meet first 100-day promises, says Maybank

SINGAPORE (May 16): The five-member Council of Eminent Persons, a team of special advisors announced by Malaysia’s prime minister Mahathir Mohamad on May 12, has hit the ground running.

Led by former Finance Minister Daim Zainuddin, the council also includes former Bank Negara Malaysia (BNM) governor Zeti Akhtar Aziz, former Petronas chief Hassan Marican, business tycoon Robert Kuok, and esteemed economist Jomo Kwame Sundaram.

What removal of GST might mean for Malaysia's economy

(May 15): Malaysia’s intention to scrap a 6% goods-and-services tax within 100 days of Prime Minister Mahathir Mohamad taking office has economists and budget analysts on edge about the ripple effects.

Critics of the tax, including Mahathir, say it has raised living costs and that a more modest sales-and-services levy would provide enough government revenue alongside efforts to cut wasteful spending and root out costly corruption.

Mahathir says anti-fake news law to be given ‘proper’ definition; country has sufficient revenue to remove GST

KUALA LUMPUR (May 13): Malaysia's new Prime Minister Mahathir Mohamad said on Sunday that the anti-fake news law will be given "proper" definition so that media and the public is clear on what is fake.

"Even though we support freedom of press and freedom of speech, there are limits," Mahathir said in a live telecast on state TV.

Abolishing the anti-fake news law was one of the Mahathir's campaign promises.

Mahathir also said foreign investment must bring in capital and technology, and set up factories for either domestic distribution or export.

Is Singapore funding its rising social spending the right way?

SINGAPORE (Mar 5): The unveiling of the Budget for 2018 has triggered a healthy debate on how the likely pressures for more government social spending in Singapore should be funded. The government has proposed a two-percentage-point rise in the Goods and Services Tax (GST) after 2021, believing that this would be the best option of the alternatives available.

There are three key considerations that will determine the direction Singapore’s fiscal trajectory will take:

These 5 stock picks could benefit from surprise delay in GST hike, says Credit Suisse

SINGAPORE (Feb 21): Credit Suisse is raising its 2018 GDP growth forecast for Singapore to 3.3% on the back of expectations of higher private consumption growth following the 2018 Budget announcement on Monday.

“The key surprise in the 2018 Budget was a later-than-expected implementation of a 200 basis point increase in the Goods and Services Tax (GST) to the 'earlier part of 2021-25',” says analyst Gerald Wong in a report on Tuesday.

Budget 2018 negative for developers, positive for REITs: Morgan Stanley

SINGAPORE (Feb 21): Morgan Stanley says the increase in Buyer's Stamp Duties (BSD) announced in Budget 2018 is not enough to derail Singapore's ongoing home price recovery although this could weigh on sentiment on Singapore developer stocks in the near term.

The marginal BSD rate was increased from 3% to 4% for the portion of property values above $1 million, effective from Tuesday.

Singapore delays highly-anticipated GST hike to 9% to between 2021-2025

SINGAPORE (Feb 19): Singapore will raise its good and services tax (GST) by 2 percentage points to 9% sometime between 2021 and 2025, according to Finance Minister Heng Swee Keat in his 2018 Budget statement on Monday.

"But I expect that we will need to do so earlier rather than later in the period,” he adds.

According to Heng, the exact timing of the tax increase will depend on the state of the economy, how much expenditures grow, and how buoyant existing taxes are.

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