'We're on track to high-income status'

Publication: NST

Date of publication: Mar 28, 2012

Section heading: Business Times

Page number: 002

Byline / Author: By Kamarul Yunus

KUALA LUMPUR: MALAYSIA is on the track to achieve a high-income nation status, with the country's per capita income stood at US$9,400 as of last year, Minister in the Prime Minister's Department Senator Datuk Seri Idris Jala said.

He said Malaysia has performed well above expectations in terms of the Economic Transformation Programme for last year, in terms of namely the gross national income (GNI), investments and job creation.

"I think we will get there (a per capita income of US$15,000 by 2020). We would, if we want to get a GNI of RM1.7 trillion, we need to get so by 2020," he said when presenting a commemorative lecture, entitled "The Transformation Story", here yesterday.

Jala said last year's GNI target was at RM797 billion for 28 million population, of which the country managed to register about RM830 billion, or 4 per cent above the target.

"In terms of total investments, our target is about RM83 billion but we got more than that, RM94 billion, (which is) about 13 per cent above the target," he said.

However, job creation is slightly off the target. A total of 313,000 jobs were created last year, less than the 330,000 annual target, but this, he said, is still considered good for its first-year implementation.

Jala said the fact that an international panel, including representatives from the World Bank has praised Malaysia's economic transformation plan, indicates that the ETP has a good start.

On the proposed consumption tax, he expressed his hope that the new tax regime would be implemented after the 13th general elections.

However, he said the execution will still depend on the government's decision, reiterating that it will take a long time to implement.

"Even from the moment we make the announcement, it will take a long time to do it. There's a lot of reasons but bear in mind, there are already 143 countries, including Somalia, Lesotho, Sudan and Laos which have implemented the goods and services tax (GST). "I think you have to ask a lot of people. There is a need to make the public accept why we need to implement it (GST)," he told reporters later.

Besides reducing dependence on the petroleum industry as revenue, Jala said the GST will be an alternative revenue source for the government as well as help reduce corporate tax and probably personal income tax.

He pointed out that of the 28 million people in Malaysia, only 1.7 million pay taxes. When there is consumption tax, it will be more spread out.