CNA938 Rewind - Open for Business: Is Malaysia’s new sales tax on non-essentials necessary?
From July 1st, Malaysia will impose a sales tax rate of 5 per cent or 10 per cent on non-essential and luxury goods, including salmon and imported fruits. The service tax will also be expanded to cover six new categories, including rental and leasing. But what necessitated it and how will it hit consumers both in Malaysia and shopping Singaporeans? Andrea Heng and Susan Ng chat to Cassey Lee, Economist, Senior Fellow and Coordinator for the Regional Economic Studies Programme at ISEAS-Yusof Ishak Institute to find out more.