BIMB Securities has informed that Malaysia may lose RM730 million in May 2025 due to the postponement of the sales and services tax (SST) scope expansion.
In addition, lower global oil price projections are calculated to affect the federal government's target revenue of RM339.7 billion in 2025.
This year's collection is forecast to decrease by RM336.9 billion due to unchanged revenue factors.
BIMB also said that the SST postponement is expected to have a short-term impact on the people's spending in May.
SST was estimated to generate RM5 billion, but its implementation on May 1 had to be rescheduled to a new date of June 1.
The plan involves an increase in sales tax on non-essential goods such as salmon, and the extension of service tax to business transactions, especially fee-based support.
The government is also concerned that the fall in global oil prices because every decrease of one United States (US) dollar could weaken Malaysia's fiscal revenue by up to RM350.
Lower oil prices could reduce operating expenses as fuel subsidy bills shrink, and the government plans to target subsidies for RON95 in the second half of 2025.
In conclusion, the SST extension and lower oil prices are forecast to improve the fiscal deficit to 3.76% compared to the government's original target of 3.8%.
