IMF says Malaysia should re-look its subsidy policies

Widening of tax revenue base is recommended.

OCBC Treasury Research noted, "IMF Lagarde said that the Malaysian government should re-look its subsidy policies and start widening its tax revenue base by, among others, introducing the GST system."

Here's more from OCBC:

Amidst the dearth of cues from the local front and the holiday disruptions, further profit taking in the KLCI is not to be ruled out, especially given the string of losses in recent sessions. The local bourse has closed below the 1640 on Monday and could continue to trade the 1630-1645 range for now, with downside clearly the path of least resistance.

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