Arezki, R. and O. Blanchard, 2014, “Seven Questions about the Recent Oil Price Slump,” iMFdirect, Available via the Internet: http://blog-imfdirect.imf.org/2014/12/22/seven-questions-about-the-recent-oil-price-slump/
Blanchard, O., and J. Gali, 2009, “The Macroeconomic Effects of Oil PriceShocks: Why are the 2000s so different from the 1970s?,” J. Gali and M. Gertler (eds.), International Dimensions of Monetary Policy, 373–428 (Chicago: University of Chicago Press).
Kilian, L., 2009, “Not All Oil Price Shocks Are Alike: Disentangling Demand and Supply Shocks in the Crude Oil Market,” American Economic Review, 99:3, 1053–1069.
US Energy Information Administration, 2014, Malaysia Report, September 29, Available via at the Internet: http://www.eia.gov/countries/cab.cfm?fips=MY
Appendix 1. Data
Prepared by Niamh Sheridan.
The updated series is available on Killian’s website: http://www-personal.umich.edu/~lkilian/paperlinks.html.
Appendix 1. A Comprehensive Statement of Fiscal Risks for Malaysia
Statement of the government’s objectives in publishing information on fiscal risks, and its general strategies for risk management.
Prepared by Juan Jauregui and Lewis Murara.
For details of Malaysia’s medium-term fiscal strategy, see Elif Arbatli, “A Medium-Term Fiscal Strategy for Malaysia,” Selected Issues Paper prepared for the 2013 Article IV Consultation with Malaysia.
Other sources of fiscal risk not studied in this paper include those related to the design and implementation of new fiscal instruments, such as the GST; those from unrealistic economic assumptions; and those related to ageing populations and rising health and pension spending. GST implementation risk is assessed to not be major in the case of Malaysia at present. Similarly, the authorities’ economic assumptions are realistic and are revised in a timely fashion. Finally, pension and health spending will be rising in years to come but are not a major risk at this juncture.
Sources: (1) Michael Keen and Stephen Smith, 2006. “VAT Fraud and Evasion: What Do We Know and What Can Be Done?” National Tax Journal vol. 59(4), pages 861-87; (2) Malaysia—Goods and Services Tax—Strategy, Policy and Implementation, FAD TA Report, May 2014; (3) Michael Keen, The Anatomy of VAT, IMF Working Paper, May 2013.
This section draws on Kiyoshi Nakayama, Ruud De Mooij, and Bruce Quigley, “Malaysia Goods and Services Tax: Strategy, Policy and Implementation,” Fiscal Affairs Department Technical Assistance Report, May 2014.
Its SST standard rate is 10 percent for most taxable goods and a 5 percent tax on food items and other select products. Services tax applies to certain professional services and to restaurants, hotels and telecommunications.
The personal income tax rate will be reduced by 1 percent to 3 percent depending on the applicable tax rate bracket from year of assessment 2015, while the corporate tax rate will be cut by 1 percent, from 2016.
IMF, 2014 Getting Energy Prices Right; and IMF, 2013, Energy Subsidy Reform—Lessons and Implications.
IMF, 2013, Energy Subsidy Reform—Lessons and Implications.
IMF, 2009, Reforming the Social Safety Net, IMF TA Report.
IMF, 2014, Getting Energy Prices Right.
Authorities’ measure of the overall fiscal balance and the IMF’s measure of fiscal balance (net lending/borrowing) are different due to differences in accounting standards (GFSM2001/accrual versus authorities’ modified-cash based accounting) and differences in the treatment of certain items.