MOVING into 2022, the Government under the leadership of Prime Minister Datuk Seri Ismail Sabri Yaakob must maintain its momentum in revitalising the national economy impacted by the COVID-19 pandemic as well as addressing the financial leakages amounting to RM300 bil due to the shadow economy.
In this regard, Malaysian policymakers must also be more cohesive in formulating and supporting policies that will help legitimate businesses in Malaysia recover and grow in the new normal, according to RTBA Malaysia.
“The RM400 bil 12th Malaysia Plan (12MP) unveiled a month ago has the breadth and depth to generate the multiplier effect required to re-energise the Malaysian economy. This will benefit businesses and people across the nation,” RTBA managing director Datuk Fazli Nordin pointed out.
Nevertheless, the international advocacy group that protects businesses in the Asia-Pacific region from criminal conduct also stressed the need for the 12MP to be implemented in a strategic and well-thought-out manner to ensure positive outcomes and prosperity for all Malaysians.
While the initiatives implemented by the Malaysian Government in 2021 to curtail leakages is working, Fazli said they must be sustained if not enhanced.
A series of initiatives to counter the illegal cigarettes trade which has caused the Government to lose RM5 bil annually in uncollected revenue was implemented in 2021.
These include, among others, a freeze on issuance of new import licences for cigarettes, tightening renewal of import licences for cigarettes, limiting transshipment of cigarettes to dedicated ports, imposition of tax on the import of cigarettes with drawback facilities for re-export, disallowing transshipment of cigarettes and re-exporting cigarettes by small boats.
“These enforcement policies have caused the incidence of illegal cigarettes to decrease by 5.9% from 63.8% in 2020 to 57.9% in May 2021,” observed Fazli.
“While there is still much more that needs to be done to eradicate this massive drain on the economy, the unprecedented downtrend of illegal cigarettes is an indication that the Government should remain steadfast in sustaining these initiatives to bring revenue back to public coffers.”
RTBA Malaysia also stressed that a stable Government is very important to ensure that economic plans and stimulus as well as policies to address leakages can be carried out effectively.
“Political stability also attracts foreign direct investments (FDIs) while establishing a better foundation for the administration to combat crime and corruption,” added Fazli. – Dec 31, 2021
