Malaysia’s shadow economy worth 20pc of GDP, says finance minister | Malay Mail

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Malaysia’s shadow economy worth 20pc of GDP, says finance minister

Wednesday, 08 Jan 2020 05:31 PM MYTFinance Minister Lim Guan Eng speaks during a news conference at the Inland Revenue Board’s office in Kuala Lumpur January 8, 2020. — Picture by Yusot Mat Isa

The finance minister said that in developing countries, the shadow economy normally takes up 12 per cent of the nation’s gross domestic product , but in Malaysia, that percentage is a lot higher. “When talking about the shadow economy, it is because of corruption, smuggling and all these unreported incomes. The Inland Revenue Board is looking to increase our income but we are doing it in a softer, gentler approach through continuous engagement.

He explained that corruption and smuggling which had led to public distrust in the government and its financial institutions were behind the strong shadow economy.

 

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