The top individual income tax rate is
26 percent, and the top corporate tax
rate is 25 percent. Other taxes include a
capital gains tax. The overall tax burden
equals 15.3 percent of the domestic
economy. Government spending is
equivalent to 29 percent of GDP, and
public debt has increased slightly to
about 56 percent of the domestic
economy. In 2013, the government
moved to reduce fuel subsidies in order
to narrow budget imbalances.

Economic Factors

Government

Open Markets

Malaysia’s average tariff rate is 4.3 percent, and non-tariff barriers impede imports of agricultural goods and automobiles. The foreign investment regime has been liberalized, but the government still screens manufacturing projects. The financial sector remains stable, offering a comprehensive array of financial services. Measures to open the banking sector to greater competition have been implemented.