Deputy Economic Affairs Minister Mohd Radzi Md Jidin said the matter came under the purview of the finance ministry.

“The CGT is a mechanism used by other countries to impose a tax on capital gains. For example, in Australia CGT is levied on the sale of shares, houses and the like.

“But it is still speculation and no decision has been made by the government on this matter,” he said to Bung Moktar Radin (BN-Kinabatangan).

Bung Moktar had asked about the impact on public and private investment if the CGT were to be introduced.

To Bung Moktar’s original question on the government’s efforts to ensure economic stability and raise the people’s purchasing power, Radzi said policies and strategies to ensure sustainable economic growth had been introduced in the 11th Malaysia Plan mid-term review.

He said macro policies included reducing growth disparity among states and the unequal distribution of capital ownership between workers and owners.

“The government is also working hard to reduce income inequality, especially for the bottom 40% household income group, and address the high youth unemployment rate.

“The government is confident that the economic development policies to be introduced will not only promote the nation’s economic growth but also raise the people’s purchasing power,” he said.