Malaysian imports declined for a second consecutive month, indicating the country's new value-added tax is weighing on consumption. Exports slumped.
Imports fell 7.2 per cent from a year ago, versus a (revised) 7.0 per cent decline in April, when the six per cent GST took effect. The last time imports fell more than 7 per cent was in 2009.
The GST is one factor. Another is falling oil prices. Only the former is concerning.
