Malaysia's tax-to-gross domestic product (GDP) ratio remains significantly below regional standards at just 12.5 percent, with only Indonesia collecting a lower proportion relative to economic output, Treasury secretary-general Johan Mahmood Merican said.

Speaking on the country’s tax collection performance, Johan acknowledged that Malaysia’s tax base is “relatively low” compared to neighbouring economies, with Singapore achieving 15 percent of GDP and countries like Thailand and Vietnam exceeding that benchmark.

“I think the broader issue, which maybe I should address, is