Malaysia’s economy grew 5.6% in the first three months of 2015. The growth rate was not much different from that in the preceding two quarters and was strong when compared with the performance in the last few years. However, one should brace for a much slower growth in the next two quarters. After the implementation of GST, anecdotal evidence has shown that private consumption has slowed substantially. With private consumption accounting for over 2/3 of overall economic growth in the last few years, the impact of GST on real GDP growth will not be negligible. In Japan, the consumption tax hike caused the economy to contract by 1% in fiscal year 2014. What about Malaysia ?