What actions were taken in the case?

Environmental externalities relate to the economic idea of uncompensated environmental

consequences of consumption and production that influence consumer utility and firm cost
outside the market process (Rahman et al, 2017). Negative externalities cause private production
costs to be lower than "social" production costs. Government may play a role in decreasing
externalities by taxing items when their production causes spillover costs. There is an increase in
production costs due to this tariff. Internalizing the externality is the practice of imposing a tax
on goods or services that would otherwise be exempt (Samsinar, & Firdas, 2019).

The economic actions of many countries have been fast and broad. In order to reduce the
immediate effect of a rapid reduction in economic activity on businesses and individuals, and to
maintain nations' productive potential, fiscal packages have been put in place so far (Chowdhury
et al, 2021). While the amount of fiscal packages varies widely, most are substantial, and some
nations have taken exceptional steps to address the problem. There are considerable
administrative hurdles in getting assistance to those who need it most, such as small and
medium-sized businesses (SMEs).

The introduction of fiscal policy measures, backed by financial and monetary policies, had as
their primary purpose the maintenance of corporate cash flow. In addition to extending the time
for tax returns to be filed, there have been measures such as deferring tax payments, increasing
the amount of tax refunds available, and reducing the amount of loss offsets available
(Chowdhury et al, 2021).

Other than that, environmental factors are also very important to be consider by the fiscal policy
of Malaysia. There are issues like carbon emission, lack of natural resources, pollutions etc. in
the fiscal policy, many consideration of environmental issues are considered by the government
of Malaysia in order to reduce the impacts of environment and to provide healthy wellbeing. The
policies and action focused towards limiting the fuel usage, reducing carbon footprints, reducing
pollution as well as limit emissions that might impact the overall environment.
References

Chowdhury, R.B., Khan, A., Mahiat, T., Dutta, H., Tasmeea, T., Bashira, A., Fardu, F., Roy,
B.B., Hossain, M.M., Khan, N.A. and Amin, A.N., 2021. Environmental externalities of
the COVID-19 lockdown: Insights for sustainability planning in the
Anthropocene. Science of The Total Environment, p.147015.

Rahman, M. S., Noman, A. H. M., & Shahari, F. (2017). Does economic growth in Malaysia
depend on disaggregate energy?. Renewable and Sustainable energy reviews, 78, 640-
647.

Samsinar, K.N. and Firdaus, R.B.R., 2019. Is there a link between environmental expenditure,
innovation, and revenue in Malaysian manufacturing industry?. Kasetsart Journal of
Social Sciences, 40(1), pp.136-141.