Consumer Confidence On The Rise Following 0% GST
Author Avatar


Consumer Confidence On The Rise Following 0% GST

Consumers who are optimistic about the amount they can save tend to spend more. Since the lowering of the goods and services tax (GST) on June 1, it appears that Malaysian consumers have proven this theory to be correct.

A survey conducted by Nielsen Malaysia found that 69% of Malaysian consumers expect their purchase habits to change following the reduction of GST, as more than half of the respondents believe that the prices of goods and services would decrease following the zero rating. A willingness to increase spending on non-essential purchases, such as holidays, new property and out-of-home entertainment was also shown.

This sentiment is also shared by Mohamed Mustakim Manaf, director of GRV Toy Store Sdn Bhd, the local holder for Hamleys. “Since the GST has gone zero-rated, we have seen more shoppers visiting shopping malls and our numbers have increased, attributed to the improved general consumer sentiment,” he said after a meeting with the Council of Eminent Persons at Ilham Tower earlier this week.

Mustakim highlighted that this concerned the sales of toys, considered a non-essential item, and that the impact might be greater on other types of products. He further added that consumer sentiment is viewed as important by retailers and that retailers stand to benefit from a “feel-good” factor among buyers.

Member of the Council of Eminent Persons and former Bank Negara Governor, Tan Sri Zeti Aziz also said on Monday that there is more vibrancy in the market with better spending power after the zero-rated GST. However, she did express a hope that retailers would pass on the benefits from the zero per cent tax to consumers.

This “feel-good” factor will likely remain until the end of August, as Malaysian consumers make the most of the “tax holiday” in the country. The government is set to introduce the Sales and Services Tax (SST) on 1 September.

(Sources: The Malay Mail, News Straits Times, (Image: The Malay Mail)


0 0 votes
Article Rating

Comments (0)

Notify of
Inline Feedbacks
View all comments
Top Personal Finance News Articles
Post Image
Touch n Go RFID: What Malaysian Road Users Need To Know
Jacie Tan
- 10th August 2018
Everyone’s talking about Touch ’n Go RFID being used at Malaysian highway tolls soon – here’s what you need to know about it.
Post Image
Malaysian Banks And Local Institutions Offer Financial Assistance For Customers Affected By Covid-19
Alex Cheong
- 1st April 2020
(Last update: 1 April 2020, 3.40pm to include FAQs by banks.) With Malaysia going into an extended period […]
Post Image
Grab Now Delivers Fresh Produce With New Pasar Feature
Jacie Tan
- 24th March 2020
Grab has launched a new feature, Pasar, where customers can buy fresh produce, poultry, meat, and seafood from […]
Post Image
How to Decide Whether to Buy a New or Used Car
The RinggitPlus Team
- 25th January 2019
Considering an upgrade on your wheels or a first car? The eternal question would be whether to buy a new or used car. We take on the question of buying new or used and turn it inside out to help you make a decision.

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image

Life Insurance Basics In Malaysia

Jacie Tan -
2nd February 2021