GST to affect retailers in short to medium term
TheStar Online (4/6/2014): The goods and services tax (GST) is expected to have some short to medium-term impact on retailers in the country when it is introduced in April 2015, says Malaysia Retail Chain Association (MRCA) president Datuk Liaw Choon Liang.
“We think that the purchasing power for the middle to lower-income group will be affected and definitely (retail) sales as well.
This is not only limited to retailers but other industries also. Notwithstanding this, I still think it is a good tax system,” Liaw told StarBiz.
He hopes the Government will proceed to further lower corporate and income taxes moving forward with the introduction of the GST to increase the competitiveness of local industries.
Liaw said retailers were also coping with other input cost increases such as electricity and labour over the past two years.
“The other major challenges today are the shortage of manpower and that the younger generation workers are not too willing to work long hours,” he said, pointing out that retail business involved long hours, especially during weekend which were peak times.
“We have to be more innovative today to look into other opportunities and expansion overseas,” he added.
Source: Thestar Online