Survey: Majority of Malaysians believe economy will be better after zero GST

13-Jun-2018 Intellasia | | 6:02 AM Print This Post

Most Malaysian consumers believe the economy will change for the better after the Goods and Services Tax (GST) is zero-rated, Nielsen Malaysia’s June survey showed.

The survey showed 82 per cent of the 1,000 respondents polled believe that the economy will improve with the GST at zero, while 12 per cent said it would remain unchanged and only 6 per cent said the economy would worsen.

This means four out of five of those surveyed are upbeat about the economy after the GST is zero-rated.

In comparison, Nielsen’s 2015 survey had shown less optimism on the impact of the rollout of the GST that April 1 on the economy.

In the 2015 survey, only 58 per cent felt the economy would improve after the GST is introduced, while 28 per cent said the economy would get worse and 14 per cent said the economy would remain the same with the new tax regime.

“While Malaysians were initially tentative toward the introduction of GST three years ago when the tax was first announced, having experienced the effects of the GST over the past three years, they appear to welcome the move to effectively eliminate the tax, perhaps due to the gradual increase in the cost of goods and services that has occurred since its implementation as reflected in the Consumer Price Index (CPI),” Nielsen Malaysia’s managing director Raphael Pereda said.

The June survey results were announced just barely less than two weeks after the federal government stopped collecting the GST on June 1.

Malaysians will now enjoy a tax holiday, as the GST’s replacement the Sales and Services Tax (SST) will only be reintroduced on September 1.

The finance ministry had said the zero-rating of GST and the September reintroduction of the SST is expected to help Malaysians save RM17 billion for the rest of the year, predicting that there will be a significant boost in consumer spending and consumer optimism, as well as business profits.

The June survey involved 1,000 consumers ranging between the ages of 18 to 64 and of different races and income groups throughout the country.

The poll of respondents is equally split between male and female, with 54 per cent of them Malays, 35 per cent Chinese, 10 per cent Indian and one per cent from other ethnic groups.

Most of the respondents polled were from peninsular Malaysia with 37 per cent from the central region, 22 per cent from the northern region, 15 per cent from the southern region and 11 per cent from the east coast, and 15 per cent from east Malaysia.


Category: Malaysia

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