“With zero-rated GST (Goods and Services Tax), it would definitely make jewellery an attractive form of investment.”
DATUK SERI MEER HABIB, Habib Jewels Sdn Bhd managing director
KUALA LUMPUR: Habib Jewels Sdn Bhd expects to double its sales in the next three months, as customers take advantage of a “tax holiday” period and the festive season.
Managing director Datuk Seri Meer Habib said the company expected the zero-rated Goods and Services Tax (GST) to encourage consumers to spend more.
“Malaysians have always been purchasing jewellery for adornment and investment purposes. With zero-rated GST, it would definitely make jewellery an attractive form of investment for Malaysians.
“Gold, in the form of bars and jewellery, holds a strong value, especially in tough economic times, which makes it a go-to form of investment for financial security.
“We expect customers to take advantage of this period, which will be reflected in Habib’s sales growth. We have set a conservative target of 30 per cent growth in sales, but it may surge to even 100 per cent,” said Meer at a briefing, here, yesterday.
He said the gold price had reportedly dropped from RM205 per gram on Thursday to RM193 per gram yesterday.
Meer said as an industry player, the company expected jewellery exports to flourish in the coming years as export was affected for the past three years since the implementation of GST.
“According Malaysia External Trade Development Corporation’s figures, following GST implementation in 2014, jewellery exports had decreased 20 per cent. With the zero-rated GST, we expect the export figure to grow.”
Meanwhile, Habib Jewels is organising special promotion for three days until tomorrow, where selected stores will extend business hours till 10pm with Hari Raya collections.