Positive impact to retailers if GST is abolished

KUALA LUMPUR: The impending abolishment of the Goods and Services Tax (GST) will have a positive impact on all retailers as consumers would have more buying power to purchase food and services, said investment holding company, PPB Group Bhd.

Chairman Tan Sri Oh Siew Nam said although the group’s grains and agribusiness did not attract GST as its animal feed milling and flour milling were not subject to the tax, the company expected better growth as domestic consumption would increase further.

“Basically our businesses have not been affected by GST. But, the good thing is that people who had never paid tax before (which is part of the (Malaysian) population), have no need to pay anymore tax and this gives them more disposal income,” he told a press conference after the company’s annual general meeting yesterday.

The company operates diversified business segments ranging from consumer food products, film exhibitions and distribution, environmental engineering and utilities to property and investments, as well as, other operations.

Asked on the higher cost of wheat and shortage of the commodity from traditional exporting countries, Oh said there are now more emerging countries exporting wheat including Ukraine and Argentina, both of which produce black sea wheat.

“However, the price of flour does not increase, it’s only the wheat cost. But then, if we cannot hold onto the increasing cost price of wheat, we may have no choice but to share the cost with buyers.

“As the source of wheat differs, flour millers need to have technology and know-how that are more profound without compromising on quality, and buyers need to be more dynamic as they may need to adjust their current formulation or recipes to match their products,” said Oh. — Bernama