The National ICT Association of Malaysia (PIKOM) has shared its view of the ICT sector in Malaysia once the Goods and Services Tax (GST) is implemented on the 1st of April 2015. According to the association, we can expect to see up to 30% drop in sales once GST hits.
Needless to say, that’s a pretty big drop. PIKOM is expecting the price of hardware, software, and even services in the ICT sector to increase, which will definitely affect sales.
We estimate that the next six months will see a general ‘dip’ in the purchases of hardware and gadgets such as smartphones, PC, laptops, printers and other peripherals by households and consumers…Overall, we anticipate a drop of up to 30% in the market. – PIKOM Chairman, Cheah Kok Hoong
PIKOM, however, is optimistic that the market will recover over time. The association believes that the new tax system will eventually be accepted as part of business costs and processes, and said that sales will eventually return to normal in the long run.
Even though PIKOM is estimating a drop of 30% once GST hits, it still believes that Malaysia’s ICT sector will generate RM95bil in revenue by 2017. However, at the end of the day, the consumers will be the determining factor.