FOMCA: Post-GST, consumers tighten belts, traders out of business

SHAH ALAM, 10 Aug: The spending patterns of consumers is cautious and they need to make choices to reduce strain after almost four months since the goods and services tax (GST) was implemented.

The poll witnessed traders having to deal with sales revenue, especially for goods that are subject to the GST, as consumers are trying to reduce their expenditure.

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The Vice President of the Federation of Malaysian Consumers Associations (FOMCA), Mohd Yusof Abdul Rahman, said that traders are certainly facing higher operations costs since the implementation of the GST.

“When consumers try to not buy items that are subject to the GST, it also has an impact on traders.

“If consumers reduce purchases, it would impact traders,” he told Selangor Kini.

He explained that since the GST was implemented on April 1, many traders have had to shut down their businesses, as reported by the media, because they could not bear the expenses.

He said that the matter should be taken seriously to avoid more traders from having to shut down their businesses.

NS

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