Shoppers scale back, even before GST

Traders moan over slack Chinese New Year shopping in the Klang Valley.

KUALA LUMPUR: The impending GST (goods and services tax) on April 1 has cast a pall of gloom over shoppers this Chinese New Year in the Klang Valley.

The usual bustling malls which had pulled in tourists and locals before looking for bargains are noticeably subdued this year, according to The Malay Mail Online.

It was decidedly different at the iconic Sungei Wang Plaza as businesses struggled to lure shoppers on the morning of the first day of Chinese New Year.

Kak Nur, who sells hair accessories, said business has been bad since the start of the year leaving her unsure of how things would be after the imposition of GST.

“In the past, I could predict if many customers would come or not. Now (I) cannot confirm,” said Kak Nur, 51, who has been running her shop for six years.

Even lower prices at the petrol pump have failed to lift the mood of consumers, with economists expecting Malaysians to be more conservative in the face of the higher cost of goods and services once GST kicks in.

Kak Nur said GST would only benefit big businesses, while small traders like herself ― who were typically at the tail end of the tax chain ― would have a hard time coping with the expected hike in living costs on top of the monthly rent for her shop.

Trader Abdullah Al-Amin from Bangladesh, said the slowdown began in January last year and, after a slight recovery in November, became sluggish again.

“Early last year, business (was) okay but now business is really bad. You look here, there are no people,” he said, pointing at the walkway in front of his souvenir shop.

There were only a few shoppers but none who stopped at Abdullah’s shop.

The situation was not helped by the fact that suppliers periodically increased the price of their goods, forcing Abdullah to do the same.

“Add six per cent (of GST), the prices (are) very high and customers cannot buy. This is a problem,” said Abdullah, 32.

Even with seasonal promotions on display to attract customers ― from discounts to “buy one free one” offers ― business moved at a snail’s pace.

A shopper, who only wanted to be known as Low, said it was not the time to spend lavishly.

“Economy no good, slow a bit. Spending power not much,” said the 61-year-old shopper from Sabah.