KUALA LUMPUR: The retail sector in the country is showing positive growth since the begining of this month after the implementation of zero rate for the good and service tax (GST).
Global Retail Ventures (GRV) Sdn Bhd chief executive officer Mustakim Manaf said the consumer market and sentiments are now showing better improvements.
"The impact of GST varies by industry but at present (after zero GST), the situation shows better situation.
"Some policies implemented by the government are functioning well and has shown great impact and stimulating the local retail sector.
"We are projecting a more positive outlook for the next six months," he said after a meeting with the Council of Eminent Persons in Kuala Lumpur yesterday.
GRV is the franchise operator of Hamleys Toy Store in Malaysia and Singapore.
Commenting further, Mustakim said the industry is seen to be more encouraging with their respective expansion plans and in opening more stores.
"After the zero rate of GST, more traders are seen operating in supermarkets, and even GRV businesses are getting better.
"Such factors provide a good indication of the retail sector in the country," he said.
At the same time, he argued that the implementation of the sales and service tax (SST) at lower rates would help traders, thereby benefiting consumers.
"Actually the SST is the same idea (when it was previously implemented), so it is necessary to ensure that it is at an affordable rate.
"Therefore, the SST rate to be set should be less than 10 percent," he said.
Previously, Malaysia implemented SST at 10 per cent before being converted to GST at six per cent.
He also agreed with Mydin Mohamed Holding Bhd's managing director Datuk Ameer Ali Mydin earlier that lower SST rates would make more traders compliant to its implementation.