According to the article, zero rates of Good and services tax (GST) had been announced and will start to be effective on 1st June 2018 in Malaysia. One of the industries that Sime Darby Bhd serves is Sime Darby Motors had import and distribute the vehicles. This announcement had caused the price of the new car had decreased by 6% approximately until the reintroduction of Sales and Services Tax (SST). Moreover, before the zero-rated of GST is effective, there was decreasing on the sales of the car in May 2018 because the customer would like to wait until June 2018 which the 0% GST effective.
The sales might slow down in the month before the 0% GST is effective which can give impact on the automotive industry. However, in the middle of the month of zero rates of GST is effective, the sales of the automotive industry probable boosted since car prices have dropped which may help to make up for the losses in previous month. Since the SST may be introduced back on September 2018, the sales of the car may be increased in June, July and August which expected by the research team.
