KUALA LUMPUR: IT solutions provider Censof Holdings Bhd is aiming to tap the small and medium enterprise (SME) market, ahead of the goods and services tax (GST) implementation, by forming a joint venture (JV) entity known as Censof ABSS Sdn Bhd with Asian Business Software Solutions Sdn Bhd (ABSS).

Censof’s wholly-owned unit, Century Software (M) Sdn Bhd, will hold a 50.02% stake in the JV, while ABSS will hold the remaining 49.98%.

Through the JV, Censof ABSS will have exclusive distribution rights to distribute and market MYOB Premier and MYOB Accounting software products in Malaysia.

Censof group managing director Ameer Shaik Mydin said the move had strategically positioned the group to capitalise on the implementation of the GST next April.

“In total, there are about 700,000 SMEs out there, out of which about 300,000 require GST-compliant software,” he told the media during a briefing yesterday.

Meanwhile, Tamil Selvan, deputy managing director of Censof, noted that the implementation of GST in Australia had resulted in a threefold increase in revenue of software providers.

Asked if the collaboration would be a long-term plan for Censof, Ameer said the JV is for the short term. “It is more of a GST-related [venture]. At this juncture we are looking at the short term. Will it be a long-term [measure]? We will see,” he said.

Paul Jennings, managing director of ABSS, said that there are multiple drivers which will increase the adoption rate of GST-compliant software over the next six to 12 months.

“There are a few drivers in the market. Clearly, the release of the next Malaysian government budget will be one of them. The deadline of Dec 31, 2014 for compulsory registration will be another one.

“When GST is formally introduced, that will be another driver to push for adoption, and then the first filing date for GST returns will also be an obvious driver,” Jennings said.

Censof closed 2.5 sen or 4.35% higher at 60 sen yesterday, bringing its market capitalisation to RM276.3 million.


This article first appeared in The Edge Financial Daily, on October 8, 2014.