Consumer stocks rise as Malaysia revises GST rate to zero
KUALA LUMPUR (May 17): Malaysia-listed consumer stocks rose after the government said it will impose zero percent GST on all goods and services in the country both locally made and imported effective June 1.
* British American Tobacco Malaysia +4.9%, Bonia Corp +4.4%, Power Root +4.1%, Padini +3.7%
* Bursa Malaysia Consumer Product Index gained 6.4% this week after Mahathir Mohamad won the general elections
* GST repeal isn’t as negative as many analysts have feared as it is offset by the reintroduction of the sales and services tax: Natixis Senior Economist Trinh Nguyen
** Doesn’t expect the SST to materially import Malaysian exporters’ competitiveness or the economy