Habib Jewels expects 30% sales growth within three months

KUALA LUMPUR: Homegrown jeweller, Habib Jewels Sdn Bhd, expects a 30 per cent increase in sales within three months starting from today until Aug 31, 2018, before the re-implementation of the Sales and Services Tax (SST).

Managing Director Datuk Seri Meer Sadik Habib said sales would be driven by the zero-rating of the Goods and Services Tax (GST) effective June 1, 2018, which would reduce product prices and increase exports.  

"We are expecting sales to be strong over the next three months. It could even increase by up to 100 per cent, but there might be a little bit of uncertainty due to ringgit movement," he told a press conference here today.

Recently, Prime Minister Tun Dr Mahathir Mohamad announced that the SST would resume on Sept 1, 2018 to replace the GST.

Following the announcement, Meer Sadik said there was an immediate drop in prices for gold, diamond, jewelleries and its Ice-Watch.

"For example, the price for 916 gold has reportedly dropped from RM205 per gramme to RM193 per gramme today.

"As such, I believe more Malaysians will start purchasing gold bars and gold jewellery for investments," he added.

In conjunction with the festive season, he said Habib Jewels would organise 'Bazaar Ramadan' sales promotion from June 1-3.

However, Meer Sadik hoped the new government would maintain the zero-rated SST on jewelleries as it was pre-GST.

"There was no SST for jewellery, but when the GST was implemented, we were subjected to six per cent.

“I hope the government would consider going back to zero-rated SST for the jewellery industry as it can help to boost the export market,” he said.

Citing data from the Malaysia External Trade Development Corporation, he said jewellery exports fell by 20 per cent after the GST was implemented. - Bernama