Written by: Kevin Wong
The era of the Goods and Services Tax (GST) has gone and dusted, the newly appointment government has reintroduced the Sales and Services Tax (SST) as the new tax system.
While, there have been some announcements and speculations going about, many are still unclear of how SST will be reimplemented.
Most industries are still waiting for further clarification on the matter, however, they do expect it will affect their prices nonetheless.
In an exclusive interview, TechsideTales had the opportunity to talk to with, TP-Link Distribution Malaysia Sdn Bhd director Hugo Cai on how would play an effect to TP-Link’s performance for the remaining of 2018.
TST: How would the reimplemented SST affect the prices of your products?
Hugo: The reimplementation of the SST will certainly affect our prices; however, this is something we have prepared since the announcement was made.
Will our prices go up or down? It depends as other brands will do so as well. So, this will keep intact the competitiveness within the market.
For us, we see it from a positive perspective, as every product will be affected by SST. It is not something new, as when we first started business in Malaysia, the SST was already in place.
That said, our products continue to be trusted and relied on by our consumers.
Do you expect to see sales to decline? If so, what is the expected decline and how do you intend to regain the sales?
Based from our calculated market research, we believe the market would be initially slow for the first few months, if not the first few weeks. This is only normal as consumers will need time to adjust with the change of prices.
Nonetheless, we are optimistic that this will not affect our sales due to the stability of the nation’s buying power and is able to sustain despite the change.
Our smartphone arm, Neffos, will continue to offer products at the best prices while giving strings of promotions to give consumer more added-value.
How would this affect your vendors?
We always value our vendors as they are our business partners, and like I mentioned, this is something that we had prepared.
Additionally, we are considering to absorb some of the costs if our vendors’ businesses are not heavily affected. We have met with our vendors and discussed possible contingencies so that everyone benefits mutually.
Would the increase of price affect Neffos market share (Neffos) as previously you said it is expected to be among the top five smartphone brands in Malaysia?
No, I believe not. I am very confident that with our range of quality product offerings, quality-controlled operational costs and unparalleled services provided will help push us to be among the top five brands in Malaysia.
Neffos will continue to do what it does best, offer its highest quality products at the best prices together with strings of promotions to give the consumers more value.
This includes with our our outstanding aftersales services of two-year warranty, which no other brands in the market is offering.
So, there any price increase by SST will only be seen as a small factor.