2 days ago
Kuching fruit sellers brace for impact as SST revision looms
KUCHING, June 13 — With Malaysia set to enforce the revised Sales and Service Tax (SST) on July 1, local fruit sellers are bracing for potential price impact.
However, many remain cautiously optimistic that the changes will not significantly deter customer demand.
Under the updated SST, an additional 5 to 10 per cent tax will be imposed on selected imported goods, including certain fruits.
While the government has assured that essential goods and services will be minimally affected, some uncertainty remains among local traders.
Liew Sze Puing, owner of Sara Fruit Sdn Bhd at Jalan Padungan, said that while prices of imported fruits may rise, he does not expect a drastic change.
'I think it should be no problem. The price won't go up that much, looking at the current market,' he told The Borneo Post.
Liew added that fruits are a daily necessity for many and believes demand will persist despite slight price hikes.
'In the end, it depends on the customer's capability. If they can afford it, they'll go for the more expensive ones. If not, they'll choose the cheaper options. That's just how it is,' he said.
Echoing similar views, fellow fruit shop owner in the area, Sharon Tan, noted that much of the pricing uncertainty stems from the import side.
'It is said that the price also depends on the import side, so it is likely that there won't be an increase.
'However, the situation remains uncertain, as the parties on the import end are still unsure. We're having difficulty getting through, so we don't know when we will get confirmation,' she added.
When asked whether the tax changes might affect customer traffic, Tan said they continue to sell based on the stock provided and do not foresee a major impact.
'Customers will still need to buy regardless.'
Another fruit seller, Ho, who owns a fruit shop at Tabuan Jaya, offered a different perspective from Liew and Tan.
He noted that fruit prices have always been inconsistent, and if the cost of imported fruits increases significantly due to the SST, he plans to reduce the amount of stock ordered from suppliers.
'I will control the number of the stock, as a way to control the loss of income,' he said.
So far, Ho has only heard about price increases for strawberries, with no news yet on other fruits.
However, with the implementation of SST, he believes it is only a matter of time before the prices of other imported fruits rise as well.
He also pointed out that while local fruits are not affected, the rising prices of imported fruits could lead customers to buy less, potentially dampening their overall interest for fruits.
Ho further highlighted the broader challenges faced by small fruit retailers.
'If we compare it to five years ago, people used to buy fruits from small shops like ours. But now, with more and more shopping malls selling fruits below market value, we are forced to match those prices just to attract customers,' he said.
To diversify his income, Ho now supplies fruits to hotels in addition to running his shop.
'This way, we're not solely relying on walk-in customers, who have declined significantly over the years,' he said, warning that if fruit prices continue to rise and competition in the market intensifies, small fruit sellers could eventually disappear.
Meanwhile, the government has announced that there will be a grace period until December 31, 2025 for businesses to comply with the new SST structure. — The Borneo Post
