With the implement of GST in Malaysia, you would think that the new prices of smart devices would deter Malaysian consumers from purchasing a new smartphone for themselves. However, that may not be the case. According to the international Data Corporation (IDC), one of the world’s leading ICT market research and advisory firm, the implementation of GST is expected to help the Malaysian smart economy grow in the long run.
“The Malaysian PC market is expected to ship 2.2 million PCs in 2015 and decline by an average of 1.3 percent year on year till 2019. This is an improved outlook on the back of slowing tablet growth and sustained public sector and enterprise spending, ” said Ng Juan Jin, a market analyst who tracks Malaysian PC market at IDC Asia/Pacific.
“It is apparent that there has been a change in what Malaysians want when it comes to smart devices. While maintaining a budget-conscious mindset. Malaysians want to remain connected and at the same time seek for devices that provide them a certain level of viewing and holding comfort when in use. These devices do not necessarily have to be high-end devices but just need ti be good enough to support their various needs such as web browsing, messaging. gaming and watching videos, ” said Jenson Ooi, another market analyst from client devices at IDC Asia/Pacific.
With GST, IDC believes that there will be an initial impact to consumer spending power, as many other countries have begun recording a two to three percent increase in inflation rates upon introducing GST. “The introduction of GST on smart devices should boost the economy through higher government revenue and spending . Whether or not the government reallocates some GST revenue into the expansion or development of the ICT sector still remains to be seen, but this certainly seems to be the direction the government is taking.”