02-07-2025
Buying local to stretch the ringgit
Consumers more cautious with their spending
PETALING JAYA: As Malaysians witness the implementation of the expanded Sales and Service Tax (SST) from yesterday, consumers are switching to buying more local products rather than imported goods and cutting back on luxuries like dining out.
Nor'ain Othman, 66, has adopted a more cautious approach to her family's spending habits.
'We are also keeping a closer eye on monthly expenses and may cut back on non-essential spending like eating out or online shopping,' she said.
The Shah Alam resident said that with the expansion of SST, she had a stronger preference for purchasing local products, particularly fresh produce.
'We are definitely more inclined to support local products, especially fresh produce and groceries. Local goods are usually more affordable and fresher anyway,' she said.
She also urged the government, through the relevant ministries, to monitor prices and take action if businesses took advantage of the SST expansion.
Ravi Chandhiran Rajagopal, 62, agreed for stricter enforcement to ensure price control among the businesses.
He added that he would also reduce reliance on imported products amid the new expanded SST regime.
In Perak, Zunaidi Zubir has made early preparations by stocking up needful items before the expanded SST kicked in yesterday.
'I expect prices, especially for imported goods, to rise. Purchasing locally made goods can help me cut down on expenses with the newly imposed SST,' he said when met.
Meanwhile, auxiliary policeman M. Moganadass, 48, said he did not make any preparations but would also choose local products to manage his budget.
'I don't see much difference in switching to local products, but this tax hike will definitely burden the lower-income group.
'If taxes and prices go up, salaries should go up too. It's going to be difficult for people to cope if their income stays the same,' he said.
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In Negri Sembilan, lawyer Andrew Raju said the Domestic Trade and Cost of Living Ministry would have to constantly monitor the prices of essential goods to ensure there were no increases as these were not affected by the expanded SST.
Andrew, who is also Malaysian Public Service Society (MPSS) president, said this was because there was a possibility that businesses might increase the prices of these goods to offset the increase in prices of non-essential items and other costs.
'The authorities have given assurances to the public that there will be no SST imposed on basic essentials such as chicken, fish, vegetables and rice, and many more items but this has to be followed up with full scale enforcement.
'I know many families from low income households who cheered when the minimum wage was increased from RM1,500 to RM1,700 not too long ago but if prices of essential items were not effectively monitored, the increase would be meaningless,' he said.
Andrew added that to ensure the people really benefited, stern punishment must be meted out to businesses that also increased prices of toiletries like sanitary pads and soaps which were now SST-exempt.
A small time contractor who only wished to be known as Lee said although he would not be directly affected by the expanded SST, an impending increase in prices of raw materials would surely make it costlier for him to do business.
'From what I understand, I won't be affected by the SST as I carry out minor renovations of residential properties but talk in the industry is that we can expect an increase in the prices of raw materials.
'I am only a small-time contractor with six workers and I hope the prices of raw materials will not increase,' he said.
In Johor, personal assistant R. Chitra, 46, said the SST would change how she managed her income and spending as she would have to cut back on buying imported goods, including food.
'I do not mind local rice since I already buy it sometimes. But I do hope local products can be of better quality so it is easier for consumers to make the switch.
'Because at the end of the day, I will go with products and services which offer the best quality,' she said.
While she believes that the SST is part of the government's plan to increase national revenue, she hopes that it will not burden the public too much.
Chitra also suggested the government take advantage of the Central Database Hub (PADU) to provide targeted support to low-income groups, especially the B40 community.
Contractor Zippo A. Aziz, 51, who prefers buying imported shoes for the quality, said he might have to stick to more affordable alternatives such as thrift shops after this.
'I love imported shoes and used to buy them often, however now I find thrifted goods to be more pocket-friendly.
'I try to view the new policy in a positive light to encourage us to support local products and avoid wasteful spending. It might also help strengthen the Malaysian ringgit, though many see it as a burden,' he said.
Living alone, Zippo said he also preferred to eat at local food stalls rather than dine in high-end restaurants, especially now that SST would be applied on certain products and services.
'The food is way cheaper and just as good, plus you won't get hit with extra charges.
'People go to restaurants and order steak, but not realising that the beef is imported and that is why the prices shoot up,' he said.
He added that consumers needed to be smart and responsible in how they spend their money.
