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PRESS RELEASE FOR IMMEDIATE RELEASE

Retailers Urged to Prepare Early for GST Prompt Preparations Crucial for Better Cost Management and Less Disruption

to Business Operations

Kuala Lumpur, 13 March 2014 – With the Goods and Services Tax (GST) scheduled to

come into effect in April 2015, industry leaders today urged retailers to make prompt

preparations to ensure better cost management and minimal disruption to business

operations.

Speaking at a press briefing on the topic of GST compliance for retailers, Dato’ Nelson

Kwok, President of the Malaysian Retailer-Chains Association (MRCA) said, “The GST

will enable retail businesses to be more globally competitive as no GST will be imposed on

exported goods and services. While there are bound to be some challenges in the initial

adoption stage, the key is to prepare early so retailers can have a smoother transition and

benefit from the GST”.

“I urge all retail-chain businesses, especially our MRCA members to make haste in

understanding and preparing for the GST. The proper processing systems need to be in place

so there will be lower chance of errors in their tax declarations and this would reduce

compliance costs due to penalties”, he added.

According to Tan Hai Hsin, Managing Director of Retail Group Malaysia, one of the initial

impact of the GST on retailers will be in the area of cost management as some suppliers may

increase price as a result of a knee-jerk reaction to the new tax.

“Recent price hikes in essential items such as electricity and fuel have already diluted profit

margins for retailers. The implementation of the GST may place further pressure on retailers

in their cost structure, not just in terms of rising price of inventory but also in compliance costs

due to not having proper GST compliant systems and processes,” Tan commented.

He added that the estimated growth in 2014 for the retail industry is 6% and this may be lower

for the coming year as businesses transition to the GST.

Alex Lim, Executive Director of Goldsoft Sdn Bhd, a retail software provider said, “The

implementation of the proper processing systems goes beyond having just a simplistic

understanding of GST, especially for medium sized to big retailers. Some retail business

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have customized retail management software and configuring their customized systems to be

GST compliant may not be as straightforward and will take time. Also, the software users will

need to be trained”.

Lim cautioned that although the operation of GST seems fundamentally simple, there are a

host of issues that must be considered by retailers including tax treatment on consignment

stock, product pricing and how to define taxable or non-taxable supplies. He added that a trial

period to run the new GST system must start months before the GST deadline to avoid

painful and costly surprises.

“We are already engaging with our existing customers to prepare their systems to be GST-

compliant. Some have already started trial runs of the GST system with us but we hope to

see urgency from more retailers to start this process”, ended Lim.

Goldsoft is a provider of fully integrated enterprise retail management solutions with GST

support. To-date, Goldsoft customers include 220 fashion brands in major shopping malls and

departmental stores within Malaysia, Singapore and Thailand, five of the top Malaysia luxury

brands and more than 18 footwear retailers.

About Goldsoft Goldsoft is a leading software provider in the retail, trading and distribution domain. Since 1997, Goldsoft has delivered proven and reliable enterprise retail management solutions for more than 180 businesses in Malaysia and beyond. Through an innovative and a highly adaptable approach, we deliver software solutions that are comprehensive and relevant to our customers’ needs. Goldsoft is a dedicated Oracle partner since 1999 and a member of the Malaysian Retailer-Chains Association (MRCA). www.goldsoft.com.my

Editorial Contact:

Alex Lim Goldsoft Sdn Bhd Email: alex@goldsoft.com.my Phone: 03-9173 2802

Jeanisha Wan J1 Consulting Sdn Bhd Email: jeanisha.wan@j1consult.com Phone: 03-7960 1611 or 019-3817116