00:00RHB Investment Bank Burhat says it expects the expanded sales and service tax, which comes into effect on July 1st, to have a limited impact on inflation due to exemptions for essential sectors.
00:13In a research note, it said exemptions given in key sectors, such as food, healthcare and basic utilities, will prevent the expanded SST from financially burdening Malaysians.
00:24The research firm also expects the expanded SST to have a negligible impact, estimated at around 0.1% or 0.2% annually, on the Consumer Price Index.
00:36Meanwhile, MIDF Research assured that demand for real estate remains strong and the impact of the SST's expansion is expected to be minimal as residential buildings remain tax-exempt.
00:47The firm also projected that new property sales would increase in the second half of 2025, in line with more active project launches and a significant rise in housing loan applications.
00:59Meanwhile, CIMB Securities said the SST's expansion is expected to have limited direct impact on the automotive sector, with only a slight increase in dealership and showroom rental costs.
