7 September 2012
GST and subsidiy review looms
PETALING JAYA: Consumer sector stocks will face challenges following the 13th general election despite having done well year-to-date as the implementation of Goods and Services Tax and resumption of subsidy rationalisation looms.
Alliance Research analyst Ian Wan advises investors to be more cautious as the sector would be facing more challenges regardless of the outcome of the election.
“If the existing Government remains in power post-election, we foresee the Government to implement Goods and Services Tax (GST), resume its subsidies rationalisation programme and raise the electricity tariff to close its budget deficit in 2013. Furthermore, de-rating of the sector could happen post-election as domestic investors return to higher beta plays.
