KUALA LUMPUR (Jan 12): Tomei Consolidated Bhd managing director Datuk Ng Yih Pyng has called on the government to reconsider its decision to implement the high-value goods tax at a rate of 5% to 10% from May 1, 2024.

"We have not heard from the government on the threshold or the details. I am still hoping that the government will consider not to implement the tax,” he told reporters at the media launch of Tomei's Chinese New Year Promo Tour 2024.

“There are a lot of negative impacts. With [the liberalisation of] visas [for China and India], we expect more tourist arrivals from this year onwards. And jewellery will be appealing to them,” he said.

The year 2023 was not an easy one for businesses. With interest rate hikes up to 3% while inflation remained above its long-term average since the pandemic, businesses had to fight against currency fluctuation and gain a competitive advantage in the market to survive.

“We understand that the government intends to widen its tax base. However, for the business community, we still believe that the GST (goods and services tax) is the way forward,” he added.

Last year, Prime Minister Datuk Seri Anwar Ibrahim said the new tax would apply to high-value items, such as jewellery and watches that exceed a certain price threshold. Meanwhile, then deputy finance minister I Datuk Seri Ahmad Maslan added that the tax will not be imposed on tourists in order to promote inbound tourism.

As of November 2023, the Ministry of Finance was still in the final stages of finalising the high-value goods tax policy and legislation.

Meanwhile, Tomei remains optimistic about its outlook for 2024, adding that it will continue its strategy to provide more improvised products.

"Since it is the Year of the Dragon, we foresee more marriages and newborns in 2024. We hope to launch [a wider] range of products, and look for more opportunities to expand. In the meantime, we will also expand some of our existing stores,” he said.

For the upcoming festive season, Tomei has launched five product series, including the “Marvelous Dragon Collection” inspired by the Chinese zodiac, the “Tomei Fortune Collection” featuring abacus-shaped jewellery, and the “Glorious Culture” integrated with feng shui elements.

Furthermore, Tomei forecast gold prices to remain bullish in 2024.

"Looking at reports, [gold prices] are still very bullish. The question is when the US will start reducing interest rates. The interest rate has already peaked, so it is just a matter of time. That is why, especially for the second half of this year, we are quite bullish,” said Ng.

At Friday’s noon break, shares in Tomei were up one sen or 0.8% to RM1.26, valuing the group at RM174.64 million.

For the first nine months ended Sept 30, 2023, the gold jewellery manufacturer posted a net profit of RM41.29 million, on the back of RM664.59 million in revenue.

https://www.theedgemarkets.com/node/697174