The Impact of Imposing GST On SMEs Economy in Malaysia

Shadia Suhaimi, Nur Baiti Shafee, Haniza Hashim, M. Nirmala Devi, Teng Shai Yen, Nor Haliza Che Hussain


This research paper is to identify what are the effects when government implement Goods and Services Tax (GST) towards Small and Medium-sized Enterprises (SMEs) in Malaysia. Basically, SMEs has a very important role in the development and growth of Malaysian economies. They can be considered as a backbone of the economy. However, because of the low business volumes compared to supermarkets, it has put SME at a disadvantage when GST has been implemented. This study used survey method in gathering data and 150 questionnaires has been distributed to SMEs in several states in Malaysia; which are Melaka, Johor and Kuala Lumpur. Since the implementation of GST has been started on 1st April 2015, there are many concerns from SMEs on how the implementation will be affecting their business. Hence, this research will clarify their concern by using four variables, which are the record keeping, compliance costs, cash flows and sales.


Goods and Services Tax (GST), Small and Medium Enterprises (SMEs), Malaysia

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