Habib takes cautious approach

Publication: NST

Date of publication: Dec 16, 2013

Section heading: Business Times

Page number: 002

Byline / Author: By Alang Bendahara

SEREMBAN: JEWELLER Habib Holdings Sdn Bhd is adopting a cautious stand in opening new stores due to the uncertainty following the introduction of the goods and services tax (GST) in 2015, which will see a six per cent levy on jewellery.

Habib managing director Datuk Meer Sadik Habib said currently, Malaysia is one of the few countries that do not impose any taxes on the sale of diamonds and gold.

"That makes Malaysia one of the best countries to buy diamonds and gold as there are no taxes on them but in 2015, GST will go into effect and the prices of diamonds and gold will increase by six per cent.

"Next year, we will open a new Habib jewellery outlet in Kuantan, Pahang, but after that, we need to assess the needs as we do not want to open too many branches due to the GST," he said, adding that the company needs to evaluate the customer's acceptance of the GST before making any expansion plans.

Speaking after the opening of Habib's latest jewellery store at Mydin Mall in Seremban 2, here on Friday, he said with the opening of the Negri Sembilan outlet and future opening in Pahang, Habib will cover nearly all states in Malaysia except for Perlis

Meer said the store in Seremban 2 is Habib's 32nd outlet nationwide and its seventh store located inside Mydin Mall, of which the company has collaboration with.

It is also its first jewellery outlet in Negri Sembilan.

Meer said the company spent RM5 million to stock its new store with the latest diamond and gold jewellery collection.

He said now is the best time to buy jewellery, before the GST takes effect in 2015.