GST: Can Malaysia Builders survive the next big wave?

It is reported that Malaysia's biggest developer by market value, UEM Sunrise Bhd (UEMS) faces lower profit margins from a new tax and may delay some projects amid Malaysia's steepest slump in property sales since the 1998 recession. The company's costs will rise as a 6% GST which is starting in April 2015 boosts prices of building materials that can't be passed on for certain projects. The government introduced the GST to broaden its revenue base after running a fiscal deficit since 1998. Property demand has dropped 11% in 2013, the most since the 1998 recession. Fitch Ratings cut its Malaysia outlook to negative in July 2013, citing concern over deteriorating public finances. Whether Malaysia Builders can survive the GST wave next year is yet to be seen, although Malaysians are already feeling the pinch now. To read more: Bloomberg news