Press Digest - GST woes for 3,000 Chinese medical halls

PETALING JAYA: Some 3,000 Chinese medical halls in the country may be forced to close shop due to their inability to adapt to the Goods and Services Tax (GST) regime, which will be introduced on April 1.
According to the Federation of Chinese Physicians and Medicine-Dealers Association of Malaysia, 30-50% of these shops face manpower and technological constraints and may opt to wind up their businesses in the next few months, Oriental Daily News reported yesterday.
Federation president Tan Kai Hee said there are more than 6,000 Chinese medical halls in Malaysia but between 1,800 and 3,000 of them may be forced to close shop if the government sticks to its decision to exclude Chinese traditional medicine from the list of GST-exempted or zero-rated supplies.
He pointed out that many medical halls face problems such as increasing manpower and using the computer system to keep track of their stock and sales. Both are needed if these shops register for GST, he said.
"It is hard for them to increase manpower particularly if this is a family business."
"To adopt the GST regime means learning the use of computer hardware and software, which is even harder for the proprietors of these shops, who are usually senior citizens," lamented Tan.
He disclosed that the federation has mobilised its 43-member associations to conduct a study on the impact of the new tax regime on the traditional Chinese medicine industry.
He said a report of the findings, including the number of those wanting to wind up their business, will be presented to the Finance Ministry.
Stressing that Chinese medical halls are a feature of the Chinese community, Tan said it would be a great loss not only to the Chinese but also the lower-income group from other communities if many of these medical halls close shop.
He said the federation will also seek the support of other traditional and complementary medicine associations in its appeal for Chinese traditional medicine to be exempted from GST.