ICT industry has taken a hit with slowing consumer demand, weakening ringgit and rise in cost of living leaving many to prioritise their spending. The effect did not help, when customs introduced GST in April 2016, retailers in Low Yat are still reeling from the slowdown.

With Prime Minister, Najib Razak about to unveil 2017 budget next week, Pikom the National ICT Association of Malaysia representing over 1000 members is proposing some recommendation to the government including zero rate on ICT products and services. Prior to the implementation, prices of ICT products were not subject to sales tax, however they have now increased leaving demand decrease with the added 6%.

Apart from zero gst, Pikom is also recommending tax deduction of RM3000 every two years for PC and smartphones instead of the current three years. And reintroducing EPF withdrawal scheme for products and broadband service, this would reinvigorate the sector leaving consumers their disposable income intact but utilising static money from EPF. Also among others, was the call for reduction in broadband charges, and relief for ICT related training, corporate or individual.

Some welcoming suggestions from the association, the fact is ICT industry especially consumer hardware businesses are facing a torrid time. One just has to walk into any digital malls and will find the subdued atmosphere, where once barely there was space to maneuver.