Wing Tai shrugs off negative sentiment

Malaysian apparel retailer and property investor Wing Tai says it remains confident that the nation’s retail sector will bounce back in the wake of the GST-driven retail sales downturn.

The company has reported a 41.8 per cent slump in profit in the three months immediately following the April 1 introduction of Malaysia’s modest six per cent goods and services tax on considerably sales revenue which more than halved – from RM146.6 million to 66.5 million.

While the fall in revenue was more attributable to the property division rather than its retail interests, the company noted its retail profit margins were affected by higher import costs due to the weakening ringgit and subdued consumer spending.

“While the retail (division) outlook is expected to be challenging in 2015 with weak ringgit and soft consumer spending, the retail division will continue to streamline its operations to enhance its performance,” Wing Tai said in its earnings statement.

“In consideration of the prevailing market conditions and barring any unforeseen circumstances, the group expects to remain profitable for the next financial year,” it said.