In Malaysia, we have just done something that few other countries have done – we will be abolishing GST (Goods and Services Tax). GST was introduced here back in April 2015. In 3 short (but long) years, it had contributed to a rather shocking rate of price increases of goods locally. Granted, not all of it is due to the GST – many other factors were at play. But GST was an easy and visible target.
With the new Government in place, GST has since been rated to 0% and it is expected to be abolished when Parliament sits in July.
Leaving aside my personal views on GST, I noticed quite quickly that for the most part, prices of goods were reduced by a factor of 1.06. In some cases, these reductions were quite significant. I was browsing on Ikea online, and immediately thanked my lucky stars for not dropping by earlier LOL!
I was also at The Body Shop within a few days of the announcement that GST was being removed, and I noticed that prices of products had been adjusted. So yes, they are lower than before. I also spotted similar price adjustments at various stores like Bobbi Brown. In fact, I just received an email from Sephora urging me to take advantage of the lower prices – tempting!
But I was also wondering if the reduction in prices at present might push you into shopping more than you did before? I asked this on Twitter, and the answers surprised me.
Personally speaking, I will say that it will not make me shop any more than I did before. If anything, I might actually shop less!
If there is something that the past 3 lean years taught me, it is that I could quickly and easily distinguish between “wants” and “needs”. I have been able to make that distinction for a while now, but it was quite rudely rammed home in the past couple of years. This is what most people on Twitter agreed on.
When you start realizing that your grocery bills are rising dramatically, despite not splurging on luxuries, it certainly makes you think about whether you really need that fancy nut butter. I enjoy grocery shopping, so it wasn’t too hard for me to notice when prices were going up on essential goods.
When it comes to beauty, I guess I became much more discerning about what I would buy, and more hardworking about finding alternatives. Often, these alternatives I could find online. Sometimes, I had to wait for them to arrive, but if I could get them cheaper, why not?
I still do the odd splurge, but it has been fewer and further between. I never put myself on a no-buy nor a low-buy. I don’t believe in doing that, because like a badly timed diet, you will bounce back and end up spending more than ever.
Instead, I just became a little more conscious about what I spent money on. I downloaded an expense-tracking app on my phone (It wasn’t a very good app so I’ve deleted it) and quite shocked myself at how much I was spending on frivolities, without even realizing it. A little coffee here, a little snack there, a new lipstick treat there all added up. So I basically became more conscious about my spending habits.
And today, I am quite careful. I do still buy on impulse some days. I also don’t restrict myself from treats or luxuries. But I certainly do not find myself spending any more money than I should, and am able to think and rethink if I really want something.
For me therefore, price reduction or not, I don’t forsee myself shopping more now that prices are reduced, compared to before this.
Will your shopping habits be affected by the new lower retail prices?
I do expect however, that prices will only really stabilize towards the end of the year when the new tax structure is in place. Only then will we know if prices will remain more stable, or if there will be another round of price hikes. Also, because so many of our beauty products are imported, I believe that exchange rate factors will play a large part as well. So, it will be a little too early to tell if prices will remain low. But from now till September 2018, these are probably the lowest we’ll see prices for a while so if there’s a big ticket item you’re eyeing, now’s the time! 😀
Will that make you stock up and shop more these 3 months? 😀
Paris B
Unfortunately there is speculation prices will go up. Business owners will surely want more profits.
For these 3 months prices will be lower generally as people are watching but of course I expect the prices to go up eventually. Which means now is probably a good time to be shopping lol! 😀
I love your blog n everytime when i want to go for skincare , i will read “ mywomenstuff” first… !
I’m pretty not sure whether to spend more after GST reduction. As I don’t want to hoard maybe little picky for any selection to buy next. ?
And also, the price willor might be adjusting again. ?perhaps it maintains the price.
IG jazzeyra
I think this period till September anyway will be a good time to go shopping. And then pause till end of the year LOL!
Bar groceries, I don’t shop locally a lot so, no, GST removal has had little impact on my beauty shopping. Priorities have also changed and it no longer feels exciting to have 20 unused cleansers and 48 untouched lipsticks languishing in my drawers until expiry.
The realisation that I have only one face and that I won’t need every palette ever made has left me resistant to a lot of the discounting and promotions going on in the beauty world.
Coupling that with the fact that a lot of ‘content creators’ are coming across too strongly as paid advertorial mouthpieces now (anyone else miss genuine Indie reviews?!) – much of the dialogue coming out on beauty is not inspiring enough to make me drop the dough lol
So yeah, high prices or not, I’m really just too bored to buy.
LOL You and I both, about makeup. I’m quite happy about groceries dipping a little in price, and well, for Daiso too! LOL! But for beauty, I’m on a bit of a mission to make a dent. Doesn’t mean I don’t shop, but I am much more selective in what I choose to buy, and often, that isn’t pharmacy brand as much as people want me to “try” 😛 Oh and I have found that the best way to maintain my interest in beauty is to stop following content creators. I stick to a few blogs that I check in on once or twice a fortnight or month. But I keep my instagram following very very small because I know how frustrated I can get about everything looking homogenous and designed to sell. Heck, I’m probably guilty of it myself 😛
I don’t buy on impulse so it will not be making me run out at the next moment just cos GST is now 0%… but after reading the comment below saying prices are likely to go up in a few months, I can feel my resolve melting… yikes!
IG yumingk
LOL Don’t we all! Before the 0% GST, some brands were doing 6% discounts on products. To be honest, you get a better deal with the 6% discount than the 0% GST! LOL! So yeah, come September when SST comes into play I expect slightly higher prices
Knowing me, probably not? I’m trying to downsize what I have and keep it as minimalist as possible with the occasional quirks by sticking to favs while resisting the urge to buy everything I kinda want to try at one go. Also, super paranoid about expiration dates – this mug can only handle so much product at a time. So stocking up kinda defeats that purpose though I may give in every now and then XD
On another note, is that Body Shop mist good? I was wondering about it ever since it came out, but never got to picking it up…
You are absolutely spot on about expiration dates! I’m trying to be good, but you know how it is – the best intentions and all that LOL! I only just got the Body Shop mist! I read about it online and it’s only just available now. I tested it in store and it feels nice, like spraying water on. Not sure how “good” it will be, and the size is really tiny! But it is very portable
Lol . Price reductions? Fat chance. The ones I buy, their idea of price reductions = 0% GST and NOT the actual price reductions. Typical of certain companies.
Aww pity, but that’s still a price reduction there vs before 1 June 🙂
I did stock up many cosmetics & skincare products especially from Guardian & Watsons because the price is just too irresistible! 50% to 60% off and buy 1 free 1! I really can’t say no to all my favourite products!
I spent few hundred bucks but I think it’s worth it!
IG: jess_kitkat88
Wow, now that’s quite a deal with such big discounts! Must be the festive period too but I guess if you’re saving money in the long run it’s a good thing? 😛
I try not to have an impulsive shopping for beauty products because I am afraid i could not finish it before the expired date. By the way my ig is @ameliachiang_
That’s very wise Amelia 🙂
Due to the Eid celebrations being quite close to implementation of 0% GST, I have definitely gone bonkers shopping. But if the implementation happened any other time, I would have just turned a blind eye to it. Because seriously, neither I nor my family need anything. But the joy of the holidays pretty much forces my hand and makes me purchase new everything, i.e. clothes, bedsheets, cushion covers, carpets, etc. ??
IG: fadzilah__ibrahim
Actually, I think the timing has been very good for those doing festive shopping! Definitely an injection to the local economy 😀 Hope your preparations are going well – just a few days left!
I realised some product increase price when there is still have GST so that when 0% GST comes, the price is the same as before. EG: SXXX
However, as now is 0% GST and SST still yet to come, is really a great time to buy stuff that you need. Happy shopping!
(Ig: ngliying10)
Ok those who didn’t adjust the prices really suck! 🙁 For me, I have noticed a slight reduction – definitely made me happier to shop in Daiso for one LOL! And I’d probably pop down to Ikea too while the going is good since we don’t know how SST will affect us haha! Good time to get big ticket items!
It’s been so tempting to spend more than usual with so many companies promoting their 0% GST sale in both shopping malls and also social media so yes ive been stocking up on items that I’ve been eyeing for quite some time now 😉
Ig: natzylynn
As long as you check to make sure the expiry dates are still a long way off! 🙂 I’m happiest about groceries, can’t deny that! LOL!
Seriously, I always think twice before I make any purchase even though the Gst has been abolished.
IG: Suhjinfoo
And you know what? That’s the wisest thing to do!
There are few things I have in my wish list for the longest time ever, the items are somewhat in between ‘wants’ and ‘needs’ haha. I think I might do some shopping and take advantage of the 0% GST 😀
ig: amelynaishah
Better still if your wishlist items go on sale! Even bigger savings! LOL!
Answer for me is yes i will end up shopping more but mostly because i needed to buy them already even before the gst free announcement. Also, given the two certainties in life – death and taxes, and we get to enjoy a tax holiday in the next 3 months which would never happen again…i’d say stock up, follow up with shopping hibernation till Christmas perhaps? :p
IG: waltzgirl
Good analogy Irene 😛 To be honest, I did wait till after 1 June to buy some items too. A tiny bit of saving is better than no saving at all! But I mostly went a little nuts at Daiso and maybe will go down to Ikea coz those are bigger ticket items 😉
Yes to those items which had been sitting on the wishlist for some time! Oops 😛
IG: traceyquah
I guess now’s the best time, unless a big sale comes along!
I went in to JB in first week of June and was pleasantly surprised to receive 6% ‘discount’ at the cashier. Apparently, some outlets had yet have time to amend shelves’ pricing. So they applied it during checkout. Super early Xmas gift? ?
Will I shop more? I think I’ll not intentionally buy more. I normally buy when I see value – so the same goes with or without 6% adjustment. If everything is slated to come down 6% in the near future, it’s not exactly an exclusive value offer. In short, same buying pattern for me.
Maybe it’s time to schedule another trip before September – that’s when the new tax will come into effect LOL! But ya some shops adjust at the counter. I was at Uniqlo and was pleasantly surprised to find I had to pay less than I expected – which also meant I couldn’t utilize my discount LOL! But nevermind, savings > discount!
I’m a person who would contemplate a lot before I buy something I want. Well, money doesn’t come easy plus when I started earning my own money, the thought that swings by is, do i really need it??? So I often ask myself this question, and the answer is no. However, the temptations feels real at times when I keep seeing In stores or online. I think I always succumbed to is gift with purchases. I didn’t really think the 6% deduction does much for me, unless the purchases are super expensive. Recently I shopped in Dorothy Perkins on 31.5. 2018 and yes they deducted the 6% on top of their 50% sales. I was like, GREAT !! Also I missed the ren event, I have been using quite a few of their products, such as the omega 3 oil and moisuutisers, they are a great hit in the UK, and Black Friday sales is the best, but in Malaysia, I’m just not tempted at all
It’s wise to think a few times before buying something. After all, as you say, money doesn’t come by easily, and we have to make sure we really get our money’s worth! Glad to know you like REN products too 🙂 I really enjoy using them – one of my favourite brands for sure!
Whether there is tax or not, I will buy things only when I need it. However, if I know any of the stuff I am using will finish in a few months (3 months min), and there is currently a discount, I will definitely buy an extra. I will only buy one, not more. Stocking up takes space which I don’t have 😀
That’s very wise of you Azlina! I think the past few years have taught us a little about spending a little more wisely especially since prices of things are going up!