The implementation of the Goods and Services Tax (GST) in 2015 is set to encourage demand for vehicles following the termination of Sales and Service Tax (SST) that would lead to price drops, according to a Bernama report.

“(Translated) It will stimulate demand for cars and we are not expecting a huge impact on prices after the implementation of GST,” Malaysia Automotive Institute (MAI) CEO Madani Sahari told reporters at the MAI-Lafarge Automotive and Logistic Safety Exhibition 2014 on Saturday.

When asked if vehicle sales have dropped due to customers adopting a wait-and-see attitude towards GST, he claimed that the industry was actually still showing positive growth.

“The Total Industry Volume (TIV) is higher this year than the last, backed by aggressive sales campaigns from industry players,” Madani said. “The 2014 TIV projection of 670,000 units has now been changed to 680,000 units. Through the launch of new cars this month and in the coming months, we are confident that the TIV will beat projections.”

MAI reported that Total Industry Volume (TIV) for the period between January and July this year was 11,490 units, 3% higher compared to the same period in 2013.

Meanwhile, Lafarge Malaysia CEO Bradley Mulroney said that his company was preparing a variety of initiatives to educate drivers and cargo handlers on road safety.

“This exhibition will create awareness about the importance of health and safety in logistic companies and transport services operators,” he added. “We also work closely with our transport operators to ensure their vehicles are in good condition and are equipped with the necessary safety equipment.”