Which stocks would gain prominence if GST were to be reintroduced?

On September 11, Economy Minister Rafizi Ramli mentioned that the government is considering the possibility of reintroducing the GST as a strategy to expand the tax base. This decision has sparked controversy; given that it was one of the factors contributing to the downfall of Barisan Nasional in the 2018 general election. However, Deputy Finance Minister 2, Steven Sim, later expressed that the current post-pandemic recovery phase may not be the appropriate time for GST implementation. Interestingly, there are several companies that could benefit if the government were to reintroduce the GST.

The first company is $IFCAMSC / 0023 (IFCA MSC BERHAD). IFCAMSC specializes in developing business solutions tailored for the property, construction, hospitality, and human resource sectors, utilizing HRX, HotelX, PropertyX, and ContractX. Their primary objective is to facilitate streamlined business monitoring for the property industry, and their software received certification and accreditation from the Royal Malaysian Customs in 2014.

The second company is $CENSOF / 5195 (CENSOF HOLDINGS BERHAD). Censof operates as a technology company, offering financial management software solutions, including e-payment gateway services and wealth management software. Their clientele spans government, commercial enterprises, and SMEs. Censof's subsidiary ABSS accounting software underscores its relevance in the context of GST, as ABSS provides accounting solutions closely related to GST.

Last would be the company that familiar by most people, $ADB / 0276 (AUTOCOUNT DOTCOM BERHAD). Autocount stands as the largest accounting software provider in Malaysia, boasting a client base exceeding 20,000. GST played a pivotal role in augmenting Autocount's revenue as they have developed an accounting software that is fit for the GST, ultimately leading to its listing on Bursa Malaysia.