Too soon to say if 8% SST will impact operations, says Toyo Tyre Malaysia

TAIPING:  Tyre maker Toyo Tyre Malaysia Sdn Bhd is monitoring whether the increase in service tax from 6 per cent to 8 per cent starting March 1 will have an impact on the company’s operations.

Its president and managing director, Mike Toh, said this is because many aspects of the company’s operations are exposed to any changes in the sales and service tax (SST).

"I will say at this point in time that we are still not able to judge the real impact yet.

"Should our operations be affected by the increase in service tax, of course the cost of operations will rise. As such we have to observe the development of this impact," he said when met at the company's corporate social responsibility programme here recently.

The Toyo factory was set up with an investment of RM1.6 billion in Kamunting Raya, Taiping to produce tyres for passenger cars and light trucks and exported to various countries including the United States.

Toh said the commercial production of the brand from Japan started in June 2013 and the company currently employs about 1,700 workers, all of whom are Malaysians.