KUALA LUMPUR (Mar 31): IDC Market Research (M) Sdn Bhd (IDC Malaysia) said the implementation of the Goods and Services Tax (GST) on April 1 will mostly impact the personal computer (PC) market, among other IT devices.

IDC Malaysia personal computer (PC) market analyst Ng Juan Jin said the new tax system would result in a 10% decline in PC shipments in 2Q15.

“We expect the GST to negatively impact the local PC market in 2Q15. Both consumer and commerical spending are expected to slow down significantly and the market will take a few months to adapt to the new tax, but should return to normal by mid-2015,” said Ng at a media briefing today.

He notes that the current situation for the PC market in Malaysia does not appear to be positive, and forecast that PC units shipped for the market here will remain flat at 2.2 million in 2015. The figure, he added, is poised to decline at an average rate of 1.3% on-year from 2016 to 2019.

“Smartphones continue to compete for consumer wallet and mind share, mega projects from the government have slowed down and there is still a lot of uncertainties regarding GST impact,” he said.

However, Ng expects PCs to still be a significant player in the IT hardware market as new PC form factors or its physical size and shape are regularly introduced in the market, such as hybrid and convertible PCs.

“This shows IT vendors are still creating value and driving innovation,” he said.

Meanwhile, for the smartphone and tablet markets, IDC Malaysia also expects a small dip in sales post-GST, but said the decline will not be as obvious as in the case for PCs.

IDC Malaysia market analyst for client devices Jensen Ooi forecasts positive growth for smart devices in 2015, despite the GST.

“Driven by demand, smartphones will remain the dominant smart device with a forecast growth of 27%, while tablets will grow by 3% in Malaysia,” said Ooi.

Over the next few years, IDC Malaysia sees continued growth for the smart devices segment in Malaysia, expecting more foreign and local vendors appearing in the market as companies leverage on robust consumer demand.