With the rising global interest in the secondhand luxury sector, the market is expected to more than double over the next five years to RM363 billion. According to UniRazak economist Prof Dr Barjoyai Bardai, the preloved industry in Malaysia is valued between RM2 billion to RM4 billion.
Furthermore, the market is predicted to flourish even more once the government implements the High Value Goods Tax (HVGT) later in May this year, which involves a tax imposed between 5 per cent and 10 per cent.
The newest HVGT is expected to be imposed on luxury items such as jewelry, luxury cars, designer accessories, apparel and handbags, cars, yachts, jets and many more, with the specified threshold price range for the goods to be taxed.
As issued by the Ministry of Finance, the preliminary guidelines set thresholds for affected goods, including cars priced at over RM200,000, watches over RM20,000, and jewelry over RM10,000.
Prof Dr Barjoyai said the secondhand luxury market is soaring as many from the middle-income groups cannot afford the retail prices of these goods.
Moreover, the secondhand luxury goods market drastically surged during the Covid-19 pandemic in 2020 and shows no sign of slowing down.
With HVGT introduced starting in May, the demand for luxury products would shoot up. This surge in sales can be attributed to people seeking out cheaper alternatives and cost-saving opportunities as many realize that they can save by purchasing pre-loved items instead of paying higher prices for new ones.
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