GST break for retail lots....but it won't make much of a difference for tenants

From the Edge, via Amanah Investments:

The media recently reported that the goods and services tax (GST) will not be imposed on commercial units with rentals of below RM500,000 annually. We believe this announcement is further to the previous declaration that only residential units will be exempted.

This news is slightly positive to retail REITs as it alleviates the additional cost to tenants. Hence it should remove the likelihood that the tenants may demand renegotiation for the lowering of rental fees. 

I find it unlikely any retail operator will give their tenants a break in fees.  Lets face it, the shopping mall still pays 6 percent GST for everything it operates on.  GST breaks maybe translates into cost reductions of 1 percent for the consumer, but if your landlord pays full GST, expect the cost to be transferred to the tenant.

They will no doubt be better off, but sorry no breaks.

People should realize, GST breaks result in little savings for retailers as the retailers suppliers will all pass on the GST costs to the retailer.