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Retail Reits get a boost from 2-step GST hike but still lack growth catalysts
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REAL estate investment trusts (Reits) with exposure to retail malls in Singapore are likely to find a spring in their steps, as the surprise 2-step increase for the Goods and Services Tax (GST) eases fears of a cut in consumer spending.
The market had widely expected a 2-percentage-point increase in GST to 9 per cent to kick in as early as July this year.
Instead, Finance Minister Lawrence Wong at his Budget 2022 speech on Feb 18 announced that the GST will be raised to 8 per cent from Jan 1, 2023, and to 9 per cent from Jan 1, 2024.
