KUALA LUMPUR, Aug 24 — More than half of traders surveyed disagreed with the government’s strategy to have officials from the Customs Department and the Domestic Trade Ministry acting as “mystery shoppers” to nab profiteers after the Goods and Services Tax (GST) kicked off, according to the findings of a survey released today by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM).

Additionally, 12 per cent of respondents who received the visits also said that the undercover officers were rude and hostile to them.

“Respondents argued that the government officers should act openly and come with proper identifications to assist and educate businesses during this initial stage of GST implementation.

“Acting as mystery shoppers may cause fraudulent incidents as businessmen are not able to confirm their identity,” said the report.

ACCCIM said 9 per cent of its respondents have received inspections by the officers—mainly from the foods and beverages, travel, leisure and entertainment, wholesale, and retail sectors—and 22 per cent of the officers had acted as mystery shoppers.

The survey also revealed that the implementation of the Price Control and Anti-Profiteering Act 2011 has caused fear among the traders with its unclear guidelines, with a whopping 84 per cent of respondents saying they did not understand the “net profit margin” calculation formula provide in the Act.

Furthermore, more than half, at 51 per cent, of traders were not even aware of such an Act.

“Hasty actions to bring traders to court on profiteering charges without clear and rational profiteering formula to prove profiteering practices beyond reasonable doubts in result in prolonged court battle and waste of resources,” said ACCCIM in its report.

The survey also showed that 55 per cent of respondents did not adjust the prices of their products and services even after GST was implemented.

While 40 per cent have increased prices, 5 per cent of them have reduced their prices.

ACCCIM’s survey was conducted between June 20 to July 31 this year among 963 respondents, through 17 of its constituent chambers located across the country.

Malaysia’s GST rate of 6 per cent was rolled out on April 1 this year.