PETALING JAYA: GDEX Bhd remains cautiously optimistic as it prepares for the broadened scope of the Sales and Service Tax (SST) set to take effect on 1 July. The courier services provider acknowledges the upcoming changes will “definitely have an impact” on its operations, particularly with the inclusion of leasing services under the 8% tax rate for companies generating over RM500,000 annually in leasing revenue.
Managing Director and Group Chief Executive Officer Teong Teck Lean, speaking to select media following the company’s annual general meeting, stated that GDEX is actively evaluating the implications of this expanded tax. He noted that many of the properties the group occupies are under long-term lease agreements, which were signed without consideration for the new tax requirements.
“As we are leasing a significant number of premises, the introduction of SST on leasing services will undoubtedly affect us,” said Teong. “Our immediate task will be to work with our landlords and relevant stakeholders to navigate this financial adjustment, whether through renegotiation or absorption of costs.”
Despite this development, Teong expressed confidence in the group’s strategic trajectory. GDEX has adopted a more collaborative approach to its business model, partnering not only with traditional allies but also exploring synergies with competitors. This shift is expected to support the group’s improving operational momentum.
Financially, the group has demonstrated a tangible recovery. For the first quarter of the financial year ending March 2025 (1Q25), GDEX reported a net loss of RM164,000—a marked improvement from the RM2.2 million net loss recorded in the same quarter of the previous year. For the full financial year 2024 (FY24), GDEX narrowed its net loss significantly from RM34.9 million in FY23 to RM1.8 million. Notably, the group posted a net profit of RM4.8 million in the fourth quarter of FY24.
Additionally, GDEX reported RM53.4 million in earnings before interest, tax, depreciation and amortisation (EBITDA) and maintained a robust net cash position of RM197.2 million. During its AGM, shareholders approved a final single-tier dividend of 0.2 sen per share for FY24.
Looking ahead, the group has allocated RM20 million for strategic acquisitions in 2025, aimed at strengthening the GD Exchange ecosystem. However, Teong reaffirmed that the company will continue to exercise caution and discipline in its acquisition strategy.
“Synergistic value and alignment with our business direction are essential. We prefer to take a controlling interest in acquisitions to ensure full integration and operational alignment,” he added.
As part of its commitment to operational enhancement, GDEX has invested RM8 million in enterprise resource planning systems and is actively investing in technology, artificial intelligence, and environmental, social and governance (ESG) initiatives. However, Teong emphasised that ESG investments must yield attractive returns.
He cited the group’s use of electric trucks for short-distance deliveries in the Klang Valley as an example of balancing sustainability with cost-efficiency, particularly in the context of rising diesel prices.
Separately, GDEX announced plans to divest non-core assets, including a property in Ipoh. This divestment aligns with the group’s continued focus on cost optimisation and digital transformation, enabling reallocation of capital to high-impact areas such as infrastructure integration, talent acquisition and digital systems.
-The Star
