SINGAPORE - Mr Khairul Azhar, 33, is moving to his new home in May 2024, but has already spent more than $8,000 on kitchen appliances in December.

The associate creative director went to at least three retail stores such as Audio House, Best Denki and Harvey Norman on a hunt for household items, so he could lock in prices before the goods and services tax (GST) hike.

The sales tax went up from 8 per cent to 9 per cent on Jan 1.

Some consumers like Mr Khairul were hoping to beat the tax hike amid rising costs of living, doing last-minute shopping in December, especially for big-ticket items.

Sensing an opportunity, at least 20 retailers from department stores to furniture shops held year-end sales to attract buyers before the Jan 1 deadline. Some like Audio House and Harvey Norman had promotions targeting customers to “beat the GST hike”.

Madam See Su-Ming, 55, who works in administration, took a week off work in December to do her shopping and compare prices between different department stores.

“For the big-ticket items, the (1 percentage point) increase can add up,” said Madam See, who was hoping to get household and kitchen appliances, among other items.

Her main concerns for the new year were food costs, utility bills and transport, which can add up for her family of five. “I will cut down on non-essential items and save what I can, and fewer impromptu buys for sure,” she said.

Electronics and furniture retailer Audio House saw a 20 per cent increase in sales in December, compared with December 2022, said its managing director Alvin Lee.

In particular, higher-priced and premium items, such as air-conditioners and refrigerators, were selling “very well”, he said. “To the extent possible, we will absorb the increase in GST to ensure our customers enjoy the best prices.”

Mr Chua Jun Wei, who will move to his new house in the first half of 2024, dropped by Audio House on Dec 28.

Apart from trying to beat the GST hike, he also wanted to capitalise on the year-end promotions.

The 34-year-old lawyer spent around $10,000 on electronics and furniture on the day, saving about $5,000 with year-end deals and discounts.

Another furniture and electronics retailer, Courts, also recorded an increase in sales in December, with best-selling items such as television sets, computers and mobile phones. Its spokesman said it hopes to keep its prices competitive in 2024.

“We’ve observed that consumers are more price-conscious and are likely to shop for price comparisons,” he said.

Still, not everyone rushed to the stores despite the “deadline”.

Water purification brand Ruhens had a significant boost in sales of 30 per cent to 40 per cent in December 2022 due to the previous round of GST hike, said its managing director Joel Lim.

The sales tax previously increased from 7 per cent to 8 per cent on Jan 1, 2023.

The company did not observe a similar increase in sales in December 2023. “Customers have already experienced the impact of the first round of GST hike... Their increased awareness might contribute to a more measured response this time,” said Mr Lim.

Similarly, while mattress brand King Koil saw an increase in sales in December 2023, it was not as significant as in the same month in 2022, said Mr Peter Liong, group chief executive and managing director of Matsushita Greatwall Corporation, which King Koil Singapore is part of.

He said revenue is driven more by festive seasons. Revenue was expected to go up by about 5 per cent in December compared with the same period in 2022.

He expects revenue to increase by 15 per cent in early 2024 in the lead-up to Chinese New Year, compared with early 2023.

Housewife Adeline Goh, 65, who spent $990 on an oven and outdoor cooker at Audio House in December, said her purchases were not driven by the upcoming GST hike, but because she needed the items.

“I don’t like the GST increase, but at the moment I don’t feel I have to rush to buy something.”

To cushion the impact of the GST hike and inflation, the Government has given cash payouts to Singaporeans through the GST Voucher scheme. Singaporean households also received Community Development Council vouchers for use at heartland merchants and hawkers.

Supermarket chains such as Giant and FairPrice have announced that they will absorb the 1 percentage point GST hike on essential items for the first half of 2024, while Sheng Siong will offer a 1 per cent discount on some purchases from January to March 2024.