While the implementation of the Goods and Services Tax (GST) is not welcomed by most Malaysians, the move is expected to drive growth in the enterprise application (EA) market.

According to IDC, the tax initiative will be a boost to EA vendors as it forces business to either upgrade or replace their legacy system with a system that is GST compliant.

“With GST coming into effect in the early part of 2015, we predict there will be a scramble from the businesses to be fully GST ready in line with government regulations and the implementation will be one of the catalysts for growth in Malaysian EA market for 2014 and possibly in 2015 as well,” said Wong Yih-Khai, Market Analyst of Software at IDC Malaysia.