[MY] GST Implementation in Shells

<< Back
Published on Monday, 23 March 2015 16:02

Dear Heroes,

Due to the upcoming GST implementation by the Malaysian government, we would like to give our players some context into its affect on Garena Shells prices and our reasons for what will happen.

We’ll say this upfront: This only affects Malaysian players and players buying Shells through Malaysian payment channel providers (we’ll get to that more in a bit).

The end result will be an increase in the transaction amount by 6% when you purchase Shells in accordance to GST, while the Shells value itself will not be affected. What this means is that you will still need 100 Shells to purchase 100 RP, although the transaction to obtain 100 Shells itself will see a 6% tax imposed on it by payment providers.

Any Shells already purchased will be unaffected as this change will only affect future Shells purchases starting from 1st April, 2015.

We want to be transparent in doing this and have provided some more context below:

Why increase Shell prices now?
Safe to say, most Malaysian citizens already know of the upcoming GST implementation by the government that was initially announced way back on 25th October, 2013. To comply with the implementation, as of 1st April, 2015, all businesses including our payment channel provider partners from Malaysia will start imposing a 6% GST on any top up transactions.

Will all payment channels in Malaysia be affected?
The short answer is yes. The long answer is also yes but, again, note that GST will only affect transactions with Malaysian-based companies, namely:
Garena Prepaid Card (PPC)/E-Pin purchases in Malaysia
MOL Direct Topup Payment Channel
Internet Banking Payment Channel
Digi Dpoints Payment Channel
Maxis Mpoints Payment Channel
Hotlink Topup Payment Channels.


How will Shells prices be affected?
Here’s where it gets a little complicated, so read up! There are 2 ways in which Malaysian payment providers will impose the 6% GST on our Shells transactions.

1. You will receive 6% fewer Shells for the same amount of payment made prior to GST. For example, after the implementation, your RM7 MOL purchase would get you 94 Shells instead of 100 Shells (MOL factors in the 6% GST and deducts accordingly from the RM7 end user price). Moving forward, purchasing Shells from our payment providers will look something like this:



2. Current retail prices for PPCs and E-Pins will see a 6% price increment, while the Shells value in those items will remain unchanged (you will still get the same amount of Shells upon reload). Here’s the price list for PPCs and E-Pins that will be in effect from 1st April:



Will this affect Singaporean players?
No it doesn't, unless you use any of the above mentioned Malaysian payment channel provider or physically enter Malaysian borders to purchase PPCs and E-Pins.

Any impact on Gold or existing content in-game?
Shells conversion to Gold will remain unchanged, only the transaction of purchasing Shells itself will be affected by GST after 1st April.


Comments