Deputy Finance Minister Datuk Chua Tee Yong has brushed aside a suggestion that the Goods and Services Tax (GST) implementation has prompted some traders to close shop.

He said on the contrary, these traders were closing shop as their children were not keen to take over the business, apart from failure to compete with supermarkets and franchise stores.

"The ministry is aware of this. In fact, we had a meeting with a sundry shop association to identify their problems, and we found that it is not the GST alone that had caused some shops to wind up operations," he told reporters at Parliament lobby here, today.

He was commenting on a news portal report that the GST had put several small traditional businesses in Penang out of business due to insurmountable challenges, including facing a rent increase as it is GST taxable.

The traders and the public will need between six months and one year to adapt to the new tax, he said, adding that adjusting to the new situation is a teething problem faced by other countries that had implemented the GST.

The GST at six per cent, which replaces the Sales and Services Tax at 16 per cent, comes into force nationwide tomorrow.