PETALING JAYA – Malaysia’s retail industry is likely to register double-digit growth, surpassing the estimated average growth of 9.0% year-on-year, said the Malaysia Retail Chain Association (MRCA).
Its deputy president Ken Phua said he is optimistic about the sector, driven by strong government efforts to attract and realise foreign direct investments (FDIs).
Malaysia attracted FDIs worth US$70 billion (RM327 billion) in the first quarter of this year.
There is a change in the retail industry, and this change is thriving and is heading in the right direction in line with the government’s push for digitisation, Phua said.
“With our inflation below 4.0% and unemployment rate at 3.9%, there will be optimal use of manpower going forward, meaning that there will be hiring, but it will be where human interactions are needed,” he told reporters at the launch of Web Bytes’ Retail Tech Experience Centre and Wonders Cafe here, today.
On the weakening ringgit, Phua said this was partly due to the import of goods from abroad including big purchases like vehicles, which has added pressure on the local note.
“This is due to consumption patterns and revenge spending post-pandemic. People were saving up (because they could not go anywhere during the lockdown) and they are now spending on what they want,” he said. He said although the ringgit is weakening, it will stabilise at some point.
Meanwhile, to further boost the retail industry, the Franchise Expo Malaysia will be organised next July 7-9 in Kuala Lumpur, he said.
The expo is expected to attract about 40,000 participants and visitors from 17 countries and RM120 million worth of transactions are expected over the three-day event.
The retail industry recorded a 33.3% growth rate in 2022 after two discouraging years in 2020 and 2021, he said. – Bernama, June 23, 2023
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