MALAYSIA'S RETAIL INDUSTRY TO MAINTAIN POSITIVE OUTLOOK - ECONOMIST

The long-term outlook for Malaysia's retail industry remains optimistic, thanks to a currency rebound and lower inflation rates likely after mid-2024, said Mastercard chief economist (Asia Pacific) David Mann.

He said the exchange rate has been the main challenge to the Malaysian market in the short term, together with the impact of inflation over the last few years. 

“It is a challenge, particularly on the outbound side but in the longer term, I believe it would improve especially once the broad US dollar sell starts to turn which is expected around the middle of this year and about the same time that the United States interest rate likely to start dipping.

“A stronger exchange rate will reinforce the ability to have lower interest rates. That, plus lower inflation, should all translate into a bit more spending resilience in the longer term,” Mann said during a press conference in conjunction with the upcoming NRF 2024: Retail's Big Show Asia Pacific (APAC).

The inaugural event will be held at the republic's Sands Expo and Convention Centre from 11th to 13th June, 2024.

The retail extravaganza is the APAC chapter of the annual Retail's Big Show event in New York City which has been ranked as one of the top 200 events in North America and one of the 50 fastest-growing trade events internationally.

Meanwhile, Comexposium NRF 2024: Retail's Big Show APAC managing director Ryf Quail said Malaysia is a unique market which offers support for digital wallets, among others.

He said the change in payment structure in Malaysia has driven a big shift in its retail market.

“When we talk to many sponsors and exhibitors, they see Malaysia as a key growth market for the region,” said Quail.

Jointly organised by the United States National Retail Federation (NRF) and Comexposium, and with the support of the Singapore Tourism Board (STB), the NRF 2024: Retail's Big Show Asia Pacific features a line-up of conferences, exhibitions and retail store tours with over 200 exhibitors and 5,000 attendees.

The list of speakers includes Mann, AEON Co Ltd director & executive vice-president and executive officer Yuki Habu, Lotte Retail HQ chief strategy officer Ian Kwon Wonshik, Wesfarmers OneDigital managing director Nicole Sheffield; and Hermes head of IT (Americas) Ken Feyder.