Retail industry likely to continue with double-digit growth this year - MRCA
Malaysia’s retail industry is likely to register a double-digit growth, surpassing the estimated average growth of 9.0 per cent year-on-year, said Malaysia Retail Chain Association (MRCA).
Its deputy president Ken Phua said he is optimistic about the sector, driven by strong government effort to attract and realise foreign direct investments (FDIs)
Malaysia attracted FDIs worth US$70 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 digitalisation agenda that our government is pushing for, Phua said.
"With our inflation below 4.0 per cent and unemployment rate at 3.9 per cent, 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 on 23rd June.
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 ringgit.
"This is due to consumption pattern 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, a Franchise Expo Malaysia will be organised from July 7-9, 2023 in Kuala Lumpur, he said.
The expo is expected to attract about 40,000 participants and visitors from 17 countries and RM120 billion worth of transactions are expected over the three-day event.
The retail industry recorded a 33.3 per cent growth rate in 2022 after two discouraging years in 2020 and 2021, he said.