Tourism to boost Malaysia’s retail growth this year, retail association says

KUALA LUMPUR, June 7 — Malaysia’s retail sales growth for 2017 can still come in at above 4 per cent despite downgraded retail sales growth forecasts this year, Malaysian Retail Chain Association (MRCA) president Datuk Gerry Chua said today.

This will be higher than 2016’s retail sales growth, which came in under 4 per cent, and will be boosted by the tourism sector, Chua said.

“Last year, we had 2.2 million Chinese tourists. This year, 3 million tourists are expected, which is almost one million more. And these tourist arrivals have a multiplier effect, with shopping comprising of a third of the spending by tourists,” he said during a press conference here today.

Chua’s projection is more optimistic than the Retail Group Malaysia (RGM), which downgraded retail sales growth forecasts from 5 per cent down to 3.9 per cent for 2017.

Chua however said that the growth for the retail sector in Malaysia could be boosted by tourism as domestic consumer spending is “limited”.

“In Vietnam, they have a population of 100 million. So they have very high purchasing power. Malaysia being a small country, we have limited population, so one good source is the tourism sector,” he said.

He also said that there is still “relatively good spending” in the marketplace despite the slowing down of the economy and said that first-tier shopping malls in the country are still increasing the rental fees for their tenants by 5 to 10 per cent.

MRCA will organise the MRCA Retail Conference on July 12 at the Gardens Hotel here, followed by the Malaysia International Retail and Franchise (MIRF) Exhibition from July 13 to July 16 at the same venue.

The association will be highlighting Digital Retail Initiatives (DRI) in order to capitalise on Malaysia being the first country in the world to establish the Digital Free Trade Zone (DFTZ), which was launched by Prime Minister Datuk Seri Najib Razak.

The conference and exhibition will be backed by diamond sponsor Mah Sing Group, which will be showcasing five major commercial projects it is undertaking in the Greater Klang Valley region.