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COPYRIGHT 2007 Asia Pulse Pty Ltd
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A PROFILE OF MALAYSIA'S RETAIL INDUSTRY
PREPARED BY ASIA PULSE ANALYSTS (UPDATED JAN 2007) *******************************************
OVERVIEW:
Malaysian government officials and retailers are upbeat about prospects for the sector this year, expecting it to grow at an accelerated pace as more tourists arrive during Visit Malaysia Year (VMY) 2007.
Deputy Finance Minister Dr Ng Yen Yen said the sector expanded by 6.3 per cent in the first half of 2006 and with more promotions coming in 2007 it is likely to be higher.
She said tourist inflow is a major factor contributing towards the growth of the Malaysian retail industry which is worth RM70 billion annually.
Malaysia received US$31 billion in tourism revenues last year.
The government has forecast tourist arrivals to jump to 21 million this year from 16 million in 2006, which will mean more shopping revenue for the retailers.
In 2006, receipts from shopping accounted for one quarter of total tourist spending.
This year, tourism receipts are expected to contribute over RM40 billion to the economy.
OUTLOOK:
Retailers are confident of reaching the target as mega sales and other promotional activities will be implemented by the government to make Malaysia a shopping haven for tourists.
Malaysian Retailers Association (MRA) president Toh Peng Koon said the retail sector has been doing "pretty good" with 9.5 per cent on-year growth in the first six months of 2006.
If tourists' spending patterns remained consistent, the outlook of the retail industry may be "better" in 2007 with the expected sharp rise in tourist arrivals, he said.
Market research company TNS Worldpanel general manager Michael Hawkins said the fast-moving consumer goods (FMCG) segment alone grew by 4 per cent in 2006, with hypermarket sales accounting for about 18 per cent of the total sales of the FMCG industry.
A recent survey by Jones Lang LaSalle confirms that Malaysia's strong retail growth has been partly fuelled by the setting up of new outlets by...
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