[News] MRCA revises upwards Malaysia’s 2022 retail industry growth to 13.1pc

An aerial view of Kuala Lumpur is seen in this file photo taken on April 30, 2019. — Picture by Choo Choy May

An aerial view of Kuala Lumpur is seen in this file photo taken on April 30, 2019. — Picture by Choo Choy May

Tuesday, 21 Jun 2022 8:31 PM MYT

KUALA LUMPUR, June 21 — The Malaysia Retail Chain Association (MRCA) has revised upwards the country’s annual retail industry growth rate for 2022 to 13.1 per cent from 6.3 per cent previously due to the expected strong retail result during the second quarter of this year.

Deputy president Ken Phua Cheng Chuen said the second quarter retail growth is expected to rise 25.7 per cent on prospects of improving retail businesses.

“The weighted retail forecasts would be department store, supermarket, mini mart, fashion and fashion accessories, pharmacy, personal care, children and baby products, furniture as well as other specialty retail stores.

“The improvement is also supported by the encouragement from the Ministry of Tourism in which they expected a targeted of 2 million foreign visitors by the end of this year. Overall is quite very rosy for us at the moment, it seems,” he told reporters at the fifth Malaysia International Retail and Franchise Fair 2022 (MIRF) briefing here today.

According to Malaysia Retail Industry Report, the department store cum supermarket operators are expecting to maintain their pace of recovery with a growth rate of 41.8 per cent for the second quarter of this year while department store operators are expecting their businesses to moderate at 14.1 per cent for the quarter.

It said retailers in the fashion and fashion accessories sector expected their businesses continue to thrive with a 58.9 per cent in growth rate during the second quarter as compared to the same period a year ago, the highest estimated growth rate among the retail sub-sectors during this quarter.

The report said children and baby products retailers are also optimistic of a strong recovery at 41.2 per cent in terms of growth rate during the second quarter and operators of mini-market, convenience store and cooperative are anticipating a sustainable growth rate of 6.8 per cent for the quarter.

However, it said the supermarket and hypermarket operators expected growth to remain in the red zone with a contraction of 3.5 per cent for the second quarter, the lowest estimate among the retail sub-sectors during the quarter.

Meanwhile, MRCA council member and MIRF 2022 organising chairlady Christine Tan said the fair, scheduled for July 14 to 16 at Kuala Lumpur Convention Centre, is expected to generate revenue of nearly RM90 million for the exhibitors.

She said MIRF’s theme “Retail & Franchise: REBOOT” would signify the fair as a reboot platform for retail and franchise businesses.

She added that the fair would showcase over 400 booths from more than participating 15 countries including Singapore, Taiwan, Korea, Japan and Sri Lanka and is projected to attract 15,000 visitors. — Bernama

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