Retail sector braces for softer growth

KUALA LUMPUR: The Malaysian retail industry’s expansion next year is expected to be similar to the rate this year of 3.5% due to softer consumer sentiment, the Malaysia Retail Chain Association (MRCA) said.
Its president, Datuk Garry Chua, said the MRCA is optimistic growth in the last quarter of this year would reach between 5% and 7%, mainly driven by the year-end festive season.
“The growth in the last quarter is likely to hit 5-7%, which could help spur this year’s growth,” Chua told a press conference after announcing next year’s Malaysia International Retail and Franchise Fair 2017, here yesterday.
He said as the sector’s performance in the first nine months of this year remained sluggish, the growth rate would be slightly lower than the country’s gross domestic product (GDP) growth.
He believes industry players will carry out more promotional activities as consumers tend to buy products that give maximum value for money.
In April, the MRCA forecast that the retail sector would register a 5% growth in tandem with GDP. On the weakening ringgit, Chua said it would help boost the retail sector as it would benefit from the multiplier effect of the growing tourism industry. – Bernama