Malaysia retail sales forecast remains gloomy
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Malaysian retail sales are expected to fall for the third consecutive quarter.
Retail Group Malaysia, which prepares quarterly reports for the Malaysia Retailers Association, is now projecting total sales of RM107.5 billion (US$25.75 billion) for the financial year to March 31, a 3.7-per-cent growth over last year. However, early projections suggest a more positive performance next year with an expected growth of 4.6 percent.
“The coming New Year will remain a challenge for the Malaysian retail industry,” said RGM MD Tan Hai Hsin. “Externally, trade disputes among countries are not expected to end soon. Internally, economic policies that can stimulate consumer spending are limited in the near term.”
Particularly worrisome figures for the supermarket and hypermarket sector predict a contraction of around 9 percent for this year’s final quarter.
Questions & Answers
Q.What is the updated sales projection for Malaysian retail this financial year?
What is the updated sales projection for Malaysian retail this financial year?
Retail Group Malaysia now projects total sales of RM107.5 billion (US$25.75 billion) for the financial year ending March 31. This represents a 3.7-per-cent growth compared to last year's performance.
Q.What factors are expected to make the upcoming New Year challenging for Malaysian retail?
What factors are expected to make the upcoming New Year challenging for Malaysian retail?
Externally, ongoing trade disputes among countries are not expected to conclude soon. Internally, there are limited economic policies available in the near term to stimulate consumer spending within Malaysia.
Q.Which retail sector is facing particularly difficult conditions this year?
Which retail sector is facing particularly difficult conditions this year?
The supermarket and hypermarket sector faces a challenging outlook. Projections suggest a contraction of approximately 9 percent for this sector during the final quarter of the current financial year.
Q.Is the sales outlook for next year more positive than the current year?
Is the sales outlook for next year more positive than the current year?
Yes, early projections suggest a more positive performance for the next financial year. An expected growth rate of 4.6 percent is forecast, indicating an improvement on the current year's growth.