Retail sector expected to grow marginally

PETALING JAYA: The Malaysian retail industry is expected to grow marginally in the fourth quarter of 2019, underpinned by year-end promotions that should mitigate the factors affecting the sector currently.

Malaysian Association for Shopping and Highrise Complex Management past president Richard Chan said the occupancy rate of malls in the country stood at around 80%, which is healthy.

“The market is still challenging and the performance of the retail sector in the first half of 2019 was consistent. Generally, there were no big peaks or dips in business performance.

“The country’s economic growth is also stable and so is its political situation,” he told Starbiz.

Chan added that he expects marginal growth in the fourth quarter of this year, compared with the same period in 2018.

“We expect small growth due to the year-end festive holidays and promotions. Some growth is still better than none,” he said.

It has been forecast that some 40 malls are slated to enter Greater Kuala Lumpur by 2020. There are already about 250 malls in the Klang Valley currently.

Chan said there are over 400 malls in Malaysia. “To stay competitive, malls need to adapt to consumer needs and wants. Those who can make changes and take risks would be successful,” he said.

Meanwhile, Hektar Asset Management Sdn Bhd executive director and chief executive officer Datuk Hisham Othman said retail malls would always have a place in Malaysia in the long term, despite the growth in popularity of online shopping.