Bring in tourists to benefit retailers, Govt told

Tourism from China a crucial source of income for retail sector, says group

PETALING JAYA: The Malaysian Retail Chain Association wants the government to help retailers grow the sector by wooing foreign tourists, especially visitors from China.

MRCA president Datuk Seri Garry Chua (pic) said Malaysia should emulate Thailand in the way it attracted tourists.

He said Chinese tourists should not be overlooked because they were the biggest spenders and also the largest in terms of consumers’ numbers.

“Last year, 130 million Chinese tourists spent about US$260bil (RM1.08tril) worldwide,” he said.

Chua said to better promote the retail sector, the government needed to take the tourism industry seriously.

“That is the most immediate impact that will provide a big multiplying effect on the retail sector,” he said in an interview.

Chua pointed out that Thailand was the frontrunner among Asean countries in capturing Chinese visitors, with its tourism industry contributing up to 25% of its GDP, compared to Malaysia’s 10%.

“They recorded eight million tourist arrivals from China last year and for this year, they will touch 10 million.

“Right now, we have only over two million Chinese tourist arrivals yearly.

“Imagine if we could be on par with Thailand – all malls will be filled up.

“This would spur economic activity with more retail outlets springing up,” he said, adding that Malaysia’s good relations with China should be used.

Chua, who sits on the National Cost of Living Action Council, said it was important to fill retail space as Malaysia will have about 700 malls with 170 million sq ft next year.

About 85% will be concentrated in the Klang Valley.

On the coming Budget 2019, he said MRCA hoped that the government would consider giving tax breaks or incentives for retailers who renovated their outlets every five to six years, saying this would help ease cash flow among them.

He also called on the government to come up with a start-up fund to encourage more digital business ventures.

“The government must walk the talk in being business friendly.

“The hefty levy of RM10,000 on employers who want to retain their skilled foreign workers is anything but friendly,” he said.

“When the business sector thrives, we make more money and we pay more tax.

“It is a circle that goes around. I hope our voices are heard,’’ he added.