Re­tail sec­tor braces for softer growth

The Sun (Malaysia) - - SUNBIZ -

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

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