RETAIL SECTOR MAY SEE BETTER Q2
RGM looking to revise its projection upwards because of festive period
MALAYSIA’S retail industry may see improved performance in the second quarter of this year in light of the recent Hari Raya Aidilfitri period.
But concerns over the prospects lingered due to external factors that would affect consumers’ purchasing power, said Retail Group Malaysia (RGM).
RGM managing director Tan Hai Hsin said it was looking to revise its projection for the second quarter upwards as the festive period had pushed more people to spend.
“Whether that will result in a high overall growth rate for the retail industry is undetermined because we do not know whether this is temporary or not due to external factors, such as inflation, higher interest rate, rising prices and the Ukraine-Russia conflict, which are affecting consumer purchasing power,” he said at the launch of Xilnex Voucher Network yesterday.
Previously, RGM projected the retail industry to grow 4.2 per cent in the second quarter with contributions mainly from the Hari Raya festival.
It also projected the previous quarter to record a strong growth of 16.5 per cent, as well as 3.4 and 3.6 per cent in third and fourth quarters, respectively.
For the whole year, RGM projected a growth of 6.3 per cent for the industry.
Tan said public spending had been on a positive trend since last August, which gradually developed towards Christmas.
“Retailers are enjoying better sales and some even better than the period before the Covid-19 hit us. At this moment, the trend says it is good so we can see that Malaysians are spending. But, how long can it last?”
Meanwhile, Web Bytes Sdn Bhd launched a voucher network for its retail customers to help revitalise the market as Malaysia enters the endemicity phase.
It is sponsoring RM300,000 worth of e-vouchers from its merchants to be distributed to university students through the online student enrolment platform, Uni Enrol.
Uni Enrol is recognised by more than 80 private universities and colleges nationwide.
Tan said the pandemic had accelerated the digital transformation for retailers in Malaysia whereby payments via e-wallets or orders through QR code scans had become widely accepted.
Web Bytes chief executive officer Ooi Boon Sheng said the retail industry played a vital role in contributing to the country’s economic recovery.
“In doing our part to help rejuvenate this industry, we are continuously developing new solutions such as this voucher system that we hope can help boost sales for our retail merchants as well as equip them with the technology to leverage a collaborative network in the Xilnex’ ecosystem to expand their customer base,” said Ooi.