Mydin to focus on domestic expansion

KUALA LUMPUR: Mydin Mohamed Holdings Bhd will focus on strengthening its retail chain in the domestic market rather than pushing the brand overseas, said managing director Datuk Ameer Ali Mydin.

“It is important for us to build strong pillars in our country first before venturing overseas because when you go there, you need to compete with somebody else and Mydin has not grown big enough in Malaysia to venture overseas,” he told Bernama recently.

It was earlier reported that Mydin would be investing RM1.03 billion in 2016 to open nine more outlets. The new outlets will be in Pulau Sebang (Malacca), Samariang and Vista Tunku (Sarawak), Jengka (Pahang), Mutiara Rini (Johor), Senawang (Negri Sembilan), Sungai Petani and Mergong (Kedah), and Sepanggar (Sabah).

Ameer disclosed that the retail chain planned to venture into the hypermarket segment as it offered vast opportunity for the retailer. At present, Mydin owns 20 outlets and six premium supermarkets, dubbed Sam’s Groceria.

On the Trans-Pacific Partnership, Ameer said the government should not allow foreign retailers to go into the convenience store segment.

“It is all right for the big retailers to fight with the other giant firms, but it is different from the convenience segment in Malaysia, which is mainly dominated by the locals,” he said. Taking Thailand as an example, Ameer noted that its decision to allow top retailers to enter the small store segment has resulted in price fixing and this led to intense competition to gain market share.

“I think, this (allowing retailers to enter the convenience market) is the wrong move, it is different when we allowed the foreign franchisors to enter the domestic market, it may be not so bad but the owner must be a local,” he said.