Kuala Lumpur Investment

Asian Cities

2H 2015

 

Retail market
Malaysia retail sales growth has been revised for the fourth time by the Malaysia Retailers Association, lowered from an initial anticipated growth rate of 5% to 3.1% for 2015. 1H/2015 saw a major decline in sales, experienced by even the best malls. The Malaysia Consumer Sentiment Index has reached a low point, similar to the level recorded during the Global Financial Crisis (2008). Market expectations for Q4/2015 are for an improvement if sentiment picks up.

The implementation of the GST paired with a weak Ringgit has had a huge impact on the retail sector. Retailers’ margins have been squeezed, in order to remain in this highly competitive market, especially in the fashion industry. Generally, sales have declined by about 20% in tourist related activities and purchases, partly caused by the airline mishaps of 2014.

 
 

Key contacts

Simon Smith

Simon Smith

Senior Director / Head of Research & Consultancy
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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