Local retail & wholesale subsector is likely to grow by 8% in 2007, as per Deputy FM of Malaysia, boosted by strong promotional activities from the govt.
Finance ministry is expecting Malaysian retail & wholesale subsector to expand by 8% in H1 2007 from 6.3% in H1 2006, said Datuk Dr. Ng Yen Yen, Deputy Finance Minister of Malaysia.
She said that sectors grew by 6.3% in H1 2006 and with more promotions coming in 2007 it is likely to be more. They're confident of reaching the target as mega sales & other promotional activities will be implemented by govt. to make Malaysia a paradise for tourists.
Consumer lifestyle in Malaysia has been improving & changing, partly due to rising education levels in the country. High profile foreign retailers & global media have also attributed to the evolution.
More westernization & sophistication have come into Malaysians. Acceptance of foreign products is also seen. One can easily find world-class brands in the retail market. Preference isn't only restricted to general consumer goods & people are attracted towards durable goods like motor vehicles.
Since emergence of foreign-owned hypermarkets, people living in urban regions are accustomed to shop for groceries in supermarkets & hypermarkets. Though, rural Malaysians are still purchasing goods from traditional grocers, C-stores & mini-marts.
"Key drivers for growth in Malaysia retail industry are gradual market liberalization, declining domestic output, boosting tourist inflows, and increasing dependence on imports of food", as per retail industry analyst at RNCOS.
As tourist inflow is a major factor contributing towards the growth of Malaysian retail industry, Dr. Ng said that the nation received US $ 31 billion in tourism revenues last year & the retail industry is all set to benefit from Asia-Pacific tourists, during VMY (Visit Malaysia Year) 2007, campaign launched on 31 December 2005, to make the country a 'top-of-mind' tourist destination.
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