RETAIL I FRANCHISE
Dato’ Raymond Ho, Managing Director (Group CEO) Sri Ternak Group of Companies
Malaysia’s FIRST 24/7 Wholesale Mart
• Open 24 Hours / 365 Days
• Wholesale and Retail Business
• Fresh and Frozen Essentials
• 5-Star Shopping Environment
ST ROSYAM MART
In 2018, Sri Ternak Group partnered with Malaysia’s top celebrity Datuk Rosyam Nor to launch ST Rosyam Mart — a retail concept designed to offer a 5-star shopping experience at wholesale prices.
ST Rosyam Mart is a 24-hour supply hub for F&B operators, retailers, and resellers — stocked with fresh produce, frozen goods, cooking essentials, and bulk grocery items to meet the demands of any scale.
Fresh Products Daily
Whether you're running a café, restaurant, catering service, or convenience store, we’ve got what you need — when you need it, at prices that support your margins.
With outlets across Klang Valley, Negeri Sembilan, and our latest ST Rosyam Mall in Klang, we’re expanding rapidly to serve more business owners across Malaysia. Visit Us Today!
to cafés, food stalls to caterers, we’re the trusted choice!
A-5-2, 3, 3A, Level 5, Block A, Sky Park One City,
Jalan USJ25/1, 47650 Subang Jaya, Selangor. Tel: +603-5882 4333 Fax: 1 700 810 950 Website: www.mrca.org.my
PRESIDENT
Datuk Dr. Ken Phua Cheng Chuen BENTLEY MUSIC SDN BHD
IMMEDIATE PAST PRESIDENT
Dato’ Sharan Jethanand Valiram
VALIRAM HOLDINGS SDN BHD
DEPUTY PRESIDENT
Dato’ Liew Bin BRILLIANT MERCHANDISING SDN BHD
VICE PRESIDENTS
Dr. Afendi Dahlan
DR GROUP HOLDINGS SDN BHD
Dato’ Vincent Choo Kok Leong
URBAN IDEA SDN BHD
Valerie Choo Yoke Shiem SIMPLY AWESOME SDN BHD
Dato’ Winnie Lim Yoke Chin SOLUTION RISK CONSULTANTS SDN BHD
SECRETARY GENERAL
Michael Liew Fong Tzer MARRYBROWN SDN BHD
DEPUTY SECRETARY GENERAL
Terry Tay Eng Yeou
GOLDENHOME INTERIOR SDN BHD
TREASURER GENERAL
Aiveen Wong Choy Ching
CHIN SWEE FOOD SDN BHD
DEPUTY TREASURER GENERAL
Christine Tan Gaik Lin
CT F&B HOLDINGS SDN BHD
COUNCIL MEMBERS
Jit Singh A/L Santok Singh IRONHORSE ASIA SDN BHD
Nevinn Leow Shue Min OHMS NEOMISHAN CUISINE ELEMENTS SDN BHD
Liang Foo Kuan BIG ONION FOOD CATERER SDN BHD
Lim Ben Jie
TUNE GROUP SDN BHD
Jordan Ng Kim Leong BANNERKING SDN BHD
Alex Ooi Eng Keong THE FAMOUS AMOS CHOCOLATE CHIP COOKIE CORPORATION (M) SDN BHD
Steven Pui Eng Kuann Ting SUPERSAVE MULTI TRADING SDN BHD
Patrick Sim Chee Hong SECRET RECIPE CAKES & CAFÉ SDN BHD
Brian Tham Jee Ping WATATIME (M) SDN BHD
Cassandra Chan Yi Rong SH RETAIL ACADEMY SDN BHD
Edison Choon King Han POH KONG HOLDINGS BERHAD
Henry Low Low Kar Onn SPECTRUM OUTDOOR MARKETING SDN BHD
TRUSTEES OF MRCA FOUNDATION
Dato’ Tay Sim Kim FOUNDATION FOUNDER CHAIRMAN GOLDENHOME INTERIOR SDN BHD
Datuk Lee Hwa Cheng PLATFORM MANAGEMENT SOLUTIONS SDN BHD
Dato’ Eddie Choon
POH KONG HOLDINGS BERHAD
Datuk Albert Chiang BONIA CORPORATION BERHAD
Datuk Seri Nelson Kwok T. T., JP HONORARY CONSUL OF THE REPUBLIC OF MOZAMBIQUE TO MALAYSIA
NELSON’S FRANCHISE SDN BHD
Dato’ Liaw Choon Liang, JP FOCUS POINT SDN BHD
Datuk Seri Garry Chua ROTOL FOOD-CHAIN (M) SDN BHD
Shirley Tay Bee Koo
PHIPURE SDN BHD
BOARD OF ADVISORS
Tan Sri Dato’ Sri Leong Hoy Kum
GROUP MD, MAH SING GROUP BHD
Tan Sri Dato’ Sri Barry Goh Ming Choon CHAIRMAN, MCT BHD
Tan Sri Dr Lim Wee Chai
CHAIRMAN, TOP GLOVE CORPORATION BHD
Tan Sri Datuk Ter Leong Yap
EXECUTIVE CHAIRMAN, SUNSURIA BHD
Tan Sri Dato’ Sri Tang Yeam Soon GROUP MANAGING DIRECTOR, THE STORE CORPORATION BHD
Dato’ Dr. Jennifer Low, JP
GROUP MANAGING DIRECTOR, QUILL GROUP OF COMPANIES
LEGAL ADVISORS
Dato’ Dr Manjit Singh
MANJIT SINGH SACHDEV, MOHAMMAD RADZI & PARTNERS
Datuk Ringo Low
RINGO LOW & ASSOCIATES
HONORARY AUDITORS
Dato’ Sri Raymond Liew Lee Leong
MCMILLAN WOODS
Datin Yap Shin Siang
YYC GST CONSULTANTS SDN BHD
MALAYSIA RETAILER is produced for MRCA by
HARINI MANAGEMENT SERVICES SDN BHD (609031-W)
W-9-12, Menara Melawangi, Amcorp Trade Centre, 18, Persiaran Barat, 46050 Petaling Jaya, Selangor. Tel: 603-7932 3259
Email: harini.mservices@gmail.com www.harini.com.my
Publisher/CEO V.S. Ganesan
Senior Editor Vimala Seneviratne
Editor Rachael Philip
Creative Designer Goh Wei Lee
Advertising Consultant Faridah Ismail
Marketing Manager Karthik Ganesan
Operations Manager G. Revathi
PRINTER
UNITED MISSION PRESS SDN BHD (755329-X) No. 15, Perindustrian BS 9, Jalan BS 9/10, Taman Bukit Serdang, 43300 Seri Kembangan, Selangor. Tel: +603-8958 0186 Fax: +603-8945 5168
All articles featured in Malaysia Retailer magazine represent the personal views of contributors and are not necessarily those of MRCA & Harini Management Services Sdn Bhd. All writers automatically agree to indemnify MRCA and Harini Management Services Sdn Bhd against any loss, costs, expenses (including legal fees), damages and liabilities that might arise from their own incapacity, negligence, breach of contract or other civil misdeeds. We reserve the right to edit all articles. All rights reserved. Copyright © 2025 by MRCA and Harini Management Services Sdn Bhd. No part of this publication may be reproduced in any form without prior written permission from the publisher. MRCA and Harini Management Services Sdn Bhd accept no responsibility for unsolicited manuscripts, photography, illustration and other editorial materials.
Dato’ Raymond Ho, Managing Director (Group CEO) Sri Ternak Group of Companies
MRCA Cny Charity Auction Raises RM336K
Xilnex Insights Launches DSaaS To Bridge Retail Analytics Gap
President’sMessage
Dear members,
As we navigate the evolving landscape of the retail industry, I am heartened by the resilience and adaptability demonstrated by our retail community. Recent developments underscore the dynamic nature of our sector and the opportunities that lie ahead.
In 2024, Malaysians spent over RM700 billion on e-commerce, accounting for 36.7% of the nation’s GDP. This significant figure reflects the rapid digital adoption among consumers and emphasises the importance for retailers to enhance their online platforms to meet this growing demand.
At the same time, Malaysia’s retail industry posted a 3.5% sales growth in Q4 2024, falling short of earlier projections. However, analysts remain optimistic that retail sales will pick up throughout 2025, especially with the anticipated boost from tourism. As Malaysia continues to welcome international visitors, the consumer sector is poised to capitalise on this tourism-driven windfall. Retailers that strategically position their offerings to cater to tourist needs—be it through promotions, duty-free offerings, or local experiences—stand to benefit immensely. With the anticipated influx of tourists, retailers should strategise to capitalise on increased consumer spending.
Further fuelling optimism is the upcoming Franchise Expo Malaysia 2025, scheduled for August, with an expected turnover of RM120 million. This event marks a pivotal moment for Malaysian businesses, especially those eyeing expansion through franchising. It’s set to be an exciting time for brands looking to scale, diversify, or seek regional partnerships.
Over the past months, MRCA has actively rolled out a series of initiatives, events, and programmes that reflect our commitment to empower members and contribute meaningfully to Malaysia’s retail ecosystem.
Our Chinese New Year Gala Dinner 2025 was a night to remember. It brought together more than 1,000 guests, including our valued members, government officials, and industry partners. The celebration offered an invaluable opportunity for members to strengthen ties, explore new collaborations, and build a sense of community that is integral to MRCA’s identity. Events like these underscore the unity and strength within our network, reminding us that our shared values go beyond business.
MRCA remains steadfast in its mission to empower members through impactful initiatives designed to educate, connect, and elevate the retail community. One such initiative is the MRCA Academy, which continues to serve as a vital platform for knowledge sharing. An upcoming session, “Employer’s Tax Obligation 2025,” aimed at providing members with crucial insights into evolving tax responsibilities and business compliance—helping them navigate today’s complex regulatory environment.
In our efforts to support the wider retail ecosystem, MRCA has also been actively collaborating with national campaigns that drive consumer engagement. Among them is the Malaysia Super Sale Campaign 2025, a month-long initiative aimed at stimulating consumer spending while showcasing the strength and diversity of Malaysian retail brands. MRCA’s involvement in such campaigns underscores our commitment to elevating the industry at large—amplifying visibility, driving footfall, and contributing to the nation’s economic vibrancy.
The retail landscape is continually evolving, and as an association, we must remain agile and proactive. Do leverage the resources and opportunities provided by MRCA to enhance your business strategies.
Thank you for your unwavering support and commitment to the growth of Malaysia’s retail sector.
Datuk Dr. Ken Phua President 2024-2026
Malaysia Retail Chain Association
SRI TERNAK: A LEGACY OF RESILIENCE, INNOVATION, AND GIVING BACK
The story of Sri Ternak Group is one that reflects resilience, innovation, and a deep commitment to improving lives. From the depths of a financial crisis to becoming a leading name in Malaysia’s wholesale and retail sector, Sri Ternak’s journey is a testament to the strength of family entrepreneurship, the power of adaptation, and the spirit of community service.
SURVIVING THE 1997 FINANCIAL CRISIS
In the 1980s to 1990s, Sri Ternak was a thriving poultry business, one of the top three suppliers in the region, serving major clients like Genting Highlands, Star Cruises, and the Hilton Group. However, when the 1997 Asian Financial Crisis struck, it devastated the business. Like many others, Sri Ternak was not immune to the global economic downturn, and the Ho family found themselves in dire straits.
Mr. Ho Ah Chai, the founder of the company, faced the difficult decision of selling off all company assets to survive. This decision meant
starting from scratch. In 2003, with the poultry business gone and the family struggling, they had no choice but to rebuild from the ground up.
For Raymond Ho, the eldest son, the impact was deeply personal. At the time, his father was shorthanded when he first started running his business. So, as the eldest son, Raymond decided to put his studies on hold to help with the family business
“Driven by a deep sense of responsibility as the eldest son, I made the difficult decision to leave my Foundation studies at KDU to support my father, who had not enough manpower for his newly founded family business,” Raymond recalled. He found himself far removed from the world of business marketing, donning rubber boots and personally driving trucks to deliver frozen goods—entering a whole new world compared to the poultry industry they once dominated.
With no experience in the seafood or vegetable business, the family launched a small frozen mart, operating out of a modest space. The goal was not to rebuild an empire
but to simply survive. This humble beginning marked the first step in a long journey of rebuilding, driven by the family’s sheer determination and an unwavering work ethic.
BUILDING FROM ZERO
Life changed dramatically for Raymond. Once living a privileged childhood with a personal driver and a life of comfort, everything came to a halt for him. With no prior experience in the grocery trade, he dove headfirst into the business. His days—and nights—were relentless.
“I split my sleep into two parts,” he explained. “At 2am, I’d head to the fish market. By 6am, I’d be at the fruit market. After completing all the purchases, I’d return to the shop, unload, label prices, and rest briefly on a chair in the office at 10am, before heading out again at 3pm to the vegetable market.”
This gruelling routine continued day in, day out. The business, initially a modest frozen mart, began to evolve as customers requested more variety and convenience. “They asked us to stock more items so they could shop everything in one
St Rosyam Mall - Jalan Kerbun Klang.
This journey serves as a powerful reminder that success is not inherited -it is earned through hard work, resilience and adaptation.
– Dato’ Raymond Ho, Managing Director (Group CEO), Sri Ternak Group of
place. That feedback transformed our small mart into a one-stop centre,” said Raymond. Through a combination of listening to customer needs, constantly adapting, and maintaining a relentless work ethic, the oncesmall mart began to thrive. “Every challenge—from product sourcing to people management—helped us grow,” said Raymond. “This journey has been about listening, evolving, and never giving up.” From a simple frozen mart, Sri Ternak expanded into a full-fledged market concept. This journey serves as a powerful reminder that success is not inherited—it is earned through hard work, resilience and adaptation.
MODERNISING MALAYSIA’S WHOLESALE INDUSTRY
Raymond’s journey into wholesale began because of his sense of duty.
Companies ”
As the eldest son, he felt compelled to support the family. However, over time, this sense of responsibility transformed into a genuine passion for the business. Driven by curiosity and a desire to improve the business, Raymond travelled to countries with world-renowned wholesale markets to see how they operated.
“I saw how modern and comfortable their wholesale environments were, and I asked myself—why not in Malaysia?” he recalled. This question would become the foundation for his mission: to modernise Malaysia’s wholesale industry. Over the years, he applied global insights to local operations, determined to bring similar value to the local market. His company, originally focused on supplying bulk goods to small grocery stores, restaurants, cafés, caterers, school canteens and others,
faced a major challenge during the COVID-19 pandemic. “Our two wholesale marts saw a 50% drop in sales because many of our customers were unable to operate due to the lockdowns and various restrictions. It was a very difficult time.”
The pandemic, however, brought unforeseen opportunities for their retail arm—ST Rosyam Mart. As more households turned to them for groceries, the retail brand not only survived but thrived.
“ST Rosyam Mart became a COVID-proven concept,” Raymond shared. The success of ST Rosyam Mart further cemented their commitment to reshaping Malaysia’s retail landscape, blending the best of wholesale and retail with a customer-centric approach.
FROM JACKFRUIT TO JOINT VENTURE
One of the most unexpected turns in Sri Ternak’s journey came in 2017 with a phone call from Malaysia’s iconic actor, Datuk Rosyam Nor. Rosyam, who owned a jackfruit farm in Pahang, wanted to supply his produce to Sri Ternak. At the time, Raymond had no idea who Rosyam was. Only after seeing the staff’s excited reactions did he realise who Rosyam really was. This meeting sparked a friendship, which eventually led to a business partnership.
Initially, Rosyam had a dream to create a modern supermarket for everyday Malaysians, but the idea was initially rejected. “The margins in wholesale are too thin. We’d lose money,” Raymond recalls. However, after further discussions, they decided to move forward with a pilot outlet—a modern, comfortable supermarket offering wholesale prices. The first ST Rosyam Mart opened near Rosyam’s office at Setiawangsa, and within an hour, the complex was filled with eager shoppers.
The success of ST Rosyam Mart was unprecedented. People were not only drawn by the low prices but also by the pleasant shopping experience. The concept of a modern supermarket with wholesale prices quickly resonated with Malaysians, and the brand expanded its reach. Today, there are eight ST Rosyam Mart outlets, with plans for further expansion. What began as an unlikely partnership has now become a key player in Malaysia’s retail landscape.
SOLVING CUSTOMERS’ PAIN POINTS
The team behind ST Rosyam Mart understood the evolving needs of consumers, particularly in a world
that values convenience. One of the most significant pain points they identified was the lack of shopping options for those operating restaurants and food stalls until late at night. With most supermarkets closed after 10pm, they saw an opportunity to cater to customers by keeping their doors open in the early hours of the morning. This flexibility proved to be a game-changer for many customers, who could proceed to do their grocery shopping after they closed their businesses for the night. That way, they no longer needed to take time away from their family by waking up at 4am to go to the wholesale market to restock their supplies.
The extended hours were not
just a convenience—they were transformative for customers. Many reported how ST Rosyam Mart’s late hours helped improve their quality of life and even their relationships with their families. The Mart had become more than just a grocery store; it was a lifeline for many, offering the convenience and flexibility people needed to balance their busy lives.
THE NEXT CHAPTER
In 2024, Sri Ternak took another step forward with the launch of Ehsan Mart—a joint venture with the Selangor state government (Perbadanan Kemajuan Pertanian Selangor). This project aims to ease the cost-of-living burden for residents by offering quality products at subsidised prices. The initiative, which saw the first outlet opened in Selayang, followed by the second in Pandan Indah, and the third in Taman Melawati, has been well-received, with plans for 56 outlets across Selangor.
Ehsan Mart serves a dual purpose: providing subsidised essentials to eligible citizens and offering a wide range of products to the general public. This new venture reflects Sri Ternak’s continued commitment to improving the lives of Malaysians, providing affordable groceries, and contributing to the welfare of the community.
In addition, ST Rosyam Mart has signed an MOU with PUSPANITA to launch a new joint venture inside the Ministry of Defence’s headquarters in Kuala Lumpur. This unique initiative, under the brand PUSPANITA x ST Rosyam Mart, will modernise the traditional in-building stores by offering a click-and-collect system for fresh, frozen, and grocery items—allowing army personnel and ministry staff to place orders on their online platform, then pick them up after work the following day. It is all about making shopping convenient, even within government offices.
A BETTER QUALITY OF LIFE FOR ALL
One of the core principles of Sri Ternak Group is to provide a better quality of life for its customers, employees, and the broader community. This philosophy of service and giving back is evident in their many initiatives, including free services at ST Rosyam Marts like buggy rides, power bank stations, and even tyre pump and battery jump services. An impressive list of 21 free services are provided to customers.
Sri Ternak’s commitment to community welfare goes far beyond commerce, as reflected in its long-standing support for several orphanages and charitable homes across Malaysia. For over a decade, the company has provided both financial and material aid to organisations caring for the less fortunate. Since 2014, Sri Ternak has sponsored a monthly cash voucher for Pertubuhan Kebajikan Islam Teratak Che Dah in Selangor. Initially, the company contributed more than RM10,000 per month to help support
over 50 orphans. However, as many of the orphans have grown up and become independent, the number of children at the home has decreased. As a result, Sri Ternak now provides a monthly cash donation/support of RM4,000 to the home.
In 2016, Sri Ternak extended support to Pertubuhan Kebajikan AR Rahman AR Rahim Pahang (PERKAP) with a monthly RM500 voucher. Additionally, Sri Ternak began supporting Rumah Amal Cheshire Selangor in January 2018, initially with a RM200 monthly voucher, which was increased to RM2,000 from May 2019 onwards.
Recently, their CSR efforts also include sponsoring Umrah packages for 100 winners at the opening of ST Rosyam Mall in Klang in March 2025, demonstrating their commitment to enriching the lives of others.
MOVING FORWARD
As Sri Ternak Group continues to grow, they remain focused on their mission: to create lasting value for Malaysians. With plans to open more outlets and expand their
operations, they are steadily progressing toward their goal of operating 20 outlets by 2029 and RM10 billion group revenue in less than 10 years from now
In 2024, the group achieved a revenue milestone of RM1.4 billion, with continued growth expected in the years ahead. Its strong focus on local sourcing—importing less than 10% of goods sold—alongside sustainable business practices and active community engagement, positions Sri Ternak to build a lasting legacy.
In a world where businesses often focus solely on profits, Sri Ternak’s story is a reminder that success is not just about financial gains but also about creating value for others and giving back to the community. Through their dedication to service, innovation, and community support, they are setting a new standard for businesses to follow. As they continue to grow, Sri Ternak Group remains a shining example of how businesses can thrive while making a positive impact on the lives of others. ■
Empower your business with the AI-mazing Lokal Ambassador.
Get a custom video featuring Sazzy Falak for your business.
Using the power of AI, now you too can get a celebrity ambassador for your business! Participate in RHB #JomSapot BeliLokal and boost your business exposure with the help of homegrown artiste, Sazzy Falak, at no cost to you.
Visit rhbjomsapot.my to learn more.
Together We Progress
MRCA CNY CHARITY AUCTION RAISES RM336K
The Malaysia Retail Chain Association successfully hosted its Chinese New Year gala dinner at the Grand Ballroom of the Shangri-La Hotel Kuala Lumpur, welcoming over 800 distinguished guests.
The event was graced by Human Resources Minister YB Steven Sim Chee Keong as the guest of honour.
In his speech, Sim said that MRCA members should anticipate a worker-driven market this year, as the unemployment rate has reached a decade low of 3.1 per cent.
He attributed this trend to the government’s introduction of a progressive wage policy and an increase in the minimum wage.
“This initiative has resulted in higher disposable income for ordinary Malaysians,” Sim said.
For the first time, MRCA held its charity auction as a separate event from the gala dinner. This year’s theme, “Spring of Love”, encapsulated both occasions, reflecting the association’s commitment to fostering goodwill and togetherness.
“As we gather tonight to celebrate the Chinese New Year and welcome the Year of the Snake, I am filled with joy and gratitude for our remarkable journey this past year.
Just as spring breathes life into the world, love has the power to inspire, heal and unite us,”
said MRCA President Datuk Dr Ken Phua in his opening speech.
He also acknowledged a recent MRCA initiative, where members collectively contributed RM20,000 in cash and goods to support the Ti-Ratana Welfare Society, which provides shelter, education and care for the underprivileged regardless of race or religion.
Among the evening’s highlights was the charity auction held earlier in the day, where 28 exclusive items up for bid were sold, successfully raising RM336,000 for the MRCA Branding Education Charity Foundation.
Henry Butcher Art Auctioneers and Robb Report Malaysia were appointed to conduct the auction.
Current MRCA Branding Education Charity Foundation Chairman Dato’ Liaw Choon Liang emphasised the association’s dedication to charitable efforts in his speech.
“Our organisation is starting the year with a significant achievement, thanks to the collective efforts of all our members. The funds raised will enhance support for the high-achieving children of our members’ employees,” said Liaw.
The event was further elevated by the generous support of our corporate patrons, Maxis and RHB Bank Bhd, along with our esteemed Privilege Partners, as listed below:
PLATINUM PARTNERS
1. Anchanto Pte Ltd
2. Capitaland Retail Malaysia Sdn Bhd
3. Dato’ Seri Ivan Teh
4. Lark Technologies Pte Ltd
5. Suria KLCC Sdn Bhd
GOLD PARTNERS
1. Ancubic Capital Sdn Bhd
2. Bandar Utama City Centre Sdn Bhd
3. High Pines Training and Consultancy Sdn Bhd
4. Mitraland Management Services Sdn Bhd
5. Mtrustee Berhad for Pavilion REIT
6. RHB Trustees Berhad (as Trustee for Sunway REIT) (Sunway Pyramid)
7. UMR Strategic Sdn Bhd
8. Woodpeckers Group Sdn Bhd
SILVER PARTNERS:
1. Allianz General Insurance Company (M) Bhd
2. Bank Islam
3. Hektar Property Services Sdn Bhd
4. Malaysian Industrial Development Finance Bhd
5. Mayfair Wellness Sdn Bhd
6. Metro Eyewear Holding Sdn Bhd (MOG Eyewear)
7. OCBC Bank (M) Bhd
8. PEOPLElogy Development Sdn Bhd
9. Pine Payment Solutions Sdn Bhd
10. The Store Corporation Sdn Bhd
11. Verity Intelligent Sdn Bhd
12. Wilstech Sdn Bhd
CEO Get-Together: A Night of Insights and Connections
In early March, MRCA hosted the CEO GetTogether, at Ancubic, which saw an exclusive group of CEOs and C-suite leaders come together for an evening of networking, knowledge sharing, and industry insights. Held at Ancubic Harmoni Sales Gallery, Tropicana Aman, Selangor, the event provided a platform for business leaders to exchange ideas, explore collaboration opportunities, and gain valuable perspectives on the retail sector.
Patrick Sim, Organising
Chairperson, warmly welcomed the guests in his speech. The evening also saw Datuk Dr. Ken Phua, MRCA President, address the industry leaders and share insights on MRCA’s latest developments. This was followed by a few words from Dato’ Low Boon An, Managing Director & Chairman of Ancubic Group, who expressed his joy at welcoming this exclusive group of leaders to Ancubic.
Atendees also gained insights from presentations on Ancubic Harmony City and CG New Town + Rosedale, while Datuk Anna
Teo Lee Chu, CEO of Hernan Corporation, shared her expertise and insights as the MRCA guest speaker.
A highlight of the event was the networking session, where participants engaged in meaningful discussions and built new connections. The evening concluded with a lucky draw, with one fortunate guest winning an exclusive Ancubic Tea set. The CEO Get-Together once again proved to be a valuable platform for leaders to connect, collaborate, and drive industry growth. ■
Festive Joy, Giving Spirit
MRCA Foundation shares Christmas cheer with a heartfelt donation to uplift lives.
Just before Christmas 2024, the MRCA Branding Education Charity Foundation shared festive joy and hope with the children of Pertubuhan Kebajikan Anak Yatim Mary KL with a generous donation of RM20,000 as part of their annual Christmas charity initiative. This activity of hope reflects MRCA’s commitment to community welfare and giving back.
The event was organised by MRCA council member and head of CSR Jordan Ng, and spearheaded by secretariat member M Kirthana. Their aim was to exemplify the true spirit of Christmas – love of neighbour, sharing and giving.
Prominent attendees included MRCA Branding Education Charity Foundation Chairman Dato’ Liaw Choon Liang, MRCA President Datuk Dr. Ken Phua, MRCA Lifetime Honorary President Datuk Seri Garry
Chua, MRCA Lifetime Honorary President Shirley Tay alongside other council members.
Their presence highlighted the collective dedication of the association in fostering joy and support during the festive season.
MEANINGFUL GIVING
The children of Pertubuhan Kebajikan Anak Yatim Mary KL were filled with excitement and gratitude, reaffirming MRCA’s dedication to uplifting lives and spreading cheer.
Chairman Liaw, in his speech, extended his gratitude to the foundation’s Trustees and Council Members for their generosity and dedication.
“Today’s visit is a testament to the true meaning of Christmas: sharing not just gifts or essentials but also our time, warmth and love,” he said.
“To the children and staff, I want you to know that you are not alone. You are cherished and valued, and we hope this small gesture brings smiles to your faces and warmth to your hearts,” he said.
“Christmas reminds us that even the smallest acts of love and compassion can create meaningful change.”
COMMUNITY WELFARE
MRCA President Phua reiterated that the home visits and supporting the underpriviledged during major festive seasons is a long-standing tradition of the association.
“We aim for our efforts to reach all communities, making each feel included,” he continued, noting that the MRCA has also donated to various charity organisations
during festive seasons, among them, Hari Raya, Deepavali and Chinese New Year.
“For each occasion, the MRCA Foundation allocates RM20,000, demonstrating our inclusive approach to community welfare across different cultures and festivities in Malaysia,” Phua added.
Established in 2010 under the leadership of then-President Dato’ Tay Sim Kim, with an initial fund of RM1 million, the MRCA Foundation has become a symbol of the association’s commitment to uplifting society.
Its mission is to provide financial relief to the poor and underprivileged, support medical and educational needs, recognise academic achievements of MRCA members’ children and implement schemes for the relief of human suffering.
TEAM WORK
Phua emphasised that the success of the Christmas Charity Visitation 2024 would not have been possible without the dedication and generosity of MRCA members.
As the event concluded, the MRCA Foundation’s commitment
to fostering community spirit and support was evident, ensuring that the festive season brings joy not only to the beneficiaries but also to those who give.
It continues to set a benchmark for how businesses can meaningfully contribute to society, ensuring that no one is left behind during the festive seasons.
Pertubuhan Kebajikan Anak Yatim Mary KL was named after its founder, the late Reverend Dr Mary Rayappan, who established the home in 2003 for four abandoned children in Setapak, Kuala Lumpur. ■
Spreading Aidilfitri Joy
In an effort to spread festive cheer and to ease the burden of the underprivileged community, MRCA Education Charity Foundation visited Pertubuhan Kebajikan Bimbingan At-Taqwa which cares for 55 orphans. The foundation also contributed RM20,000 to the home as well as other basic necessities.
During the visit, MRCA members had the opportunity to interact with the children and hand-out duit raya in conjunction with Hari Raya Aidilfitri. The visit was made possible through the generous contributions of Dato’ Liaw (MRCA Foundation), MRCA President Datuk Dr Ken Phua, MRCA Lifetime Honorary President Datuk Albert Chiang, Dato’ Tay Sim Kim, Datuk Seri Nelson, Ms. Shirley, Deputy President Dato’ Liew Bin and MRCA Council Members.
This initiative highlights MRCA’s dedication to supporting underprivileged communities, fostering generosity and unity during this meaningful celebration. The MRCA Education Charity Foundation continues to support various charitable organisations, emphasising the importance of giving back to society while having compassion for those in need. ■
MPC Productivity Grant
The Malaysia Productivity Corporation (MPC), an agency under the Ministry of Investment, Trade and Industry (MITI), introduced the MPC Productivity Grant to support enterprises in enhancing research, development, commercialisation and innovation (R&D&C&I) efforts.
The MPC Productivity Grant provides funding for research and development (R&D) initiatives aimed at improving productivity. This matching grant, which offers up to RM350,000, is available for R&D projects that can be completed within a 12-month period.
The Productivity Grant seeks to identify and support innovative products that can significantly enhance customer productivity and operational efficiency. Its key objectives include fostering innovation by encouraging the development of advanced technologies, novel processes and unique solutions to address market gaps. Additionally, the grant aims to enhance productivity by supporting products that streamline operations, reduce costs and improve output quality. Ultimately, it strives to drive economic growth by backing ventures with the potential to scale, generate employment and strengthen industry competitiveness.
The grant is available annually, with applications for the 2025 grant opened from 6 January 6 to 7 February 2025. The Productivity Grant is open to companies that meet specific eligibility criteria. To qualify, applicants must have local ownership with an equity stake exceeding 50%, be in operation for at least three years, and
The 3-stage application process
Company Eligibility Criteria
• Local ownership with equity > 50%
• Operational min 3 years
• Annual sales > RM3 M
• Utilisation accounting management system
Company and Product Innovation Details
Successful applications from the first stage are invited to provide comprehensive details about their company and the innovatiove aspects of their product.
generate annual sales of more than RM3 million. Additionally, businesses must utilise an accounting management system to ensure financial transparency and accountability. These requirements help ensure that grant recipients have a solid foundation for successful project execution and long-term impact.
Chosen applicants will be invited for a pitching session, to present their innovations to the Grant Committee, showcasing their products’ impact and how the grant aids their goals. It is important to note that applicants must already have a prototype ready for testing and validation, iterative development, experimental stages, scaling up or commercialisation (TRL 7-TRL 9).
Eligible projects must focus on Research and Development, Commercialisation, and Innovation (R&D&C&I) initiatives that drive significant productivity
Presentation to the Productivity Grant Committee
Chosen applications present their innovations to the Grant Committee, showcasing their products’ impact and how the grant aids their goals.
improvements in one of seven key industries: Agro-food, Tourism, Professional Services, Retail and Food and Beverages, Private Healthcare, Logistics, and Construction and Built Environment. Companies are encouraged to develop innovative solutions that address current industry challenges and create new growth opportunities. By fostering advancements in these sectors, the grant aims to support businesses in enhancing efficiency, competitiveness and economic contribution.
By providing financial support for R&D&C&I initiatives, the grant empowers businesses to develop cutting-edge solutions that address industry challenges and unlock new opportunities. Eligible companies are encouraged to apply and leverage this opportunity to bring their innovative ideas to the next level.
To find out more about the MPC Productivity Grant, visit www.mpc. gov.my/productivity-grant. ■
Stage 1
Stage 2 Stage 3
Safeguard Your Business’ Financial Health
Maintaining good financial health is essential for the long-term success and stability of any company. Strong financial management ensures that a business can meet its obligations, sustain operations, and seize growth opportunities. A financially healthy company is better equipped to navigate economic uncertainties, manage risks, and build investor and stakeholder confidence. By implementing sound financial practices—such as effective budgeting, cash flow management, and strategic planning—businesses can enhance profitability and resilience. Ultimately, prioritizing financial health not only safeguards a company’s future but also positions it for sustained growth and competitiveness in the market.
Recognising the importance of financial health to a company’s wellbeing, MRCA Academy organised a talk on the topic by CTOS on 20 February 2025. The session featured an insightful presentation by CTOS National Sales Head, Rick Mun.
A PROACTIVE APPROACH
Rick explaned that safeguarding your business from financial risk requires a proactive approach and careful planning. Start with a solid business and financial plan to establish clear goals and strategies for sustainability. Regularly monitor your financial information to track cash flow, expenses, and potential risks. Diversifying your income streams can help cushion your business against market fluctuations and economic downturns. Additionally, protecting your
business through insurance, legal safeguards, and risk management strategies is essential. Finally, forming a daily habit of meditation can enhance focus, reduce stress, and improve decision-making, contributing to overall business resilience.
CTOS SME SCORE
CTOS is the leading regional credit bureau in ASEAN, with a strong presence in Malaysia, Thailand, Indonesia and the Philippines. It connects the largest network of banks, financial institutions, credit grantors, SMEs and the business community in Malaysia.
As the leading credit reporting agency (CRA) in Malaysia, CTOS holds an estimated 73% market share. It provides key digital solutions that support businesses and consumers across all stages of the consumer lifecycle. Through strategic partnerships and
investments, the company continues to drive innovation, offering cuttingedge digital solutions to enhance credit decision-making and financial management.
The CTOS SME Score represents a company’s creditworthiness. It indicates whether a company is a good candidate to receive a loan or become a business client.
BENEFITS OF HAVING A GOOD CREDIT SCORE
The average credit score of businesses stands at 309, which falls within the ‘Good’ range, offering numerous advantages. A strong credit score improves access to financing, making it easier for businesses to secure loans and funding. It also increases the chances of winning business deals and strengthens negotiating power with financial institutions sand partners. Additionally, businesses with good credit scores can enjoy better credit terms with suppliers, enhancing cash flow management. A solid credit standing boosts a company’s reputation and credibility, opening doors for new opportunities and business expansion.
HOW IS A CTOS SCORE CALCULATED?
CTOS offers three types of credit scores tailored for different business structures: company, partnership, and sole proprietor. These scores are calculated based on several key factors, including payment history, financial standing, amounts owed, credit mix, and new credit. Payment history reflects whether a company or business owner has consistently made loan payments on time or
SCORE
330-400
WHAT IT MEANS TO LENDERS
Excellent: The company/business is viewed as very favourable for new credit
Very Good: The company/business is viewed as favourable for new credit
Good: The company/business is viewed as above average and viable for new credit
Fair: The company/business is viewed as below average and less viable for new credit
Low: The company/business is viewed as weak and will face difficulties when applying for new credit
Poor: The company/business is viewed as very weak and credit application will likely be affected
The company/business score could not be generated due to insufficient information
has a record of missed payments. The financial aspect considers the number of credit facilities and the total debt owed to banks. Amounts owed assess the company’s overall financial performance, including its balance sheet, profit and loss, cash flow, and equity. Credit mix evaluates the variety of loans and credit facilities held, while new credit takes into account any recently approved credit applications. Understanding these factors can help businesses maintain a strong credit profile and improve financial credibility.
HOW TO IMPROVE YOUR CTOS BUSINESS SCORE
Improving your CTOS business score requires consistent financial
discipline and proactive credit management. Ensure that bills and loans are paid on time, and settle any past dues to maintain a positive payment history. Regularly reviewing your credit report allows you to monitor your financial status and address any inaccuracies or disputes promptly. Maintaining a balanced mix of secured and unsecured credit facilities can also strengthen your credit profile. Additionally, apply for credit only when necessary to avoid excessive hard inquiries that may lower your score. If you encounter financial challenges, open communication with vendors and lenders is crucial, as they may be willing to renegotiate terms to help you
manage your obligations more effectively.
In today’s dynamic business landscape, maintaining strong financial health is crucial for longterm success. By adopting proactive financial strategies, monitoring credit scores, and leveraging digital solutions, businesses can enhance their stability and growth potential. A good credit score not only improves access to financing but also strengthens business credibility and opportunities. With the right financial management practices in place, companies can confidently navigate challenges and position themselves for sustained success in an increasingly competitive market. ■
The Future of Franchising in 2025
Franchises have faced significant challenges over the past five years but have emerged more resilient than ever. According to Troy Franklin, managing partner of World Franchise Associates Ltd, “The global franchise market is projected to grow at a CAGR of 9.8% from 2022 to 2029, potentially reaching $1.4 trillion by 2029, up from $860 billion in 2021.”
Troy and other key figures in the franchise industry were speaking at the “Future of Franchising in 2025” seminar on 15 November 2024, organised by MRCA.
OVERCOMING CHALLENGES AND EMBRACING INNOVATION
The COVID-19 pandemic brought unprecedented disruptions to the franchising sector, forcing many businesses to downsize or close. However, franchise owners quickly adapted, implementing new health
regulations and responding to shifting consumer behaviours.
By 2021, franchises began adopting innovative strategies such as digital ordering, expanded delivery services, and outdoor dining. These adjustments not only ensured survival but also established new industry benchmarks for flexibility and customer engagement.
Daniel Sim, a committee member of the Malaysia Franchise Association (MFA) and Executive Director of Cambridge English For Life Sdn Bhd, highlighted how the crisis accelerated advancements in technology integration, sustainability and crisis management practices.
One of the most significant factors driving the industry’s recovery was the adoption of technology. Artificial Intelligence (AI), Virtual Reality (VR), and the Internet of Things (IoT) enhanced customer experiences by enabling personalised marketing, improving
service delivery, and streamlining interactions across various platforms.
Digital marketing played a pivotal role in franchise growth. Businesses leveraged social media to engage with customers, build brand awareness, and target specific demographics through paid advertising. e-Commerce solutions further streamlined the buying process, while performance metrics from social media and online sales channels helped refine marketing strategies and improve customer engagement.
FRANCHISE FUNDING IN MALAYSIA
For aspiring franchisees in Malaysia, securing funding is a key consideration. Here are essential financial factors to keep in mind: 1. Access to Funding: Many franchisees face capital constraints, making it crucial to explore different funding sources.
2. Financial Solutions: Banks and financial institutions offer tailored loan products. Comparing interest rates and terms can help find the best option.
3. Government Support: Malaysia provides various grants and subsidies to encourage entrepreneurship. Being aware of these initiatives can provide a significant financial advantage.
4. Investment Strategies: Exploring partnerships, angel investors and crowdfunding platforms can expand funding opportunities for franchise businesses.
EMERGING SECTORS TO WATCH
Several industries are experiencing rapid growth, presenting lucrative franchise opportunities:
1. Health & Wellness: Rising consumer interest in fitness, nutrition and holistic wellness is fueling demand for innovative franchise models.
2. Technology & e-Commerce: The shift toward online shopping and digital solutions has created strong opportunities in this space.
3. Sustainability & Eco-Friendly Businesses: Consumers are
HIGH-DEMAND FRANCHISE SECTORS ARE EXPECTED TO INCLUDE:
1. Food & Beverage (F&B): Popular trends include Korean, Japanese, and Thai cuisine, as well as coffee, ice cream, and healthy food concepts.
2. Services & Maintenance: Self-service laundry, healthcare, cleaning services, home maintenance, will writing, and Islamic pawn broking are gaining traction.
3. Education & Learning Centres: Subject-specific tutoring and enrichment centres remain in demand.
4. Retail & Fashion: Korean and Japanese brands, as well as Muslimah fashion, are set to attract strong consumer interest.
5. Fitness: Fitness centres, women-only centres and martial arts studios are expected to see rising demand, particularly among young professionals.
6. Childcare: There is a projected increased demand for childcare centres and nurseries.
It is also interesting to note that Troy Franklin mentioned there is an expected growth of demand for eldercare services globally.
prioritising green initiatives, making sustainable franchises increasingly popular.
4. Pet Industry: The growing pet ownership trend supports demand for pet care, grooming and specialty products.
5. Education & e-Learning: Online learning has become widely accepted, improving access to education while reducing costs for providers.
FUTURE INSIGHTS AND MARKET TRENDS
Emerging markets present significant growth potential for franchise businesses. Entrepreneurs should leverage local insights to tailor their offerings to diverse consumer preferences.
CONCLUSION
The franchising industry has demonstrated remarkable resilience and adaptability, leveraging technology, digital marketing, and strategic investment to overcome past challenges. As emerging sectors continue to evolve, entrepreneurs who embrace innovation and market trends will find ample opportunities for success in 2025 and beyond. By staying informed and agile, franchise businesses can position themselves for sustainable growth in a rapidly changing landscape. ■
Malaysia Retail Industry Report (March 2025)
PREAMBLE
Members of Malaysia Retailers Association (MRA) and Malaysia Retail Chain Association (MRCA) were interviewed on their retail sales performances for the entire year of 2024 and the first quarter of 2025.
This is the 28th anniversary of Malaysia Retail Industry Report. It is the longest-running retail industry survey in Malaysia.
LATEST RETAIL PERFORMANCE
For the fourth quarter of 2024, the Malaysian retail industry recorded a less-than-expected growth rate of 3.5% in retail sales, as compared to the same period in 2023 (Table 1).
This latest quarterly result did not meet market expectation.
Members of MRA and MRCA projected the fourth quarter growth rate at 4.4% in November 2024.
Retail prices of many goods and services continued to rise during the last quarter of 2024. Higher cost of living had reduced the purchasing power of Malaysian consumers.
The shopping traffic for the last 3 months of the year was similar to 2023 level. Malaysian consumers were still spending. However, the holiday sales were not the same as pre-covid level due to the shortened school holiday. For 2024, the yearend school holiday was only 9 days.
The Malaysia Year End Sale 2024 (MYES 2024) began from 15 November 2024 and ended on 1 January 2025. However, it did not stimulate more spending among Malaysians due to lack of awareness.
Higher tourist arrival during the last 2 months of the year benefited retail businesses located in major cities, as well as tourist-oriented towns and islands.
Th Malaysian retail industry reported a positive growth rate of 3.8% for the entire year of 2024 (Table 1). This final annual growth figure was slightly below market expectation. In November last year, the estimate by Retail Group Malaysia was 3.9%.
COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS
For the fourth quarter of 2024, Malaysia’s national economy reported a growth rate of 5.0% (Table 2, at constant prices), as compared to 3.5% for retail sales (at current prices).
This quarterly growth rate was supported mainly by domestic demand. Private and public investment activities enjoyed strong growth rates of 12.7% and 10.0% respectively. Net export grew by 57.6% due mainly to moderation in capital and intermediate imports.
The services sector supported the economic activity during the fourth
Source: MRA/ MRCA/ Retail Group Malaysia
Compiled by Retail Group Malaysia
TABLE 1: YEAR ON YEAR PERCENTAGE
quarter. For the same period, the construction sector enjoyed doubledigit growth rate of 20.7%.
For the whole year, Malaysia’s real GDP expanded by 5.1%. In 2024, the Malaysian economy was driven by sustainable domestic demand and strong recovery in export market.
The average inflation rate during the fourth quarter of 2024 slowed down further to 1.8%. The slower pace of growth was attributed to lower average price of RON97 as well as cheaper rates on Information & Communication services. On the other hand, higher prices were reported in Personal Care, Social Protection & Miscellaneous Goods & Services; Restaurants & Accommodation Services; Housing, Water, Electricity, Gas & Other Fuels as well as Food & Non-Alcoholic Beverages.
For the year 2024, the inflation rate increased at a slower pace at 1.8% as compared to 2.5% for the same period in 2023. The average price of Restaurants & Accommodation Services registered the highest increase with 3.1%.
Private consumption expanded by 4.9% during the fourth quarter of 2024. Positive labour market, continued household spending and vibrant tourism activities led to sustainable growth in this component of GDP.
Unemployment rate during the fourth quarter of 2024 remained at 3.2%. Labour force participation rate increased further to 70.6% during the quarter.
RETAIL SUB-SECTORS’ SALES COMPARISON
Despite the year-end holidays, the sales performances of numerous retail sub-sectors during the fourth quarter of 2024 were unsatisfactory.
The growth rate of the Department Store cum Supermarket sub-sector rose by 3.1% during the fourth quarter of 2024. For the entire
TABLE 2: COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS, 2024
NA- not available
Source: Bank Negara/ Department of Statistics/ MIER/ Retail Group Malaysia
year, the business of this sub-sector expanded by 4.3%.
On the other hand, the retail business of Department Store subsector suffered a negative growth of 1.0% during the last quarter of 2024. For the entire year, its performance ended at the same level as a year ago.
The Supermarket and Hypermarket sub-sector achieved an encouraging growth rate of 2.5% during the fourth quarter of 2024. The overall growth rate of this subsector was 0.8% in 2024.
The Mini-Market, Convenience Store & Cooperative sub-sector maintained its growth momentum during the fourth quarter of 2024. During this period, it grew by 8.1%. For the whole year, it expanded by 8.5%. Once again, it was the best performing retail sub-sector of the year.
During the fourth quarter of 2024, the business of Fashion and Fashion Accessories sub-sector surged by 5.6%, as compared to the same period a year ago. For the year 2024, it recorded a promising growth rate of 6.3%.
The Children and Baby Products sub-sector reported another disappointing performance of -8.0% in growth rate during the last 3 months of the year. This was the
third consecutive quarter of sales decline for this sub-sector. For the full year, the sales of this sub-sector declined by 1.8%.
During the fourth quarter of 2024, the Pharmacy sub-sector reported a moderate growth rate of 4.1%, as compared to the same period a year ago. This sub-sector managed to achieve a healthy growth of 5.0% for the entire year.
Conversely, the business of Personal Care sub-sector suffered a drop of 2.2% during the last 3-month period of the year. For year 2024, the sale of this sub-sector moderated at 2.8% in growth rate.
The growth rate of Furniture & Furnishing, Home Improvement as well as Electrical & Electronics sub-sector recovered with 0.7% in growth rate during the fourth quarter of 2024. For the whole year, the sale of this sub-sector fell by 2.2%. It was the worst performing retail sub-sector for the year.
The growth rate of Other Specialty Stores sub-sector (including photo shop, fitness equipment store, second-hand goods’ store, store retailing musical instrument, arts and crafts store, store offering lifestyle products, optical shop, gifts store as well as sports store) eased at -0.3% during the fourth quarter of 2024. The business of this sub-sector
TABLE 3: YEAR ON YEAR PERCENTAGE CHANGE IN RETAIL SALES BY RETAIL SUB-SECTOR, 2024
Notes:
*- children and baby products include apparel, accessories, equipment, school uniform and toys
Source: MRA/ MRCA/ Retail Group Malaysia
contracted by 0.6% for the entire year.
NEXT 3 MONTHS’ FORECAST
Members of the two retailers’ association project an average growth rate of 5.9% for the Malaysian retail industry during the first quarter of 2025 (Table 4). Despite the Chinese New Year celebration and monthlong school holiday, not all retail sub-sectors are expecting promising results.
The department store cum supermarket operators are hopeful of a strong recovery during the first quarter of this year with a growth rate of 12.0%. This is the most optimistic projection among the retail sub-sectors.
On the other hand, the department store operators are expecting a modest recovery with a growth rate of 4.0% for the first 3-month period of this year.
The supermarket and hypermarket sub-sector should achieve a decent growth rate of 1.7% for the first quarter of 2025.
After a strong performance in 2024, operators of mini-market,
convenience store and cooperative are more conversative on its business performance for the first 3 months of this year. It anticipates a small growth rate of 1.1%.
Hopeful of strong demand during the Chinese New Year festival and month-long school holidays, retailers in the fashion and fashion accessories sub-sector are targeting a strong recovery with growth rate of 11.8% during the first quarter of 2025.
Retailers selling children and baby products are anticipating its business to drop by 7.5% during the first 3 months of this year. This is the lowest projection made among the retail sub-sectors.
Pharmacy operators expects its business to rise by 5.6% during the first quarter of this year.
Similarly, retailers in the personal care sub-sector are expecting their businesses to rebound in this new year. It aims to achieve a growth rate of 9.1% for the first quarter of 2025.
After a dismal performance in 2024, operators of furniture & furnishing, home improvement as well as electrical & electronics are
expecting their business to return to positive growth with 1.3% during the first 3 months’ period of this year.
Retailers in other specialty stores sub-sector (including photo shop, fitness equipment store, secondhand goods’ store, store retailing musical instrument, arts and crafts store, store offering lifestyle products, optical shop, gifts store as well as sports store) are foreseeing their businesses to grow by 3.6% during the first quarter of this year.
THE YEAR 2025
Retail Group Malaysia (RGM) revised its annual growth rate in retail sale for 2025 to 4.3%, an upward adjustment of 0.3% from the projection made in November last year (Table 5).
Similar to last year, the biggest challenge for Malaysia’s retail industry in the new year is the rising cost of living.
Malaysians continue to face higher retail prices on goods and services since the beginning of this year. Higher prices were observed from groceries
from supermarket to
such as car
park charges, transportation and logistics services, repair services, health care related services, media subscription services, etc.
There will be an electricity tariff hike from second half of this year. While 85% of Malaysian households will continue to enjoy government subsidy on electricity usage, businesses will incur higher operation cost due to this increment. Retail businesses are likely to pass this cost to end consumers.
E-invoicing in Malaysia has begun since 1 August 2024 for all large corporations. For small retail businesses with annual turnover of at least RM150,000, it required to generate e-invoices for all business transactions starting from 1 July 2025. Announced last month, the Malaysian government has delayed the implementation of e-invoicing for businesses with annual turnover between RM150,000 and RM500,000 until 1 January 2026
Based on the Budget 2025 announced on October 18, several new policies and measures will be implemented in 2025. These are expected to have impact on Malaysia retail industry.
Monthly minimum wage has increased from RM1,500 to RM1,700 since 1 February 2025. Enforcement for companies with less than 5 workers will be delayed by 6 months. This new policy has impacted retailers and food operators that rely heavily on foreign workers. Higher operation cost of these retail operators has led to higher retail prices.
In early March this year, the Dewan Rakyat passed amendments to the Employees Provident Fund Act 1991 which make EPF contribution mandatory for all foreign workers in Malaysia. Starting from the fourth quarter of this year, employers will have to contribute 2% of a foreign worker’s salary while the foreign
employee’s contribution has also been set at 2%.
The current subsidy on RON95 fuel will be removed from the middle of 2025. A new subsidy will be distributed to about 85% of the Malaysian households. Malaysians eligible for RON95 subsidy will be determined by the Basic Expenses for Decent Living (PAKW), Cost of Living Index, size of household, employment status, number of cars, number of working adults as well as number of schooling children.
The coverage of sales and services tax will be expanded from 1 May 2025, including premium foods and imported food products. This will lead to higher retail prices on selected food products. However, the overall negative impact will be insignificant.
For the first quarter of 2025, the Malaysian retail industry is expected to enjoy an encouraging growth of 5.9% due to Chinese New Year festival as well as the monthlong school holiday from January to February (Table 5). The attractive Malaysian currency as well as the visa-free entry for visitors from China brought in large number of foreign tourists to the country during the period of Chinese New Year celebration.
Malaysia’s retail industry is projected to grow by 4.8% during
Notes:
*- include apparel, accessories, equipment, school uniform and toys
#- furniture & furnishing, home improvement and electrical & electronics
Source: MRA/ MRCA/ Retail Group Malaysia
Source: Retail Group Malaysia
TABLE 4: 3-MONTH RETAIL SALES FORECAST
TABLE 5: MALAYSIA RETAIL INDUSTRY QUARTERLY GROWTH
the second quarter with contribution mainly from Hari Raya festival. Hari Raya Aldilfitri this year will be celebrated from first week of April.
The retail sector in the country is anticipated to expand moderately by 2.8% during the third quarter of 2025.
For the last quarter of 2025, the Malaysian retail industry is hopeful of a 3.5% growth rate as compared to the same period a year ago.
FOOD & BEVERAGE SECTOR
During the last quarter of 2024, Malaysian consumers bought many of their beverages and meals at higher prices. According to the Department of Statistics Malaysia, Food Away From Home had the highest increase at 4.8% for the month of December.
The prolonged Israel-Palestine conflict continued to affect sales of several international F&B franchises. Many Malaysian consumers were still avoiding these restaurants and cafes. This had led to heavy losses of several F&B brands operating in Malaysia. Some outlets remained closed down temporarily, while under-performing outlets were shut down permanently.
Food & Beverage Outlets (Cafe and Restaurant) enjoyed a lessthan-expected growth rate of 6.6% during the fourth quarter of 2024, as compared to the same quarter a year ago (Table 6). For the whole year, it achieved a growth rate of 8.0%.
Similarly, Food & Beverage Outlets (Take-Away, Kiosk and Stall) did not perform as projected in November last year (at 6.8%). During the fourth quarter of 2024, this sub-
Footnote:
TABLE 6: MALAYSIA FOOD & BEVERAGE INDUSTRY QUARTERLY GROWTH RATE, 2024/ 2025
Kiosk and Stall
Notes:
-Cafe and restaurant include fast food restaurant, cafe, coffee cafe, bakery cafe, restaurant, full-service restaurant and caterer.
-Take-away, kiosk and stall include food outlet caters for take-away only, bakery without seating, kiosk and food stall.
(e)- estimate
Source: MRA/ MRCA/ Retail Group Malaysia
sector reported a drop in business by 0.6%. Nevertheless, it recorded a strong growth rate of 8.9% for the entire year of 2024.
For 2025, higher food prices and higher operation costs will remain the struggles for F&B operators in Malaysia. Weak Ringgit contributes to higher costs of raw materials and food ingredients.
World coffee prices have been rising since end of last year due to unfavourable weather conditions in key coffee producing countries. This has led to many independent and chain coffee cafes to increase the prices of coffee drinks in Malaysia.
The boycott of several international F&B franchises due to the Israel-Palestine conflict will likely to continue in the immediate term.
This may lead to more temporary and permanent closures of these F&B outlets across the country. The new opening of many independent cafes and the new entry of several international F&B chains will worsen the situation.
Despite the Chinese New Year festival and higher tourist activities, cafe and restaurant operators are anticipating their businesses to grow at a slower pace at 5.4% (Table 6) during the first quarter of 2025, as compared to the same period last year.
Similarly, food and beverage kiosk and stall operators are expecting their businesses to consolidate further with a growth rate of 0.1% during the first quarter of 2025. ■
• This report is provided as a service to members of MRA, MRCA and the retail industry. It provides industry data that give retailers better analytical tools for running their retail businesses.
• This report is not allowed to be reproduced or duplicated, in whole or part, for any person or organisation without written permission from Malaysia Retailers Association, Malaysia Retail Chain Association or Retail Group Malaysia.
• Retail Group Malaysia is an independent retail research firm in Malaysia. The comments, opinions and views expressed in this report are of writer’s own, and they are not necessary the comments, opinions and views of MRA, MRCA and their members.
• For more information, please write to tanhaihsin@yahoo.com.
Retailers to Benefit with Xilnex Insight
The service helps retailers unlock data-driven growth without in-house data.
Xilnex Holdings Sdn Bhd, a leading retail management software company in Malaysia, has announced the launch of Xilnex Insights, an advanced data analytics platform featuring Data Scientist as a Service (DSaaS) as its core offering.
Developed in collaboration with retail analytics consulting firm Real Analytics Sdn Bhd, DSaaS provides retail, and food and beverage businesses in Malaysia with ondemand expert analytics capabilities, eliminating the need for in-house data scientists.
This empowers retailers to make data-driven decisions quickly and effectively, without the challenge and complexity of building their own analytics teams.
DATA EXPERTS
With the rapid rise of e-Commerce and omnichannel shopping, retail businesses need expertise in data analysis, digital marketing and customer behaviour insights. However, many retail businesses struggle with a talent gap – lacking employees who can effectively translate data into actionable business strategies.
Mid-sized retailers, in particular, are challenged by a lack of skilled analytics professionals who understand the retail industry and can design and implement analytics tools that are relevant to their business needs.
“Many retailers recognise the importance of data, but they find it difficult to extract meaningful insights due to a lack of expertise,” said Ooi Boon Sheng, CEO of Xilnex Holdings Sdn Bhd.
“Xilnex Insights bridges this gap by equipping retail businesses with AI-powered analytics and on-demand data science expertise, ensuring they can compete effectively in today’s fast-evolving retail landscape.”
SMARTER DECISIONS
Xilnex Insights offers prebuilt retailcentric data models that enable businesses to optimise inventory, personalise customer experiences and forecast sales with high accuracy – without requiring months of development time.
With its cloud-based point-ofsale system, Xilnex ensures that all retail data is centralised and accessible, providing seamless integration between operations and analytics.
To help retailers experience the full power of data-driven decisionmaking, Xilnex is offering all existing customers a free three-month trial of Xilnex Insights. During this period, Xilnex’s retail customers
will gain access to Xilnex Insights’ DSaaS, enabling them to leverage advanced analytics expertise at no cost and experience firsthand how expert analytics can transform their business.
“Even for retailers with inhouse data analytics capabilities, Xilnex Insights’ DSaaS serves as a powerful tool to validate findings and uncover additional value. By combining expert analysis with industry-specific insights, we help businesses go beyond raw data to actionable strategies,” said Dr Ooi Boon Yaik, co-founder of Real Analytics Sdn. Bhd.
Building on its success, the company has expanded across Southeast Asia, with a strong presence in the Philippines, Cambodia and Vietnam. In the Philippines alone, over 300 retail brands have adopted Xilnex solutions, reinforcing its position as a trusted technology partner in the region. ■
From left, Dr Ooi Boon Yaik, Ooi Boon Sheng and Tan Wei Kit.
e-Invoicing in Malaysia: A Mandatory Shift in Transforming Business Transactions
-Invoicing is a compulsory obligation for businesses operating in Malaysia, encompassing all taxpayers and transactions, both domestic and international. It applies to business-to-business (B2B), business-to-consumer (B2C), and business-to-government (B2G) transactions. Businesses can issue e-Invoices via the MyInvois Portal or the MyInvois System (API).
On 13 November 2024, Leong Chea Hooi, Product Head of Finexus AREMA e-Invoicing solutions, gave an informative online talk to MRCA members on the details and implementation of e-Invoicing in Malaysia.
WHAT IS AN E-INVOICE?
Mr. Leong explained that an e-Invoice is a digital representation of a transaction between a supplier and a buyer. Replacing paper or electronic documents such as invoices, credit notes and debit notes.
An e-Invoice contains basically the same essential information as a traditional document. It is a file created in the format specified by the Inland Revenue Board of Malaysia (IRBM) that can be automatically processed by relevant systems. Please note that the format of an e-Invoice is not a PDF, word document, JPG or other unacceptable formats.
BENEFITS OF E-INVOICING
By adopting e-Invoices, companies can reduce manual effort and minimise human errors through a unified invoicing process that enables the creation and submission of transaction documents and data electronically. This approach also
facilitates tax filing by integrating seamlessly with systems for efficient and accurate tax reporting. Furthermore, it helps streamline operations, saving both time and costs. Lastly, digitalising tax and financial reporting ensures alignment with industry standards, enhancing overall financial processes.
WHO NEEDS TO IMPLEMENT E-INVOICING?
e-Invoices apply to all entities in Malaysia, including associations, bodies of persons, branches, business trusts, cooperative societies, corporations, partnerships, limited liability partnerships, property trust funds, real estate investment trusts, representative offices, regional offices, trust bodies, and unit trusts.
However, certain exemptions exist. These include foreign diplomatic offices, individuals not conducting business, international bodies for transactions involving goods sold or services performed before 1 July 2025, and taxpayers with an annual turnover or revenue of less than RM150,000.
Additionally, statutory bodies, statutory authorities, and local authorities are exempted from
e-Invoicing for the collection of payments, fees, charges, statutory levies, summonses, compounds, and penalties in the execution of their legally assigned functions, as well as for transactions of goods and services performed before 1 July 2025.
WHAT HAPPENS IF YOU DON’T IMPLEMENT E-INVOICING?
Failure to issue an e-Invoice constitutes an offence under Section 120(1)(d) of the Income Tax Act 1967, and may result in a fine of not less than RM200 and not more than RM20,000, imprisonment not exceeding 6 months or both, for each instance of non-compliance.
He further elaborated that the common evaluation criteria to select an e-Invoicing solution include compliances and data retention, security and data protection, cost effectiveness, reputation, reliability and track record, and training support.
In conclusion, e-Invoicing represents a transformative shift for businesses in Malaysia. As a mandatory requirement, it is crucial for businesses to understand and adopt e-Invoicing to remain compliant. ■
HOW E-INVOICING IS IMPLEMENTED
Six-step process to implement e-Invoicing:
1 Assess the current systems and processes
2 Research and select e-Invoicing solution
3 Training and education
Sunway Malls to Launch 10th Mall, Sunway Square, This September
Sunway Malls is set to open its 10th retail destination, Sunway Square Mall, in September 2025, marking a significant milestone in its journey to become Malaysia’s largest mall owner-operator. With 95% of its retail space already leased, the mall spans 300,000 square feet across four levels and will offer a unique lifestyle experience centred on leisure and entertainment.
Sunway Square Mall will house over 150 outlets, including anchor tenants like Village Grocer, TGV Cinemas, BUMP Bouldering, The Library by BookXcess, COUNT, KKV, GoFit and Tutu Toe Dance Academy. The mall also boasts 3,000 integrated parking bays and a strong F&B offering tailored to the surrounding community of students, office workers and residents.
The mall is part of the larger Sunway Square development, which includes twin commercial towers, a 1,200-seater performing arts centre, and a 24-hour library. Overlooking the picturesque Sunway South Quay lake, the development aligns with Sunway’s vision of creating a vibrant hub of education, commerce and culture in Sunway City Kuala Lumpur.
“Sunway Square Mall is part of Sunway Square, a visionary development designed to integrate
dining, F&B outlets have increased to above 25% of total mall tenants today. A decade ago, F&B only takes up 15% of a mall,” he adds.
multifaceted range of spaces, catering to the arts, commerce, education, and business,” says HC Chan, CEO of Sunway Malls.
“The mall plays a pivotal role as a trendy social hub in Sunway City Kuala Lumpur, reflecting the changing lifestyles of urban dwellers with leisure, food, and entertainment offerings becoming increasingly important drivers. Across our malls, we saw a robust F&B performance persisting after the pandemic. Due to continuous resilient out-of-home
“Looking at current trends, consumers today are often on the lookout for places to engage, either over a cup of coffee, a good meal or via sports activities. They want to live what they see on their screens and share their experience via their own social platforms. The artistic designs of Sunway Square Mall combined with innovative elements and a vibrant tenant mix will serve this purpose,” says Jason Chin, Senior General Manager of Sunway Malls Selangor.
Sunway Malls reported a 5% year-on-year growth in 2024, with continued momentum in early 2025. With three new malls in the pipeline, the group is on track to own 13 malls with 8.2 million square feet of net lettable area, further solidifying its presence nationwide. ■
Marriott International to Debut Aloft Hotels in Seremban with Citta Worldwide
Marriott International, Inc. has announced a strategic agreement with Citta Worldwide to introduce the first internationally branded hotel in Seremban — Aloft Seremban. Slated to open by the end of 2025, the hotel is set to transform the city’s hospitality landscape with its vibrant design and modern offerings.
Located in the heart of Seremban, Aloft Seremban will be part of an integrated commercial hub directly connected to Terminal 1 Shopping Centre. With easy access to major transportation hubs, including the upcoming Seremban Sentral railway station and proximity to Kuala Lumpur and Port Dickson, the hotel is positioned to serve both business and leisure travellers.
“Aloft Seremban represents a milestone in Marriott International’s growth in Malaysia, and we are delighted to be working with Citta Worldwide to bring this vibrant and design-forward brand to Seremban,” said Andree Susilo, Vice President –Development, Asia Pacific excluding China, Marriott International. “This hotel will introduce a fresh hospitality experience to the city, catering to modern travellers who seek style, innovation and convenience.”
The signing ceremony was attended by YB Tuan Anthony Loke Siew Fook, Minister of Transport, alongside state dignitaries including YB Choo Ken Hwa, Ahli Dewan Undangan Negeri Sembilan DUN Lukut and YB Nicole Tan Lee Koon, Pengerusi Jawatankuasa Bertindak Pelancongan, Kesenian Dan Kebudayaan, Negeri Sembilan, Tan Sri Datuk Seri (Dr) Mazlan bin Lazim, Tan Sri Eddy Chen and Datuk
Seri Michael Chong. The event marks Marriott’s continued growth in Malaysia, in line with national development initiatives like Vision Valley 2.0.
Aloft Seremban will feature 173 stylish rooms and suites, an allday dining venue with a semi-open kitchen, Re:Fuel, which will have a Grab & Go concept, and the brand’s iconic W XYZ® Bar. Guests can also enjoy a 25-meter outdoor pool, a 75-square-meter fitness centre, and 300 square meters of flexible meeting and event spaces.
“Aloft Seremban will redefine the hospitality landscape in Seremban,
offering a dynamic and stylish stay experience that aligns with the city’s evolving urban profile,” said Datuk Seri Dr KK Chai, Chairman of Citta Worlwide. “We are proud to collaborate with Marriott International to introduce a brand that embodies an upbeat and vibrant energy, reflecting the character of Seremban itself.”
As Seremban continues to develop into a key regional hub, Aloft Seremban is poised to become a landmark destination in Negeri Sembilan, setting new standards for contemporary travel experiences in the region. ■