Malaysia Retailer I Vol 9 No 4 I Racheal Tan, Wellous

MALAYSIA

Vol 9 No 4 2022

WM RM9 / EM RM11

RETAIL I FRANCHISE Financial Relief from MIDF Malaysia Retail Report March 2022

Painting A Bigger Picture of Health and Wellness Racheal Tan, CEO of Wellous Sdn Bhd

Start your digital journey with us An Online Marketplace Platform for SMEs SELL New digital channels promoting growth and opportunities

SHOP Discover and shop for a wide range of products for your business

DIGITALISE Improve business purchase processes and controls

OPTIMISE Create efficiency in processes, leading to cost and time optimization

AMMB Holdings Berhad 199101012723 (223035-V)

For more information, visit ambankbizclub.com or email us at ambankbizhub@ambankgroup.com

ambankgroup.com

CONTENTS / VOL. 9 NO. 4

10

Shirley Tay Reflects On The Impact Of The Pandemic on The Retail Industry

21

Hap Seng Lands’s Indoor Green Wall Breaks National Record

COVER STORY 2

Painting A Bigger Picture Of Health And Wellness Racheal Tan, Chief Executive Officer of Wellous Sdn Bhd, one of Malaysia’s. leading producers of personalised functional food, talks about the company’s exciting journey over the last 5 years; and its rapid rise in the Malaysian and regional markets.

MRCA NEWS 7 MRCA Members Meeting MRCA EVENT 10 Shirley Tay Reflects On The Impact Of The Pandemic On The Retail Industry

ON THE COVER

MARKET INFO

95% Take-up Over A Weekend

23 Financial Relief from MIDF 24 Roaring Into the New Year with Pavilion Reit Mall

26 Sunway Pyramid Returns To The Roots of Fortune and Family

27 Aimazing and HyperQB Launch Malaysia Mall Super-App to Provide Real-Time Data Insights

28 Aspiring Malaysian Entrepreneurs Should Venture Into Franchising Their Business with Many Initiatives Given by The Govt

29 MR D.I.Y. Receives Frost & Sullivan Award For Second Year In A Row

30 Fusionex Is Technology Partner And Platinum Sponsor Of WCIT 2022

12 Malaysia Retail Industry Report March 2022

18 RCEP to Benefit Malaysian Entrepreneurs

19 AmBank BizRACE Season 3 Closes with 9 Winners and More Than RM14 Million Grants Approved Racheal Tan, CEO of Wellous Sdn Bhd

22 Mah Sing’s Delphy @ M Aruna Hits

21 Hap Seng Lands’s Indoor Green Wall Breaks National Record

TRENDING 32 Intelligent Automation Will Drive Post Pandemic Recovery

34 Ninja Van Extends Google Cloud Partnership To Make Room for Innovation in Southeast Asia

35 Truecaller Crossed 300M Active Users Globally

Cover Story

2

Painting A Bigger Picture of Health and Wellness Racheal Tan, Chief Executive Officer of Wellous Sdn Bhd, one of Malaysia’s leading producers of personalised functional food, talks to Christina Thomas about the company’s exciting journey over the last 5 years; and its rapid rise in the Malaysian and regional markets.

ellous, is a homegrown Malaysian brand that is rapidly gaining momentum in the functional food market. Helmed

by Racheal Tan who holds a Bachelor’s Degree in Food Science and Technology from University Putra Malaysia, the company has grown rapidly in the last five years.

“Personalised Functional Food is the Next Future Food, referring to food ingredients that contain health functions to achieve optimum health”, explains Racheal.

Reflecting on the founding principles of the company, Racheal explains, “The founding of this company is based on the deep understanding that many people do have high demand for good quality health products that can be very hard to find. Given the daily busy & stressful lifestyle, searching for the right functional food with health benefits can be a real challenge, where many do not have the right knowledge and information on what is best to solve their health concerns.”

W

Malaysia Retailer Vol 9 No 4

Much thought has been put into Wellous, and Racheal testifies, “We revolutionised the whole concept of delivering products & happiness to our customers’ doorsteps.”

She adds, “The challenges were mostly in the beginning, especially in the very first year of setting up the business. Sales was slow, and no one believed in what we do.”

In the beginning, Wellous was not well-known and the commercial market was sceptical about making that first online purchase.

Racheal explains that the common perception among consumers was “I’d rather buy something imported from overseas or something branded.” However, with persistence and dedication, as well as Wellous’ continuous emphasis on product quality and effectiveness, many consumers returned for more after witnessing great effects.

This then led to word-of-mouth recommendations to family members, friends and others.

“That’s how we slowly gained the trust of our loyal customers,” beams Racheal.

All the hard work was well worth it as five years down the road, Wellous is now a popular name within the functional food market in Malaysia.

In just a few years, Wellous has rapidly risen from a new brand to a key player in the wellness and beauty products industry. “I would attribute our success to being focused to offer the best for our customers,” says Racheal.

TIGER MILK KING – A WINNING PRODUCT With the arrival of the recent COVID-19 pandemic, many people have become more concerned about their health and well-being, and are on the look-out for products that can offer them prevention and protection. To address this need, Wellous introduced a revolutionary product called Tiger Milk King (under Tigrox series), a functional food product to boost lung health. The product is derived from the Tiger Milk Mushroom, which is considered a national treasure in Malaysia, and is used by indigenous people to treat

Cover Story

3

“Wellous today has 24 products to address health issues among Malaysians. Our products have numerous benefits that can help our customers optimise their health condition.”

– Racheal Tan, Chief Executive Officer of Wellous Sdn Bhd

Malaysia Retailer Vol 9 No 4

Cover Story

4

cough, asthma, bronchitis, vomiting and fever.

Endorsed by the famous Malaysian Chinese DJ and celebrity host, Jack Lim, Tiger Milk King is the result of numerous research and development (R&D) efforts.

Today, Tigrox Tiger Milk King is a popular product among Wellous’ customers. “Wellous is the first company to offer Tiger Milk Mushroom product in liquid form to consumers, leading the market on lung protection & immunity booster,” Racheal explains.

“We have strong repeat purchases & numerous testimonials

on its effectiveness. This gives Wellous a strong track record and product portfolio,” she adds.

KEY FOCUS AREAS IN ITS TARGET MARKET Elaborating on her target market, Racheal explains, “We have a 12-series product line, with products targeted at specific markets. For example, the Kids’ Series is to address the health needs of children.”

“We have another category targeted at women’s health addressing hormonal and uterus care, among others. Likewise, each of our products have different target

markets. We want to draw the attention of consumers to the fact that “prevention is better than cure” – and most importantly, to prevent it correctly,” she stresses.

MEDICAL RESEARCH BOARD OF ADVISORY Wellous has a Medical and Research Board of Advisory (MRBA) comprising a panel of 8 professional medical doctors, researchers, professors who have been invited onboard as pillars behind the research & development of revolutionary products.

“MRBA addresses our customers’ enquiries pertaining to before, during and after consumption of our products, as well as any of their medical conditions & health tips.

It is a value added feature to our customers because we care for our customers and we want to ensure optimum customer satisfaction & experience,” she shares.

EXCELLENT POTENTIAL IN THE MALAYSIAN MARKET Talking about market conditions, Racheal points out that Malaysia is a big market to penetrate. “To us it is still a big untapped market,” she says.

Malaysia Retailer Vol 9 No 4

5

purposes. Our products have numerous benefits that can help our customers optimise their health condition,” she shares.

GLOBAL SOURCING OF QUALITY INGREDIENTS

She explains that the mentality of people has improved very much.

“Prior to the pandemic, people had very little health consciousness or awareness, but today, people are more open, especially to lung protection & immunity booster products,” Racheal points out.

Harnessing on this opportunity, Wellous, which just recently won the 2021 SOBA Award for Best Use of Technology, is actively working to educate consumers and their dealers on health, functional food and supplements.

“We constantly invite doctors, professors and experts to give health talks to create awareness”,

she emphasises. “A recent talk we had addressed the prevention of long-COVID and post COVID care,” she adds.

Talking about the key health concerns among Malaysians, Racheal explains the 12-series product line focused on addressing many health conditions, revolving around improper diets, mental health, and much more.

“Wellous today has 24 products to address health issues among Malaysians. We are into functional food which are ingredients with specific health benefits that we can develop into finished products for disease prevention and lifestyle

Racheal attributes Wellous’ ability to achieve synergy between cutting edge food technology and natural herbs to produce innovative and effective products, to the company’s great R&D team comprising nutritionists, pharmacists, dieticians and other professionals.

“We source all our best ingredients globally with strong emphasis on quality & effectiveness.

Having these good ingredients in every product, we ensure optimum effectiveness & results desired by our customers,” she says.

Offering a few secrets into Wellous’ R&D efforts, Racheal says that the company emphasises on patented ingredients, which are proven, tested and processed meticulously.

“When we incorporate the best ingredients into our products, they are sure to provide greater effectiveness,” she says. Basically, she makes sure that customers receive the best.

Malaysia Retailer Vol 9 No 4

Cover Story

6 “We stand in our customers’ shoes, and reflect on what our customers want, and provide them value for their money.”

This explains the company’s tagline – “We are our products’ first customer”.

A COMPANY WITH A BIG HEART Racheal reveals that ever since the company was founded, Corporate Social Responsibility (CSR) has always been a priority, and part of its corporate culture.

Wellous is constantly on the look-out for needy causes to which it can contribute. “Every month we have an allocation solely for CSR purposes and to use the donation amount to help the needy, focusing on medical cases & community care”, she shares.

“We are very much beyond just promoting our products, instead we care about community needs.

We emphasise on good values such as relationship-building, family bonding, love, warmth and positivity, among others,” says Racheal.

One of Wellous’ campaigns was the production of a heart-warming short film call ‘The Moments’, for which every time it is shared by viewers, a certain amount of money is donated to selected charitable Non-profit organisations.

Amidst the pandemic, one of the company’s major charity projects included the donation of 10,000 PPEs and 30,000 facemasks to KKM, to be distributed to health-care frontliner workers.

“We responded to the urgent need for PPEs and face-masks among doctors and healthcare workers,” she adds.

WELLOUS PLANS FOR THE FUTURE “In April this year, we will be signing some partnerships with universities for several reasons that include Malaysia Retailer Vol 9 No 4

providing career opportunities for fresh graduates, to engage these universities to produce technical reports based on scientific studies on products, and funding top food technology students in various faculties in universities,” she elaborates.

Wellous will also be working with several institutions and governmental bodies to further position itself and strengthen its presence in the market. The company will also be adding more variety of products to its line-up this year, while also further spreading its wings into the international markets.

Aside from Malaysia, Wellous has management teams in Singapore, Indonesia, Cambodia, Brunei, Hong Kong, Thailand, Taiwan, and China.

They will be setting up operations in Thailand and Vietnam. Soon, Wellous will be erecting a booth at the Kuala Lumpur International Airport (KLIA) so that travellers have a chance to bring Wellous’ products home with them.

A SOLID COMPANY “We have a centralised warehouse to ship our products to our international markets. Our products are all locally manufactured to the highest quality with HACCP, GMP and Halal certifications,” Racheal explains.

To penetrate the offline market, there are also possibilities of producing products for the shelves in pharmacies, introducing physical stores, as well as carrying out roadshows and more promotional campaigns to reach out to the untapped market segments.

Wellous has won numerous industry excellence awards over the years and continues to trailblaze the functional food industry.

MRCA MarketNews Info

7

MRCA Members Meetings February 2022 MRCA welcomed its members to the first Members’ Meeting for 2022, conducted via online mode on 28 February 2022.

PRESIDENT’S ADDRESS In her welcome address, Shirley shared that as retailers and companies supporting the retail and franchise industry, all MRCA members saw a glimpse of hope when the government announced the opening of most of the economic sectors.

“It gave us the opportunity to very quickly work on our businesses, and to recoup what we had lost during the various phases of MCOs,” she said.

She reflected on the yearend festivities in 2021 that had certainly brought about better business performance for most of the business community, but unfortunately the increasing number of impacted cases has deterred businessowners from progressing at the desired speed.

Despite the pandemic situation seeming to be a ‘never-ending’ story, Shirley highlighted that there are many businessowners who were able to rise above the circumstances, make adjustments, adapt and venture into new businesses. She expressed her heartiest congratulations to such entrepreneurs.

“The COVID-19 pandemic gave us a lot of time to re-evaluate everything that we ought to know about our businesses and ourselves,” she stressed, pointing out that the pandemic had really caused havoc for individuals,

companies and the world alike. She continued that the sordid stories of the impact of the pandemic had indeed created a negative cloud, notwithstanding the circumstances, she encouraged the members to find the silver lining in the challenges faced, and continue to adapt and move forward like victors instead of victims.

“To sustain and continue to survive, I think we ought to protect ourselves from things that can harm our mental health. To drown out the negativity, we have to keep ourselves occupied and busy so that we can remain positive,” she advised.

She pointed out that stimulating the mind and thoughts with positivity and wise words can help counter negativity.

Shirley added that in addition to adapting to new business models, making changes to operations, learning new skills, embarking on ventures and goals are good measures; however, she urged to constantly remain realistic and have an optimistic outlook in order to thrive during this difficult period.

“As council members, we will continue to do our part to help our members,” she said.

MRCA has been able to carry out 37 activities since the last Members’ Meeting in December 2021. On her part, Shirley is involved in delivering strategic

projects and activities with the help of the council and secretariat.

“Our primary aim is to continue to touch base and get connected with government bodies, other industry associations, business chambers, media companies and members,” she stresses, adding that these are important steps in acting as a voice for the retail industry.

Shirley called out to members to reach out to offer more ideas and to highlight areas for improvement. She added that in the coming months MRCA will try to carry out more physical activities, which include the CEO Get-Together, the association’s 30th anniversary celebrations and the annual general meeting, among others. Several webinars have also been planned for the next quarter on topics such as grants, incentives, dialogues with government bodies, franchise and licensing, and 5G technology.

With her term as President coming to an end this April, Shirley said she is set to pass the baton to her successor. In her concluding remarks, Shirley conveyed her best wishes to all members.

GENERAL-SECRETARY’S REPORT Stan Singh, Secretary General of MRCA, highlighted the activities carried out by MRCA since December 2021.

Malaysia Retailer Vol 9 No 4

MRCA News

8 Four trade associations, namely, the Chinese Chamber of Commerce and Industry of KL and Selangor (KLSCCCI), MRCA, Malaysia Steel & Metal Distributors’ Association (MSMDA) and Building Materials Distributors Association of Malaysia (BMDAM), came together for a networking session to explore future collaboration opportunities among the business community.

Shirley represented MRCA at the recent launch of TopzMall, a subsidiary of Redbox Karaoke Group e-Commerce marketplace.

Simon Wong from MRCA Secretariat attended the 2021 SME100 Fast Moving Companies Awards Ceremony and gala dinner.

The Malaysian Service Providers Confederation (MSPC) Awards Night, held at Asia Pacific University of Technology & Innovation, saw Stan Singh, receive the ICON Award.

Shirley, alongside Dato’ Liew Bin, Deputy President and Datuk Seri Dr KK Chai, Vice President, represented MRCA for a visit to the Cambodia Embassy to discuss several issues such as trade mission visits, business matching and securing of workers from Cambodia.

Seak Thean Pow, Council Member, represented MRCA at the Malaysia Furniture Council (MFC) Swearing-in ceremony to support affiliate members and also to build a stronger relationship with MFC. Shirley and council members represented MRCA at a meeting between the Ministry of Health Malaysia and business associations to discuss the current situation of COVID-19 and its impact on businesses.

Malaysia Retailer Vol 9 No 4

On behalf of MRCA, Shirley also graced the opening ceremony of Dr Ko Pharmaceuticals’ 5th outlet to render support to MRCA’s new member. The event was officiated

by Datuk Seri Hasnol Zam Zam Ahmad, Secretary-General of the Ministry of Domestic Trade & Consumer Affairs.

Simon Wong, MRCA Secretariat, represented the association to receive the ShangHai Business Awards in January this year.

MRCA’s MIRF organising team visited MATRADE to discuss collaboration in MIRF 2022. The team comprised Dato’ Liew Bin, Raymond Woo, Christine Tan, Simon Wong, and other MIRF committee members.

Council members, Dr Affendi Dahlan and Simon Wong, attended the MEDAC MSME Strategic Planning Workshop, which is aimed at studying the development of the strategic plan for 2022-2026. The workshop discussed the current and anticipated challenges MSME would face in a post-pandemic environment. Feedback was also gathered on preliminary recommendations to address challenges moving forward.

The MRCA CEO Get-Together held in January and hosted by The Star at Menara Star, was attended by 75 participants comprising council members and guests.

The MRCA webinar on

Employment Law held in January this year was attended by 65 participants, and featured Ting Lee Ping from Ringo Low & Associates with Dr Afendi Dahlan as moderator. The session was aimed at preparing members on the latest updates to the Employment Act. MRCA’s Charity Golf Tournament received overwhelming response with 124 golfers taking up 31 flights within the first two weeks of its launch.

The event successfully raised RM50,000 which was donated to five children’s homes.

Shirley represented MRCA at the recent Industry Unite Press Conference, to discuss licenses and entertainment taxes. The entity also appealed to the government to address inflation as consumers were suffering the toll of rising prices.

The MIRF team visited the CEO of PERNAS, Mohd Hilaludin Abd Shukor, to discuss further the

cooperation between PERNAS and MIRF 2022.

Stan Singh and Simon Wong, represented MRCA at the Caring Pharmacy 10,000 Days Celebration event, in support of the company’s 10,000 days anniversary.

The Export Excellence Gala Night organised by The Star was attended by Dr Affendi Dahlan, who represented MRCA as one of the supporting associations for this event.

MRCA’s presence was felt at the launch of Pesta Jualan Malaysia by KPDNHEP with the attendance of Shirley and Simon Wong. The event was officiated

by Dato’ Sri Alexandar Nanta Linggi.

Stan Singh represented MRCA at the MCA Chinese New Year Open House held on the first day of the lunar new year.

Dr Afendi represented MRCA at the National Action Council on Cost of Living (NACCOL) 2022 Meeting, chaired by the Prime

Minister, to discuss issues related to the food production industry.

MRCA was appointed Promotion & Publicity sub-committee of the Foreign Departments & Agencies, National Tourism Policy (DPN).

Dr Afendi represented MRCA to an engagement session to discuss the focus, direction and strategic action plans of NUP 2020-2030 with the tourism industry to increase public-private cooperation, among other matters.

Other activities participated

by MRCA included the 2022 First Meeting of Nexus Productivity for F&B and Retail, the 2022 Annual e-CommerceKaki CNY Lou Sang Get Together; the KLSCCCI Donation Presentation Ceremony in conjunction with CNY; engagement sessions between MIRF and Invest Selangor, and MRCA and Himpunan Peritel & Penyewa Pusat Perbelanjaan Indonesia; launch of the Beauty & Pot’s third outlet; and, the MITI CNY Reception.

MRCA F&B DIVISION

MRCA YOUTH DIVISION

Valerie Choo, Deputy Chief of the F&B Division shared about the criteria for members to be part of this chapter. Currently, the division has 60 members and is expecting to increase its membership in the coming months.

Alex Chong, MRCA Youth Chief, reported on the division’s most recent activities such as its Christmas Party.

MRCA WOMEN’S DIVISION Dato’ Winnie Lim, Women’s Division Chief, updated on the division’s current membership of 43 pax and their exciting series of events. She also added that the division has a line-up of events for the months ahead.

MRCA SOUTHERN CHAPTER Michael Liew, Southern Chapter Chief updated on the chapter’s latest events and its current membership of 29. Its activities include distribution of food baskets to the needy, among others.

MRCA ACADEMY Ken Phua, Committee Member, shared on the upcoming activities that include a webinars.

MRCA CHARITY Jordan Ng, Head of Charity Portfolio expounded on the association’s charitable activities that include visitation to children’s and disabled homes, donations to the needy, festive visitations and flood relief efforts.

MIRF 2022 Christine Tan, Organising Chairperson called out to members to participate in the upcoming event themed Retail & Franchise Reboot in July 2022.

Malaysia Retailer Vol 9 No 4

Market Info

9

MRCA Event

10

Shirley Tay Reflects On The Impact Of The Pandemic on The Retail Industry Khoo Hsu Chuang, anchor of the segment “It’s Time To Do Business” interviews Shirley Tay, MRCA President, on the state of the retail sector and what were some of the lessons learned.

aking stock of the pandemic and its impact on the retail industry, Khoo says that retail industry has been one of the most affected industries by the pandemic.

However, he reminds that with every crisis, comes opportunity.

Khoo begins, “Malaysians love to shop – always have and always will do. When the pandemic hit, what was the biggest wake-up call for the retail sector?”

“For some, this was the defining moment to make it or break it,” he adds. He asks Shirley her opinion on how they did it, and what was it like, as well as what is in store for the retail industry in the coming year.

To Khoo’s question of what was the biggest wake up call, Shirley explains, “In my opinion, I think a lot of retailers were not expecting the pandemic to last so long. But what really jolted them and threw them off balance was the prolonged lockdowns and implementation of various phases of MCO.” “Actually, those who have already long embarked into online selling – they were less affected. But to me, the wake-up call was that you have to always be ready for any consequences and any changes,” she adds.

Shirley cautions that anything could just happen overnight, and retailers have to review and re-evaluate their business operations.

Khoo continued that there has been a shift from physical to

T

Malaysia Retailer Vol 9 No 4

virtual even before the pandemic hit, and he questioned on why many retailers did not get ready earlier. To that, Shirley responded that the larger companies that have a very structured operational system, would have had experts to help in the transition from physical to virtual sales platforms and e-commerce systems. She added that with smaller retailers being more acclimatised to customers walking into their stores, they would not have thought about going online.

“They were already adjusting, but it took a while for them to switch to the online system. Even right now, I don’t think retailers would switch 100 percent to online selling,” she reflects.

Khoo says that experiential and high value retailers such as fine

dining restaurants would definitely not translate well to the virtual world. To his question on which sectors are still struggling and which ones have survived, Shirley elaborates that the sectors impacted by the pandemic are those classified as non-essential.

“It is a difficult time for operators and retailers who are selling fashionable products like jewellery.

I think they suffer a great deal,” he highlights.

She stresses that retailers selling fashionable products like jewellery and other non-essential goods have faced tough times during the pandemic, because with more people working from home, they do not really need to dress up.

Therefore, it can be said that they are the worst hit sector.

Khoo asks about the role of the

retail ecosystem as the industry relies significantly on it, involving utility, and landlords, among others.

He continues with a question on the assistance provided to retailers during these trying times such as tenants in malls. Shirley explains that they were able to negotiate some reduction in rental.

“Especially since shopping mall landlords and tenants are business partners, I am sure landlords would not want to see their tenants suffer in any way,” she points out.

“Because you can imagine if you have had good tenants who have been performing really well; and then business drops and they are unable to pay rental. I would think that landlords would want to try their best to make them survive as well,” Shirley shares her thoughts.

On Khoo’s question about the changes in shopping and consumption trends in the last few years, especially the online mode, Shirley says that online shopping has gained much popularity because customers now have the opportunity to browse through products at their convenience. However, she believes that online shopping will not dominate 100 percent of the retail segment, as many consumers, despite browsing through products online, still prefer to visit physical stores to pick out products. “They want to physically examine the products,” she explains.

Touching on the subject of the omni-channel retail approach, which encompasses both offline and online retail, Khoo asks Shirley’s opinion on how retailers apply this approach if they had yet to adopt omnichannel previously.

In addressing the question about the omni-channel approach to shopping, Shirley stresses that if retailers have a competitive product being sold on e-commerce platforms, it is advisable for them to compete. She advises that there are

Market Info

11

many experts who are willing to help.

“There are a lot of companies out there where you pay a fee, and they basically provide hand-holding programmes to help you to embark into online selling,” she clarifies.

Referring to difficult times during and even before the pandemic, retailers would require help from the retail ecosystem – to this, Khoo asks about MRCA’s role in terms of helping retailers.

Shirley shares that one of the key thrusts of MRCA under her leadership is really to help members recover from the impact of the pandemic. In doing so, MRCA has conducted various initiatives, such as the Members’ Solution Day. “Members’ Solution Day is like a one-day seminar where you can request assistance from our members too, who are experts in providing solutions in digitalisation and transformation,” she explains.

The Members’ Solution Day is an online webinar series that connects MRCA members with each other to

share innovative solutions that can benefit the retail community. This event is held regularly to showcase the various expertise that may be beneficial to fellow retailers within the MRCA community. She adds that in addition to that, MRCA has also been lobbying the government to increase financial subsidies offered to retailers. To-date, MRCA has been gaining good momentum in their engagement sessions with government agencies.

In conclusion, Shirley encourages retailers to stay positive and tap on the opportunities in the local market with local consumers, considering the limited number of international tourists presently.

“Much as we cannot be entirely dependent on international tourists just yet, Malaysians should go out there and enjoy spending and buy nice things for themselves,” she advises.

“I feel that in that aspect with the continuing support from associations and the government, retailers could find time to bounce back very quickly,” she adds.

Malaysia Retailer Vol 9 No 4

Market Info

12

Malaysia Retail Industry Report (March 2022) Compiled by Retail Group Malaysia

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 2021 and the first quarter of 2022.

LATEST RETAIL PERFORMANCE For the fourth quarter of 2021, Malaysia’s retail industry recorded a promising growth rate of 26.5% in retail sales, as compared to the same period in 2020 (Table 1).

This latest quarterly result was above market expectation. Members of MRA and MRCA projected the fourth quarter growth rate at 18.3% in November 2021.

Starting from October 1, spas, wellness centres and massage

Malaysia Retailer Vol 9 No 4

centres were allowed to re-open to fully vaccinated clientele.

Interstate travel ban was lifted on October 11, after 90% of the adult population were fully vaccinated. Domestic tourism brought more sales to retailers that were dependent on tourism spending. It benefited retail outlets located in not just Klang Valley, but also Langkawi, Georgetown, Ipoh, Genting Highlands, Cameron Highlands, Pangkor Island, Desaru Coast and Melaka.

By November 30, all states in Malaysia were in Phase 3 and 4 of the National Recovery Plan (NRP).

In addition, 96.9% of the adult population in Malaysia completed their COVID-19 vaccination.

Retail sales climbed higher in December due to two major

festivals- Christmas and Chinese New Year. Malaysian consumers resumed their festive shopping during this period. Malaysians returned to physical stores in both commercial centres and shopping centres located throughout the country.

By the last month of the year, shopping traffic returned in all major shopping malls located in Malaysia.

Major shopping centres were packed with shoppers and diners.

Despite the robust growth during the last 3 months of the year, Mlaysia’s retail industry contracted by 2.3% for the entire year of 2021 (Table 1).

The dismal sales performance during the first 9 months of 2021 dragged down the overall growth.

The sales turnover generated during

13 Higher cost of living and lack of confidence in % growth financial future -19.7 led to the -9.9 decline. +3.4 The re-27.8 opening of +26.5 all economic -2.3 sectors contributed to improved labour market.

Unemployment rate during the fourth quarter of 2021 slowed down to 4.3%.

Table 1 : YEAR ON YEAR PERCENTAGE CHANGE IN RETAIL SALES (WEIGHTED), 2020/21 Type

Period

Retail sales

Oct-Dec 2020 Jan-Mar 2021 Apr-Jun 2021 Jul-Sep 2021 Oct-Dec 2021 Jan-Dec 2021

Source: MRA/ MRCA/ Retail Group Malaysia

the last 3 months of the year was not sufficient to compensate for the heavy losses incurred earlier.

This is the second consecutive year the Malaysian retail industry recorded a negative growth rate. In 2020, the retail industry contracted by 16.3% as compared to the previous year.

COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS For the fourth quarter of 2021, the Malaysian national economy recovered with a positive growth rate of 3.6% (Table 2, at constant prices), as compared to 26.5% for retail sales (at current prices).

The recovery was supported mainly by higher consumer spending as well as the re-opening of all economic sectors.

The average inflation rate during the fourth quarter of 2021 rose to 3.2%. The higher prices during these 3 months were attributed mainly to rising costs of fuel and food prices.

Private consumption jumped by 3.7% during the fourth quarter of 2021. This turnaround was due to the lifting of movement restrictions in stages since August.

After a brief recovery above the 100-point threshold level of optimism during the preceding quarter, the Consumer Sentiment Index (by MIER) dropped to 97.2 points for the last 3 months of 2021.

RETAIL SUB-SECTORS’ SALES COMPARISON The sales performances of retail sub-sectors during the fourth quarter of 2021 were mixed. Many retail sub-sectors enjoyed strong recovery from a year ago. In the last quarter of 2020, Malaysia’s retail industry was suffering from the third wave of the COVID-19 pandemic.

The ban on interstate travel, the restriction on inter-district travel as well as the work-from-home policy led to a drastic drop in shopping traffic in malls, commercial centres and food & beverage outlets located throughout the country.

The sales turnover of the Department Store cum Supermarket sub- sector grew faster with a growth rate of 31.1% during the

fourth quarter of 2021, as compared to the same period a year ago. For the entire year, the business of this sub-sector contracted by 7.8%.

Similarly, the retail business of the Department Store sub-sector expanded sharply during the last 3-month period of the year. Its sales increased by 42.9% during the fourth quarter of 2021. For the year of 2021, its sales declined by 11.7%.

The Supermarket and Hypermarket sub-sector suffered another contraction with a growth rate of -3.0% during the fourth quarter of 2021. The growth rate of this sub-sector was -10.4% in 2021.

On the other hand, the MiniMarket, Convenience Store & Cooperative sub-sector advanced further with a growth rate of 13.6% in retail sales during the fourth quarter of last year. For the whole year, it grew by 3.3%.

During the fourth quarter of 2021, the Fashion and Fashion Accessories sub-sector registered the bestever quarterly growth of 67.2%, as compared to the same period a year ago. However, it suffered a negative growth rate of 3.7% for the year 2021.

The Children and Baby Products sub-sector enjoyed increased retail sales by 17.5% during the last 3 months of the year. For the full year, the sales of this sub-sector dropped by 9.8%.

Table 2 : COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS, 2021 1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

-0.5

16.1

-4.5

3.6

Inflation rate (%)

0.5

4.1

2.2

3.2

Private consumption (%)

-1.5

11.7

-4.2

3.7

Economic Indicator GDP (%)

Retail sales (%)

-9.9

3.4

-27.8

26.5

Consumer Sentiment Index

98.9

64.3

101.7

97.2

4.8

4.8

4.7

4.3

Unemployment rate (%)

Source: Bank Negara/ Department of Statistics/ MIER/ Retail Group Malaysia

Malaysia Retailer Vol 9 No 4

Market Info

14 Table 3 : YEAR ON YEAR PERCENTAGE CHANGE IN RETAIL SALES BY RETAIL SUB-SECTOR, 2021 Retail Sub-Sector

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Whole -7.8

% Department store cum supermarket

-14.5

-7.5

-41.9

+31.1

Department store

-24.3

+18.2

-43.6

+42.9

-11.7

Supermarket and hypermarket

-11.9

-12.3

-12.5

-3.0

-10.4 +3.3

-3.7

+2.6

+2.6

+13.6

Fashion and fashion accessories

-23.4

+17.6

-63.6

+67.2

-3.7

Children and baby products*

-12.2

-17.4

-48.4

+17.5

-9.8

Pharmacy

-6.2

+10.0

-10.3

+18.0

+0.8

Personal care

-17.7

-36.1

-51.7

-8.5

-37.3

+35.3

-1.1

-28.5

+14.3

+9.8

-0.1

-41.4

-20.7

-14.6

-19.5

Mini-market, convenience store & cooperative

Furniture & furnishing, home improvement as well as electrical & electronics Other specialty retail stores

Notes: *- children and baby products include apparel, accessories, equipment, school uniform and toys Source: MRA/ MRCA/ Retail Group Malaysia

During the fourth quarter of last year, the Pharmacy sub-sector reported a positive growth rate of 18.0%, as compared to the same period a year ago. This sub-sector managed to stay in the positive zone with a growth rate of 0.8% for the entire year.

On the other hand, the Personal Care sub-sector recorded another poor sales result with -8.5% in growth rate during the last 3-month period of the year. For the year 2021, its sales sank by 37.3%. It was the worst performing retail subsector during the year.

The Furniture & Furnishing, Home Improvement as well as Electrical & Electronics sub-sector managed to turn around with a growth rate of 14.3% during the fourth quarter of 2021. For the whole year, it grew by 9.8%.

The retail sales of Other Specialty Stores sub-sector (including photo shop, fitness equipment store, second-hand goods’ store, store retailing musical instrument and TV shopping) plunged by 14.6% during the fourth quarter of 2021. This sub-sector suffered a drop in business by 19.5% for the entire year.

Malaysia Retailer Vol 9 No 4

NEXT 3 MONTHS’ FORECAST Members of the two retailers’ association project an average growth rate of 16.5% for the Malaysian retail industry during the first quarter of 2022 (Table 4).

The department store cum supermarket operators are expecting to maintain its recovery momentum with a growth rate of 28.2% for the first quarter of this year.

Also, the department store operators are predicting their businesses to expand with a growth rate of 29.9% for the first 3-month period of this year.

The supermarket and hypermarket sub-sector will see its business declining by 6.0% for the first quarter of 2022.

Operators of mini-markets, convenience stores and cooperatives are anticipating a growth rate of 9.5% during the first 3 months of this year.

Retailers in the fashion and fashion accessories sector are eyeing for another strong recovery with a growth rate of 34.0% during the first quarter of 2022, as compared to the same period a year ago. Once again, this retail sub-sector has the highest

estimated growth rate for the next 3 months.

Retailers selling children and baby products are anticipating their businesses to expand with a growth rate of 14.3% during the first 3 months of this year.

Pharmacy operators are predicting that their retail sales will climb by 12.3% during the first quarter of this year.

Retailers in the personal care sub-sector are hopeful that their businesses will turn around with a growth rate of 20.5% for the first quarter of 2022.

Operators of furniture & furnishing, home improvement as well as electrical & electronics are expecting to maintain their growth momentum with a growth rate of 14.0% during the first 3-month period of this year.

Once again, retailers in other specialty stores sub-sector (including photo shop, fitness equipment store, second-hand goods’ store, store retailing musical instrument as well as TV shopping) are less optimistic. They are foreseeing their businesses to slide by 19.2% during the next 3-month period. This will be the worst

15 half of 2022. In addition, oil prices above 20,000 have been rising in recent weeks. numbers.

Higher cost of living will affect the The high % growth rate Retail Sub-Sector purchasing power of Malaysian daily positive 16.5 Overall (weighted) households in the new year. Likely cases and 28.2 Department store cum supermarket interest rate hikes the near term increased 29.9 Department store term will also have a negative hospitalisation -6.0 Supermarket and hypermarket impact on the purchasing power of rates remain 9.5 Mini-mart, convenience store & coop.

Malaysian consumers. worrisome. This 34.0 Fashion and fashion accessories The war in Ukraine will affect fourth-wave 14.3 Children and baby products* the supply chain of consumers’ virus pandemic 12.3 Pharmacy goods worldwide. This surprise war is haunting will also lead to even higher oil Malaysian 20.5 Personal care prices and commodity prices. retailers again.

14.0 F&F, home improvement and E&E# For the first quarter of 2022, the The re-19.2 Other specialty retail stores Malaysian retail industry is expected opening of Notes: to enjoy a strong growth of 16.5% international *- includes apparel, accessories, equipment, school uniform and due to the Chinese New Year festival borders will toys and further relaxation of SOPs likely to begin #- furniture & furnishing, home improvement and electrical & (Table 5). from second electronics Malaysia’s retail industry is quarter of this Source: MRA/ MRCA/ Retail Group Malaysia anticipated to grow at 4.2% during year. The delay the second quarter with contribution in international mainly from the Hari Raya festival. borders’ opening for all countries performer among the retail subThe third quarter growth rate is has affected foreign tourists’ arrival sectors during this period. estimated at 3.4% due to a low base in Malaysia. The current entry in the same period a year ago. By requirements for foreign tourists THE YEAR 2022 then, Malaysia should have begun into Malaysia are troublesome and Retail Group Malaysia projects 6.3% its endemic phase of COVID-19. it discourages leisure travellers from growth rate in retail sales for 2022 For the last quarter of 2022, the overseas countries. This has affected (Table 5). This is an upward revision Malaysian retail industry is hopeful retail businesses that have been from its estimate made in November of a 3.6% growth rate after a rosy dependent on leisure travellers from last year at 6.0%. performance a year ago. other countries.

Malaysia’s retail industry looks Prices of basic necessities and forward to a strong recovery as many consumer goods have risen it enters the third year of the FOOD & BEVERAGE SECTOR since the end of last year. Many food COVID-19 pandemic. However, many During the last quarter of 2021, & beverage outlets have increased challenges remain in this new year. almost all food & beverage outlets their prices as well. Rising prices are The omicron wave has disrupted had been allowed to open for expected to continue during the first the pace of recovery of the retail business with normal operation industry in Malaysia. Based on the COVID-19 development in recent weeks, the retail market prospect Table 5 : MALAYSIA RETAIL INDUSTRY becomes uncertain again.

QUARTERLY GROWTH RATE, 2022 When daily positive cases Quarter Growth Rate (%) climbed to a historical high of First -e) 16.5 20,000 on February 11, Malaysian Second (e) 4.2 consumers start to be wary Third (e) 3.4 about the possibility of high viral Fourth (e) 3.6 infections. Although major shopping malls in the country are still crowded Whole year (e) 6.3 on both weekdays and weekends, (e)- estimate car traffic starts to drop gradually Source: Retail Group Malaysia when daily cases maintain the

TABLE 4 : 3-MONTH RETAIL SALES FORECAST BY RETAIL SUB-SECTOR, JANUARY-MARCH 2022

Malaysia Retailer Vol 9 No 4

Market Info

16

hours. Diners returned to the physical premises to enjoy their meals while observing social distancing rules.

With Malaysians allowed to visit families and friends as well as tourist attractions in all states of Malaysia, food & beverage outlets that were dependent on tourists are alive again.

During the same time, many office workers are now allowed to return to their companies to work.

Food and drink outlets located in city centres, business districts and major commercial areas welcomed office workers back for breakfast and lunch.

Face-to-face business meetings have

also boosted sales in cafes and restaurants.

Food & Beverage Outlets (Cafes and Restaurants) managed to turn around with a growth rate of 30.8% during the fourth quarter of 2021, as compared to the same quarter a year ago (Table 6). For the entire year, it achieved a double-digit growth rate of 14.3%.

Similarly, Food & Beverage Outlets (Take-Away, Kiosk and Stall) enjoyed a positive growth rate of 28.6% during the fourth quarter of 2021, as compared to the same period one year ago. For the whole year of 2021, it recorded a moderate

growth rate of 5.2% as compared to the previous year.

For the first quarter of 2022, food & beverage establishments will continue to enjoy strong sales similar to the preceding quarter.

The Chinese New Year festival encouraged social gathering among families and friends in large restaurants.

Interstate travel during the long festival holiday also boosted food outlets’ sales in touristdependent towns and resorts.

When Malaysia recorded high daily infection rates after the festival, some food & beverage outlets are experiencing slowing sales. Many individuals and families are starting to avoid public dining places.

Cafe and restaurant operators are foreseeing their businesses to climb by 31.2% (Table 6) during the first quarter of 2022, as compared to the same period last year.

On the other hand, food and beverage kiosk and stall operators are anticipating their businesses to increase slightly at 1.9% during the first quarter of 2022.

Table 6 : MALAYSIA FOOD & BEVERAGE INDUSTRY QUARTERLY GROWTH RATE, 2021/ 2022 Year Quarter

2021 1st Qtr

2nd Qtr

3rd Qtr

6.2

-10.9

-9.5

37.5

2022 4th Qtr

Whole

1st Qtr (e)

-0.8

30.8

14.3

31.2

-11.1

28.6

5.2

1.9

% Cafe and restaurant Take-away, 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

Footnote: § 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.

Malaysia Retailer Vol 9 No 4

Market Info

18 alaysia’s International Trade and Industry Ministry (MITI) said the Regional Comprehensive Economic Partnership, or RCEP, has come into force as of March 18 2022, almost 10 years after discussions first began at the 21st ASEAN Summit in Cambodia.

The RCEP, a trade agreement between the 10 members of ASEAN, Mainland China, Japan, South Korea, Australia and New Zealand, will economically integrate these 15 countries.

The objective of RCEP is to streamline and amalgamate the ASEAN FTAs with its dialogue partners (ASEAN + 1 FTAs) into a single regional trade agreement.

This agreement will strengthen regional value chain activities and make RCEP more user-friendly for the small- and medium-sized enterprises.

The ministry added that Malaysia is expected to be the largest beneficiary of the trade agreement among Southeast Asian countries in terms of export gains.

Besides economic and technical cooperation, the agreement also covers the elimination or reduction of import duties, investment promotion, facilitation, protection and liberalisation, the protection of intellectual property rights, the facilitation of e-Commerce as well as legal and institutional issues.

According to Ernst & Young, Malaysia stands to benefit greatly as it has access to a wider market.

Here are some of the benefits: • World’s largest free-trade bloc RCEP members comprise nearly one-third of the world population and account for almost 30% of global gross domestic product.

• Regional trade facilitation Some 90% of import tariffs will be

M

RCEP to Benefit Malaysian Entrepreneurs The RCEP supports an open, free, fair, inclusive and rulesbased multilateral trading system, the vital ingredients to global postpandemic recovery efforts.

Malaysia Retailer Vol 9 No 4

progressively phased out between members. Common rules and provisions will be set up to better facilitate the movement of goods, funds and people across the region.

• Access to China market and investors The RCEP allows Chinese companies to invest in regional markets and likewise, for RCEP members to access the Chinese market.

• North Asian investment interest The RCEP may further drive North Asian investments into ASEAN. Between 2015 and 2019, Mainland China, Japan and South Korea registered some of the largest FDIs into ASEAN. • Wider regional opportunities for SMEs The RCEP contains provisions targeted towards small and medium enterprises, providing a more level playing field for Malaysian SMEs and facilitating their access to the larger regional market.

The major beneficiary of this agreement will be ASEAN, said MITI. Looking at 2018 data from the World Bank, the 15 RCEP participating countries account for a total of 29.7% of the global population or 2.2 billion people. It holds a combined gross domestic product of US$24.8 trillion or 28.9% of the world’s GDP, and accounts for US$10.7 trillion or 27% of global merchandise trade.

Mainland China, Japan, South Korea, Australia and New Zealand, meanwhile, are major investors in ASEAN contributing US$42.3 billion (27.7%) of the total foreign direct investment flow of US$153.1 billion.

RCEP will offer Malaysian companies market access to a third of the world’s population where intra-regional sourcing of raw materials at competitive prices will also integrate the supply chain between the players.

AmBank BizRACE Season 3 Closes with 9 Winners and More Than RM14 Million Grants Approved mBank Group announced the selection of nine winning SMEs for its AmBank BizRACE Season 3: Industrial Revolution 4.0 (IR 4.0), Digitalisation and Halal Quest tracks. The Top 3 companies for each track were chosen from over 2000 registrations since its launch in July 2020.

During this season, AmBank provided more than 200 shortlisted SMEs with development programmes in the areas of IR4.0, Digitalisation and Halal Certification. The season is the first ever AmBank BizRACE held virtually in keeping with social distancing requirements.

For the IR 4.0 and Digitalisation tracks, participants underwent one-to-one grant consultations to evaluate their business plans and grant proposals in preparation for their application. Through AmBank’s partnership with the Malaysian Investment Development Authority (MIDA) and the Malaysia Digital Economy Corporation (MDEC), AmBank BizRACE participants

A

Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group.

received more than RM14 million worth of grant approvals.

The Smart Automation Grant (SAG) supervised by MIDA had a grant allocation of RM100 million, of which 14% were successfully obtained by participants of the AmBank BizRACE. This represents the largest contribution facilitated by a panel bank. The bank’s support also includes offering eligible participants with financing packages to fund their smart automation projects. The SAG is offered to Malaysian Small

The finalists were shortlisted based on their business strategy pitch and readiness to venture into the respective areas of focus. The programme’s panel of judges were represented by senior leaders of AmBank, key partners, and subject matter experts. The list of winners for the AmBank BizRACE Season 3 are as follows: AmBank BizRACE 3: Industrial Revolution 4.0 1. Champion: Comebest Malaysia Sdn Bhd 2. First runner-up: LTP Engineering Sdn Bhd 3. Second runner-up: Mayflax Sdn Bhd

AmBank BizRACE 3: Digitalisation 1. Champion: BloomThis Flora Sdn Bhd 2. First runner-up: Matahari Sdn Bhd 3. Second runner-up: Forest House Sdn Bhd

AmBank BizRACE 3: Halal Quest 1. Champion: Doluvo Sdn Bhd 2. First runner-up: LM International Sdn Bhd 3. Second runner-up: Ira Noah PLT

and Medium Enterprises (SMEs) and Mid-Tier Companies (MTCs) in the manufacturing and services sector on a matching basis (1:1) based on eligible expenditures, up to a maximum grant of RM1 million per company.

As for Halal Quest, the track is aimed to help SMEs obtain insights on the Halal market and in their journey towards attaining Halal certification. AmBank Islamic in partnership with Jabatan Kemajuan Islam Malaysia (JAKIM), together with Malaysia External Trade Development Corporation (MATRADE), Halal Development Corporation Berhad (HDC) and industry practitioners have organised capacity building sessions to equip the participants with the relevant knowledge to venture in the Halal market. Halal Quest has garnered interests from various industries and sectors such as cosmetics, food & beverages, pharmaceuticals, manufacturing, as well as logistics.

“Over the years, AmBank has always supported Malaysian SMEs by providing them with the right solutions to propel their business.

The last two years have been tough for most businesses, given the COVID-19 pandemic. Thus, we do our best to assist and provide a range of initiatives for SMEs, that go beyond just financial solutions.

The AmBank BizRACE programme is one of the many initiatives launched by the bank for SMEs to upscale their businesses by leveraging on the knowledge, training, branding as well as networking opportunities provided.” said Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group.

“We would like to applaud all our Malaysia Retailer Vol 9 No 4

Market Info

19

Market Info

20 winners for the AmBank BizRACE Season 3 for their outstanding drive and efforts in successfully making it all the way to the final stage.

In line with our core theme this season – “The Big Reset: Revive Your Business”, we certainly hope that this programme has helped them through the pandemic and that this recognition would serve as an encouragement for them in paving their businesses to greater heights,” said Christopher Yap, Managing Director, Business Banking, AmBank Group.

“We are glad to have played a role in helping these SMEs in their journey towards attaining Halal Certification. The Halal Quest track allows us to go “beyond financing” by supporting SMEs that would like to tap into new market opportunities. I would like to congratulate and thank all our finalists in the AmBank BizRACE, it

Christopher Yap, Managing Director, Business Banking, AmBank Group.

is our pleasure to have met so many high potential SMEs for this season” added Eqhwan Mokhzanee Bin Muhammad, Chief Executive Officer, AmBank Islamic.

The total prize value this season,” amounts to RM2,000,000 which included development programmes centred around IR 4.0, Digitalisation and Halal Certification, grant coaching, as well as media exposure for selected participants. Top 3 winners for each track were awarded with Executive development programme to Cambridge University’s

Judge Business School, training programmes on Halal Certification as well as Media and Digital Solutions packages provided by our Technology Partners Microsoft Malaysia and Maxis. Maxis and AmBank have been collaborating as strategic partners in driving the nation’s digital agenda.

The AmBank BizRACE 3 official government partners include the Ministry of International Trade and Industry (MITI), Malaysian Investment Development Authority (MIDA), Malaysia External Trade Development Corporation (MATRADE), Halal Development Corporation (HDC), Malaysia Digital Economy Corporation (MDEC) and Jabatan Kemajuan Islam Malaysia (JAKIM).

Official corporate partners include Microsoft Malaysia, Maxis and Bosch Rexroth. AmBank has also engaged PwC Malaysia to evaluate the process and scores of the competition.

TARGET MARKET Business community interested in the retail, franchising and branding industry.

ADVERTISE YOUR BUSINESS IN THE OFFICIAL PUBLICATION OF

MALAYSIA RETAILER magazine is MRCA’s official publication that provides news, relevant information and market reports on the evolving retail, franchise and branding landscape in the country and the region.

DISTRIBUTION • More than 500 Member Companies & Associates in Malaysia and abroad.

• Top Management of companies.

• Relevant Government Ministries & Agencies, including the Malaysian Overseas Trade Office.

• Relevant Business Organisations & Major Shopping Malls.

• MRCA Events.

• Sold in all leading bookstores nationwide.

MAGAZINE DETAILS

ADVERTISING SPECIFICATIONS

ADVERTISING RATES PER INSERTION

Frequency: Quarterly Issues: • March • June • September • December Material Requirement: PDF Format

Trimmed Size: 210mm (W) x 275mm (H) Typed Area: 190mm (W) x 250mm (H) Bleed Size: 216mm (W) x 286mm (H)

POSITION

1X

2X

Inside Front Cover

RM5,500

RM5,000 RM4,500

Inside Back Cover

RM4,500

RM4,000 RM3,500

Full Page (Run-of-Book)

RM3,500

RM3,250 RM2,800

Half page (ROB) 1X

RM2,000

RM1,800 RM1,600

Above rates subject to 6% SST.

ADVERTISING ENQUIRIES 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 Malaysia Retailer Vol 9 No 4 Email: harini.mservices@gmail.com

4X

Hap Seng Land Receives Certificate from Malaysia Book Of Records For The Highest Indoor Green Wall.

ap Seng Consolidated Berhad (HSCB) via its wholly-owned subsidiary Hap Seng Land Sdn Bhd (HSL), has made its way into the Malaysia Book of Records for the ‘Highest Indoor Green Wall’.

Sprouting with lush flora in Menara Hap Seng 3, the indoor green wall boasts a beautiful contrast between the natural landscape and the architectural feat of Menara Hap Seng 3.

Designed by Skidmore, Owings & Merrill (SOM), the world-class architects headquartered in Chicago, Menara Hap Seng 3 features a 91.55-meter high indoor green wall, spanning vertically across all 20 levels of office space. Amassing over 27,000 individual pots comprising 10 different plant species, this indoor green wall funnels sunlight into every nook and cranny of the building, thereby creating a lush and invigorating working environment for all occupants of Menara Hap Seng 3.

The award in recognition of the ‘Highest Indoor Green Wall’

T

by The Malaysia Book of Records was presented to Hap Seng Realty (Autohaus) Sdn Bhd, a whollyowned subsidiary of Hap Seng Land Sdn Bhd. The certificate presentation ceremony was held in the presence of HSCB Group Chairman, Thomas Karl Rapp; Group Managing Director, Datuk Edward Lee; Group Chief Operating Officer, Harald Behrend, as well as HSL Chief Operating Officer, David Khor and General Manager, Allan Teh. Malaysia Book of Records Brand and Marketing Manager, Aaron Bong, and Senior Research Consultant, Edwin Yeoh, were in attendance to present the certificate.

The award is another feather in the cap for HSL in line with its commitment to sustainability. As described by Allan Teh, General Manager, HSL, Menara Hap Seng 3 was built with nature in mind.

“The wall is not only the masterpiece of the building but also sets the tone for the entire building’s internal open areas. This feature illuminates the office levels in Menara Hap Seng 3 and brings

light to every discussion and visit,” explained Teh. “We’re extremely excited to be recognised by the Malaysia Book of Records today, a testament to the Group’s core strength in innovation and foresight in quality and sustainable designs,” shared Thomas Karl Rapp.

Located at a prominent Kuala Lumpur intersection, Menara Hap Seng 3 is the latest addition to Plaza Hap Seng, which comprises Menara Hap Seng, Menara Hap Seng 2, and Menara Hap Seng 3. As all the three office towers are seamlessly connected via pedestrian link bridges and basement car parks, occupants of the various towers are able to enjoy a much wider range of conveniences in the likes of food and beverage outlets, banking halls, medical and dental clinics, and business meeting facilities.

Aesthetically designed and functionally laid out, Menara Hap Seng 3 is one of the leading grade-A office buildings in the city centre of Kuala Lumpur with LEED Gold Certification, GBI certification, and MSC Zone.

Malaysia Retailer Vol 9 No 4

Market Info

Hap Seng Lands’s Indoor Green Wall Breaks National Record

21

Market Info

22

Mah Sing’s Delphy @ M Aruna Hits 95% Take-up Over A Weekend The low-density 96.7-acre gated landed residential community has a gross development value of RM520million. ah Sing Group Bhd’s Delphy, the final phase of M Aruna @ Rawang, has achieved a 95% take-up over last weekend’s launch.

M Aruna’s final phase, Delphy comprises 177 units of doublestorey link homes with a gross development value of RM108 million. With prices starting from RM662,800, Delphy comes with four bedrooms and three bathrooms, with built-ups of 1,800sqft (20ft by 75ft). An actual on-site unit was fully furnished as a show unit and launched to the public over the weekend. This is to enable buyers to immerse themselves in the property, gain a better understanding of the intended development and visualise how each space could be utilized.

Delphy is designed with an open plan concept for better air flow and natural daylight penetration.

Units are arranged in North-South directions to minimize direct glare from the sun and heat and promote energy savings. Mah Sing is also raising energy conservation awareness by incorporating tracking methods that can help reduce energy consumption. Delphy units

M

Malaysia Retailer Vol 9 No 4

come with a Smart Home system that allows home owners to control CCTV, appliances, thermostats, lights, and other devices remotely using a smartphone or tablet through an internet connection.

Mah Sing’s Group Chief Executive Officer, Datuk Ho Hon Sang said, “We have fast-tracked the development of Delphy, with expected completion next year in 2023. Our M Aruna project has achieved an aboveaverage QLASSIC score of 75%, reflecting the high quality of construction workmanship.

The continued interest in our

Rawang townships reflects the home buyers’ trust in the Mah Sing brand in developing well-designed, right-priced products in strategic locations. M Aruna is Mah Sing’s third township in Rawang, and the fourth development, M Panora, is coming soon after.

With close to 500-acres landbank in Rawang, Mah Sing has witnessed its rapid development as well as dramatic increase in population over a 10-year period. Today, Rawang is a popular location to reside, and securing a strategic location was a major factor in Mah Sing’s land acquisition.

The development features a dedicated residents-only 2 acre central park with a Secret Garden concept. Facilities include a whimsical themed landscaped park, a treehouse-themed playground, challenging bike park, jogging track, reflexology park, relaxing hammocks, a half-basketball court and an outdoor gym.

23

he pandemic over the last two years has seen a large number of small and struggling enterprises close shop. According to Business Insider, many businesses, about 70%, fail to stand up against the challenges of the market because they didn’t recognise or accept their weaknesses and seek help from others.

Some 78% fail because they lack a well-developed business plan including insufficient research on the business. But the biggest reason a business fails, some 82%, is because of cash flow issues.

In order to mitigate or avoid pitfalls in businesses, financial relief is paramount. Companies need help in terms of loan relief, tax reductions, grant assistance specially to manage costs for technology enhancements and upgrades.

The Malaysian Industrial Development Finance (MIDF) through its SME Revitalisation Financing (SMERF) is offering monetary assistance to SMEs constrained by financial difficulties.

The plan has a number of good objectives. The first of this is to provide comprehensive monetary solutions and assist viable SMEs constrained by financial difficulties and underserved sectors. The plan also hopes to ease cashflow blockage faced by viable SMEs in revitalising and achieving business goals, strengthening core business, building capacity and capability, and improving productivity as well as job creation.

SMERF also aims to help local and potential SMEs to reach

T

a high level of competition through enhancement of product marketability, business expansion and adoption of technology and modernisation.

It likewise hopes to facilitate local and potential SMEs to obtain financing with minimum collateral, credit history and track record. Finally, the plan is a fast, flexible and convenient way to finance the need of business from start-up to small and emerging business.

Of particularly concern is the underserved sector, namely small businesses, micro-SME and B40 segments. The SMERF plan hopes to help these businesses sustain and continue to strive through enhancement of their products’ marketability, business sustainability as well as adoption of technology and modernisation.

A QUICK TAKE ON SMEFR SMERF is a financial assistance scheme introduced to facilitate viable small and medium enterprise, including microenterprises that are adversely affected by the COVID-19 pandemic to have access to financing to start, restart and continue their business.

The Scheme will be prioritised to assist first-time borrowers, new businesses and business in specific sectors that were unable to secure

Market Info

Financial Relief from MIDF

commercial loans due to certain restrictions and limits.

Eligible SMEs will be able to obtain financing at a minimum amount of RM50,000 and up to RM250,000. Fixed financing rate of as low as 3% per annum on reducing balance.

WHO IS ELIGIBLE FOR SMEFR? SMEs must meet the following eligibility criteria: Registered with Companies Commission of Malaysia (SSM), or authorities/district officers (for Sabah and Sarawak), or statutory bodies for professional service providers; and at least 60% of equity is held by Malaysians.

If you are keen to explore the SMERF and MIDF’s Soft Financing Scheme for Digital and Technology (SFDT) or wish to grow your businesses further with financing from MIDF, please email to GrowYourBusiness@midf.com.my or speak to their Business Advisory Consultant at 1-300-88-6433.

Malaysia Retailer Vol 9 No 4

Market Info

24

Roaring Into The New Year with Pavilion Reit Malls As we usher in the Year of the Tiger, Pavilion REIT Malls presents bold and vibrant festive decorations across its shopping destinations, embodying the bravery, power and determination of the Tiger.

PAVILION KUALA LUMPUR Pavilion Kuala Lumpur, Malaysia’s premier shopping destination, presents ‘Blooms of Prosperity’ Chinese New Year celebrations that showcase the traditional Chinese art of paper cutting. In collaboration with Master Chen Xiao ( ), international award-winning modern origami artist, Pavilion KL brings the intricacy and beauty of paper art alive with a spectacular 30-foot Pavilion Paper Art Garden that represents the harmony of the five elemental tigers (Metal, Wood, Water, Fire, Earth) in Spring, Summer, Autumn and Winter settings.

At the Centre Court, the Pavilion Paper Art Garden features natural elements of the four seasons, such as blooming daffodils in spring with the Blue Tiger; peonies in summer with the Red Tiger; stunning golden-leaf maple trees in autumn with the Silver Tiger, and peach blossom trees for the winter season with the Black Tiger. The centre of the Garden features a large Gold Mountain and the mighty Yellow Tiger.

A partnership with DIOR invites shoppers to indulge in Chinese New Year beauty and fashion essentials at the DIOR pop-up store on Level 3.

DIOR’s ‘The Enlightened Blooming Garden’ theme features a majestic crouching tiger amidst a blooming garden of red flowers, and houses DIOR’s exclusive Chinese New Year 2022 collection.

Great gifts await those who spend this Chinese New Year! With a minimum spend of RM300 in a single receipt at speciality stores, shoppers will receive exclusive Pavilion KL Angpow Packets for free.

Malaysia Retailer Vol 9 No 4

INTERMARK MALL Inspired by the grandeur and heritage of Chinese opera, Intermark Mall invites shoppers to dive into the quintessence of Chinese culture this festive season with ‘Opera Opulence’ featuring festive oriental decorations with cut-outs of graceful opera artists that allow for plenty of photo opportunities from now until February 16!

In collaboration with internationally-renowned fashion designer Carven Ong, Intermark

DA MEN USJ Da Men USJ presents ‘Blossoming Harmony’ – a lush flower garden featuring beautiful wisteria and auspicious red lanterns hanging overhead, symbolising vitality and good fortune for the year ahead. Cheerful youth representing ‘Muhibbah Malaysia’ is also featured around the mall to greet shoppers.

Head over to Da Men USJ’s Roaring Bazaar, Lower Ground and Ground Floors, before January 30 and be spoiled with the generous offerings from local entrepreneurs selling decorations, handicrafts, and delicious snacks to get ready for Chinese New Year!

Get into the festive spirit with spectacular Chinese New Year performances. Catch traditional and acrobatic lion dance performances on the Ground

Floor every weekend in January and February 6 and 15 at 3pm. Shoppers can also enjoy Chinese Orchestra performances by SEGI College, Street Dancing performances by INTI, musical performances by a differently-abled duo and Acapella performances by Taylor’s University on selected weekends. Da Men USJ will also host a Mini Concert showcasing talented solo artists, such as Nick Kung and Ash Lu on January 22 at 4.30pm.

Mall presents an exclusively designed ‘Opera Meets Fashion’ collection inspired by the archetype of Chinese opera, displayed in the Ground Atrium. Also on exhibition is the ‘Opera Opulence Gallery’ featuring a private collection of lavish and extravagant Chinese opera costumes.

Shoppers will be rewarded when they spend at Intermark Mall – those who spend RM100 and above in a single receipt may redeem an exclusive set of Intermark Mall Angpow Packets and spin the ‘Wheel of Prosperity’ to stand a chance to win exclusive gifts. Shoppers who spend RM388 and above on a single receipt may redeem an exclusive set of Intermark Mall Angpow Packet and Carven Ong Couture Oriental Jute Bag. Spend RM188 and enjoy a special deal to purchase an exclusive Oriental Silk Road Tea Pot at RM88 at Living Circles Concept, Concourse.

Malaysia Retailer Vol 9 No 4

Market Info

25

Market Info

26

Sunway Pyramid Returns to The Roots of Fortune and Family this CNY Shoppers can customise their own festive greetings through the mall’s unique AR activity. his Chinese New Year, fortune (Fú) and family (Jiā) take centre stage in Sunway Pyramid as the mall returns to the very roots of the Chinese celebration in continuation of the malls’ year-end theme of ‘#100 Blessings’.

As the year of the tiger unfolds, Sunway Pyramid wishes for all those celebrating to have (Fú) arrive at their doorstep. From now until 13th February, red lanterns and traditional Chinese structures will line the LG2 Blue Concourse in bright red – the colour of prosperity – with the character (Fú) adorning the main structure. Participating tenants such as Kiehl’s, Oppo, Oriental Noble & Flower Market by Fleurs with festive offerings that are present in their respective booths so shoppers can get their necessities all in one place.

To encourage safe celebrations, Sunway Pyramid is incorporating a digital element to the celebration as a special online to offline experience.

Shoppers can scan a special QR code to customise a special Chinese New Year greeting to be shared with their family and loved ones. As the current situation may not yet allow families to congregate in person, these personalised greetings are an effective and heart-warming method for shoppers to stay connected this season.

Besides sharing the joy of the festivities together, shoppers who share this greeting and their recipients will be rewarded with a QR code to redeem e-vouchers from participating tenants, such as

T

Malaysia Retailer Vol 9 No 4

Laneige, Sulwhasoo, Tomei, Wagyu More, Cars International, Genki Sushi, Getha, Hotpot Kitchen, Nanyang Cafe and others!

To reward shoppers who make purchases in the mall during the campaign, those who spend a minimum of RM250 on two receipts will be able to redeem the WonderFu Angpow set. Shoppers who spend RM1,000 and above on three receipts can redeem a Disney’s Year of Tiger Cushion. Shoppers who wish to make these redemptions are encouraged to do so via the Sunway Pyramid app by registering as a member before heading to the redemption booth at LG2 Blue Concourse. For more on the “Year of Tiger” Chinese New Year Celebration, stop by the LG2 Orange Concourse from now until 20 February.

Sunway Pyramid is also ensuring that no one is left behind in the celebrations with a special CSR partnership with Subang Jaya Beacon Community Ambulance.

Shoppers who donate a minimum of RM10 will receive a token of appreciation. All proceeds will be donated to the community ambulance service, which works tirelessly to provide medical assistance during emergencies.

Jason Chin, General Manager of Sunway Pyramid says, “The Lunar New Year celebration is a touchstone that connects the Chinese community with their heritage. This year, we feel it’s apt that we return to the roots of the celebration, which is to share joy and prosperity with our families. In a time where being together is something to be cherished, it is important to create and build ties that bind. It is indeed a blessing that we can enjoy small family reunions and meet up with those who are important to us.”

For more information on Sunway Pyramid’s ‘#100 Blessings’ Chinese New Year campaign, visit www. sunwaypyramid.com/together-forgood-cny.

The strategic partnership between Aimazing and HyperQB will allow malls and retailers to improve returns on mall marketing and loyalty programme enhancements with real-time data insights. o empower shopping malls with real-time sales data for improved customer loyalty, Aimazing, the preferred retail data platform for mall management, announced a strategic partnership with HyperQB, a customer loyalty and engagement super-app for property and malls in Malaysia.

Aimazing and HyperQB have integrated their solutions to provide a complete mall intelligence and first of its kind loyalty solution in the form of a mall super-app for Malaysia and the region.

Within the current retail market, malls do not have real-time sales data to inform business decisions, due to the technical difficulties involved in their collection processes.

With an all-in-one integrated retail data and loyalty platform, the retail industry can look forward to infrastructure and solutions that can help supercharge their business operations and omnichannel strategies.

The strategic partnership with HyperQB allows Aimazing to deliver a mobile solution that is easily accessible, allowing retail malls to achieve more omnichannel personalisation to power their marketing and loyalty efforts.

Retailers will be able to use the

T

dashboard to see foot traffic data and customise new retail strategies in real-time according to their customers’ journey. Previously, this would have been an impossible, if not extremely costly and timeconsuming process due to the fragmentation that exists in the current POS market.

“We partnered with HyperQB to launch a mall super-app to personalise offers and leverage data insights that will provide high visibility of sales. The strategic partnership provides a singular, unified view for mall managers to deliver experiences that are powered by modern technology platforms. In a post-pandemic world, it is increasingly important for malls to adapt and understand the importance of an insights-driven

omnichannel approach,” said Jun Ting, Chief Executive Officer of Aimazing The mall superapp improves loyalty programmes for customers by allowing mall management teams to understand shopping patterns and consumer habits, presenting the opportunity to offer various rewards in the form of discounts and perks to incentivise shoppers to conduct repeat purchases.

It also enables malls to drive partnerships, such as with payment providers like card or e-wallet companies.

For instance, the dashboard provides insights on the acquisition percentage of each payment partner within the mall. Armed with this information, malls can pitch exciting campaigns with these payment platforms to increase acquisition, allowing increased revenue streams for mall management teams.

Customer loyalty programmes are key assets that can be leveraged by mall managers on Aimazing’s mall super-app to run campaigns, understand which merchants they should work with and have data of shoppers’ preferred merchant brands allowing them to find creative ways to retain those customers, further increasing their lifetime value.

Malaysia Retailer Vol 9 No 4

Market Info

Aimazing and HyperQB Launch Malaysia Mall Super-App to Provide Real-Time Data Insights

27

Market Info

28

Aspiring Malaysian Entrepreneurs Should Venture into Franchising Their Business with Many Initiatives Given by The Govt The franchise industry has grown well in Malaysia, with 614 local franchisors, 68 master franchisees and 408 foreign franchisors being registered under the Franchise Act 1998.

here are presently 13,018 franchise business premises operating, of which 5,419 are those of franchisors or master franchisees while 7,599 are owned by the franchisees.

The franchising industry provides stable jobs for more than 80,000 workers with estimated contributions and salaries exceeding RM1.4 billion annually On the success of local franchise brands at the international level, 65 Malaysian franchise companies including Daily Fresh, Nelson, Rotiboy, Global Art, and Smart Reader, had expanded their business overseas with the opening of more than 3,000 outlets in 66 countries.

Foreign countries with the most Malaysian franchise outlets are Saudi Arabia, Indonesia, the United States, Australia and China.

As part of its continuous support for the franchise industry, the government had allocated RM1.8 million to implement a programme to expand Malaysian franchises to the international level.

On the other hand, Perbadanan National Berhad (Pernas) is mandated to lead the development of the country’s entrepreneurship

T

Malaysia Retailer Vol 9 No 4

and franchise industry through its expertise in providing quality service and products in several areas.

The organisation looks to provide Franchise Financing support for franchise businesses and entrepreneurs catering for all franchise business needs including capital expenditure and working capital requirements.

Pernas also provides advisory services inclusive of support to the development of Entrepreneurs and Franchise Business to increase competitiveness in the business environment.

Drawing on the encouragement by the government towards inclusive entrepreneurship development programmes, Pernas has developed a new programme that converts businesses into becoming franchisees.

The new programme is an extension of the Business-InTransformation (BIT) programme that trains and transforms small entrepreneurs into becoming more competitive and systematic in conducting business and developing their businesses effectively.

Entrepreneurs are encouraged through the programme to be more proactive in growing their business and challenge their comfort zone

by setting their sights towards international markets and eventually be ready to export their local brand overseas.

Brands such as Gloria Jean’s Coffee, Marrybrown, Tealive, Asam Pedas, and Laundry Bar are among the well-known franchises in the country.

Not all franchises will cost you an arm and a leg. There are many low-cost franchises that offer low start-up costs. In Malaysia, we also have franchise packages that start as low as RM50,000 depending on the kind of budget in mind.

Assistance is also offered to entrepreneurs in terms of training and capacity building. The trainings are conducted by Pernas Franchise Institute online and are offered for free to equip entrepreneurs with knowledge on how to manage their businesses during the unprecedented challenges posed by the recent and ongoing pandemic.

Pernas also offers seven financing schemes to assist aspiring entrepreneurs who want to turn their businesses into franchises.

Malaysia has identified franchising as a catalyst for increasing the number of entrepreneurs in the nation.

MR D.I.Y. is 2021 Malaysia Home Improvement Retail Company of the Year. alaysia’s largest home improvement retailer, MR D.I.Y. Group (M) Berhad (“MR D.I.Y.”) has received the prestigious Frost & Sullivan Award. The homegrown retailer was accorded “2021 Malaysia Home Improvement Retail Company of the Year” at a virtual ceremony on 16th December 2021. This follows the retailer being recognised with the “Frost & Sullivan 2020 Market Leadership Award” last year.

This international award recognises companies that demonstrate excellence across two dimensions evaluated by Frost & Sullivan - Visionary Innovation & Performance, as well as Customer Impact. A rigorous assessment conducted by Frost & Sullivan found the company excelling in many areas under the Home Improvement Retail space, a testament to MR D.I.Y’s continued efforts to implement best practices across the organisation.

In its citation for MR D.I.Y’s win, the consultancy said: “In a highly fragmented market, MR D.I.Y continues to retain its position as the unchallenged market leader. As of 2021, it is the only sizeable chain player in Malaysia with a nationwide presence and with a growing number of retail stores, all of which are managed through in-house operations. The company’s positive financial performance, even at the height of the COVID-19 pandemic, proves its resilience to withstand negative external economic impacts, thanks to the value proposition it offers consumers, its scale, and internal operational efficiencies.

Furthermore, the discounts offered

M

on home brands and bestselling items highlight the company’s continuous efforts to remain relevant, supportive of the needs of Malaysians, and loyal to its tagline, ‘Always Low Prices’, even in difficult times.”

Dedicating the award to its employees and customers, Andy Chin, MR D.I.Y. Group (M) Berhad’s Vice President of Marketing said, “The Frost & Sullivan Award is a truly prestigious one, and we are humbled to be recognised for the second year in a row. This award is dedicated to our 12,000 employees nationwide, who have gone beyond the call of duty this past year to ensure we continue to deliver on our promise of “Always Low Prices” to our customers nationwide, who in turn have rewarded us with their loyalty. We will continue to strive to support and meet the needs of our

communities around the country.

We would also like to thank Frost & Sullivan for this recognition; we are deeply honoured by this recognition.”

Frost & Sullivan follows its proprietary, measurementbased methodology combined with extensive research, indepth interviews, analysis and benchmarking to shortlist deserving companies in each category. With real-time performance indicators such as market share, revenue growth, customer acquisitions, product/service value, and technology adoption forming the backbone of the selection process, the winners represent the best of the best in the Asia-Pacific region.

For more information on MR D.I.Y., visit www.mrdiy.com, and social media, Facebook, and Instagram.

Malaysia Retailer Vol 9 No 4

Market Info

MR D.I.Y. Receives Frost & Sullivan Award For Second Year In A Row

29

Market Info

30

Fusionex is Technology Partner and Platinum Sponsor of WCIT 2022 Malaysia’s Big Data Analytics company and market leader in ASEAN sponsors RM1.5million towards world-class ICT conference. usionex signed up as Platinum Sponsor and Technology Partner for the upcoming WCIT 2022, providing an end-to-end online platform and application for the event that features a comprehensive system to manage delegate registration, payment gateways, online event management, business leadretrieval, business matching and onsite check-ins, among others.

Scheduled from 13-15 September 2022, WCIT is known as the Olympics of the “World’s Information Technology Conferences” – featuring a power-packed 3-day event showcasing the future of technology across various sectors including education, health & lifestyle, food, cybersecurity, agriculture and entrepreneurship, among others.

The event, organised by PIKOM (the National ICT Association of Malaysia), is expected to attract more than 4,500 delegates from across 80 countries to connect, engage and transform the future of technology, changing the way business is conducted in the future.

F

Malaysia Retailer Vol 9 No 4

Fusionex Group CEO Dato’ Seri Ivan Teh said, “We are proud to be part of WCIT 2022 and honoured

by PIKOM’s trust in Fusionex to do our part in support of this global event.”

“We are indeed very proud to have our own homegrown multiaward-winning technology provider Fusionex be the first in supporting the World Congress. We definitely look forward to seeing more tech companies be a part of this international event and showcase our capability to the world,” said Dr David Seah, PIKOM Chairman.

In his statement on the event, YAB Tuan Chow Kon Yeow, Chief

Minister of Penang commented, ”This could not have come at a better time. This year marks the 50th Anniversary of Penang celebrating our industrialisation journey. As such, we are thrilled that WCIT 2022 will not only take place in Penang, but is being backed by the largest Big Data Analytics company and market leader in ASEAN.” WCIT also features a 10-day Penang TechFest, to be held from 8-18 September 2022, revolving around themes such as 5G Zone with Autonomous Vehicle Testing, Street eSports, Smart Cities, SpaceTech, DroneTech, Artificial Intelligence and EduTech, among others.

32 Trending

eliminates jobs? Hardly!

1Automation

The myth of automation displacing human workers will finally evaporate. Employment opportunities are everywhere, and at the same time, automation is being deployed more than ever before. Technology isn’t taking over.

Instead, it’s elevating the experience of human workers. Automation can effectively eliminate most mundane work, creating new opportunities for workers to perform higher-value and more satisfying work.

Intelligent Automation Will Drive PostPandemic Recovery ofax, a leading supplier of Intelligent Automation software for digital workflow transformation, unveiled its top 10 predictions for 2022 as businesses navigate to the new challenges being accelerated – and in some cases, caused – by the global pandemic.

“Automation is now seen through a new lens as the global economy struggles to recover from the pandemic and companies seek resilience and a return to stability and growth. Remote and hybrid work is here to stay, creating new obstacles when it comes to efficiency, collaboration and data security,” says Adam Field, Senior Vice President of Technology Strategy and Experience at Kofax.

“While productivity has been high in this new working model, so too are stress levels and burnout as organisations have more job openings than people to fill them. As we turn our focus to 2022, it’s time to examine how agile companies are refining their operating models and workflows – leading to recovery and growth in 2022 and beyond,” added Adam.

K

Malaysia Retailer Vol 9 No 4

will go mainstream for automation.

2AInext-gen Organisations will achieve nextgen automation with the power of embedded artificial intelligence and its advanced decisionmaking abilities. AI-powered process automation can make pragmatic decisions that used to require human intervention.

With those responsibilities now being automated, human workers can move beyond performing transactional processes and further along the spectrum of high-value work.

Integrated supply chains will invest heavily in 3 automation.

Accelerated by pandemic uncertainty, companies like Walmart and Amazon are creating or acquiring soup-to-nuts distribution channels, especially as supply chains remain constrained. In order to make this effective, they’ll need insight into all parts of the organisation.

They’ll also need the ability to escalate in real-time and bring together a disparate workforce — very quickly, while changing their duties on the fly..

Oftentimes, annual predictions proclaim a particular technology as “the next big thing”. Next year will be different, with no obvious standout. Many organisations will already be using a broad range of low-code driven automation technologies, packaged within a centralised platform and accessible to business users as well as professional developers

Automation will drive organisational 5 convergence.

As automation technologies have converged, so too will business functions.

An intelligent automation platform combines numerous technologies that create ripple effects throughout an organisation. Different business functions can now be merged, and companies are rethinking “who owns what”.

6

Taming unstructured data will be the new competitive advantage.

Organisations continue to be bombarded by unstructured data. Hidden within are incredibly valuable business insights—if they can be unlocked. Each company’s data is unique, and the ability to harness that unstructured information will provide new and actionable insights.

Blockchain will be used for vastly more 7 applications.

The current and most noteworthy use of blockchain technology is cryptocurrencies, including Bitcoin. In 2021 we saw the explosion of nonfungible tokens (NFTs) where people spent absurd dollar amounts in an attempt to corner the market on pixelated GIFs created by unknown artists. However, there are much more promising and far-reaching use cases that will begin to make their way into the mainstream.

8

There’ll be comfort in controlling your data’s destiny.

The power is firmly back in the hands of the people when it comes to data protection, thanks in part to the maturity of regulations such as GDPR and CCPA. Consumers wield the flexibility to share only what they want and, most importantly, with visibility into the exact data they’re actually sharing.

The “Cloud” opens new possibilities 9 for diverse print and productivity needs.

The distributed workforce has gone from necessity to establishing a business reality and advantage. Productivity is still a priority, but now organisations will need to emphasize frictionless digital touchpoints instead of brickand-mortar experiences. This new paradigm will accelerate the need for digital productivity tools.

We’ll see you at the mixed-reality 10 water cooler.

KOFAX’S

10

INTELLIGENT AUTOMATION PREDICTIONS FOR 2022:

Mixed-reality technologies will continue to become more viable and affordable, providing greater collaboration in a hybrid work environment.

Our avatars will be the ones working overtime, participating in true VR-style collaboration, while the latest in augmented and mixed reality technologies will assist us in training and learning even while we’re hundreds of miles apart.

Malaysia Retailer Vol 9 No 4

33 Trending

4

Digital Dexterity will be used to reestablish business moats.

Trending

34

Ninja Van Extends Google Cloud Partnership To Make Room for Innovation in Southeast Asia Extended collaboration will support Ninja Van’s strategy for secure and sustainable expansion while maximizing the potential of its technology talent. ogistics provider Ninja Van has announced that it is extending its multiyear collaboration with Google Cloud, allowing its employees to further maximise the perks of the partnership. Through the extended partnership, Ninja Van’s technical teams are given access to Google’s open cloud approach to choosing the tools they need to accelerate software development and scale more efficiently while reducing the technology risk.

Backed by the likes of Europe’s largest parcel delivery network GeoPost / DPDgroup and global investment firm B Capital, Ninja Van has operations in Singapore, Malaysia, Indonesia, Thailand, Vietnam, and the Philippines. It is now the trusted delivery partner for close to two million businesses and handles around two million parcels daily across Southeast Asia.

To facilitate onshore or nearshore production and distribution for businesses in the region, Ninja Van recently launched Ninja Direct, a procurement concierge that offers services like supplier sourcing and management, customs clearance, financing, and shipments tracking.

One benefit that employees could maximise is Google Cloud’s opensource data processing platform, according to Ninja Van, where its teams can “comfortably process

L

Malaysia Retailer Vol 9 No 4

terabytes of data daily to support the company’s business needs.”

Its developers are also making use of Google Cloud’s open-source and pre-built virtual agents to generate a NinjaChat chatbot and recreate the immediacy of in-person interactions in just a month, instead of spending three months working from scratch.

“By automating application deployment and upgrades using Google Kubernetes Engine (GKE), our technical teams can avoid engaging in manual backend configurations and stay laserfocused on innovation,” said Ninja Van co-founder and chief technology officer Shaun Chong.

According to Chong, the company is also “actively hiring” more technology talent who are now able to make “more meaningful contributions” to the company because of Google Cloud solutions.

“We’re actively hiring to bolster our technology teams in the region.

Once we have the talent in the door, it makes zero sense to have them recreate code that exists and is ready-to-use, or manually select servers with the right vCPUs or RAM to deploy each application,” said Chong.

“We appreciate that Google Cloud puts open-source at the centre of its solutions, while GKE does a

great job at making sure things happen automatically. These allow us to avoid lock-in, reduce costs and truly give our in-house talent the ability to make more meaningful contributions to the business,” the executive added.

Ruma Balasubramanian, managing director, Southeast Asia, Google Cloud, praised in a statement the company’s investment in its in-house talent, which made it possible for the company to deliver its services to its clients.

“By investing in world-class talent and relentless innovation, the company is well-positioned to deliver the just-in-time production and distribution capabilities that businesses need to satisfy contemporary consumers’ desire for product variety and immediacy.”

Ninja Van’s extended partnership with Google Cloud will also help it become more capable of handling 10 times the normal traffic to give users a smooth experience, especially with increased demand for logistics services amid the pandemic.

The company will also continue to enjoy security solutions into Google Cloud’s infrastructure, such as endto-end encryption and automated patching against vulnerabilities. In addition to this, the logistics service will now work with Google Cloud’s security specialists to reinforce its zero-trust security model.

Trending

35

Truecaller Crossed 300M Active Users Globally The Swedish app has user growth of 42.5% in Malaysia since 2020. wedish Identification app, Truecaller, the leading global platform for verifying contacts and blocking unwanted communication, crosses a significant milestone of 300 million active users monthly, cementing its position as one of the largest caller ID and spam detection services in the world.

In just over a year, Truecaller registered 50 million new active users globally since October 2020, further developing the users’ safety net. To date, Truecaller saw a growth of 42.5% in Malaysia, while its user base across the South East Asia region witnessed 62% growth in active users in the same period.

The 300 million milestone achieved on 22 November 2021 is a testament of trust that consumers have in Truecaller’s ability to protect them from potential spam and scam calls.

“We started small but always had big ambitions for Truecaller.

To reach 300 million active users is a milestone for all of us who have played a part in making Truecaller the fantastic platform that it is today. Over the past decade, our

S

teams have worked hard to make Truecaller the vital service that it is today. We have a clear strategy to continue growing our company by developing the product to enhance the user experience and thereby welcome even more users in the future,” says CEO and co-founder of Truecaller, Alan Mamedi.

According to Truecaller Global Spam Report 2019, Malaysia was ranked 19th among the most spammed countries globally. Data from Truecaller insights shows that most of these spam calls were finance (95%) and insurance (50%) related calls. The frequency in calls escalated to the point where almost every fourth spam call is scam related.

This year, Truecaller has recognised an increase of spam activities in the country, which makes Malaysia a priority market.

This has strengthened the brand’s mission to help Malaysians feel safe, secure and comfortable while communicating, with minimal phone spams and scams obstacles.

The company will continue to improve its offerings with new features and enhance user

experiences. Truecaller has been upgraded to a large communication platform, offering high quality voice calls over the internet, instant messaging, group chat, SMS categorisation, SMS spam blocking, etc. Truecaller Enterprise Solutions, a verified identity service for businesses which regularly reach out to their customers, is a great platform that ensures safe communication for both users and brands.

Truecaller recently reported a 129% increase in quarterly revenue (Q3 2021) in its first earnings report as a public company. The company completed its initial public offering (IPO) in Nasdaq Stockholm on 8 October, 2021.

Truecaller is listed as an Editor’s Choice App in Google Play Store and listed in 10 Top Free Communication Apps on Google App in Malaysia. Meanwhile AppAnnie has ranked Truecaller as the top communication app in India, and it is among the top three in Egypt and Israel. The app is among the top 10 apps in 20 other countries, including Indonesia, Nigeria, and South Africa.

Malaysia Retailer Vol 9 No 4