KUALA LUMPUR (Oct 31): The measures announced in Budget 2018 will help fuel tourism growth and air connectivity to Malaysia, which will in turn benefit the retail sector, said Malaysia Retail Chain Association (MRCA) president Datuk Garry Chua.

“The RM500 million that is allocated for the tourism ministry [for infrastructure] augurs well for the sector. The spillover effect with more tourists means that there will be more expenditure which results in a positive multiplier effect for the economy, especially for shopping centres,” he told a news conference today to announce MRCA's 25th Anniversary celebration, which will be held on Nov 9.

Chua also commended the government’s allocation to upgrade international airports in Penang and Langkawi as the retail sector relies on good air connectivity for increased traffic of consumers in shopping centres.

Mah Sing Group Bhd general manager for corporate communications Lyanna Tew said the tax exemption on rental income was a good surprise to the company.

“I do not actually know of any other country in this region which has this kind of tax incentive. So, big kudos to the government,” she said.

“If the government’s intention is to make properties affordable, they have actually walked the talk by extending the step-up financing scheme provided to PR1MA to private developers that are producing the type of products that fit their affordable range,” she added.

MRCA deputy president Valerie Choo noted that retailers were however hoping for a reduction in corporate tax rates under Budget 2018.

“Of course, we were a little bit disappointed that there was no corporate tax reduction. Nevertheless, the capital allowance for ICT-related purchases is a good move to encourage small and medium enterprises to embrace digitalisation of the economy,” she said.

Meanwhile, the 25th Anniversary event will recognise pioneer members who have joined the association for more than 15 years. Today, the association has over 430 members comprising franchise and retail store operators covering more than 25,000 outlets throughout Malaysia.