KUALA LUMPUR (April 26): Malaysia's sluggish retail sector can expect a boost ahead of the 14th general election (GE14), especially as low income groups have received cash handouts in recent weeks.

"Over the past two weeks and up until May 9, people will be spending more," said Retail Group Malaysia managing director Tan Hai Hsin.

Malaysia Retail Association (MRA) president and Parkson Holdings Bhd chairman Tan Sri William Cheng said the increase in political and social activities throughout the election season will also lift consumer spending.

"GE14 may be one of the reasons Malaysian consumers adopted a wait-and-see approach," Cheng said at a one-day retail conference organised by the MRA today.

According to Tan, who was speaking at the same conference, this trend is likely to continue after the general election as consumers put aside their wait-and-see attitude and return to life as usual.

He said, "Hopefully spending will come back and the focus will return to boosting the economy," which is a view shared by Cheng.

Tan said a weak 2% retail growth in 2017 indicated that consumer spending still had not recovered from the implementation of the goods and services tax (GST) after two years.

"But we cannot just blame GST because the ringgit also depreciated within the same time period," he added.

Despite the recent exit of several large foreign brands such as Tim Ho Wan, Bulgolgi Brothers and True Fitness, Tan said foreign interest in Malaysia's retail scene remains strong, especially in Johor Bahru.

In the first quarter, 24 brands from 15 different countries opened their first outlet in Malaysia, he noted.

"It shows a lot of people are still interested in coming to Malaysia despite the weak retail growth numbers," Tan said.