KUALA LUMPUR (Sept 10): When the Malaysian retail industry experienced its worst performance in over two decades in 2020 contracting by 16.3%, the industry had expected to only recover to pre-pandemic levels in 2024.

However, the latest edition of the Malaysia Retail Industry Report published by Retail Group Malaysia (RGM) revealed that the first quarter of 2022 (1Q2022) and 2Q2022 growth numbers were solid, expanding year-on-year by 18.3% and 62.5% respectively. With retailers expecting yet another jump of 61.7% in the third quarter, RGM is now confident that the industry will recover to levels achieved in 2019 — the year before the pandemic.

Is this robust growth which these retailers are experiencing a one-off? Was it merely revenge shopping? Can the growth momentum be sustained in view of rising costs? Malls are crowded, especially on weekends. But are they spending? 

In this week’s issue, The Edge speaks with industry experts to shed light on whether the extraordinary growth numbers can be repeated moving forward and what factors will likely put pressure on consumer spend.

They also share what the upward revision of the industry’s forecast means for retail and retail-related counters on Bursa Malaysia. Many believe the uptrend in recent months will taper off in the medium term, while a fund manager trusts the sector will hold strong along with other beneficiaries of the recovery play.

Besides the retail sector, domestic tourism has also benefited from the spike in locals vacationing within the country after the lifting of restrictions earlier this year, captains of industry say.

Read the stories in this week’s issue of The Edge Malaysia weekly.

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