With over 60% of Malaysia's GDP contributed by domestic consumption, the Wholesale and Retail NKEA lays the foundation for the sector to boost the country's total GNI by RM156 billion and create 454,190 new jobs by 2020.
This NKEA currently lists 12 EPPs aimed at ensuring continued growth of this sector through three key areas – higher retail expenditure, urbanisation and population growth. Additionally, the private sector's role in this NKEA EPP's has been clustered around three themes, namely Modernise, Globalise and Revolutionise.
The Modernise EPPs address process and systems gaps which exist in traditional retail outlets and aim to transform small retailers into modern format stores. This will improve retailers' capabilities in information technology, customer service and stock management, among others.
The EPPs under the Globalise theme, meanwhile, involve exporting and products to help the maturing local retail sector seek opportunities abroad. This will be achieved by assisting Malaysian mall operators and developers expand in foreign markets, and establishing virtual selling platforms to increase the global exposure of local products.
Under the Revolutionise theme, these EPPs look to tap into concepts and strategies which Malaysian retailers have yet to explore. This includes removing import duties on luxury goods to increase affordability for locals and tourists.
In 2014, the NKEA will focus on helping retailers prepare for the influx of visitors during Visit Malaysia Year 2014 and look toward strengthening the country’s position as the fourth-best shopping destination in the world, as ranked by the Global Shopper Index Survey. The NKEA will also help retailers prepare for the implementation of the Goods and Services Tax in 2015.
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Wholesale & Retail
|No||EPPs||2020 GNI (millions)||Jobs||Location||Status|
|Increasing the Number of Large Format Stores||8,514.20||68,574||Nationwide || |
|Modernising via the Small Retailer Transformation Programme (TUKAR)||5,577||51,544||Nationwide || |
|Transforming Automotive Workshops||1,139.10||9,117||Nationwide || |
|Developing Makan Bazaars||226.5||4,205||Johor || |
|Developing 1Malaysia Malls||2,226.80||3,777||International || |
|Virtual Mall||823||6,629||Kuala Lumpur || |
|Facilitating Local Businesses to Acquire Stakes in Foreign Retail Businesses||1,031||415||International || |
|Making Malaysia Duty-Free||3,258.3||31,145||Nationwide || |
|Setting Up Wellness Resorts||2,674.9||21,545||Kuala Lumpur || |
|Organising Unified Malaysia Sales||1,776.9||14,312||Nationwide || |
|Transforming KLIA into a Retail Hub||958.2||7,716||Selangor || |
|Big Box Boulevards||1,222.50||9,609||Nationwide || |
Together with baseline growth, business opportunities in the Wholesale and Retail NKEA are expected to contribute RM45.2 billion to GNI, and create 226,000 additional jobs. This growth will be driven by three distinct economic drivers, with RM187.6 billion in private sector funding and investments required to capitalise on these business opportunities.
The first economic driver is comprised of higher retail expenditure per capita due to
increased GNI per household by 2020. Secondly, urbanisation from rural-to-urban
migration is expected to create higher demand for goods and services, including
higher value-added products. Thirdly, Malaysia's population growth is projected
to result in demand for more goods and services.