With over 60 per cent of the country's GDP derived from domestic consumption, the Wholesale and Retail NKEA represents the fourth-largest contributor to GNI among the 12 NKEAs. It has also contributed to a growing share of GDP in the past three years, contributing RM100.6 billion in 2010, RM114.4 billion in 2011 and RM125 billion in 2012.
The rapid growth gives a positive indication that this NKEA is on track to meet its 2020 targets, which is to boost the wholesale and retail sector's contribution to GNI by RM156 billion and create 454,190 new jobs. This year alone, new Wholesale and Retail EPP champions have pledged to invest RM3.53 billion and committed to create more than 9,700 jobs.
The strategy to generate an internal source of growth via domestic consumption will also help ensure the country's economy can still expand in the face of global economic uncertainties.
As Malaysia progresses towards its goal of becoming a high-income nation by 2020, the country's consumers are expected to become more sophisticated and discerning. This NKEA will thus introduce new retail concepts that will spur consumer spending and support domestic demand while consolidating the country's position as one of the world's top fve shopping destinations.
Initiatives under this NKEA will also evolve in accordance with the growth potential in consumer retail spending as Malaysian incomes rise. This will be achieved through the implementation of its EPPs, which have been clustered under the key themes of Modernise, Globalise and Revolutionise.
The EPPs under the Modernise theme address the processes and systems in traditional retail outlets. The aim is to help small retailers transition to modern format stores. In Globalise, the EPPs help local retail players seek opportunities abroad. Under Revolutionise, the EPPs look into concepts and strategies that have yet to be adopted by the Malaysian retail sector.
Some of the key EPPs in this NKEA include the development of Big Box Boulevards and increasing large format stores. Trends that support the adoption of more Big Box Boulevards and large format stores in Malaysia are growing retail expenditure, urbanisation and population growth.