The wholesale and retail industry continues to account for a significant share of Malaysia’s economy, contributing 12.7 per cent to the country’s GDP. As at 2Q 2014, the industry registered a yearon- year growth of 8.88 per cent.
Since the start of ETP, the volume index of wholesale trade has risen from 99.8 points at the end of 2009 to 132.2 points at the end of 2013, while retail trade grew from 103.6 points to 132.3 points over the same period.
The Wholesale and Retail NKEA met all its KPIs for 2014 with strong collaboration from stakeholders, including the Ministry of Domestic Trade, Cooperatives and Consumerism, Ministry of Tourism and Culture, Malaysian Investment Development Authority (MIDA), private sector EPP partners and existing retailers.
A Note From the Minister
The Wholesale and Retail sector has continued to grow and contribute significantly to the Malaysian economy. Aside from serving domestic demand, the NKEA has also grown in importance in contributing to tourist spend, with the country recognised as a top shopping destination globally.
EPP 7: Virtual Malls
The online shopping market is expected to grow to RM5 billion in 2014 with the majority of purchases made on local websites, supported by the growing popularity of mobile devices, ongoing rollout of high speed broadband and a population that is more comfortable shopping online.
PEMANDU and the Ministry of Domestic Trade, Co-operatives and Consumerism are currently in the process of reviewing this EPP to suit market trends of single/ few focus product categories as well as to consider potential Government initiatives required to encourage private sector involvement in the online retail market.
EPP 10: Setting Up Wellness Resorts
MINES Wellness City (MWC), developed by Country Heights, is showing good progress. The development is to be positioned as Malaysia’s first Integrated Health and Wellness Hub and South East Asia’s premier health tourism destination.
As this EPP is cross-cutting, involving tourism, hospitality and health components, continuous cooperation with Tourism Malaysia and the Ministry of Health is required to better facilitate existing and future EPP partners.
EPP 12: Transforming KLIA into a Retail Hub
Following the commencement of operations of KLIA2 in May 2014, the utilisation rate of the KLIA2 and Gateway@KLIA2 retail spaces reached 98 per cent and 76 per cent respectively.
This EPP also benefited from a strong push by Malaysia Airports to complete the airport and attract retail tenants to utilise the new vacant retail space in a short period of time.
Further development of the 45-acre area around KLIA owned by MAHB will depend on the demand and market needs.
Setting Up Wellness Resorts
Transforming KLIA into a Retail Hub
KPI Achievement 2014
Business Opportunities 2015
Higher retail expenditure per capita due to increased GNI per household by 2020.
Urbanisation from rural-tourban migration, which is expected to create higher demand for goods and services, including higher value-added products.
Malaysian population growth which is projected to result in higher demand for goods and services.
Critical Target 2015
- EPP1- Six new hypermarkets and five new superstores
- EPP2- 300 TUKAR stores
- EPP4-80 ATOM workshops