MRCA I Vol 10 No 3 I DATO’ LAWRENCE LIEW, FOUNDER OF MARRYBROWN

of Marrybrown

Dato’ Lawrence Liew, Founder

A-5-2, 3, 3A, Level 5, Block A, Sky Park One City, Jalan USJ25/1, 47650 Subang Jaya, Selangor.

Tel: +603-5882 4333 Fax: 1 700 810 950 Website: www.mrca.org.my

PRESIDENT

Dato’ Sharan Jethanand Valiram

VALIRAM HOLDINGS SDN BHD

IMMEDIATE PAST PRESIDENT

Shirley Tay Bee Koo

PHIPURE SDN.BHD

DEPUTY PRESIDENT

Ken Phua Cheng Chuen

BENTLEY MUSIC SDN BHD

VICE PRESIDENTS

Dato’ Vincent Choo Kok Leong

URBAN IDEA SDN BHD

Valerie Choo Yoke Shiem

SIMPLY AWESOME SDN BHD

Michael Liew Fong Tzer

MARRYBROWN SDN BHD

Dato’ Winnie Lim Yoke Chin

SOLUTION RISK CONSULTANTS SDN BHD

SECRETARY GENERAL

Jit Singh A/L Santok Singh

IRONHORSE ASIA SDN BHD

DEPUTY SECRETARY GENERAL

Dr. Afendi Dahlan

DR GROUP HOLDINGS SDN BHD

TREASURER GENERAL

Alex Chong Weng Wah MBA CREW SDN BHD

DEPUTY TREASURER GENERAL

Aiveen Wong Choy Ching

CHIN SWEE FOOD SDN BHD

COUNCIL MEMBERS

Lee Ben Keong

METRO EYEWEAR HOLDINGS SDN BHD

Liang Foo Kuan

BIG ONION FOOD CATERER SDN BHD

Lim Ben Jie

TUNE GROUP SDN BHD

Jordan Ng Kim Leong

BANNERKING SDN BHD

Seak Thean Pow

BAGUS CURTAIN SDN BHD

Christine Tan Gaik Lin

CT F&B HOLDINGS SDN BHD

Wesley Tan Seah Ging

AQINA TRADING SDN BHD

Brian Tham Jee Ping

WATATIME (M) SDN BHD

Dato’ Liew Bin

BRILLIANT MERCHANDISING SDN BHD

Terry Tay Eng Yeou

GOLDENHOME INTERIOR SDN BHD

Dato’ Alex Wong Che Sing

HAP SENG STAR SDN BHD

TRUSTEES OF MRCA FOUNDATION

Dato’ Tay Sim Kim

Foundation Founder Chairman

Datuk Lee Hwa Cheng Foundation Chairman 2020-2022

Dato’ Eddie Choon Trustee

Datuk Albert Chiang Trustee

Datuk Seri Nelson Kwok T. T., JP Trustee

Dato’ Liaw Choon Liang, JP Trustee

Datuk Seri Garry Chua Trustee

BOARD OF ADVISORS

Tan Sri Dato’ Sri Leong Hoy Kum GROUP MD, MAH SING GROUP BHD

Tan Sri Dato’ Sri Barry Goh Ming Choon CHAIRMAN, MCT BHD

Tan Sri Dr Lim Wee Chai CHAIRMAN, TOP GLOVE CORPORATION BHD

Tan Sri Datuk Ter Leong Yap EXECUTIVE CHAIRMAN, SUNSURIA BHD

Tan Sri Dato’ Sri Tang Yeam Soon GROUP MANAGING DIRECTOR, THE STORE CORPORATION BHD

Dato’ Dr. Jennifer Low, JP GROUP MANAGING DIRECTOR, QUILL GROUP OF COMPANIES LEGAL ADVISORS

Dato’ Dr Manjit Singh MANJIT SINGH SACHDEV, MOHAMMAD RADZI & PARTNERS

Datuk Ringo Low RINGO LOW & ASSOCIATES

HONORARY AUDITORS

Dato’ Sri Raymond Liew Lee Leong MCMILLAN WOODS

Datin Yap Shin Siang

YYC GST CONSULTANTS SDN BHD

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1 Glory Page

Dato Lawrence Liew, Founder of Marrybrown

MRCA Ends 2022 with a Bang

CTOS Credit Manager, Malaysia

Incite Foodtech, Eatcosys to Create Retail Tech Ecosystem

President’sMessage

Dear Members,

I would like to wish all of you a very happy prosperous 2023.

January is also a time for a new you, New Year resolutions, planning, ideas, new goals etc are on our minds. I wish you every success in achieving ‘these milestones.

MRCA has been actively engaging the retail industry and making the retail industry’s voice heard. We continue to be the voice of the retail industry/ We have also made cross-border connections with retail associations across the region. It is our hope that retailers in ASEAN would become a caucus that can take the regional retail industry be world class.

The road ahead is even more exciting as Malaysia welcomes its 10th Prime Minister, YAB Datuk Seri Anwar Ibrahim. Our heartiest congratulations to YAB Datuk Seri Anwar on his appointment as the 10th PM and we hope that our new PM will steer the country towards a prosperous future. On that note, we look forward to more exciting business opportunities both locally and internationally as our PM continues to strengthen bi-lateral relations globally.

In line with our theme “Together We Thrive”, it is heartening to see the retail industry come together to drive our retail business. In the last quarter of this year, we conducted several learning sessions such as the “Amendments to the Employment Act” and “TikTokMadeMeBuyIt”. We had a good turnout for these sessions and are planning to have more enriching learning sessions in the future, for the bene t of our members.

The MRCA Women’s Division did an excellent job on the Breast Cancer Awareness Programme which

was themed “Think Pink, Think Life”. The Women’s Division also pledged to raise RM30,000 to contribute towards the Breast Cancer Welfare Association. The funds will be channelled towards supporting the MURNI clinic as they reach out to rural areas and the B40 communities, as well as to hire nurses to conduct breast screening and clinical tests. A big hand of applause to Dato’ Winnie Lim and her team of ladies for their e orts!

The Taiwan-Malaysia F&B Business Matching session was a success, and for that I would like to express my appreciation to the organising committee. The session gave Malaysian and Taiwanese businesses the opportunity to collaborate and form business alliances that can boost the retail industry in Malaysia. We hope to have more such business matching sessions in the future.

In October this year, we conducted our Members’ Meeting at Hap Seng’s premises in Setia Alam. It was indeed an excellent event with a very good turnout. Our gratitude to YBhg Dato’ Alex for organising this session at this exquisite venue.

MRCA’s Christmas and Chinese New Year 2023 celebration was a roaring success with approximately 1,400 people attending the event at the Sunway Resort Hotel and Spa. Themed “A Season of Celebration”, the event was truly a refreshing conclusion to an eventful year. We hope 2023 will be a more exciting year and we look forward to more gatherings and opportunities to meet each other. A big Thank You to YBhg Dato Vincent Choo for his tireless e orts in making this event a success.

Another exciting event in the pipeline is MIRF 2023. I would like to invite all our members to grab spots at this exhibition and not miss this opportunity to showcase your great o erings. MIRF 2023 is set to be another roaring success as more businesses participate. So do take this opportunity to be part of MIRF 2023.

Read about all our activities over the last few months in this publication, and if you have missed them, we are sorry to have missed you, but we have more events in the pipeline. Wishing all our members success in the months ahead and I hope to meet all of you at our upcoming events.

Wishing a Happy New Year and a Happy New You.

Dato’ Sharan Valiram President 2022-2024 Malaysia Retail Chain Association

“Together We Thrive”

Malaysia’s Greatest Iconic Fast-Food Brand Marrybrown

Marrybrown has the distinction of being called Malaysia’s number 1 halal fast-food brand. Founder Datin Nancy Liew shares with RACHAEL PHILIP the secret to the brand’s lasting power.

The Marrybrown story is a Malaysian love story. Despite popular wisdom on starting a business with a spouse, husband-and-wife team Dato Lawrence Liew and Datin Nancy Liew decided to open a quick service restaurant (QSR) in 1981 on Wong Ah Fook Street, Johor Baharu.

The co-founders also shared a love for local food. Besides serving fried chicken, burgers and beverages, they decided that their QSR would include nasi lemak, bubur ayam and curry mee on the menu. The result was a Baby that was both unique and Malaysian.

“Our focus is on serving customers what they want. Being a homegrown brand, we understand Malaysians’ taste buds, their preferences, likes and dislikes,” said Nancy, Managing Director, adding

that their market research then and now revealed that customers want quality local delights that are priced reasonably.

“This is what drives us to explore all-time favourite home-grown recipes in our kitchen and to adapt them to the fast-food kitchen setting,” she said.

This idea has helped the company produce food that are consistent in quality, good in pricing and are available every time and every day in a clean and cosy environment. Nancy stressed that consistency is an important factor in the fast-food industry.

“Customers tend to order their favourite dishes again and again, even at di erent locations. Consistent quality helps build trust with our customers and creates a positive experience for them.”

OVERSEAS FORAY

Marrybrown turns 42 this year. In these four decades, it has competed side-by-side with large fast-food chains of the world. Today, it has 500 outlets across 16 countries, fromSingapore, Thailand, Indonesia, Middle East to Africa, China, India, Europe and opening soon at

Australia. Marrybrown Headquarters based in Johor Bahru, the brand also has regional support o ces in Dubai and China.

In a way, Marrybrown has become the perfect ambassador of Malaysia – one can nd Nasi Marrybrown at its Dubai outlets and Mee Kari at its Maldives outlets.

In 2020, Marrybrown was appointed by Malaysia government be the o cial restaurant operator of the Malaysia Pavilion at the World Expo in Dubai. Marrybrown is honoured to be given the opportunity to serve millions of customers throughout the six month period.

“It was a proud moment for us representing Malaysia at the World Expo,” said Nancy, who attributes the growth and success of the company to the brand’s franchising system and outstanding support towards its franchise partners.

Over 80% of its restaurant business are locally-owned and operated by independent entrepreneurs who, with a team of reliable sta , serve customers with dedication and commitment.

TOP HONOURS

Last December, in recognition of its commitment and achievements in the QSR industry, Marrybrown clinched four awards, namely Franchise of the Year, Franchisor of the Year (Gold), Homegrown Franchisee of the Year and Emerging Homegrown Franchisee of the Year, at the 24th Malaysian Franchise Awards 2022.

Organised by the Malaysian Franchise Association, the award, which evaluates companies based on several criteria such as the franchise system, total franchise growth and annual sales value, is recognised among leading franchise operators in Malaysia.

“Since the day we launched our franchise programme, we have had in place a comprehensive structure to support it. We have more than 10 departments in our headquarters to facilitate this system,” explained Nancy.

“The company has franchise consultants, engineers, interior designers, chef, trainers, operation personnel, technology experts, experience brand and marketing team, and kitchen equipment specialists.

“Franchising offers a lower risk. It is structured and it is a stable means of doing business. The Marrybrown system is tested and proven. It has the capacity to develop entrepreneurial talents through the transfer of technology and know-how.”

– Datin Nancy Liew, Founder of Marrybrown

“All these departments work together to create an e cient, intelligent and lasting system to ensure our franchisees have full backing and support from day one.

“This victory is not only for Marrybrown but for all who have braved the challenges of time and stayed on with us on our meaningful journey of serving ‘something di erent’ to the world,” said Nancy.

FOOLPROOF SYSTEM

Nancy said, that as co-founders and business partners, both she and Lawrence have had the same vision and worked towards the same goals. One such vision was the franchising business model.

“Franchising o ered a lower risk. It was structured and it was a stable means of doing business. We went on to create a system that works best for us. The Marrybrown system

is tested and proven. It has the capacity to develop entrepreneurial talents through the transfer of technology and know-how,” she said.

The franchise system also enables one to fast track their

learning experience and save money, time, e ort and energy. Most importantly, one can avoid costly mistakes along the way of building and expanding their business.

Over the years, the pair have

Marrybrown won Malaysia’s Best Franchise of the Year award at AFM 2022.

gathered extensive knowledge and vast experience in franchising. They rmly believe that their mission in life is to help others in their business.

“SMEs are the heart and soul of sustainable and healthy economics. It contributes to the gross domestic product of a country and creates jobs. Franchising is an e ective instrument for countries to grow their SMEs.”

ONE TEAM, ONE FAMILY

While the company’s role in building talents and entrepreneurs is indisputable, Nancy’s disposition is one of gratitude. She said the company owes its success to their franchise partners and business associates.

“With their support, we have advanced over the years from an iconic Malaysia restaurant to a global fast-food chain o ering chicken meals and Malaysian delights to the world.

“Our franchisees play a critical role in making Marrybrown one of the most trusted brands in Malaysia. Marrybrown could not have journeyed this far for the past 40 years without the support of our franchise partners and a dedicated team.

She added that the last 40 years were not without challenges but the company has proved itself to be a dynamic and innovative organisation.

“We have adapted to changing markets and have capitalised on

opportunities. These have provided us with a clear growth strategy for the future.”

She explained that the key pillars of this strategy are to retain, regain and convert customers. Technology too has played a crucial role.

“By staying at the forefront of technology we have been able to improve the in-restaurant, digital and delivery experience for our customers, while providing opportunities to the franchisees to grow their business.

“We are so proud of these years, of all we have accomplished over the four decades and look forward to many opportunities in the future. I believe that together with my Marrybrown family, we are creating a lasting legacy.”

Marrybrown at Tanzania, Africa.

Prime Minister, Dato’ Seri Anwar bin Ibrahim visiting Marrybrown Ipoh.

Marrybrown UAE at the World’s Largest Mall, The Dubai Mall.

Marrybrown is proud to be appointed by the Malaysia Government as the only o cial restaurant in the World Expo Dubai.

Rotol Group secures SEA Master Franchise for Slim Beauty House

Japan’s leading beauty spa brand, Slim Beauty House signed a memorandum of understanding with Rotol Group to set up Slim Beauty House Malaysia. The Master Franchisee signing ceremony on January 12 paved the way for the company to be the spa brand’s headquarters for Southeast Asia (SEA).

Rotol Group was represented by founder Datuk Seri Garry Chua. The company is Malaysia’s leading specialist in architectural wall coating, painting and high-rise exterior building maintenance. It also houses Rotol Food-Chain (M) Sdn Bhd and Chakri Group of Restaurants (M) Sdn Bhd.

At the ceremony, Garry was announced as the Chairman and a shareholder of Slim Beauty House Malaysia. The Japanese Spa brand was represented by its CEO Saito Nishizaka.

NO 1 IN JAPAN

Slim Beauty House began 43 years ago with an acupuncture and moxibustion clinic. Since then, the award-winning brand has seen some 440,000 satis ed diet customers walk through its doors. Today it has over 60 outlets in Japan.

Touted as Japan’s No 1 beauty spa brand, the company owns slimming spa salons and sells aesthetic and slimming products. It also manages the Slim Beauty House Academy training school and is known for its academic publications.

The beauty brand is favoured by its customers because it promotes

the true beauty of women using oriental aesthetic treatments which are gentle on the body.

The company said on its website: “Our belief is that true beauty is created not by symptomatic treatment (supplementing what is lacking) but by improving or preventing the problems by addressing them from the root cause.”

Based on this philosophy, the concept of yin and yang, the ve elements and the latest in aesthetics technology, Slim Beauty House has developed pressure point stimulations and meridian massages that connect pressure points. It also o ers cupping and cup drainage procedures that help the body temperature to rise in order to promote fat-burning.

The company is actively engaged in R&D to develop health supplements based on the Chinese philosophy of qi, blood and water.

NOW IN SEA

According to Garry, revenue in the beauty and personal care market is expected to amount to close to RM3 billion this year. The wellness industry, meanwhile, is expected to continue to post doubledigit growth in the coming years.

“Slim Beauty House can play a major role in the country helping men and women reduce weight or keep their weight in check. In the last three years, working from home has caused many employees to put on weight,” he said.

“In Malaysia, more than 20% of our 33 million population is diabetic and obese. Diabetes is also a problem for many in Southeast Asia. Looking at the services Slim Beauty House has to o er in the slimming and aesthetics category – the best of Japanese technology – I am con dent it can add more value to this industry.”

The beauty spa brand pairs oriental procedures together with advanced Japanese technology in slimming and aesthetics to provide e ective treatments.

The signing ceremony between Saito and Garry make the beauty brand accessible to Malaysians and those in the region.

The signing ceremony between Saito and Garry.

MRCA Ends 2022 with a Bang

Despite the challenges of 2022, MRCA ended the year on a high note, celebrating its 30-year anniversary and marking a new beginning for the association a er the three-year-long pandemic.

The Malaysia Retail Chain Association ended the year with a festive event appropriately-themed “A Season of Celebration” on December 16, 2022 at the Sunway Resort Hotel & Spa.

The event was recorded as the largest banquet style sit-down dinner ever hosted by MRCA in its 30-year history with an attendance of close to 1,400 members and guests – a remarkable way to celebrate the association’s many achievements for the industry and the country.

The night recorded a number of signi cant events. Firstly, the year-

end festivities of Christmas and New Year. It was also a feast for an early Chinese New Year 2023. The pinnacle of the event was to acknowledge the new MRCA Council 2022-2024, which was elected into o ce in April 2022.

Guests were entertained with a number performances and lucky draws. Many parties have stepped up to contribute to the joyous occasion of the night. Dato’ Vincent Choo, the current MRCA Vice President and the Organising Chairperson of this event said that working as a team to put on the dinner was very satisfying despite all hard work.

“It has been a pleasure to serve as the Organising Chairperson of this event. I thank all our sponsors, Organising Committee members, MRCA Secretariat and my fellow Council members who have worked hand-in-hand to make this a memorable event,” he said in his speech.

Dato’ Sharan Valiram, the newly elected 9th President of MRCA, in his speech said he regarded the dinner as an advanced “New Year kick o ” for all members, business colleagues, associates, friends as well as the media.

“We believe the retail industry can and will do better. As an

association, we are grateful for the decision from our Yang diPertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah

Shah ibni Almarhum Sultan Haji

Ahmad Shah Al-Musta’in Billah and the rulers.

“They gave the mandate to the new government and we unitedly pray and trust that economically our flag will fly high as the nation prospers in the years to come. The retail sector has always been

a key indicator of the country’s economy. This dinner marks a new beginning for the industry to bounce back a er the long threeyear pandemic.”

Among the guests of honour who auspiciously grace the event were Yang Berhormat Senator Tengku Datuk Seri Utama Zafrul bin Tengku Abdul Aziz, Minister of International Trade and Industry and Yang Berhormat Ahmad Fahmi bin Mohamed

Fadzil, Minister of Communications and Digital

“Their presence has certainly reinforced the importance of better communication and a closer working relationship between government and the industry sectors,” said Dato’ Sharan.

“I am looking forward to a great evening dinner with everyone, a fantastic 2023, a vibrant retail industry but most importantly a great Malaysia!”

Special mention is given here to express the Committee’s sincere appreciation to the main event sponsors. They include:

DIAMOND SPONSOR

Sunsuria Bhd

PLATINUM SPONSORS

B&G Capital Resources Sdn Bhd

CapitaLand Retail Malaysia Sdn Bhd

Sunway Malls

GOLD SPONSORS

Allianz General Insurance Company (Malaysia) Bhd

Bandar Utama City Center Sdn Bhd

PKT Every24 Logistics Sdn Bhd

UMR Strategic Sdn Bhd

SILVER SPONSORS

Agape ATP Corporation

Ambank (M) Bhd

Coca-Cola Refreshments (M) Sdn Bhd

Exabytes Network Sdn Bhd

Ikano Handel Sdn Bhd

KL Wellness City (H) Sdn Bhd

Mah Sing Group Bhd

Mtrustee Bhd For Pavilion REIT

Perbadanan Nasional Bhd

Poh Kong Holdings Bhd

Senheng Electric (KL) Sdn Bhd

Sunway Malls

Suria KLCC Sdn Bhd

The Store Corporation Bhd

Trinity Group Sdn Bhd

LUCKY DRAW SPONSORS

Gintell (M) Sdn Bhd

Poh Kong Holdings Bhd

Valiram Group

Advertisement Sponsor

Star RFM Sdn Bhd

Door Gi Sponsor

ReanneQ Sdn Bhd

Malaysia Retail Industry Report (November 2022)

PREAMBLE

Members of Malaysia Retailers Association (MRA) and Malaysia Retail Chain Association (MRCA) were interviewed on their retail sales performances for the second half of 2022.

This is the 25th anniversary of Malaysia Retail Industry Report. The rst report was published in 1998 during the Asian nancial and economic crisis.

LATEST RETAIL PERFORMANCE

For the third quarter of 2022, Malaysia retail industry recorded another impressive growth rate of 96.0% in retail sales, as compared to the same period in 2021 (Table 1).

This latest quarterly result was beyond market expectation. Members of MRA and MRCA projected the third quarter growth rate at 61.7% in September 2022. Retail Group Malaysia (RGM) estimated the quarterly growth rate at 50.0%.

During the same period a year ago, retail industry contracted by 27.8% (Table 1). Majority of retailers were forced to shut down during the rst half period of third quarter 2021.

Enhanced Movement Control Order (EMCO) was enforced in large parts of Selangor and selected locations in Kuala Lumpur from 3 July 2021 and ended on 16 July 2021. Retail businesses in the largest

retail market of Malaysia were badly hit during this critical period.

From 16 August 2021, more retail businesses under National Recovery Plan (NRP) Phase 1 had been allowed to open. They included fashion shops, jewellery shops, electrical & electronics shops, furniture shops, sports shops, car accessories shops, hair salons, barber shosp and car showrooms.

Compiled by Retail Group Malaysia

TABLE 1: YEAR ON YEAR PERCENTAGE CHANGE IN RETAIL SALES (WEIGHTED), 2021/22

Source: MRA/ MRCA/ Retail Group Malaysia

When the government relaxed restrictions on number of passengers in a vehicle as well as the limit of travelling distance on 21 August 2021, shopping tra c in major shopping centres gradually returned.

Cinemas, entertainment centres and beauty salons were allowed to open from 9 September 2021 for fully vaccinated individuals.

Recreational centres were allowed to resume their operations from 10 September 2021 for their fully vaccinated customers. Gyms were allowed to open from 18 September 2021 for their fully vaccinated members.

Klang Valley (Kuala Lumpur, Selangor and Putrajaya) was upgraded to NRP Phase 2 on 10 September 2021. More relaxations, including dine-in, were allowed for fully vaccinated individuals.

E ective 17 September 2021, more retail businesses were allowed to open for states under Phase 1 of NRP. They included personal care shop, toys store, antique shop, outdoor shop, tobacco shop, carpet shop, used items store, photography shop, souvenirs and cra shop, nursery as well as florist.

For the third quarter of this year, all retail businesses were operating with limited social distancing measures. Therefore, all retail

businesses were able to operate at full capacity.

Shoppers from all over Malaysia returned to physical stores during the third quarter of 2022. Businesses of majority of retailers rebounded.

A er 2 years of lockdown, many Malaysians travelled around the country for holidays, visited family members and relatives, as well as caught up with friends. Retail shops in tourist areas and small towns enjoyed brisk businesses.

For the rst 9 months of this year, Malaysia retail industry expanded by 45.9% (Table 1), as compared to the same period in 2021.

The very high growth rates for the rst 3 quarters of this year are unprecedented. It is unlikely to happen again unless another forced closure of retail shops took place.

COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS

For the third quarter of 2022, Malaysia’s national economy grew by 14.2% (Table 2, at constant prices), as compared to 96.0% for retail sales (at current prices).

The strong performance during this quarter was mainly due to the low base e ect a year ago. During the third quarter of last year, the Malaysian economy contracted by

4.5%. The recovery of domestic demand also contributed to the higher growth rate.

The average inflation rate during the third quarter of 2022 jumped much higher to 4.5%. Once again, the increase surpassed the average inflation in Malaysia for the period 2011 to June 2022 at 2.0% only.

During the quarter, all main groups in the consumer price index recorded increases except for Communication which remained unchanged. Food & Non-Alcoholic Beverages reported the highest average increase (7.0%), followed by Restaurants & Hotels (6.4%). In addition, the average price of Transport rose 5.4% during the quarter.

Private consumption rose by 15.1% during the third quarter of 2022. Higher consumer spending resulted from stable labour market and increased income.

During the third 3-month period, the Consumer Sentiment Index (by MIER) climbed to 98.4 points. However, it was still below the 100-point threshold level of optimism. Malaysian consumers remained cautious in spending due to uncertainty in the domestic economy.

Unemployment rate during the third quarter of 2022 slowed down slightly to 3.7%.

RETAIL SUB-SECTORS’ SALES COMPARISON

Several retail sub-sectors enjoyed three-digit growth rates during the third quarter of 2022.

The sales turnover of the Department Store cum Supermarket subsector rose sharply by 104.4% during the third quarter of 2022, as compared to the same period a year ago.

In addition, retail business of Department Store sub-sector leaped by 376.5% during third 3-month period of this year.

TABLE 2: COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS, 2022

Source: Bank Negara/ Department of Statistics/ MIER/Retail Group Malaysia

TABLE 2: COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS, 2022

Notes:

*- children and baby products include apparel, accessories, equipment, school uniform and toys

Source: MRA/ MRCA/ Retail Group Malaysia

This was the highest growth rate achieved among the retail subsectors for the quarter.

The business of the Supermarket and Hypermarket sub-sector continued to normalise a er Malaysians returned to their usual lifestyles. This sub-sector recorded a zero-growth rate during the third quarter of 2022.

On the other hand, the MiniMarket, Convenience Store & Cooperatives sub-sector enjoyed an encouraging growth rate of 26.1% in retail sales during the third quarter of this year.

During the third quarter of 2022, the business of Fashion and Fashion Accessories sub-sector surged by 244.6%, as compared to the same period a year ago. This was the second highest growth rate achieved among the retail subsectors for the quarter.

Similarly, the Children and Baby Products sub-sector enjoyed a robust growth by 133.8% during the third 3 months of this year.

During the third quarter of this year, the Pharmacies sub-sector

reported a promising growth rate of 33.9%, as compared to the same period a year ago.

The Personal Care sub-sector achieved another rosy retail sales with 110.6% in growth rate during the third 3-month period of this year.

The Furniture & Furnishing, Home Improvement as well as Electrical & Electronics sub-sector reported an encouraging growth rate of 55.1% during the third quarter of 2022.

The Other Specialty Stores subsector (including photo shop, optical store, second-hand goods’ store, store retailing musical instrument, health equipment store, arts & cra store as well as direct selling rm) reported a moderate growth of 25.3% during the third quarter of 2022, as compared to the same period last year.

NEXT 3 MONTHS’ FORECAST

Members of the two retailers’ associations are highly con dent of their retail prospect for the next 3 months. They project an average growth rate of 61.7% in retail sales during the third quarter of 2022

(Table 4).

The department store cum supermarket operators are expecting their sales to rise further with a growth rate of 98.9% for the third quarter of this year.

A er two impressive consecutive growths, the department store operators are expecting their businesses to expand at a slow pace. Estimated growth rate of this subsector is 8.4% for the third 3-month period of this year.

The supermarket and hypermarket operators are expecting their businesses to normalise further in the next 3 months. They expect their businesses to slow down with a -2.6% growth rate for the third quarter of 2022.

In contrast, operators of minimarkets, convenience stores and cooperatives are foreseeing their growth momentum to maintain. For the third 3-month period of this year, their businesses will expand by 17.4%.

Retailers in the fashion and fashion accessories sector expect their businesses to enjoy another

round of robust growth at 165.1% during the third quarter of 2022. This is the most optimistic growth projection among the retail sub-sectors.

Retailers selling children and baby products are anticipating their businesses to accelerate further with a growth rate of 132.8% during the third 3 months of this year.

Pharmacy operators are also hopeful of their retail sales during the third quarter of this year with a growth rate of 24.2%.

Retailers in the personal care sub-sector are expecting their businesses to swell by 102.2% during the third quarter of 2022.

Operators of furniture & furnishing, home improvement as well as electrical & electronics are upbeat of their businesses in the next 3 months. They project their businesses to expand by 129.5%.

Retailers in other specialty stores sub-sector (including photo

shops, sporting goods’ stores, stores retailing musical instruments, optical stores, stores selling health equipmemnt, arts & cra s stores as well as direct selling rms) are equally hopeful for this period. They expect their businesses to rise by 53.7% during the next 3-month period.

THE REST OF YEAR 2022

In September this year, Retail Group Malaysia (RGM) estimated 31.7% growth rate in retail sales for 2022. However, this projection needs to be revised upwards again taking into consideration the better-thanexpected growth during the third quarter as well as a revision of fourth quarter estimate.

RGM has revised Malaysia’s annual retail industry growth rate for 2022 to be from 31.7% to 41.6% (Table 5).

On November 3, Bank Negara Malaysia decided to raise the

Overnight Policy Rate (OPR) by 25 basis points to 2.75%. This is the fourth revision since May this year. Malaysian households need to brace for reduced spending power due to higher monthly loan repayment.

For the fourth quarter of 2022, the growth rate estimate has been revised upwards from 1.0% (estimated in September 2022) to 6.0%. This is lower than the forecast made by members of retailers’ associations (at 13.9%).

This lower revision takes into consideration the high base a year ago (at 26.5%) as well as the current challenges of the Malaysian retail industry.

Nevertheless, retailers in Malaysia are hopeful that the retail industry will continue to recover end of this year due to two upcoming major festivals- Christmas and Chinese New Year (end January 2023).

*- include apparel, accessories, equipment, school uniform and toys

#- furniture & furnishing, home improvement and electrical & electronics

MRA/ MRCA/ Retail Group Malaysia

TABLE 4: 3-MONTH RETAIL SALES FORECASTBY RETAIL SUB-SECTOR, OCTOBERDECEMBER 2022

TABLE 5: MALAYSIA RETAIL INDUSTRY QUARTERLY GROWTH RATE, 2022

YEAR 2023

Retail Group Malaysia (RGM) forecasts 3.5% growth rate for the Malaysian retail industry in 2023.

The biggest challenge for Malaysia retail industry in the new year is the rising cost of living.

Prices of basic necessities have been rising since the beginning of this year. In addition, prices of many consumer goods have also increased. In fact, prices of many foods and consumer goods increased by double-digit within a short period of time.

Higher retail prices lead to higher cost of living. This means lesser money to buy non-essential goods and services. The shopping behaviour and patterns of B40 and M40 households have changed in recent months. They cook more at home, delay buying high-value goods, pay greater attention to o ers and discounts given by retailers, as well as make lesser trips to cafes and restaurants.

FOOD & BEVERAGE SECTOR

As compared to non-essential retailers, food & beverage outlets stayed opened for take-away and food delivery during the lockdown periods in third quarter last year until 9 August 2021.

Starting from 10 August 2021, dine-in was allowed for all foods & beverages outlets under the National Recovery Plan (NRP) Phase 2 or higher states.

From 20 August 2021, dine-in was allowed for fully vaccinated individuals in states under Phase 1

Footnote:

of NRP. Fully vaccinated parents were allowed to take their children who are under 17- years-old to dine with them.

Beginning 23 September 2021, foods & beverages establishments were allowed to open from 6am to 12am daily for all phases under the NRP.

Night entertainment outlets have been allowed to re-open since 15 May 2022 a er more than 2 years of closures.

Food & Beverage Outlets (Cafe and Restaurant) recorded a positive growth rate of 8.5% during the third quarter of 2022, as compared to the same period a year ago (Table 6).

The businesses of Food & Beverage Outlets (Take-Away, Kiosk and Stall) jumped by 46.0% during the third quarter of 2022, as compared to the same period one year ago.

During the fourth quarter of

this year, all F&B establishments have been able to operate as normal except with limited social distancing measures.

As food businesses return to pre-covid era, growth rates start to normalise as well.

At the same time, F&B operators are still struggling with higher raw material costs, increasing operation costs, rising rental cost and depleting pro t margin during the fourth quarter of 2022.

Worst of all, many F&B outlets are still facing shortage of kitchen sta and servers.

Cafe and restaurant operators are foreseeing their businesses to increase by 2.6% (Table 6), as compared to the same period last year.

Similarly, food and beverage kiosk and stall operators are anticipating their businesses to grow by 27.3% during the fourth quarter of 2022.

Notes:

- Cafe and restaurant include fast food restaurant, cafe, co ee cafe, bakery cafe, restaurant, full-service restaurant and caterer.

-Take-away, kiosk and stall include food outlet caters for take- away only, bakery without seating, kiosk and food stall.

(e)- estimate

Source: MRA/ MRCA/ Retail Group Malaysia

• This report is provided as a service to members of MRA, MRCA and the retail industry. It provides industry data that give retailers better analytical tools for running their retail businesses.

• This report is not allowed to be reproduced or duplicated, in whole or part, for any person or organisation without written permission from Malaysia Retailers Association, Malaysia Retail Chain Association or Retail Group Malaysia.

• Retail Group Malaysia is an independent retail research rm in Malaysia. The comments, opinions and views expressed in this report are of writer’s own, and they are not necessary the comments, opinions and views of MRA, MRCA and their members.

• For more information, please write to tanhaihsin@yahoo.com.

TABLE 6: MALAYSIA FOOD & BEVERAGE INDUSTRY QUARTERLY GROWTH RATE, 2022

Incite Foodtech, Eatcosys to Create Retail Tech Ecosystem

The rst-of-its-kind ecosystem will comprise consumer tech, retail marketing solutions, retail tech solutions and ntech services.

ncite Foodtech

ISdn Bhd, a fastgrowing food tech venture, has agreed to acquire Eatcosys Sdn Bhd, a homegrown retail technology solutions provider recently recognised by KPMG and HSBC as an emerging Malaysian unicorn.

The move will see both parties combining expertise and capabilities, and diversifying their o erings to create a uni ed retail ecosystem that bene ts both the B2B and B2C segments.

“The acquisition will enable us to advance our ambition of building a comprehensive, uni ed retail tech ecosystem in ASEAN. This ecosystem will comprise consumer tech, retail marketing solutions, retail tech solutions and ntech services,” said Incite Foodtech CEO Karen S Puah.

This development will also be a tting response to the government demand for industry players to develop innovative products and market development strategies by leveraging on the digital economy to revolutionise the retail industry.

Incite Foodtech creates and acquires quick serving beverage and food (QSBF) brands that satisfy customer needs and sentiments by leveraging on big data. With its unique plug-in and

scale business model, Incite Foodtech supercharges QSBF brands development in a variety of formats, including physical outlets, shared space, kiosks and cloud kitchens.

Incite Foodtech operates in more than 25 locations with eight brands under its QSBF brands portfolio.

Eatcosys, meanwhile, is a onestop retail technology solutions provider o ering cloud-based POS system, CRM so ware, loyalty management, a transit advertising platform, e-ommerce platforms, data insights and nancial services to address the business hurdles for retailers.

From le to right, co-Founder and Chairman of Eatcosys Tham Lih Chung and Incite Foodtech CEO Karen S Puah.

CTOS Credit Manager, Malaysia’s No. 1 Credit Management Solution

Access to Crucial Data and Insights to Help You Make Data-Driven Decisions and Reduce Risk Exposures.

All eyes are on the Malaysian economy as we continue to observe its recovery momentum into the new year. To assure a resilient recovery, it would be an advantage for businesses to have access to crucial data & insights at their ngertips, as it helps in making sound business decisions while reducing risk exposures.

CTOS is notably the leading Credit Reporting Agency (CRA) in Malaysia, regulated by the Ministry of Finance under the Credit Reporting Agencies Act 2010. CTOS has always been an integral part of businesses, thanks to their delivery of a complete portfolio of credit risk management solutions and services. Their services are widely used by banking and nancial institutions, insurance companies, telecommunication companies, large corporations, SMEs, legal rms and state bodies.

Their flagship o ering for businesses is the CTOS Credit Manager, a highly versatile tool that enables business owners to better manage their business credit risks in 3 simple steps.

The rst step of the CTOS Credit Manager is to validate new and existing customers. CTOS has a large credit database of 23 million individuals and companies, hence you can always expect the most comprehensive report with neatly presented information to help you make better informed decisions.

Next, CTOS Credit Manager also assists in monitoring existing clients. Any changes in your customers’ credit pro les such as directorship, nancials, litigation & bankruptcy and you will be noti ed promptly. CTOS has an e ective monitoring of more than 100,000 hit alerts recorded monthly, so any changes will not go unnoticed. This also

simpli es the task of keeping track of customer information while keeping everything systematic and organized.

Lastly, the CTOS Credit Manager also has a function known as eTR (Electronic Trade References). The eTR is a powerful function in assisting bad debts recovery while reinforcing good payment behaviour. The CTOS Credit Manager has proven e ective in recovering up to RM1 Billion debts in a year.

The hurdle of our current state of economy only further highlights the importance of credit risk management. This only makes access to data and information more valuable, and the CTOS Credit Manager aims to do just that, by providing access to bridge the information gap with speed to keep businesses protected. It is a powerful system for business owners to have, as the CTOS Credit Manager is quickly becoming an integral function of Malaysia’s nancial ecosystem. Subscribe to CTOS Credit Manager now to get instant access to crucial information you need.

Erick Hamburger, Group CEO of CTOS Digital Berhad.

Chan Fong

Danny Cassey

Joycelyn Ee Kiat

PM Wang Chry ina

Jeff Chloe

Brandon

Emily

Managed ICT Services by Maxis Business

Keeping companies ahead with the right expertise to accelerate business transformation.

As the digital landscape rapidly evolves, business owners often find it challenging to keep up with the pace of change and transformation. Maxis Business urges businessowners to rethink strategies by exploring alternative solutions to improve their organisation’s agility. For most businesses, IT upgrades require significant capital injection in building and maintenance of systems.

Therefore, in mitigating digital risks and maximising value for money, a managed services provider (MSP) is recommended. Basic MSP services include monitoring and identifying potential issues in network, application, infrastructure and security; while more advanced

services extend to cover everything from alerts to problem resolution.

With an MSP on board, organisations will be able to manage risks better along its digital transformation roadmap. This, in turn, enables adherence to best practices and minimises risks in service delivery, while freeing up internal ICT resources to focus on business-critical functions.

Regardless of the size of the business operations, even the shortest downtime in mission critical IT applications can be a costly a air. However, with the services of an MSP, downtime can be minimised, and the organisation’s ICT resources and capabilities can be optimised. Simply said, a high-value MSP is like

Managed Services are very e ective for businesses that:

Lack dedicated resources to handle network maintenance, updates, or repairs.

Want a predictable IT spend with a monthly fixed cost, while maintaining high level of service quality.

a business partner whose priorities are to manage your in-house IT capabilities and possibilities.

For this, Maxis introduced the Right Expertise, its end-to-end fully managed services, backed by a growing team of globally accredited and certified specialists. This service is capable of streamlining digital transformation e orts, including planning, design and implementation, roll-out and longerterm management.

Whether it is strategic ICT advisory, managed network services, cybersecurity or managed cloud, Maxis Right Expertise is ready to support every businessowners’ mission to deliver optimal business outcomes.

Require standardized reporting to capture ROI and maintain regulatory compliance.

Sunway Malls Shines On The World Stage with 7 International Awards for Customer Experience

Sunway Malls does Malaysia proud on the international stage with its holistic and customer-centric innovations and strategy during the COVID-19 pandemic.

Sunway Malls sets new world-class standards for customer experience by winning 7 international awards, as well as being named Overall Winner with the highest scores across all category submissions. The Mall was recognised in 2 international CX award ceremonies recently, namely the International Customer Experience Awards (ICXA) and CX Asia Excellence Awards, honouring the highest levels of excellence across the CX space.

Sunway Malls believes that rst-class CX requires commitment and teamwork from the entire organisation in putting customers rst. The company has in place a purposeful and holistic strategy adopting multi-stakeholder approaches, in line with its vision of “We Create Experiences That Enrich Lives”. With this dedication to customer-centricity, Sunway Malls continues to capture the hearts of people as the leading shopping mall owner-operator in Malaysia.

HC Chan, Chief Executive O cer of Sunway Malls and Theme Parks said, “These awards a rm Sunway Malls’ commitment and devotion towards upholding customer experience as a strategic competitive advantage in today’s highly competitive environment.”

“By ensuring a focus that starts from the customer, it ensures that the right experience is created from end to end, seamlessly and intuitively,” he added.

The 7 commendable awards received by Sunway Malls includes:

• Overall Winner in the International CX Awards 2022

• Best Customer Experience in Crisis (Gold)

• Best Brand Experience (Bronze)

• Best Customer Experience (Bronze)

• Customer is the Heart of Everything (Bronze)

• Best in CX Innovation (Bronze)

• Best CX Strategy (Bronze)

The Mall is the rst to introduce and implement notable initiatives during the pandemic that have now become industry and nationwide practices. These initiatives include being the rst mall owner-operator to provide Business Partners Assistance Programmes to upli tenants’ businesses during the lockdown, establishing heightened health and safety measures, and

initiating the rst private mega vaccination in the country. Other remarkable initiatives include contactless mall navigation, multichannel concierge services and many more.

Sunway Malls is con dent in delivering more innovative and customer-centric initiatives in the future in their pursuit of continuous leadership in the CX space.

Al-Ikhsan Sports Launches Messi Brand

Al-Ikhsan Sports has been granted the exclusive selling rights for the Messi Licensed Fashion (No Sports) Kidswear merchandise in Malaysia from January 2023 for three years.

Under this agreement, Al-Ikhsan Sports has the exclusive rights to sell the Messi Branded Kidswear collection including t-shirts, polos, shorts, hoodies, track bottom and underwear within both West and East Malaysia.

Al-Ikhsan Sports is also proud to announce that it is the rst sports retailer in the world to launch the Messi Brand.

These merchandise are targeted for kids aged two years old to teens. In the initial phase, these products will be launched in 30 selected Al-Ikhsan Sports outlets, Football Republic and made available on Al-Ikhsan Sports’ website at www. al-ikhsan.com from 6 Jan 2023.

Youth and Sports Minister Hannah Yeoh, who was present at the launch, said the partnership could spur Malaysian children to pursue sports.

“Our children will have more interest in sports with Messi’s name on these clothing line. This will create excitement for them when playing football. We never know, this could lead to shaping future athletes,” she said as quoted by thesundaily.my

On this historic occasion, CEO of Al-Ikhsan Sports Vach Pillutla said

Messi stands for the spirit of one who rises from the working class to emerge as the foremost proponent of the game, and excel consistently at the highest level.

“It is indeed a great honour to be associated with the brand Messi. For all fans globally, the Messi magic goes beyond the pitch. We hope that with this merchandise, the kids can imbibe the age-old virtues of hard work, honest e ort and high levels of integrity from Lionel Messi,” he said.

Al-Ikhsan Sports shares the same values of hard work, honesty and integrity and therefore this relationship is an excellent t. In keeping with our core purpose of making sport a ordable for all, we intend to sell the whole fashion

kidswear merchandise starting from just RM59 for round neck tees to RM219 for hoodies and jackets.

The sports retailer hopes to increase the distribution of this merchandise to more stores over the next six to eight months, and to make it available to all the 20 million football fans across Malaysia, added Vach.

CEO of Vingino Netherlands Jan Van Den Berg, which owns the global rights for the Messi Kidswear license, who was present on the occasion said he was happy to be associated with Al-Ikhsan Sports. They have football in their DNA and I’m sure that no one can do better justice to the Messi Branded apparel.

We look forward to a long-term partnership with them.”

Al-Ikhsan Sports is the number one multi-brand sports retailer in Malaysia, number one football retailer in Southeast Asia and among the top 10 football retailers in the world. They have more than 175-owned and operated stores across peninsula Malaysia and also have their own e-commerce platform www.al-ikhsan.com

The number one multi-brand sport retailer in Malaysia is the rst market to launch the brand in the world.

MR D.I.Y. Recognised as Southeast Asia’s

Favourite DIY

Store

When it comes to having tools you need to ‘do-it-yourself’ (DIY), there’s only one shop that comes to mind – MR D.I.Y. This home retailer store that was rst established in 2005 is de nitely our go-to convenience shop for everything, ranging from hardware, household and furnishing, electrical, stationery, and many more. It’s always an added value to have a MR D.I.Y. outlet around the neighbourhood, with them keeping to their promise of ‘Always Low Prices’ amidst all the price increases.

Our Malaysian’s favourite DIY store has recently won its h World Branding Award and took home the Regional Award as the ‘Top Home Improvement Retail Brand’ across four markets –Malaysia, Indonesia, Philippines and Thailand. This marks MR D.I.Y.’s second Regional Award a er their rst win in 2021. The award recognises the achievements of some of the best brands in the world and cements MR D.I.Y.’S position as a one-stop shop for necessities.

Commenting on the achievement, MR D.I.Y. Group Head of Marketing, Alex Goh said, “The World Branding Awards sees some of the world’s best brands recognised for their work and achievements based on brand valuation, the results of consumer market research, and public online voting. Awards like these, especially the ones that involve feedback from the public, are important as they signal that customers continue to nd our promise of ‘Always Low Prices’ relevant to their everyday lives.

“To be accorded the Regional Award once again, and recognised as the ‘Top Home Improvement Retailer’ brand in four markets this time is indeed gratifying. We congratulate the other recipients and are very honoured to be recognised alongside them. To our customers – thank you for your loyalty, which has spurred

our growth and allowed us to take MR D.I.Y. to new markets,” said Goh.

This prestigious recognition and acknowledgement of MR D.I.Y. as a home-grown brand from Malaysia will further increase the brand’s reputation to greater heights, as well as improve the con dence of business partners and customers towards the brand. They have been steadily increasing their footprints across Asia as we see more flagship stores opening to cater to public demand.

On its future plans, Goh said, “Consumers around the world are dealing with the postpandemic e ect – rising prices, scarcity of goods, and tighter wallets. Our aim at MR D.I.Y. is to help them navigate these challenges with ease, by providing them with a breadth of everyday essentials, in convenient locations, at low prices, and in innovative retail formats, while making a positive impact on their communities. It is a winning formula that continues to stand us in good stead.”

MR D.I.Y. has also integrated digital platforms and delivery services alongside their brick-and-mortar stores to further cater to the public demand. They have also started promoting their products online in various interactive video hacks which encouraged Malaysians to learn how to x things on their own during the pandemic lockdown. We can only expect more from their long-term growth as they continue to grow the brand while remaining dedicated to contributing a positive di erence to their valued customers.