Franchise Expo Malaysia (FEM) 2024: Invest In The Future
MRCA Retail Conference 2024
CEO Get Together
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With the Ministry of Finance’s latest announcement on the introduction of e-Invoicing in Malaysia, Christine Tan speaks to Christina Thomas about the implementation and how SQL offers Business owners the ultimate solution for e-Invoicing.
Christine Tan, Vice President of SQL
Franchise Expo Malaysia (FEM) 2024: Invest In The Future
MRCA Retail Conference 2024
President’sMessage
Dear Members,
As I take on the role of MRCA President for 2024-2026, I am excited about our journey ahead in the coming months. The retail industry has faced lots challenges over the last 4 years, especially during the pandemic, however, we have come a long way, and it has not been an easy journey. With the industry joining forces to battle the odds together, we have emerged stronger, wiser and more resilient.
For the next two years, our focus will be on six pillars namely, Networking Effectiveness Techniques; Embrace Globalisation; Continuous Learning Culture; Engagement with the Authorities; First Mover Advantage; and, Tradition and Innovation.
In driving Networking Effectiveness Techniques, MRCA will leverage the expertise of our pillars (Retail, F&B, Franchise, Digitalization) to deliver programs such as Members Meetings and CEO Get Together.
As MRCA Embraces Globalisation within an interconnected world, we will serve as a platform for members to engage with local and international players.
We will continue to advocate a Continuous Learning Culture involving MRCA Academy, HRD Corp, and Higher Learning Institutions offering graduates the opportunity to contribute to industry.
Engagement with Authorities is a crucial initiative in navigating economic policies effectively. Therefore, MRCA will engage proactively with authorities, utilising grants and resources to empower members.
We also aim to drive First Mover Advantage, with MRCA leading by embracing innovation and facilitating interactions with AI and ESG leaders, to help our members thrive amidst disruptions.
Recognising the importance of Tradition and Innovation, MRCA balances tradition with innovation. Inclusivity initiatives such as the Youth Division, Women Division, and Growing Chapters, including
the established Southern Chapter, cater to diverse member interests.
MRCA has been keeping up the momentum with many activities such as the “Born from Retail, Built for Retailers” event in collaboration with AWS. The Menu Mastery session themed “Crafting Culinary Delights for Maximum Flavour & Profit” saw restauranteurs share their insights in a panel session. Also, Sunway University recently presented on ESG in retail featuring presentations by esteemed speakers.
Recently, we held the 27th Annual General Meeting at the Ritz Carlton KL, while the 100 Go Digital Conference was attended by the Minister of Digital, YB Gobind Singh Deo. Our members also benefitted from learning session such as the Advanced Retail Strategies Data Analytics, the Halal Industry Fundamentals and a Microsoft Excel Foundation course. During National Training Week 2024, we partnered with HRDCorp and the Ministry of Human Resources to offer members interesting courses.
The 7th edition of Franchise Expo Malaysia (FEM) 2024 opened its doors from 11 to 13 July 2024 at the Kuala Lumpur Convention Centre (KLCC). Themed “Invest in the Future” the Expo featured over 500 booths from more than 10 countries, and attracted approximately 15,000 visitors, generating a transaction value of approximately RM100million. The MRCA Retail Conference on 12 July witnessed a good turnout, featuring renowned speakers namely Song Hoi See, CEO of Plaza Premium Lounge and Ajith Kumar from TikTok. My sincere appreciation to YM Raja Badrulnizam Raja Kamalzaman, Senior Director of Strategic Planning at MATRADE for officiating FEM 2024 and YB M. Kulasegaran Deputy Minister in the Prime Minister’s Office for gracing the Retail Conference.
MRCA also shared our blessings with Pusat Jagaan Mahmudah Malaysia in Semenyih where we donated RM20,000 in cash and other necessities. On 16 August, MRCA will be hosting the installation ceremony of new office bearers. Mark your calendar for this dinner themed Ebony & Ivory. There’s more to come, so don’t miss the great events ahead. Check out our other exciting activities in this publication and see you soon at upcoming events.
Wishing all of you a very fruitful year ahead. Let’s live up to our theme “Reunite, Voice, and Triumph for Retailers”.
Datuk Ken Phua President 2024-2026 Malaysia Retail Chain Association
EMBRACING THE FUTURE: THE IMPLEMENTATION OF E-INVOICING IN MALAYSIA
With the Ministry of Finance’s latest announcement on the introduction of e-invoicing in Malaysia, Christine Tan speaks to Christina Thomas about the implementation and how SQL Account offers businessowners the ultimate solution for e-invoicing.
he implementation of e-invoicing in Malaysia marks a significant milestone in the nation’s journey towards digital transformation. Designed to create a seamless invoicing process, e-invoicing promises to streamline business operations, enhance efficiency, and ensure compliance across various sectors. By automating the invoicing process, businesses can now reduce human error, save time, and lower operational costs, ultimately leading to more accurate financial reporting and improved cash flow management.
TSQL ACCOUNT’S PIONEERING E-INVOICING SOLUTIONS: LEADING THE CHARGE
In this rapidly evolving landscape, SQL Account has emerged as a
leader in providing innovative e-invoicing solutions tailored to meet the diverse needs of businesses. At the forefront of this initiative is Christine Tan, Vice President of SQL Account, who is an advocate of the benefits of e-invoicing.
With a rich background in accounting and extensive experience in the banking sector, Christine has leveraged her expertise to develop comprehensive software that not only simplifies the invoicing process but also integrates seamlessly with various business operations.
CHRISTINE TAN: FROM NUMBERS TO INNOVATION
Christine’s journey is a testament to the power of adaptability and foresight. Hailing from Penang and a graduate of accounting studies in Kuala Lumpur, Christine’s career
began in the commercial sector, followed by leadership roles in major banks such as UOB Bank and HSBC Bank. Her decade-long tenure at HSBC saw her ascend from handling unsecured loans to becoming a regional manager, showcasing her leadership and expertise in financial services.
Speaking about her early years, Christine shares, “During my student days, I wanted to pursue arts subjects but my family advised me to choose an educational path that was more marketable to SMEs. With that, I dropped my pursuit of arts subjects and went on to study accounting.”
Upon completing her education, she entered the workforce and took on a role in the accounting field. “While working in the accounting field, I embarked on part time work to supplement my income. One of
SQL’s e-invoicing solutions are designed to cater to businesses of all sizes, from micro-enterprises to large corporations. The software integrates sales, purchase, and cash book entry functionalities, ensuring that every aspect of the invoicing process is covered.
Christine Tan, E-Invoice Ambassador, SQL Account
my part time stints was with Citibank where I got to know many bankers and engaged in financial services and financial products,” she reminisces.
She went on to join UOB Bank and after 2 years, Christine received a call from HSBC Bank to take on a leadership role. “With HSBC, I was attached to the Personal Financial Services Dept doing sales and handling unsecured loans. I moved up from a team leader for alternative sales channels to become a regional manager,” explains Christine.
After a decade as a banker, Christine was encouraged by her ex-professor to pursue a role in the marketing field. “My colleague, a department head at HSBC, also remarked to me that I would succeed if I embarked on my own business venture,” shared Christine.
In 2014, inspired by conversations with her ex-professor and recognising the potential of
the Goods and Services Tax (GST), Christine ventured into entrepreneurship. Her vision was clear – to provide businesses with robust, integrated accounting solutions that go beyond traditional practices. This vision materialised in SQL Account’s innovative software, which not only aids in data entry and reporting but also offers comprehensive business analysis and planning tools.
SQL ACCOUNT’S COMPREHENSIVE E-INVOICING SOLUTIONS
SQL Account’s e-invoicing solutions are designed to cater to businesses of all sizes, from micro-enterprises to large corporations. The software integrates sales, purchase, and cash book entry functionalities, ensuring that every aspect of the invoicing process is covered. Moreover, SQL Account offers both desktop and
cloud-based systems, providing flexibility and accessibility that are crucial in today’s business environment.
As Malaysia transitions to e-invoicing, SQL Account is committed to helping businesses adapt smoothly. Christine and her team have conducted numerous seminars across the country, educating over 270,000 companies and more than 600,000 users on the benefits and implementation of e-invoicing. Their customer-centric approach ensures that each business receives tailored advice and solutions that fit their specific needs.
“This year, we started the very first seminar in January. We target to have 100 sessions, and so far, we have conducted 50 sessions across Malaysia,” beams Christine.
She advises businessowners to take advantage of SQL Account’s seminars and training sessions
which are offered free-of-charge, to learn about the e-invoicing initiative by the government and familiarise with regulatory compliance.
“We hope the market can adapt to the changes, therefore we are providing free courses and training. We encourage people to attend our courses more frequently to be updated. They would need to check whether their entire system is ready for e-invoicing,” says Christine.
“The govt has given sufficient notice for the transition. I advise all SME businessowners to learn more about what’s happening on the ground and whether your service provider is able to integrate the existing system with the e-invoicing system. You might have to re-do the entire operations process. E-invoicing is going to be game changer for businesses,” she continues.
A FUTURE-READY SOLUTION FOR BUSINESSES
Christine Tan and SQL Account are not just preparing businesses for the future; they are shaping it. With their innovative e-invoicing solutions, they are helping businesses streamline their operations, comply with new regulations, and stay competitive in a rapidly changing market. By providing free courses and training sessions, SQL Account is empowering businesses to embrace digital transformation and reap the benefits of a more efficient, automated invoicing system.
Explaining the benefits of SQL Account’s unique offerings, Christine says, “We are very grounded and make every effort to understand our customers better. We always perform KYC to understand what our customers need.”
“When we perform our demo, we do not show our customers A to Z about the software, instead we ask our customers what they need,” she adds.
Christine mentions that people
often ask her adviceon which brand of software is better for their businesses, but her advice is “You can’t compare brands, you have to evaluate what is suitable for you.”
She explains, “It depends on your nature of business – what kind of business you are in, how your operations work, and what are your pain points.” Once this
has been answered, only then can Christine advise customers on what kind of software is needed for their businesses.
As Malaysia moves towards a future with e-invoicing, Christine Tan and SQL Account stand ready to lead the charge, ensuring that businesses across the nation are equipped to thrive in this new digital era. ■
Datuk Ken Phua Elected As 10th President of MRCA
The Malaysia Retail Chain Association (MRCA) held its 27th Annual General Meeting on April 18, 2024 at The Ritz-Carlton Kuala Lumpur. The association officially announced that Datuk Ken Phua of Bentley Music Group is its 10th President succeeding Dato’ Sharan Valiram, MRCA President of 2022-2024. Dato’ Sharan Valiram will continue to contribute to the industry and association as Immediate Past President.
During the voting session, Ordinary members casted their votes digitally through a voting software. The meeting was attended by 118 members. ■
Datuk Ken Phua disclosed that his tagline “Reunite, Voice and Triumph for Retailers” will see him and his team focusing on six key areas during his term.
The new office bearers for the term 2024-2026 are as follows:
Position Name
President Datuk Ken Phua Cheng Chuen
Immediate Past President Dato’ Sharan Valiram
Deputy President Dato’ Liew Bin
Vice President
Dr Afendi Bin Dahlan
Vice President Dato’ Vincent Choo Kok Leong
Vice President
Ms Valerie Choo Yoke Shiem
Vice President Dato’ Winnie Lim Yoke Chin
Secretary-General
Mr Michael Liew Fong Tzer
Deputy Secretary-General Mr Terry Tay Eng Yeou
Treasurer-General Ms Aiveen Wong Choy Ching
Deputy Treasurer-General Ms Christine Tan Gaik Lin
Council Member
Council Member
Council Member
Company
Bentley Music Sdn Bhd
Valiram Holdings Sdn Bhd
Brilliant Merchandising Sdn Bhd
DR Group Holdings Sdn Bhd
Urban Idea Sdn Bhd
Simply Awesome Sdn Bhd
Solution Risk Consultants Sdn Bhd
Marrybrown Sdn Bhd
GoldenHome Interior Sdn Bhd
Chin Swee Food Sdn Bhd
CT F&B Holdings Sdn Bhd
Mr Jit Singh A/L Santok Singh (Stan Singh) Ironhorse Asia Sdn Bhd
Mr Nevinn Leow Shue Min
Mr Liang Foo Kuan
Council Member Mr Lim Ben Jie
Council Member
Mr Jordan Ng Kim Leong
Council Member Mr Alex Ooi Eng Keong
Council Member
Council Member
Mr Steven Pui Kuann Ting
Mr Patrick Sim Chee Hong
Council Member Mr Brian Tham Jee Ping
Council Member Ms Cassandra Chan Yi Rong
OHMS Neomishan Cuisine Elements Sdn Bhd
Big Onion Food Caterer Sdn Bhd
Tune Group Sdn Bhd
Bannerking Sdn Bhd
The Famous Amos Chocolate Chip Cookie Corporation (M) Sdn Bhd
Supersave Multi Trading Sdn Bhd
Secret Recipe Cakes & Café Sdn Bhd
Watatime (M) Sdn Bhd
SH Retail Academy Sdn Bhd by Appointment
Council Member Mr Edison Choon King Han
Poh Kong Holdings Bhd by Appointment
Council Member
Mr Henry Low Kar Onn
Spectrum Outdoor Marketing Sdn Bhd by Appointment
President’s Datuk Ken Phua’s Objectives for 2024-2026 Term
1. Implement Networking Effectiveness Techniques
Members to benefit from each other through sharing and learning of key success factors on how retailers find solutions in the volatile, uncertain, complex, and ambiguous (VUCA) environment.
2. Embrace Globalisation
Provide a platform for members to network with local and international players in the retail and franchise industries, enhancing their understanding of globalisation.
3. Continuous Learning Culture
Cultivate a learning culture among all retailers by assisting them in interfacing with the MRCA Academy Division Support, thus fostering a continuous learning culture.
4. Engagement with the authorities
Embracing knowledge through training programmes for retailers, utilising various authorities’ grants or initiatives to keep MRCA members abreast with economic policies affecting retail industry players.
5. First Mover Adoptions Advantage
Together with the authority, work towards staying abreast in the new environment of the retailing business era, particularly concerning technology in the AI and ESG era, thus averting business model disruptions caused by economic uncertainties.
6. Tradition Works in Tandem with Innovation
Maintaining the tradition and culture of MRCA while simultaneously being flexible and open to change, embracing new challenges through innovation for modern era retailers.
Franchise Expo Malaysia (FEM) 2024: Invest In The Future
Investing in the future of franchising and retail innovation.
Kuala Lumpur buzzed with entrepreneurial spirit as the 7th Franchise Expo Malaysia (FEM) 2024 unfolded at the Kuala Lumpur Convention Centre (KLCC) from 11 to 13 July 2024. The event, organised by MRCA, attracted over 15,000 visitors who explored the latest trends and opportunities in the franchising industry. The expo was officiated by YM Raja Badrulnizam Raja Kamalzaman, Senior Director of Strategic Planning at MATRADE.
In his opening speech, YM Raja Badrulnizam said, “Franchising facilitates the expansion of
successful business concepts beyond national borders. This international reach promotes crossborder trade and cultural exchange, contributing to the globalisation of economies.”
“In line with Visit Malaysia 2026, the tourism and retail industry shall work hand-in-hand with the Madani government to achieve the goal of attracting 35.6 million tourists and to generate RM147.1 billion in revenue. By collaborating closely, these sectors can create a seamless and enriching experience for tourists,” added YM Raja Badrulnizam.
This year, FEM opened its
doors under the theme “Invest in the Future” featuring over 500 booths from more than 10 countries including, Malaysia, Singapore, China, Taiwan, Indonesia, Cambodia and India. FEM 2024 highlighted the latest trends and gave retailers the opportunity to network with their targeted audiences. Visitors had the opportunity to explore the vast showcase of a diverse range of industries, from food and beverage to retail and services, offering visitors a comprehensive view of the franchise landscape.
FEM organising chairman Terry Tay says that the aim of the event
was to provide a platform for local and international businesses to explore opportunities and enhance communications.
“This expo is more than just a showcase of businesses, it is a celebration of entrepreneurial spirit, innovation, and it is also an incredible opportunity to learn and embrace the latest consumer trend and new retail technologies. We also took this opportunity to rebrand it to Franchise Expo Malaysia 2024,” he added.
Terry shared that this year’s expo has a significant focus on the artificial intelligence revolution, particularly for aspiring entrepreneurs who are in the industry. He highlighted that embracing AI technology enables businessowners to scale their businesses efficiently, improve decision-making processes, and enhance customer experiences.
“Participants will gain insight into the latest industry trends and network with key stakeholders, while exhibitors can showcase their products and services to a targeted audience, increasing their visibility and potential customer base,” Terry added.
Meanwhile, day 2 of the expo showcased the MRCA Retail Conference which was organised in conjunction with the expo. Organising chairperson of the Retail Conference, Christine Tan, said the event also offers a valuable platform for networking and growth in retail – especially in the age of artificial intelligence (AI).
In his speech, Datuk Ken Phua said, “Retail industry plays a crucial role in driving the nation’s economy, and together, we have made significant strides in contributing to the nation’s GDP. Retailers, being a significant part of the SME ecosystem, have also shown resilience and adaptability in these challenging times.”
“In a report by Retail Group
Malaysia, retail sales showed a promising growth of 7.8 percent in the first quarter of this year compared to the same period last year. This remarkable achievement reflects our collective efforts and the hard work of every individual in this industry. We look forward to equally if not better growth numbers in the second half of the year,” he added.
Meanwhile, Datuk Ken highlighted the event’s focus on equipping entrepreneurs with the latest gadgets and tools essential for thriving in a digital-first market.
“I intend to reinforce MRCA’s four pillars of retail by fostering a culture of learning and sharing key success strategies during these challenging times,” he added.
Datuk Ken also announced the signing of a Memorandum of Understanding (MoU) with HELP University during FEM
2024. This initiative, valued at up to RM2 million, aims to establish joint programmes and learning modules to upskill MRCA members’ employees, promoting lifelong learning and preparing them for advancements in AI and technological revolutions.
“The programmes will prepare employees for the AI era, equipping them with the skills to harness AI for improved decision-making, efficiency, and customer insights. Additionally, it emphasises the importance of Environmental, Social, and Governance (ESG) principles, training staff to incorporate sustainable and ethical practices into their operations,” he added as he explained that the academy helps mitigate potential disruptions and ensures the workforce is adept at handling the challenges and opportunities of a rapidly evolving retail landscape.
The expo delivered unprecedented access to industry insights, expert support, and peer networking opportunities, making it an invaluable platform for businessowners looking to invest in the future of franchising. This three-day event generated a transaction value of RM100 mil.
Having attracted more than 15,000 visitors, FEM 2024 closed its curtains having achieved its objectives to expand the reach of the franchising industry. Attendees left with renewed enthusiasm and a wealth of knowledge to propel their entrepreneurial endeavours forward in an evolving economic landscape. With franchising poised as a beacon of opportunity, FEM 2024 proved to be a pivotal platform for aspiring entrepreneurs to turn their dreams into reality. ■
MRCA Retail Conference 2024
Featuring industry leaders, the Retail Conference delivered thought-provoking insights.
MRCA’s Retail Conference themed “Post Pandemic Retail Challenges & Transformation” made its debut at the Mandarin Oriental Hotel Kuala Lumpur on 12 July 2024. Organised by MRCA, the event was officiated by Deputy Minister in the Prime Minister’s Department (law and institutional reform) YB M. Kulasegaran.
In his speech, YB Kulasegaran addressed the concerns on reforms and said that as all provisions had to be carried out with judicial independence the government needed to consult many parties before an act can be tabled.
“I can assure you it is a matter of time as the government needs time to carry out consultations with many parties. We are not only planning to bring back the Parliamentary Services Act (PSA) but to improve on it. We need time and to consult many parties even if it is a simple act,” he stated. YB
Kulasegaran emphasised that the MADANI government is always open to the people. He said the PSA, which was first enacted in 1963 and later abolished, will be resubmitted to Parliament for tabling in October.
During his welcome address, Datuk Ken Phua, MRCA President, thanked the Deputy Minister for taking the time amidst his busy schedule to grace the event. He urged retailers to brace for volatility and uncertainties in the next five months, despite a positive first quarter of 2024. Datuk Ken advised retailers to seek turnarounds to restore their financial health if they encounter challenges, noting that 60 percent of the global population are single, prompting a need for strategy recalibration.
More than 300 distinguished business leaders attended the conference and benefitted from the insights shared about retail challenges, global sentiment shifts,
and franchising strategies. The conference also addressed the new retail landscape and pivot strategies for thriving in the current environment. He also encouraged MRCA members to leverage Malaysia External Trade Development Corporation (Matrade) grants and other government initiatives to drive business growth.
“We still remain cautious for the next five months due to the geopolitical situation that caused jitters and affecting both internal and external trade. The everchanging demographic and lifestyle in many developed countries have dramatically altered the buying behaviours and patterns. Retailers need to shift their pattern in engaging with their consumers and how to attract the buying behaviour of the population,” said Datuk Ken.
“As we stand at the crossroads of trading and innovation, it is essential for us in the retail sector to pause and reflect. Our journey in the retail
world is about transformating leads to opportunities,” said Christine Tan, Organising Chairman of MRCA Retail Conference as she introduced the keynote speakers.
Held in conjunction with the 7th Franchise Expo Malaysia (FEM), the conference featured renowned business leaders as speakers namely, Song Hoi See, Chief Executive Officer of Plaza Premium Lounge and Ajith Kumar from TikTok.
At the event, Jeffrey Ng, Managing Director of Community Banking, RHB Banking Group said consumer sentiment will likely remain subdued given heightened inflationary pressure and any potential upcoming implementation of subsidy rationalisation for petrol.
“Nevertheless, we see a healthy employment market; continuous government aid should underpin overall consumer spending and demand for staple necessities. Additionally, the introduction of Account 3 by the Employees Provident Fund (EPF) and strong recovery of tourist arrivals will benefit the overall retail industry,” he continued.
In his keynote address at the conference, Song shared about how Plaza Premium bounced back from a USD100million loss post pandemic. “Entrepreneurs must always look at challenges positively because, in the face of every adversity, there is a new opportunity,” he advised.
Song emphasised the importance of vision, focusing on people, technology, and sustainability. He advised attendees to maintain a positive mindset, prepare for change, and expand beyond comfort zones.
Meanwhile, Ajith Kumar touched on the topic of “Shoppertainment: Unlocking the Future of Consumer and Commerce”.
The full-day event also presented three panel sessions featuring distinguished speakers.
Micheal Teoh, Founder, Thriving Talents; Ian Lim. Group CEO, Valiram; Dang Tai Luk, Founder, myNews; Edward Yee, Founder, Nose; and, Dato’ Seri Dr Raymond Liew, McMillan Woods, addressed the panel session entitled “Brick & Mortar Retail: Challenges & Transformation”.
Meanwhile, the panel session on “How F&B Players Counter Global Sentiment” featured Patrick Sim, Managing Director of Secret Recipe; Venon Tian, COO of Zus Coffee; Jeremy Hiew, Managing Director of US Pizza; and, Dato’ Calvin Chan, Director, Oriental Kopi.
The panel session entitled “Multiply Your Business Through Franchise” showcased valuable perspectives from Michael Liew, Business Director, Marrybrown; Freddie Lau, Director, Cleanpro; Wah Eng Foo, Business Expansion Director, Alpro; and, Saiful Khider, COO of Mokti’s.
The conference was organised by MRCA in collaboration with HRD Corp and supported by the Malaysia Convention & Exhibition Bureau and Malaysia Truly Asia, as well as corporate partners, MaxisBusiness and RHB Banking Group. ■
CEO Get Together
Exploring IPOs and ESG for a sustainable future for Malaysian businesses.
For the month of June 2024, MRCA presented another insightful and interesting CEO Get Together session featuring hot topics in the business world. Held at the premises of Netverk Bar & Restaurant in Taman Tun Dr Ismail, the session saw a good turnout of business leaders.
Patrick Sim, Organising Chairman thanked the members for attending the session and provided a synopsis of the topics to be presented for the day by RHB Banking Group. He said “RHB has been a strong supporter of MRCA for many years and with their expertise in banking and finance, they have helped many of our members to achieve greater heights.”
In his speech, MRCA President, Datuk Ken Phua acknowledged the contributions of MRCA’s past presidents and past council members as well as the current EXCO members. He reminded members of the six key focus areas of MRCA which revolve around networking, globalization, continuous learning, engagement with the Authorities, first mover advantage as well as tradition and innovation. He reminded the members on the concept of ‘members help members’ and encouraged them to help each others’ businesses. He shared that MRCA is set to build its membership to achieve 1,000 members.
In addressing the C-level members present at the session, Deputy President Dato’ Leobin stressed that MRCA has to be purposedriven and deliver value, making the association a strong driver of businesses in the country.
Jeffrey Ng, Managing Director
of Group Community Banking, RHB Bank said that the bank looked forward to working very closely with MRCA. He added that the relationship with MRCA has been mutually beneficial whereby the bank is working with MRCA to deliver versatile products for SMEs.
MAKING IPOS A SUCCESS WITH RHB
The session culminated with a presentation entitled “Building Value Through Equity Markets”. RHB Investment Bank (RHBIB) touched on the topic of Initial Public Offerings (IPO) and its role as a financial adviser to notable IPOs, corporate restricting, fund raising and M&A exercises. As the only Tier-1 investment bank with landmark IPOs and well-balanced experience in advisory for small, mid and large IPOs, RHB has developed strong investor relationships as an active player in the Malaysian capital markets space.
RHBIB has been at the forefront of capital markets transactions in Malaysia, ranking amongst the Top 2 in the Malaysia IPO league tables in 2023. The bank has been involved in award-winning Malaysian IPOs in
the past such as CTOS Digital Berhad, Mr D.I.Y., Leong Hup International Berhad, Sunway Construction, DXN Holdings and IOI Properties, among others. The session also included an outlook of the equity market performance, key focus areas for investors in 2024 and the domestic market’s prospects and performance. Other areas discussed included precedent IPOs for 2022, the rationale behind IPOs as well as the requirements for listing and key considerations. Members also heard about IPO marketing and distribution strategy and platforms for distribution.
RHB’S ESG JOURNEY FOR SMES
With the business landscape all abuzz about ESG, the session also touched on the bank’s ESG approach and how SMEs can benefit in the long run. Members learnt about RHB’s aim to achieve net zero carbon emission by 2050. The bank is set to achieve this by maintaining a balance between emissions produced and removed from the atmosphere in its operations and the business activities it finances across the Group to reduce
global warming. The session revealed that according to the Sustainable Development Report 2023 produced by Sustainable Development Solutions Network, Malaysia ranked 78 out of 163 countries with an SDG Index of 69.8 per cent. This indicates that there is still room for improvement, especially involving
environmental sustainability and well-being of the vulnerable groups. The speaker mentioned that there are four stages that SMEs go through to transform their businesses to sustainable entities, namely profit-focused; awareness and limited adoption of sustainability; the development
of sustainable practices; and, focusing on sustainability to resolve ESG issues.
The session ended with networking opportunities over refreshments, where members enjoyed a fabulous evening of building and strengthening business relationships. ■
System Complies and RHB SME
Renewable Energy Financing
Making SME green financing a viable option for businesses in Malaysia.
In Malaysia, the financing landscape for Small and Medium Enterprises (SMEs) in the renewable energy sector has seen significant evolution in recent years. As the country aims to enhance its renewable energy capacity and reduce carbon emissions, SMEs have emerged as pivotal players in this transition. Access to financing, however, remains a critical challenge for many SMEs looking to invest in renewable energy solutions.
RHB Banking Group has developed sustainable financing premised on six pillars namely, renewable energy, green building, green capex, green working capital, green tech and green vehicle.
RHB’s SME green renewable energy financing is purposes for the purchase of renewable energy equipment for up to 10 years at 4.50% per annum, with 100% margin of financing. Business activities that are eligible for this type of financing include production, manufacturing, operation and maintenance of renewable energy sources / infrastructure / adoption of solar systems, hydropower, tidal or wave energy, wind turbines, biomass, geothermal and others.
Meanwhile, RHB’s SME green building financing spans the construction and purchase of green certified and sustainable building for up to 25 years at rates as low as BLR/BFR – 2.80% per annum, up to
90% margin of financing. Business eligible for this type of financing include the construction or purchase of new buildings that improve the use of energy, waste management, certified green building schemes and buildings constructed with recycled and sustainable materials.
RHB’s SME green capex financing is targeted businesses for the purchase of energy efficient equipment and machinery for a tenure of up to 10 years, at rates as low as 4.50%, up to 90% margin of financing. Businesses activities that are eligible for this type of financing include the purchase of investment of eco-efficient equipment and machinery designed to have a positive environmental impact in terms of reducing either carbon emissions, waste, energy use or water use and material use for circularity and/or adaptive reuse. This also includes equipment to achieve energy efficiency in production and manufacturing processes.
RHB also offers SME green working capital financing for the
purchase of sustainable materials/ products and consultation services, for up to 10 years at rates as low as 4.50% per annum for up to 100% margin of financing. Business activities that are eligible for this financing option include purchase of raw materials in manufacturing and production, purchase of green certified products as well as advisory or consultation fees for transition on sustainable business.
Another sustainable financing option offered by RHB is the SME green technology financing for strategic sectors and technologies field for up to 10 years at rates as low as 4.00% per annum, up to 100% margin of financing. Malaysian SMEs in specific sectors are eligible for this form of financing such as renewable energy, transportation, natural resources, circular economy, agritech and low carbon technologies, among others.
RHB is an award-winning green financier having been presented the Renewable Energy Adoption Award – Malaysia and Social Inclusion and Equal Opportunities Award by ESG Business Awards 2023 as well as the Best Advance in Sustainability Practices – Winner 2024 by Retail Banker International Asia Trailblazer Awards 2024.
For more information on RHB’s comprehensive SME green financing offerings, visit https://www. rhbgroup.com/sme-sustainability/ index.html. ■
Malaysia Retail Industry Report (June 2024)
Compiled by Retail Group Malaysia
PREAMBLE
Members of Malaysia Retailers Association (MRA) and Malaysia Retail Chain Association (MRCA) were interviewed on their retail sales performances for the first half-year of 2024.
This is the 27th anniversary of Malaysia Retail Industry Report. The first report was published in 1998 during the Asian financial and economic crisis.
LATEST RETAIL PERFORMANCE
For the first quarter of 2024, Malaysia retail industry recorded a better-than-expected growth rate of 7.8% in retail sales, as compared to the same period in 2023 (Table 1).
This latest quarterly result was slightly higher than the estimate made by members of MRA and MRCA at 7.1% in March 2024.
The encouraging growth during the first quarter of 2024 was contributed mainly by the Chinese New Year festival as well as the monthlong school holidays from February to March.
Ramadan in 2024 began from March 12. This had partly contributed to higher retail sales during the first quarter.
The distribution of Sumbangan Tunai Rahmah (STR) Phase 1 to 8.2 million Malaysians early in the year also led to higher consumption.
The attractive Malaysian currency
as well as the visa-free entry for visitors from China brought large number of foreign tourists to the country during the period of Chinese New Year.
Retail prices, especially food prices, continued to rise during the first quarter of 2024. Higher cost of living had negative impact on the purchasing power of Malaysian consumers.
The Israel-Palestine conflict that started since October 2023 had led to boycott of many western brands with alleged links to Israel or that purportedly pledged support to it. Malaysian consumers avoided stepping into these retail stores and buying these brands from grocery
Source: MRA/ MRCA/ Retail Group Malaysia
retailers. This prolonged boycott had affected businesses of certain retail brands. At the same time, Malaysians switched to support other international and Asian brands.
COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS
For the first quarter of 2024, the Malaysian national economy recorded a positive growth rate of 4.2% (Table 2, at constant prices), as compared to 7.8% for retail sales (at current prices).
The latest economic growth rate was contributed by increased private consumption, higher number of private and government investment projects, sustainable labour market condition as well as higher tourist arrivals.
The services and construction sectors were the main drivers of growth. Services sector grew by 4.7%, while the construction sector expanded by 11.9%.
The average inflation rate during the first quarter of 2024 moderated at 1.7%.
Higher cost on eating out as well as rising water and energy bills were the main causes of higher inflation during the first 3 months of this year.
During the month of March, the prices of Food-Away-From-Home rose 3.5%. Prices of Restaurants &
Accommodation Services increased by 3.0%. At the same time, costs on Housing, Water, Electricity, Gas and Other Fuels climbed up by 3.0%.
Private consumption expanded by 4.7% during the first quarter of 2024 due to sustainable retail spending on both basic necessities and discretionary items.
During the first quarter of 2024, the Consumer Sentiment Index (by MIER) dropped below the 100-point threshold level of optimism again at 87.1 points. Concerns on rising cost of living and future job prospect led to the decline.
Unemployment rate during the first quarter of 2024 sustained at a growth rate of 3.3%. Labour force participation rate reached a historical high of 70.2% during the quarter.
RETAIL SUB-SECTORS’ SALES COMPARISON
The sales performances of retail sub-sectors during the first quarter of 2024 (Table 3) were mixed.
Department Store cum Supermarket sub-sector recorded a stronger-than-expected growth rate of 12.3% during the first quarter of 2024, as compared to the same period a year ago.
Similarly, the sales of Department Store sub-sector recovered with a growth rate of 9.7% during first 3-month period of this year.
The growth rate of Supermarket and Hypermarket sub-sector returned to positive with 2.0% during the first quarter of 2024.
The Mini-Market, Convenience Store & Cooperative sub-sector continued to deliver promising growth rate at 5.6% during the first quarter of this year.
During the first quarter of 2024, the growth rate of Fashion and Fashion Accessories sub-sector improved by 12.6%. This was the highest growth rate achieved among the retail sub-sectors during this quarter.
The Children and Baby Products sub-sector achieved a better-thanexpected result with 4.8% growth during the first 3 months of this year.
Source: Bank Negara/ Department of Statistics/ MIER/ Retail Group Malaysia
TABLE 2: COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS, 2023/24
TABLE 3: YEAR ON YEAR PERCENTAGE CHANGE IN RETAIL SALES BY RETAIL SUB-SECTOR, 2023/24
Notes:
*- children and baby products include apparel, accessories, equipment, school uniform and toys
Source: MRA/ MRCA/ Retail Group Malaysia
During the first quarter of this year, the growth rate of the Pharmacy sub-sector jumped by 8.2%, as compared to the same quarter a year ago.
On the other hand, the Personal Care sub-sector did not perform within market expectations. It grew by 0.4% only during the first 3-month period of this year.
Likewise, the performance of Furniture & Furnishing, Home Improvement as well as Electrical & Electronics sub-sector slipped into negative territory again. During the first quarter of 2024, the growth rate of this sub-sector declined by 2.1%. This is the worst performing retail sub-sector during the quarter.
The Other Specialty Stores sub-sector (including photo shop, fitness equipment store, store retailing musical instrument, optical store, health equipment store, second-hand goods store, arts & crafts store, gifts store as well as online shopping platform) enjoyed a growth rate of 4.6% during the first quarter of 2024, as compared to the same period last year.
NEXT 3 MONTHS’ FORECAST
Members of the two retailers’ associations project an average growth rate of 1.7% during the second quarter of 2024 (Table 4).
Hari Raya Aldilfitri this year was celebrated from the second week of April. The festive sale was not encouraging and it was below market expectations.
The department store cum supermarket operators are expecting its business to expand by 0.6% only for the second quarter of this year.
Interestingly, the department store operators are expecting its businesses to decline by 16.4% for the second 3-month period of this year. This sub-sector has the worst retail sales forecast for the quarter.
Similarly, the supermarket and hypermarket operators are not optimistic of its sales during the second quarter of 2024. It expects to grow by only 1.4% for the quarter.
The operators of mini markets, convenience stores and cooperatives are anticipating its growth rate to maintain at 5.7% during the second 3 months of this year.
Retailers in the fashion and fashion accessories sector expect its businesses to gain by 6.7% in terms of growth rate during the second quarter of 2024, as compared to the same period a year ago.
Retailers selling children and baby products predict its retail growth rate to moderate at 3.1% during the second 3-month period of this year.
Pharmacy operators anticipate its retail sales during the second quarter of this year to grow at a slower pace by 0.7%.
Retailers in the personal care sub-sector are expecting its businesses to turn around during the second quarter of 2024 with an impressive growth rate of 17.0%. This sub-sector has the best estimate among the retail subsectors during the quarter.
Operators of furniture & furnishing, home improvement as well as electrical & electronics are foreseeing its business to weaken again with a growth rate of -4.2% during the second 3 months of this year.
RETAIL SALES FORECAST BY RETAIL
TABLE 5: MALAYSIA RETAIL INDUSTRY QUARTERLY GROWTH RATE, 2024
year
(e)- estimate
Source: Retail Group Malaysia
Notes:
*-include apparel, accessories, equipment, school uniform and toys #-furniture & furnishing, home improvement and electrical & electronics
Source: MRA/ MRCA/ Retail Group Malaysia
Retailers in other specialty stores sub-sector (including photo shop, fitness equipment store, store retailing musical instrument, optical store, health equipment store, second-hand goods’ store, arts & crafts store, gifts store as well as online shopping platform) are projecting a growth rate of 1.2% during the second quarter of 2024.
THE YEAR 2024
In March this year, Retail Group Malaysia (RGM) estimated a 4.0% growth rate in retail sale for 2024. RGM has revised downwards Malaysia annual retail industry growth rate for 2024 to 3.6% (Table 5). This revision was the outcome of better retail performance during the first quarter and lower estimate for the second quarter.
For 2024, the biggest challenge for Malaysia’s retail industry remains the rising cost of living that impacts Malaysian consumers from all income groups.
The weak Malaysian currency
since last year continues to put great pressure on companies selling imported retail goods as well as companies importing raw materials and semi-finished goods. Many of them have passed the higher costs to the end consumers.
Since January 1, a 10% sales tax has been levied on imported low-value goods of not more than RM500.00 sold via online. Many local and foreign online retailers have introduced this new tax on imported goods. This has led to higher retail prices on goods sold online.
Service tax rate on many goods and services has increased from 6.0% to 8.0% since March 1. This increment has led to higher prices of retail goods and services. This has affected retail spending on many retail goods and services.
In addition, the service tax on monthly electricity bill of more than RM220.00 has increased to 8% from March 1.
In April, the Employees Provident Fund (EPF) introduced a new flexible
account (Account 3) for all its account holders under the age of 55. Starting from May 12, members are allowed to withdraw fund in Account 3 anytime for their own uses. As at May 22, EPF received 2.86 million applications involving RM8.78 billion for transfer to Account 3. Many of these members are likely to use this money for retail goods and services.
For this year, both domestic and international tourism have rebounded due to cheaper Ringgit and government promotional initiatives. Cheaper currency has led to faster recovery of foreign tourist, TABLE 4: 3-MONTH
Started from June 10, the Malaysian government floated diesel prices at RM3.35 per litre in Peninsula Malaysia. At the same time, the government has commenced a diesel subsidy aid programme (Budi Madani programme) involving a monthly allocation of RM200.00 for eligible individuals as well as agriculture and commodity smallholders. This may impact retail prices of goods and services due to higher transportation cost.
The Malaysian government had planned to introduce a High Value Goods Tax (HVGT) at a rate of 5.0% to 10.0% on certain high-value retail goods based on the threshold value of the goods. However, this has been delayed indefinitely by the Ministry of Finance.
government is targeting 27.3 million tourists and RM102.7 billion tourist receipt for 2024.
Announced on May 1, the Malaysian government will increase the remuneration of civil servants by more than 13% from December 1 this year. The minimum salary of civil servants will be adjusted from RM1,795 per month to RM2,000 per month. The government will allocate more than RM10 billion for this salary adjustment. This should boost retail sales during the yearend holidays.
The retail sector in the country is anticipated to expand moderately by 2.5% during the third quarter of 2024.
For the last quarter of 2024, Malaysia retail industry is hopeful of a 3.2% growth rate after a weak performance a year ago.
FOOD & BEVERAGE SECTOR
For the first quarter of 2024, food & beverage establishments continued to enjoy promising sales during the festive celebrations and school holidays.
The Chinese New Year festival encouraged outdoor dining among families and friends in all kinds of F&B outlets.
Interstate travel during the long Chinese New Year and school holidays boosted food outlets’ sales in small towns and tourist resorts.
In addition, higher foreign tourist arrivals from Singapore and China contributed to strong F&B sales in major cities.
On the other hand, higher food prices led to increasing costs for F&B operators in Malaysia. Many
F&B outlets (including hawker stalls, coffee shops, cafes, restaurants and national chain outlets) had raised their prices.
The never-ending Israel-Palestine conflict had led to boycott of several international F&B franchises with alleged ties to Israel or that had declared their support for the Jewish state. Many Malaysian consumers were still avoiding these restaurants and cafes. This had led to heavy losses of several F&B brands operating in Malaysia. Some outlets shortened their operation hours, while others closed down temporarily.
Food & Beverage Outlets (Cafe and Restaurant) achieved a sustainable growth rate of 7.4% during the first quarter of 2024, as compared to the same quarter a year ago (Table 6).
Similarly, the sales of Food &
Beverage Outlets (Take-Away, Kiosk and Stall) recorded 9.7% in growth rate during the first quarter of 2024, as compared to the same period one year ago.
For the last few months, the boycott of several international F&B franchises due to the Israel-Palestine conflict has led to both permanent and temporary closures of outlets across the country. This boycott will likely to remain in the medium term.
Cafe and restaurant operators are hopeful that their businesses will retain its growth momentum for the next quarter. Their sales should expand by 7.3% during the second 3 months of this year, as compared to the same period a year ago.
On the other hand, food and beverage kiosk and stall operators are projecting their business to slow down further at 5.5% during the second quarter of 2024. ■
TABLE 6: MALAYSIA FOOD & BEVERAGE INDUSTRY QUARTERLY GROWTH
Notes:
-Cafe and restaurant include fast food restaurant, cafe, coffee 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
Footnote:
• 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 firm 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.
100 Go Digital: Digitalising The Retail Industry
Setting the tone for a more digitalised retail industry.
In April this year, the TRX Exchange 106 in Kuala Lumpur was abuzz with excitement as industry leaders, tech enthusiasts, and government officials gathered for the highly anticipated 100 Go Digital event. Organised by the Malaysia Digital Economy Corporation (MDEC) and MRCA, this event marked a significant milestone in Malaysia’s journey towards digital transformation. The event was graced by the Digital Minister, Gobind Singh Deo, who pointed out that challenges such as digital literacy, cybersecurity, and internet connectivity must be addressed in order for businesses to harness the full benefits of digitalisation.
He added that digitalisation was no longer an option but a necessity
for retail businesses to thrive in today’s world. He continued that data analytics and personalisation were also key tools for retailers, as they could leverage on customer data to drive targeted marketing campaigns, enhance product recommendations, and optimise pricing strategies.
“Supply chain optimisation is equally important, where the implementation of digital solutions can improve inventory management, logistics, and demand forecasting,” he highlighted in his speech during the event.
Gobind added that the retail industry had evolved rapidly in recent years. “Undeniably, more and more purchases will be made online, especially through mobile phones. But there is still room for brick-andmortar stores,” he said.
The MRCA-MDEC 100 Go Digital series serves as a platform for industry players to connect, exchange views, and collaborate.
“I am glad that MRCA has collaborated with MDEC for the MRCA-MDEC 100 Go Digital initiative, to carry out a series of sessions to assist retail players. These sessions saw engaging insights from industry experts and prominent players who spoke about the latest technology trends that assisted them in scaling their business to the next level, including upskilling talents,” Gobind shared.
Among those present at the 100 Go Digital event were MRCA past-president Datuk Sharan Valiram, MDEC chief executive officer Mahadhir Aziz, Digital Nasional Berhad acting co-chief executive officer Datuk Ahmad Zaki Zahid
and Sim Ling Ku, founder of Cursors Choice Network.
The 100 Go Digital initiative started in 2020, with its key purpose to enable Malaysian businesses to move towards digitalisation in order to improve efficiency and productivity, creating new sources of growth, as well as increasing revenue and savings in business costs.
Since its inception, MDEC has collaborated with various industry partners to carry out 100 Go Digital programmes nationwide. ■
Focus Point’s Aggressive Expansion Drives Stronger Performance in 2024
Steady growth with a strong emphasis on innovation.
Focus Point Holdings Bhd anticipates a robust performance this year, propelled by an aggressive expansion strategy. The company currently operates 198 outlets, including franchises, and aims to surpass the 200-outlet mark by Q2/Q3.
NEW YOGURT BUSINESS
A significant milestone in their Food & Beverage (F&B) segment is the launch of a new frozen yogurt business, named HAP&PI, in March 2024 at Mid Valley Megamall.
“We began the yogurt business
operations just two months ago, so we are currently monitoring and gathering feedback from customers. We need to enhance the quality of our products, and once we achieve that, we will consider expansion,” said Focus Point president and chief executive officer Datuk Liaw Choon Liang at a press conference after the Focus Point AGM on 23 May 2024.
STRONG GROWTH PROPELLED BY OPTICAL AND F&B
Both optical and F&B products are essential products, and they
contribute consistently to Focus Point’s steady growth. This dualsegment strength has led to a notable improvement in revenue.
The F&B segment, in particular, has seen considerable benefits from its business-to-business (B2B) model, with a diverse range of corporate clients. Notably, Komugi, a part of Focus Point’s portfolio, has a customer base comprising 70% convenience stores, with the remainder including supermarket department stores and restaurant chain stores. The company plans to focus on innovation and new product introductions to cater to both retail
“Optical and food and beverage are essential products, and we are fortunate to still see strong growth in these two segments. Moving forward, we will focus on innovation and new product introductions to cater to both retail and corporate customers.”
and corporate customers in the F&B segment.
In the first quarter, Focus Point Holdings Bhd reported a 22.89% increase in net profit to RM7.41 mil in the first quarter ended 31 March 2024, from RM6.03 mil a year ago. This growth was attributed to higher revenue driven by strong sales in both the optical and F&B segments.
Revenue from the optical and related products segment grew by
15% year-on-year, reaching RM56 million, while the F&B segment saw a 14% increase, bringing in RM10.1 million. Focus Point announced a dividend of 1.75 sen per share, which will be paid on 28 June 2024.
ANTICIPATED BOOST FROM EPF ACCOUNT 3
Meanwhile, Datuk Liaw anticipated that the Employees Provident Fund’s (EPF) Account 3 would positively impact Focus Point by
boosting consumer spending. As of 11 May 2024, the EPF has restructured member accounts into three separate accounts, with 10% of monthly contributions now going into Account 3, allowing for withdrawals at any time.
“However, I believe the impact will be minimal compared to the previous special EPF withdrawal announced during the Covid-19 pandemic, which made 2022 an exceptional year for the market, especially during the second and third quarters. I also think that downside risks such as inflation, interest rate hikes, and recent boycotts are less likely to affect our group’s performance,” said Datuk Liaw.
“Optical and food and beverage are essential products, and we are fortunate to still see strong growth in these two segments. Our revenue is improving,” he added.
MOVING FORWARD
Despite ongoing inflationary pressures potentially affecting consumer spending, the group stated it is dedicated to improving operational efficiency and costeffectiveness to maintain its profitability growth.
To bolster its market presence, the company has been actively conducting 360 Advanced Primary Eye Care roadshows and various marketing activities to build visibility and gain market share.
Additionally, Focus Point recently held MOU ceremonies with PERNAS, ISEC and AirDoc, aiming to offer intensive services to consumers. This year also marks the company’s 35th anniversary, adding a celebratory note to their achievements and ongoing efforts.
With a solid foundation and forward-thinking strategies, Focus Point is well-positioned for sustained growth and enhanced market presence in 2024 and beyond. ■
