Malaysia Retailer I Vol 11 No 3 I Dato Raymond

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PRESIDENT

Dato’ Sharan Jethanand Valiram VALIRAM HOLDINGS SDN BHD

IMMEDIATE PAST PRESIDENT

Shirley Tay Bee Koo

PHIPURE SDN BHD

DEPUTY PRESIDENT

Datuk 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

Shirley Tay Bee Koo 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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All articles featured in Malaysia Retailer magazine represent the personal views of contributors and are not necessarily those of MRCA & Harini Management Services Sdn Bhd. All writers automatically agree to indemnify MRCA and Harini Management Services Sdn Bhd against any loss, costs, expenses (including legal fees), damages and liabilities that might arise from their own incapacity, negligence, breach of contract or other civil misdeeds. We reserve the right to edit all articles. All rights reserved. Copyright © 2024 by MRCA and Harini Management Services Sdn Bhd. No part of this publication may be reproduced in any form without prior written permission from the publisher. MRCA and Harini Management Services Sdn Bhd accept no responsibility for unsolicited manuscripts, photography, illustration and other editorial materials.

MALAYSIA

Dato’ Seri Dr. Raymond Liew Tax Practitioner & President of McMillan Woods, Rachel Hsu Xin McMillan Woods Global Ambassador

DSRL tuxedo is tailored by Pinky Tailor

Rachel Hsu Xin dressed in Chic by Bae

President’sMessage

Dear Esteemed Members,

Wishing all of you Selamat Hari Raya. Maaf Zahir & Batin.

As we embrace this time of reflection and renewal, let us invoke the profound essence of “Maaf Zahir & Batin.” This time-honored tradition of seeking and granting forgiveness not only mends the fabric of our social bonds but also rejuvenates our collective spirit. It is a poignant reminder to let go of past grievances and to approach the future with a heart unburdened by resentment.

It is with a heavy heart that I address recent challenges within our retail industry, challenges that emerged through no fault of our own members. The inclination towards boycotting products based on their community of manufacture rather than on the quality and value they offer represents a regretable myopia. Such actions not only undermine the principles of diversity and inclusion but also detract from the rich tapestry of our society. I remain hopeful, however, that wisdom and discernment will guide our choices, encouraging us to support retailers and products for their inherent merit, thereby fostering an environment of mutual respect and understanding.

This past year has been a testament to our collective endeavor to enrich the MRCA community. Through organizing and participating in 280 events— a remarkable achievement that equates to an event every other day—we have strived to add value to every phase of our members’ retail journey. Your feedback is invaluable to us, and I encourage you to share your thoughts on how we can further enhance our initiatives.

I am profoundly grateful for the generosity and commitment of our members and our Board of Advisors. Your contributions, whether through sponsorship, time, or in-kind support, have been pivotal to our success. I would also like to express my gratitude to those who have served on our Council over the past two years. Your dedication and effort have propelled MRCA towards its finest iteration yet.

A heartfelt acknowledgment goes out to Dato’ Alex Wong & Brian Tham, the Organizing Chairs of our Chinese New Year celebration. Your unwavering dedication ensured the event was not just a celebration but a resounding success that brought joy and unity to our members.

I would like to congratulate our members who won accolades at the recent SOBA Awards. My heartiest congrats to WIlstech Sdn Bhd, Kanika, City Coin Laundry Sdn Bhd and Empire Sushi. You have made us proud at MRCA. I hope to see more of our members winning awards in the future.

My sincere appreciation also to the Organising Chairman, Lim Ben Jie and his committee for a great job done at the CEO Get Together. Thank you for making the event a success.

Franchise Expo Malaysia (FEM) is coming up in July this year – it is an excellent platform to showcase your business to the international business community. Therefore, I hope you will leverage on this event to grow your business.

In reaching out to the community and lending a helping hand to the needy, MRCA has been consistently engaging in CSR activities such as our recent collaboration with The Bountiful Eye Foundation to distribute 200 boxes of goodies to needy families and the distribution of funds to students who excelled in the SPM, STPM and UEC Examinations.

As we conclude this term, we leave MRCA stronger and more influential than ever before. I am optimistic about the future and believe that together, we will Continue to Thrive and shape the retail industry for the better.

“Together We Thrive”

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

DSRL tuxedo by Pinky Tailor. Rachel Hsu Xin dressed in Chic by Bae

The McMillan Woods Global Network was born out of the passion of one man to recognise and applaud success, excellence and distinction. Driven by his vision to create shining stars in industries across the world, Dato’ Seri Dr. Raymond first introduced the McMillan Woods Global Network (MWGN) on 9 January 2010. MWGN is an association comprising independent local and regional firms of recognised qualified accountants and professional advisors. The association is aimed at providing members and their clients with the capability of furnishing a broader spectrum of accounting, auditing, advisory and management services on a cutting-edge, cost-effective basis.

“Our mission is to meet our clients’ highest expectations, and to exceed them is our goal. Key to this is to be a global strategic partner in value-creation and multidisciplinary partnerships,” Dato’ Seri Dr. Raymond asserts.

THE BUSINESS MIND

Dato’ Seri Dr. Raymond explains that the success that McMillan Woods was built upon is effective networking.

“In fact, our tagline, ‘The Business Mind’, symbolises the core

of our company. We see ourselves as the mastermind for all our clients’ needs,” he points out.

In sharing about the inspiration behind MWGN, Dato’ Seri Dr. Raymond expresses, “I created this network to do what is right for my late father. I am the apple of my late father’s eye. It has always been my motivation to create something new and inspiring, and not merely what is seen every day.”

Basically, his goal was to create a legacy, “I wanted something that could move the network fast and effectively, hence, the industry tagline of Professionalism at the Forefront!”

GROWTH AND GLOBAL PRESENCE

To-date, MWGN has grown in leaps and bounds, with a strong presence in 75 countries with multiple offices in each country.

Dato’ Seri Dr. Raymond attributes the rapid expansion of the global network within a short span of time to the sense of camaraderie and brotherhood that member firms and individual members feel as part of the global network.

“When they join us, they are no longer alone – they become part of the global community of firms,” he stresses.

He insists that giving back to society is good karma. “As we bring in more and more members, we also give our members more benefits in terms of networking and interacting, thus creating a synergy of entrepreneurs. That is why our tagline is called The Business Mind – which basically means that whatever your problems are, just think of us to find a solution,” says Dato’ Seri Dr. Raymond.

“Our Global Network is very different from others – we do not believe in making money off our stakeholders. We collect no royalties beyond a cursory annual fee for the upkeep and maintenance of our Global Network,” he elaborates.

MCMILLAN WOODS GLOBAL AWARDS

As the network grew, Dato’ Seri Dr. Raymond realised that it was time to recognise his network partners, clients and business entrepreneurs for excellence and their contributions to the thriving economic ecosystem in their respective markets and countries. This saw the birth of the McMillan Woods Global Awards, conceptualised to recognise exemplary leaders who have successfully steered their ships against the massive waves of global

“ ”

Our network is very different from others –we do not believe in making money off our stakeholders. We collect no royalties beyond a cursory annual fee for the upkeep and maintenance of our Global Network.

–

Dato’ Seri Dr. Raymond Liew, the Founder of McMillan Woods Global Network • Audit • Tax • Advisory

economic challenges and yet emerged victorious.

Dato’ Seri Dr. Raymond emphasises, “Unlike other award organisations, the Global Awards recognise recipients who do what they do with the sort of integrity, accountability, responsibility and professionalism that is unseen elsewhere.”

The award is built on the motto of accountability, transparency, good governance and most importantly, integrity.

In fact, these are the exact values

that his late father subscribed to and taught him. Raised in a well-todo family and then witnessing his father’s fortunes disintegrate into poverty, Dato’ Seri Dr. Raymond vowed to rise out of poverty and succeed. Having made his way to London, England with just very little money in his pocket, he was on a mission to beat the odds, which was exactly what he did and succeeded. Armed with a professional accountancy degree, followed by a Master’s Degree in Business, back in 1986, and subsequently gaining his

doctorate in 2020, Dato’ Seri Dr. Raymond worked his way through the corporate world in London, England and established himself. However, with a burning desire to venture out and conquer uncharted frontiers, he returned to Malaysia in 1998 to start an accounting consultancy.

THE INAUGURAL AWARDS

In making the first awards event successful, Dato’ Seri Dr. Raymond credits his close friend, Dr. Georgina Hope Rinehart AO, who not only

supported him but also made financial contributions towards the success of the inaugural awards. Since then, her support has been constant for the global awards initiative.

“I was inspired by the Ernst & Young (EY) Awards and decided to create an international award that would surpass it,” he adds.

The awards not only recognise success and excellence but also serve as a platform for nominees and guests to donate to worthy causes. Every year, proceeds from the awards are channelled to various philanthropic initiatives, and a specific charity is highlighted at the annual awards ceremony.

Dato’ Seri Dr. Raymond reminisces the proud moment

when the first inaugural McMillan Woods Global Awards rolled out the red carpet on 1 November 2012 with award recipients in the likes of Dr. Georgina Hope Rinehart AO, the richest and most powerful woman in Australia; Dato’ Sheikh Muszaphar Shukor, the Malaysian astronaut; Amber Chia, the Malaysian supermodel; and, Dr. Binod Chaudhary, the richest man in Nepal among others. Even the renowned Datuk Jackie Chan joined the award’s hall of fame, amidst other celebrities.

Since then, McMillan Woods Global Awards has rolled out the red carpets for many distinguished entrepreneurs and business leaders, welcoming a colourful array of prominent world business leaders

through its doors. The global awards are a much sought-after and awaited annual event that crowns budding as well as seasoned entrepreneurs for their participation in progressing the business landscape.

“I always believe that if you want to pursue your dream, nothing is going to stop you if you set your mind to achieve it. But you must have concerted effort and the will to move forward. So, to put it simply, nothing is insurmountable if you put your mind, your body and your soul into attaining that goal,” he advises.

RAISING STARS ONTO THE GLOBAL STAGE

Seeking to recognise eminent global award recipients every year is no easy feat, but Dato’ Seri Dr. Raymond has Rachel Hsu Xin, his daughter, at his side to support him to continue to bring stars to the forefront of the global stage.

“I started helping out in the global awards in 2022, and it was quite challenging at first as I was still quite young. I had my fair share of struggles with handling international logistics, but I am lucky to have my father with me to guide me with his vast experience,” shares Rachel Hsu Xin.

A young graduate in public relations, Rachel Hsu Xin has breathed fresh ideas into the awards organisation over the last two years. However, she quips that it has been

Despite having managed the awards for the past two years, there is still so much to learn.

– Rachel Hsu Xin McMillan Woods Global Ambassador “ ”

quite challenging to convince her father to delve into the latest trends and ways of doing things. She explains that in driving the awards, she has had help from various public relations analytics tools and other resources that have given her an edge in her professional work.

Nevertheless, Rachel Hsu Xin feels that she is fortunate to have the opportunities presented to her to participate in such an esteemed global awards initiative at a young age. Rachel Hsu Xin shares that social media has been a great help in promoting the awards and raising awareness in the international arena.

She shares her experience in participating in beauty pageants, the first of which she won the Miss ChiPao Malaysia 2019, then Miss Tourism Malaysia (Queen of The Year) in 2021. She continued to participate in several pageants, and her last winning title was Miss CosmoWorld Malaysia 1st Runner Up 2022.

For Rachel, pride and gratitude intertwined seamlessly has made her what she is today, and she recognises and cherishes the contributions of those who have helped her along the way. These experiences helped her to gain

exposure in social circles, which is important in organising awards. She is currently in the process of planning her own beauty pageant with a different twist that steers from the norm.

MAKING A DIFFERENCE THROUGH CSR

To date, McMillan Woods Global Network has contributed over RM2 million in donations to charitable organisations through its signature CSR programme – The McM Cares corporate social responsibility programme. Charitable organisations that have benefitted from these initiatives include the National Stroke Association of Malaysia (NASAM), National Cancer Society of Malaysia (NCSM), the National Blind Association, flood victims in Sabah, Save Environment Save Ourselves (SESO) and the Hemophilia Society of Malaysia (HSM), among many others.

Other than the annual global awards events, McMillan Woods also organises many other CSR events, such as scaling Mount Kinabalu with the support of TV3, taking on the impossible task of “120K Steps Challenge” within 18 hours, something which has never been done before and many more. Another remarkable effort is the world’s most expensive tiniest cupcake that was auctioned at RM10,000, all in the name of charity! ■

MCNY Celebration 2024 “Enter The Dragon”

Welcoming the year of the dragon with a roar.

RCA celebrated Chinese New Year 2024 with a blast of colour, vibrant music and an exhilarating lion dance performance at the Ballroom of One World Hotel in Petaling Jaya. Attended by more than 1,350 members and guests donning traditional cheongsams and tang suits, the event was graced by the Honourable YB Anthony Loke, the Minister of Transport Malaysia.

The event was a perfect depiction of the approaching year of the dragon with decorations of dragons using balloons and other innovative materials. Guests were greeted to an array of dragon themed photo backdrops and a delicious 8-course dinner.

In his welcome message, MRCA President, Dato’ Sharan Valiram warmly welcomed members and guests to this auspicious celebration. He conveyed his deepest gratitude to MRCA council members and past presidents for their invaluable contributions towards the association. He also expressed hope and excitement for the year ahead.

According to the Co-Organising Chairperson of the MRCA CNY 2024 Dato’ Alex Wong and Mr. Brian Tham, “As the premier association representing the retail sector in Malaysia, MRCA’s Chinese New Year Dinner serves as a platform for fostering camaraderie, building strategic partnerships, and celebrating the shared successes

within the retail industry. This year’s event is particularly significant as it aligns with the symbolic and energetic spirit of the Dragon Year, signifying strength, prosperity, and good fortune.”

During his address, YB Anthony Loke expressed his gratitude to MRCA for inviting him to the CNY celebration. He said that all businesses should not work in silos and should work together through organisations such as MRCA. He said that the government is working towards boosting the business landscape in Malaysia with a focus on the tourism industry. YB Anthony said that the government is also working towards improving transportation in the country.

The dinner provided members

with an exclusive setting to network with fellow industry professionals, fostering collaboration and relationship-building, serving as a catalyst for future partnerships and collaborations within the retail community. Embracing the rich cultural diversity of Malaysia, this festive celebration proved to be a bridge for cultural exchange among MRCA members. This not only enhanced mutual understanding but also strengthened the unity within the retail community, transcending cultural boundaries.

During the night, the MRCA Branding Education Charity (MBEC)

Foundation donated RM25,000 to the Ti-Ratana Welfare Society Malaysia – Bentong Building Fund to support their cause. A mock cheque was presented to the Founder and Advisor of Ti-Ratana Welfare Society, Most Venerable Datuk K. Sri Dhammaratana by Datuk Seri Nelson Kwok, Chairman of the MBEC Foundation; MBEC Founder Chairman, Dato’ Tay Sim Kim; MBEC Foundation Trustees, Dato’ Eddie Choon; Datuk Albert Chiang; Datuk Lee Hwa Cheng; Dato’ Liaw Choon Liang; Datuk Seri Garry Chua; Ms. Shirley Tay, and Dato’ Sharan Valiram.

Members and guests had a great time networking and enhancing working relationships while celebrating the approaching lunar new year together. There were shouts of “Huat ah”, “Lou ah”, “Ong ah” over the tossing of the popular Yee Sang dish to usher in a prosperous new year. Photo backdrops saw happy faces and vibrant smiles as guests and members captured the moment through the lens of the camera. All in, it was a fabulous festive celebration that filled the air with the spirit of joy, hope and excitement for the coming lunar new year. ■

MRCA Corporate Patrons

Maxis Berhad

RHB Bank Berhad

Goods Sponsor

1. e-Beauty Group Sdn Bhd

2. Healthland Wellness Sdn Bhd

3. Monarch Aesthetic Sdn Bhd

4. Poh Kong Holdings Berhad

5. Valiram Holdings Sdn Bhd

Cash Sponsor – Bronze

1. Monarch Aesthetic Sdn Bhd

Cash Sponsor – Silver

1. Allianz General Insurance Company (Malaysia) Berhad

2. CIMB Bank Berhad

3. Coca-Cola Refreshments (M) Sdn Bhd

4. Healthland Wellness Sdn Bhd

5. Hong Leong Assurance Berhad

6. Hong Leong Asset Management Berhad

7. Huawei Technologies (Malaysia) Sdn Bhd

8. IOI Properties Group Berhad

9. Malayan Banking Berhad (Maybank)

10. Malaysian Industrial Development Finance Berhad (MIDF)

11. MSIG Insurance (Malaysia) Bhd

12. The Store Corporation Berhad

13. Valiram Holdings Sdn Bhd

14. Spectrum Outdoor Marketing Sdn Bhd

Cash Sponsor – Gold

1. Bandar Utama City Centre Sdn Bhd

2. MTrustee Berhad for Pavilion REIT (Pavilion KL)

3. RHB Trustee Berhad as Trustee of Sunway REIT (Sunway Shopping Malls)

4. Tropicana Corporation Berhad

5. United Overseas Bank (Malaysia) Berhad

Cash Sponsor – Platinum

1. Ambank (M) Berhad

2. CapitaLand Retail Malaysia Sdn Bhd

3. MTrustee Berhad as Trustee for IGB REIT (Mid Valley Megamall)

4. Suria KLCC Sdn Bhd

Cash Sponsor – Diamond

1. Milennium Welt Sdn Bhd (BMW)

Malaysia Retail Industry Report (March

2024)

PREAMBLE

Members of Malaysia Retailers Association (MRA) and Malaysia Retail Chain Association (MRCA) were interviewed on their retail sales performances for the entire year of 2023 and the first quarter of 2024.

LATEST RETAIL PERFORMANCE

For the fourth quarter of 2023, Malaysia retail industry recorded a disappointing growth rate of -0.2% in retail sales, as compared to the same period in 2022 (Table 1).

This latest quarterly result did not meet market expectation. Members of MRA and MRCA

projected the fourth quarter growth rate at 2.1% in November 2023.

Retail prices, especially food prices, continued to rise during the last quarter of 2023. Higher cost of living had negative impact on the purchasing power of Malaysian consumers.

The Israel-Hamas war that started in early 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 retailers.

This pro-longed boycott had affected businesses of certain

retail brands. At the same time, Malaysians switched to support local and other Asian brands.

The shopping traffic for the last 3 months of the year was similar to 2022 level. Malaysian consumers were still spending. However, the holiday sales were not the same as pre-Covid level due to the shortened school holidays.. For 2023, the year-end school holidays. was only 2 weeks.

Malaysia’s retail industry reported a positive growth rate of 2.2% for the entire year of 2023 (Table 1). Similarly, this final annual growth figure was below market expectation. In November last year, the estimate by Retail Group Malaysia was 2.8%.

Compiled by Retail Group Malaysia

Source: MRA/ MRCA/ Retail Group Malaysia

COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS

For the fourth quarter of 2023, the Malaysian national economy reported a slower growth rate of 3.0% (Table 2, at constant prices), as compared to -0.2% for retail sales (at current prices).

The last quarter growth was supported by sustainable private consumption as well as higher expenditures from both government and public corporations.

For the whole year, Malaysia’s real GDP expanded by 3.7%. In 2023, the Malaysian economy was driven mainly by the services sector at 5.3% growth rate.

The average inflation rate during the fourth quarter of 2023 slowed down further to 1.6%. The slower pace of growth was attributed to lower average price of RON97 as well as decrease in average prices of essential food items. During the quarter, higher prices were reported mainly in Restaurants & Hotels, Health as well as Food & NonAlcoholic Beverages.

For the year 2023, the inflation rate increased at a slower pace at 2.5% as compared to 3.3% for the same period in 2022. The average price of Food & Non-Alcoholic Beverages group had the highest increase with 4.8%. This was followed by Furnishing, Household

Equipment & Routine Household Maintenance with 2.3% increase.

Private consumption grew by 4.2% during the fourth quarter of 2023. Stable labour market, continued household spending and recovery of tourism activities led to sustainable growth in this component of GDP.

The Consumer Sentiment Index (by MIER) rose to 89.4 points for the last 3 months of 2023. It remained below the 100-point threshold level of optimism. During the quarter, Malaysian consumers were optimistic on their jobs and takehome pays. However, they were still worried about rising cost of living.

Unemployment rate during the fourth quarter of 2023 declined further to 3.3%. Stable labour demand and rising real wages were the contributing factors.

RETAIL SUB-SECTORS’ SALES COMPARISON

The sales performances of retail sub-sectors during the fourth quarter of 2023 were unsatisfactory.

The growth rate of Department Store cum Supermarket sub-sector stayed in the negative territory at -5.6% during the fourth quarter of 2023. For the entire year, the business of this sub-sector declined by 3.3%.

In addition, the retail business of Department Store sub-sector suffered a negative growth of 9.8% during the last quarter of 2023. For the entire year of 2023, its sales dropped by 4.4%. It was the worst performing retail sub-sector for the year.

Similarly, the Supermarket and Hypermarket sub-sector did not perform well. Its retail sales shrunk by 2.9% during the fourth quarter of 2023. The growth rate of this sub-sector was -1.5% in 2023.

The Mini-Market, Convenience Store & Cooperative sub-sector experienced a slower growth in retail sales during the fourth quarter of 2023. During the period, it grew by 9.1%. For the whole year, it expanded by 11.3%. This was the best performing retail sub-sector for the year.

During the fourth quarter of 2023, the Fashion and Fashion Accessories sub-sector continued

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

TABLE 2: COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS, 2023

Notes:

TABLE 3: YEAR ON YEAR PERCENTAGE CHANGE IN RETAIL SALES BY RETAIL SUB-SECTOR, 2023

to record a negative growth rate of 1.5%, as compared to the same period a year ago. For the year 2023, it recorded a near-zero growth rate of -0.4%.

The Children and Baby Products sub-sector reported a moderate increase in retail sales of 2.7% during the last 3 months of the year. For the full year, the sale of this sub-sector grew by 1.1%.

During the fourth quarter of last year, Pharmacy sub-sector reported a small growth rate of 1.8%, as compared to the same period a year ago. This sub-sector managed to achieve a healthy growth of 7.9% for the entire year.

The business of the Personal Care sub-sector gained by 2.1% during the last 3-month period of the year. For year 2023, its sale advanced by 3.6%.

The growth rate of Furniture & Furnishing, Home Improvement as well as Electrical & Electronics sub-sector remained in the red zone with -5.4% in growth rate during the fourth quarter of 2023. For the whole the year, the sale of this sub-sector fell by 4.2%.

The growth rate of Other Specialty Stores sub-sector (including photo shop, fitness equipment store, second-hand goods’ store, store retailing musical instrument as well as health equipment store) eased at 0.4% during the fourth quarter of 2023. The business of this sub-sector contracted by 4.3% for the entire year.

NEXT 3 MONTHS’ FORECAST

Members of the two retailers’ associations project an average growth rate of 7.1% for the Malaysia retail industry during the first quarter of 2024 (Table 4). Unlike the last four consecutive quarters, all retail sub-sectors are expecting positive results.

After 3 consecutive quarters of negative growth rates, the department store cum supermarket operators are hopeful of a turnaround with a growth rate of 2.7% for the first quarter of this year. Similarly, the department store operators are expecting a strong recovery with a growth rate of

21.5% for the first 3-month period of this year. This is the most optimistic projection among the retail sub-sectors.

The supermarket and hypermarket sub-sector will see its business returning to normal with a growth rate of 3.1% for the first quarter of 2024.

Operators of mini markets, convenience stores and cooperatives are predicting its business to grow moderately at 9.1% during the first 3 months of this year.

With strong demand during the Chinese New Year festival and monthlong school holidays, retailers in the fashion and fashion accessories sub-sector are targeting a strong recovery with growth rate of 8.8% during the first quarter of 2024.

Retailers selling children and baby products are anticipating its business to sustain at 2.0% growth rate during the first 3 months of this year. This is the lowest projection made among the retail sub-sectors. After it hit by a slowdown in business during the previous

quarter, pharmacy operators are upbeat on the retail prospect for this year. It expects its business to rise by 9.4% during the first quarter of this year.

Retailers in the personal care sub-sector are hopeful that their businesses will rebound in this new year. It aims to achieve a growth rate of 15.5% for the first quarter of 2024.

Operators of furniture & furnishing, home improvement as well as electrical & electronics are expecting their business to return to positive growth with 2.2% during the first 3 months’ period of this year.

Retailers in other specialty stores sub-sector (including photo shop, fitness equipment store, secondhand goods’ store, store retailing musical instrument as well as health equipment store) are foreseeing their businesses to grow by 3.9% during the first quarter of this year.

THE YEAR 2024

Retail Group Malaysia revised its annual growth rate in retail sales

for 2024 to 4.0%, an upward adjustment of 0.5% point from projection made in November last year (Table 5).

For the same period, the Malaysian government expects the national economy to grow between 4.0% and 5.0%. The inflation rate is expected to average between 2.1% and 3.6% this year.

For 2024, the biggest challenge for Malaysia’s retail industry remains the rising cost of living of Malaysian consumers.

Under the Budget 2024 announced in October last year, the Malaysian government increased the subsidies for households and persons to battle the rising inflation. The first payment of Sumbangan Tunai Rahmah (STR) was made to 8.2 million Malaysians from January 22.

Beginning 1 January 2024, 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.

The Malaysian government will also 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. This new tax will commence from 1 May 2024 after it received approval from Parliament.

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 will affect retail spending on essential items, non-essential goods, personal services, general services, cars as well as travelling.

In addition, the service tax on monthly electricity bill of more than RM220.00 has increased to 8% from March 1.

The weakening Ringgit since last year continues to put great pressure on companies selling imported retail goods or importing raw materials and semi-finished goods. Many of them are passing the higher costs to end consumers.

On the other hand, the cheaper Ringgit has boosted both domestic and international tourism. Higher overseas travelling cost encourages Malaysians to travel within the country. Cheaper currency also led to faster recovery of foreign tourist arrival. Furthermore, Singaporeans

QUARTERLY GROWTH RATE, 2024

Notes:

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

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

Source: MRA/ MRCA/ Retail Group Malaysia

(e)- estimate

Source: Retail Group Malaysia

TABLE 4: 3-MONTH RETAIL

TABLE 5: MALAYSIA RETAIL INDUSTRY

have been travelling more often than usual to the southern region of Peninsular Malaysia to buy goods and services.

For the first quarter of 2024, Malaysia’s retail industry is expected to enjoy a strong growth of 7.1% due to the Chinese New Year festival as well as the monthlong school holidays from February to March (Table 5). The distribution of Sumbangan Tunai Rahmah (STR) Phase 1 to 8.2 million Malaysians early of 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.

Malaysia’s retail industry is estimated to grow by 3.5% during the second quarter with contribution mainly from Hari Raya festival. Hari Raya Aldilfitri this year will be celebrated from second week of April.

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

During the last quarter of 2023, Malaysian consumers continued to enjoy their meals at physical food and beverage (F&B) outlets located in both shop units and shopping centres.

During the year-end holidays, Malaysians visited families and friends as well as tourist attractions

in all states of Malaysia. Food & beverage (F&B) outlets that were dependent on tourists enjoyed brisk businesses.

Food & Beverage Outlets (Cafe and Restaurant) enjoyed a moderate growth rate of 7.5% during the fourth quarter of 2023, as compared to the same quarter a year ago (Table 6). For the entire year, it achieved a growth rate of 4.6%.

Similarly, Food & Beverage Outlets (Take-Away, Kiosk and Stall) continued to achieve double-digit growth rate of 15.8% during the fourth quarter of 2023. For the whole year of 2023, it recorded a strong growth rate of 13.5% as compared to the previous year.

For 2024, higher food prices and higher operation costs will remain the struggles for F&B operators in Malaysia. Weak Ringgit contributes

to higher costs of raw materials and food ingredients.

The prolonged Israel-Hamas war has led to boycott of several international F&B franchises with alleged ties to Israel or that had declared its support for the Jewish state. Many Malaysian consumers are still avoiding these restaurants and cafes. This boycott will remain in the medium term.

Despite the Chinese New Year festival and higher tourist activities, cafe and restaurant operators are anticipating their businesses to ease at 2.9% (Table 6) during the first quarter of 2024, as compared to the same period last year.

Similarly, food and beverage kiosk and stall operators are expecting their businesses to expand by 4.4% only during the first quarter of 2024. ■

TABLE 6: MALAYSIA FOOD & BEVERAGE INDUSTRY QUARTERLY GROWTH RATE, 2023/ 2024

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.

MR DIY wins Regional Recognition Again in World Branding Awards

This is MR DIY’s sixth World Branding Award cementing the brand’s position as Southeast Asia’s No1 home improvement store.

Regional home improvement retailer

MR DIY is once again the World Branding Award’s pick for the “Top Home Improvement Retail Brand Awards’ Regional Award Category”. The award recognises MR DIY’s brand leadership across four markets, namely Malaysia, Thailand, Indonesia and the Philippines.

This is the group’s sixth World Branding Award – in 2022 and 2021, MR DIY took home World Branding Award’s Regional Award in the home improvement retail brand category and in the three years prior to that, it took home the national award in the same category.

The six consecutive awards cement the brand’s position as Southeast Asia’s No1 home improvement store.

The World Branding Awards, organised by the World Branding Forum, held its 16th edition at Kensington Palace, London, recently.

With 1.3 million consumers and 765 brands from 66 countries in seven regions competing in the 2023-2024 edition, the awards are a benchmark for global brand excellence.

The Regional Award is presented to brands that hold simultaneous leadership positions in several countries in a particular geographic region based on brand valuation, consumer market research results and public online voting.

MR DIY was awarded alongside other renowned brands such as

Spritzer, Munchy’s, Getha, Maybank, Sunway Property, Golden Screen Cinema, Al-Ikhsan Sports, Twisties, Unifi and Aeon.

MR DIY Group’s Head of Marketing Alex Goh said it was no easy feat achieving a World Branding Award in the consumer-driven home improvement retail brand category for the sixth time.

“It takes a huge commitment to deliver outstanding value, excellent customer service as well as interesting and engaging customer experiences consistently and across

multiple markets – especially when MR DIY has 3,000 stores across the four markets in question.

“It is a strong validation that our promise of providing customers with a breadth of everyday essentials at ‘Always Low Prices’ at convenient locations in these markets continues to resonate strongly with customers.”

He added that the recognition would not have been possible without the passion and dedication of their employees across the four markets, their global network of manufacturing and logistics partners, and most of all, the 263 million customers in these markets who throng their stores every year.

“Our aim is to have a positive impact on the lives of the communities in which we operate, and awards like this are a timely reminder, especially in challenging times, that what we do every day is making a difference,” added Alex.

He congratulated the other award recipients at the World Branding Awards, saying that it was a huge honour for MR DIY to be recognised alongside them.

MR DIY was first established in Malaysia in 2005 as a traditional hardware store. Today, the brand is recognised as Southeast Asia’s favourite DIY store, with more than 3,000 stores across the region, supported by over 33,000 employees in Malaysia, Thailand, Brunei, Indonesia, Singapore, the Philippines, Cambodia, India, Turkey, Spain, Vietnam and Bangladesh. ■

MR DIY Indonesia Head of Commercial Michael Cohen (right) receiving the award from World Branding Forum Chairman Richard Rowles at Kensington Palace, London.

Pernas’ Focus on Franchise Financing

The Focus Point SightSavers Franchise Package is a collaboration between Pernas and Focus Point Vision Care Group Sdn Bhd offering financing to franchisees.

The Ministry of Entrepreneurship and Cooperatives Development, through Perbadanan Nasional Bhd (Pernas), has allocated RM50 million in franchise financing this year, almost double from last year’s RM25.23 million. With this amount, it aims to support 290 entrepreneurs nationwide.

Last year, Pernas worked with 155 franchise entrepreneurs, creating close to 600 job opportunities through various programmes and schemes.

Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick is confident the financial support will give the country’s thriving franchise industry in Malaysia a boost.

“In 2021, the industry recorded a sales value increase of 105.48% totalling RM30 billion compared to RM14.6 billion the year before,” he said.

COLLABORATION

The minister was speaking at the Focus Point SightSavers Franchise Package launch ceremony, which saw an MOU signing ceremony between Pernas and Focus Point Vision Care Group Sdn Bhd. The programme offers financing to franchisees who sign up for the Focus Point SightSavers franchise package.

Ewon urged entrepreneurs to explore this business opportunity offered by Focus Point Vision

Care Group Sdn Bhd, regardless of their existing experience with franchising.

The company’s franchise package, which offers franchisees savings up to 70% on start-up costs through franchise financing provided by Pernas, offers flexible operating hours, renovation of business premises at no cost and affordable start-up capital for new franchisees.

COMMITMENT

Over the years, Focus Point has emerged as the largest optical retail chain store in Malaysia. The 35-year-old company with 190 outlets to date, has been offering franchise business opportunities to entrepreneurs since 2002. In 2009, it clinched the Franchise of the Year recognition.

Focus Point CEO Dato’ Liaw Choon Liang, in his speech, said the company offers a range of attractive benefits, including marketing support, internal training and more to guide and empower franchise entrepreneurs.

“We are opening the widest possible opportunity for the community, especially professionals in the optical field, to join our franchise programme,” he said.

Other VIPs present at the ceremony were Deputy Minister of Entrepreneur Development and Cooperatives Dato’ Ramanan Ramakrishnan, the ministry’s Secretary General Dato’ Sri Suriani Ahmad, Pernas COO Tengku Mohamed Fadhli Hamzah and Focus Point CEO Dato’ Liaw Choong Liang.

Pernas said, in the last year,

various business development and financing programmes have contributed to the creation of over 300 new franchise entrepreneurs and over 800 job opportunities nationwide.

Pernas, an investment holding company established in 1969, is owned by the Minister of Finance Incorporated with a mandate to lead the development of the franchise industry in Malaysia.

Ten years ago, Pernas spearheaded the development of the franchise industry in Malaysia by creating franchise entrepreneurs,

offering quality services and products such as financing schemes like capital expenditure and working capital requirements.

Pernas also provides equity financing and investment to help increase bumiputera equity ownership in the strategic franchise sector. The agency also provides training, guidance and consultation services for both franchisors and franchisees, as well as retail space rental.

Headquartered in Bangsar South, Pernas has six corridor offices namely the North Corridor Office,

the East Coast Corridor Office, the South Corridor Office, the Sabah Corridor Office (Kota Kinabalu and Sandakan) and the Sarawak Corridor Office which are ready to carry out their roles in developing more franchisors and franchisees.

AI TECHNOLOGY

Meanwhile, the launch ceremony also saw the announcement of a partnership between Focus Point, EyeMD Associates Sdn Bhd and Airdoc Technology (HK) Ltd to offer Airdoc’s AI-powered Fundus Interpretation screening service within its retail outlets.

This collaboration leverages cutting-edge technology to enhance eye care services offered at Focus Point stores.

Through Airdoc’s AI technology, customers can gain valuable insights into their eye health and potential risks for over 35 chronic diseases including diabetes, glaucoma and hypertension, empowering early detection and preventive measures.

Liaw said the partnership is more than just technology but a collective vision that breaks down barriers, raises awareness and empowers individuals to take charge of their vision health.

ENHANCED SERVICE

Focus Point has also announced it is collaborating with ISEC Sdn Bhd in order to streamline patient experience by offering seamless transitions between seeking surgical solutions at ISEC and receiving comprehensive eye care at Focus Point.

This partnership will offer a comprehensive vision care journey from initial consultation to postsurgical follow up.

“By combining our expertise, we can now provide unparalleled service and building a future where everyone has access to the eye care they deserve,” said Liaw. ■

Natural Supplements for Better Sleep

Wellness and beauty company Phipure launches a natural supplement to promote better sleep quality, to wake up feeling refreshed and ready for a productive day.

Most adults need between 6-8 hours of sleep daily in order to function well the following day. Good sleep can improve brain function, lower risk of heart disease and diabetes, improve mental health and support a healthy immune system.

According to data from the World Sleep Society, Malaysians average 6.3 hours of sleep daily. Some five in 10 people are unable to fall asleep naturally. About 40% take more than 30 minutes to fall asleep rather than the usual 10-20 minutes.

Wellness and beauty company Phipure recently launched ZZ MORE, a sleep supplement that is innovative, all-natural and designed to revolutionise the way individuals achieve restful sleep.

Unveiled at KL Wellness City Gallery early March, ZZ MORE contains a unique blend of natural ingredients, offering a holistic solution to assist individuals in falling asleep, staying asleep and waking up refreshed.

This innovative supplement aims to improve sleep quality, extend the deep sleep phase, relieve stress, calm nerves, muscles and mind, as well as stabilise the circadian rhythm.

CLEAN AND NATURAL

ZZ MORE contains natural ingredients such as licorice extract, ashwagandha extract, lemon balm extract, sea buckthorn extract, L-theanine and other complementary ingredients formulated to support and enhance the sleep and wake cycles, ensuring a revitalising experience.

Phipure, the driving force behind the ZZ MORE brand, operates at the forefront of social commerce, focusing on health and beauty products that adhere to high standards of efficacy, research-based development, quality and safety.

The launch ceremony was held in the presence of former Health Director-General Tan Sri Dato’ Seri Dr Haji Noor Hisham Abdullah who

is also the non-executive Chairman of Phipure, and several other distinguished VIPs namely Group Managing Director of Quill Group of Companies Dato’ Dr Jennifer Low, CEO and Director of Focus Point Holdings Bhd Dato’ Liaw Choon Liang President, Rotol Group and former honorary President of Malaysia Retail Chain Association Dato’ Seri Gary Chua, MRCA Deputy President Datuk Ken Phua, Immediate Past President of MRCA and Managing Director of Phipure Shirley Tay and Phipure General Manager Tan Zhao Shen.

BOTANICAL BEVERAGE

Besides ZZ MORE, Phipure is also the brand holder for TRIGLO and Phi C. TRIGLO is a botanical beverage mixed berries with patented collagen tripeptide from Korea that stimulates cell regeneration, improve overall skin condition and prevent premature aging.

Phi C contains Pureway C, formulated in US. It provides two times faster retention Vitamin

C with US patented tiger milk mushroom, Ligno TM02 which helps to improve immunity as well as strengthen respiratory health.

All of Phipure’s products, are rigorously approved and certified by KKM, MESTI, GMP, HACCP and Jakim, ensuring consumers’ confidence in their safety and efficacy.

Founded by industry veterans with over 30 years of collective experience in the health and beauty segment, Phipure stands as an affiliate company of Focus Point Holdings Bhd. The company’s dedication to delivering innovative, high-quality products underscores

its commitment to enhancing the well-being of its consumers.

Phipure is a social commerce organisation at the intersection of health and beauty products. Social commerce refers to a process of selling products directly through online platform. The entire shopping experience from product discovery to final checkout, takes place on the Phipure platform.

With a commitment to innovation, quality and safety, Phipure offers a range of products approved and certified by reputable authorities, ensuring consumer satisfaction and well-being. ■

CEO Get Together: Reinventing Your Business with New Retail

Understanding the needs of customers in the new retail environment and leveraging on technology to deliver superior retail experiences.

The CXO Nexus World Tour made its debut on 12 March 2024 at the Parkroyal Collection in Kuala Lumpur. The event was themed “Reinventing Your Business With New Retail” and encompassed insightful talks by experts from across various technological areas.

Lim Ben Jie, Organising Chairman of the event, said that as the retail world evolves and changes, it is important for retailers to gather and share knowledge and experience. “The retail world is changing faster than ever, with new technology and customer demands popping up all the time,” he added as he reminded members that MRCA’s direction under President, Dato’ Sharan is all about “Together We Strive”. He continued that MRCA members will be able to thrive better by working and learning together. Ben Jie shared that today MRCA comprises a membership of 550 with a network of 300,000 jobs across the country.

Dato’ Sharan, President, welcomed the audience to the event and thanked the organizing chairman and committee for making the event a success. He encouraged members to continue to attend events organised by MRCA to capitalize on the networking opportunities and to gain new knowledge from business leaders. He thanked the members for taking the time to attend this event and hoped to see more participation in upcoming events in the future.

Dato’ Sharan also warmly welcomed MRCA’s special guest, Tan

Sri Tony Fernandes, Chief Executive Officer of Capital A Bhd who graced the event.

Kun Huang, General Manager of Malaysia, Alibaba Cloud Intelligence said that he was happy to work with MRCA to expand the reach of technology among Malaysian entrepreneurs. He explained that Malaysia has been a key partner with Alibaba and he hopes to continue that relationship with the business community in the country. Kun Huang stressed that Alibaba was excited to continue

to support the retail environment in Malaysia to help retailers to deliver better retail experiences to their customers.

Chris Tung, President of Alibaba Group, Strategic Development, shared about the Digital Journey of Reinventing “New Retail”. He explained that today’s new generation are capitalising on technology to progress and would love to be served better with the power of technology. He explained that traditional retail is about servicing customers in a

reactive way, while new retail is about servicing customers in a proactive way. He continued that retailers have to be able to present customers with new experiences. He said you need Data Intelligence (DI) and AI to work hand in hand to deliver successful new retail experience.

Benjamin Ceng, Director of Retail Solution, Alibaba Cloud Intelligence touched on the topic of New Retail, New Technology, New Market. He explained that technology was a key catalyst in the retail environment and that technology is the success factor in exploring new markets.

Benjamin explained about the various new technologies that can help retailers tap into the current market as well as expand their reach into new markets.

Wong Han Neng, Head of IT & Cyber Security of Charles & Keith Group enlightened the audience on the topic of Transforming Luxury Retail with AI & Big Data. He shared valuable insights on Charles & Keith Group’s methodologies in leveraging on AI and Big Data to tap into market opportunities. He also expounded on the power of AI and Big Data in propelling the company’s luxury apparel business

and in gaining valuable insights on customers’ behaviour trends by using technology.

Last but not least, Lim Ee Mae, Chief Commercial Officer of Presto, shared about Transforming Loyalty: How Presto is Revolutionising Consumer Loyalty. She explained how the company leverages on AI and Big Data to better understand their customers’ behaviour trends and curate exciting loyalty programmes.

The session ended with a dinner where members were able to network and enjoy each other’s company. ■

F&B Division Welcomes The Year Of The Dragon with A Roar

A memorable seafood experience at Mr Fish Seafood Noodles.

In conjunction with Chinese New Year and to welcome the year of the Dragon with a roar, the F&B division hosted a luncheon at the Mr Fish Seafood Noodles restaurant at the Pearl Point Shopping Mall in Kuala Lumpur. The event saw a good turnout of 50 members who had a great time celebrating and networking with fellow retailers and business owners.

Valerie Choo, F&B Council member, welcomed the members and thanked them for taking the

time to attend the luncheon. She also enlightened members about upcoming programmes organised by the F&B Division and encouraged members to capitalise on these events to have a great time as well as to expand their network.

Maggie Law, Director of Mr Fish thanked MRCA for giving her the opportunity to host the luncheon. She shared about Mr Fish’s inception and the inspiration behind it. “Mr Fish was established in 2014 by the Law sisters, and the idea of setting up Mr Fish was inspired by their mom’s Teochew

style homecooked recipes,” she explained.

With that in mind, the sisters created a place like home, with comfort food cooked with the freshest ingredients, true to the restaurant’s tagline “Fresh ingredients, original taste”. Maggie shared that the restaurant’s mission is to use technology to strictly maintain the freshness and quality of seafood, while providing great service in order to leave a memorable mark on customers’ tastebuds and hearts.

The members were treated to a mouth-watering selection of fresh seafood cooked to perfection, demonstrating Mr Fish’s commitment to only offering customers the best. The luncheon was a refreshing start to the lunar new year and gave the members an opportunity to reconnect with business associates, friends and new MRCA members. Overall it was a fabulous afternoon and a great way to embark into the dragon year. ■

Malts From The East: CEO Japanese Whisky Night

Savouring the best of Asian malt.

Grand Brands (M) Sdn Bhd hosted an exclusive whisky tasting night at the Noble Mansion, Plaza 33 in Petaling Jaya. Members had the chance to taste 3 types of exclusive Japanese whisky from malts to grains, from Tottori, Saitama and Toyama prefecture. George Fong, Director of Grand Brands (M) Sdn Bhd, presented an insightful session on the intricacies of premium malts from the east.

He expounded on the Matsui single malt whisky Sakura cask from the Kurayoshi Distillery, the oldest company in Tottori prefecture, which has been operating since the Edo period (17th-19th century). Launched in 2018, this single malt whisky is matured in oak barrels made from cherry blossom trees, and bears a malty and sweet fruity aroma accompanied by a cherry blossom aroma. The whisky is said to have a crisp and fresh

taste with hints of citrus, melon and almond.

Next, George introduced the Saburomaru Junenmyo blended whisky, which was launched in 2019, which comprises 50% heavily peated malt and 50% of grain whisky imported from Scotland that are distilled and aged in Japan. This type of whisky is aged for 3 years in wine barrels and only a small amount of 10,000 bottles a year are released. The whisky has

the aroma of caramel with plum wine and gentle peat, salty licorice chews, dark chocolate and candied cherries. It has a soft taste on the palate accompanied by smoky salty maritime notes, among others.

Last but not least, George enlightened the audience on the Golden Horse Bushu blended whisky which was launched in the 1980s and subsequently relaunched in 2016. This type of whisky is one of the best Asian whiskies in the world with the aroma of fresh lemongrass, accompanied by floral hints. The

whisky offers a rich malty taste with hints of honey and lemon candy.

Sixty members attended the whisky tasting night and had the opportunity to savour these exclusive whiskies in the company of friends and fellow entrepreneurs.

Shirley Tay, Immediate Past President MRCA thanked Beshom Group for hosting this event.

The members also had a fabulous night networking and strengthening friendships as well as business relationships over premium whisky. ■

Kaizen for Work Improvement and Operational Process

According to the Malaysia Productivity Blueprint, in 2015, the productivity performance of many of Malaysia’s subsectors fell short of the 11MP target of RM92,300 value add per worker. Most notably, the services, construction, and agriculture sectors exhibited significantly lower productivity levels compared to the target. Specifically, the wholesale and retail subsectors achieved only RM66,000 value add per worker (refer to Figure 1). Consequently, retailers have to step up their game and make improvements to their organisations and train their employees to be better at their work. One way to make continuous improvement is to practise Kaizen.

Kaizen, a methodology focused on continual enhancement, emphasizes that small, consistent changes can lead to substantial benefits over time. It promotes a culture of continuous improvement and optimising resources. Therefore, it is advantageous for businesses to refine their systems and processes progressively.

On 22 February 2024, MRCA Academy and HRD Corp organised a Masterclass in ‘Kaizen for Work Improvement and Operational

Process’, where professional trainer Cassandra Chan delivered engaging content.

Cassandra stressed the importance of adding value as an employee, highlighting factors such as branding, work quality, convenience, and unique selling propositions. She also addressed productivity initiatives and their impact on sales, workforce size, and efficiency, emphasizing the need for employees to work smarter to resolve challenges.

Moreover, Cassandra emphasised that Kaizen initiatives should originate from top management, with frontline employees providing

real-time feedback on their effectiveness. Kaizen encompasses both methodologies and culture, emphasising the need for a cultural shift towards problem-solving and continuous improvement. Applying Kaizen properly can overcome firefighting problems related to production, quality, cost, delivery, safety and morale.

In retail, one major inefficiency identified is extra processing, where redundant tasks lead to wasted time and resources. Cassandra provided examples such as duplicate data entry and disjointed marketing efforts between online and offline channels, emphasizing

“Applying Kaizen properly can overcome firefighting problems related to production, quality, cost, delivery, safety and morale.”

the need for integration and coherence.

“As an example, an employee writes down customer details in a physical book. After the customer leaves, the employee types the information into a Google form or MS Excel sheet. This is double work. Another example is when a customer request comes in, an employee writes it down in a book. Then, he or she types the request

silo. The efforts frequently overlap, are not integrated, and incur multiple expenses. For instance, in many companies, marketing for online and offline are not the same. There are different multiple promotions for online and offline, and the customers pick up on the discrepancy. Thus, customer satisfaction cannot be achieved85% of customers visit your online shop. They see a special offer online,

loyalty. By streamlining processes and reducing complexity, retailers can create a more seamless experience for their customers. For instance, in a supermarket, there might be a loyalty programme that involves collecting stickers. Meanwhile, an F&B outlet might give customers a little card where they get an ink stamp for every visit. How many cards do customers need to collect and keep track of to redeem rewards? Retailers must think about how to create a simpler journey for customers.

Ultimately, implementing Kaizen does not necessarily require substantial financial investment. Instead, employees can be trained

All You Need To Know About e-Invoicing In Malaysia

WHAT IS E-INVOICING?

e-Invoicing was introduced in the Budget 2024 with a mission on easing the burden of the business enterprises. It basically involves converting paper invoices into digital invoices which provides the company with an accurate, reliable and realtime reporting of its transactions. This is a part of Malaysia’s focus on SME digitalisation and boosting the digital economy. The e-Invoices will cover transactions such as Businessto-Business (B2B), Business-toConsumer (B2C) and Business-toGovernment (B2G) transactions. The e-Invoice will apply to all taxpayers undertaking commercial activities in Malaysia. This includes business engaged in the provision of goods and services and certain non-business transactions between individuals.

The Inland Revenue Board, Malaysia (IRBM) has indicated that e-Invoicing applies to all taxpayers undertaking commercial activities in Malaysia. Companies with an annual turnover or sales exceeding RM100 million are required to

implement e-Invoice commencing 1 August 2024. However, companies with an annual turnover or sales between RM25 million and RM100 would be required to start implementing e-Invoice effectively from 1 January 2025. It is intended that full implementation deadline for all companies in Malaysia will commence on 1 July 2025 onwards.

WHAT CAN COMPANIES EXPECT FROM THE IMPLEMENTATION OF E-INVOICING?

The Malaysian government is introducing e-Invoicing with the intention of tackling tax evasion issues which has been costing the country millions in taxes. The implementation of the digital based system will address the issue directly since all invoices will be processed electronically and are tagged with unique code identifiers. This depth in detail will prevent companies from manipulating or hiding financial information from the government. e-Invoicing system

provides a smooth monitoring and storage of transaction information. Companies will never face issues of losing information or leaking of information, as it is safely recorded and stored within a robust security system. The e-Invoicing system will also provide companies, both large and small a strong unified floor which will promote consistency across diverse sectors in the form of a unified tax system. This will indirectly prevent tax evaders from performing their deeds as all transactions will have a concrete accounting trail.

The challenges commonly faced by Malaysian companies in the current era is on the issues of resolving high cost and staff retention especially when it comes to accounting jobs. All accounting entries are time-consuming, repetitive, boring and stressful leading to difficulties in hiring and retaining accounting staff withing Malaysian companies. The introduction of e-Invoicing will ease the burden of data entry by reducing processing time and manual reconciliation tasks thus making the accounting staff job much easier and less stressful. This will ultimately reduce the burden on companies, as happier accounting staffs can be retained for a longer period of time and cost of having to hire additional

accountants to manage numerous transactions can be minimised. This reduces the time spent by accountants on basic mundane accounting work and focus on higher level of work responsibilities.

The accountants can now focus their energy on how to improve the business instead of worrying on data entry, as the e-Invoicing system can pick up the entries sent by the suppliers. The workloads of the directors are made lighter with much better savings with the implementation of e-Invoicing and can invest more into developing and growing the business.

More advantages await Malaysian companies with the implementation of e-Invoicing. Additional advantages such as quicker and see-through transactions mean more reliability not only on giant companies in Malaysia but also on small and medium sized companies (SMEs). The system provides better accessibility and can accelerate growth of SMEs in order to compete on the global scale. A well-designed e-Invoicing system will create a nourished digital environment that will contribute to a thriving economy. This benefits both companies as well as the country.

Many business owners are agonised by the impact from the implementation of e-Invoicing, as they may need to face many new challenges. The transition from physical invoicing to e-Invoicing may seem as an uphill challenge for many SMEs, as they need to be properly equipped prior to the implementation period. The main challenge would be the cost and time required to integrate e-Invoicing systems in

their businesses. SMEs will be required to make improvements to their processes, bookkeeping, and staff capabilities. The new systems would have advanced features such as batch upload that requires staff training and modifications to the internal system in order to enhance operational efficiency. This may all be costly and time consuming to SMEs, as funds may be scarce. Furthermore, these systems require data such as tax id numbers and appropriate product codes to be prepared in advance of the transition to ensure compliance and accuracy in e-Invoicing which could be quite challenging, as it is a fundamental change to how business transactions were carried out previously.

As of today, many still think that Industry 4.0 only applies to manufacturing which is very far from reality. Let’s understand this, at its core, Industry 4.0 links physical production and operations with the smart digital technology, machine learning and big data in order to create a more all-embracing and better-connected ecosystem for companies that are more focused on manufacturing and supply chain management, by leveraging on the power of Internet of Things (IoT), artificial intelligence (AI), big data analytics and automation. In reality, Industry 4.0 is not only applicable to factories. It is a calculated fulcrum that puts businesses at par with the latest industry practices.

Data analytics has 55 fields to

scrutinise through the mountains of massive invoices, identifying patterns and anomalies that the human eye cannot see; whereas IoT devices provide a real-time snapshot of business activities down to the second. Machine learning algorithms augment themselves based on past audits, which will continuously provide the IRBM with better audit tools. AI brings predictive capabilities, forecasting tax evasions before they occur.

e-Invoice enables the IRBM to move into big data-driven tax audit and investigation. Nonetheless, businesses will achieve higher efficiency and can make speedier and better-informed decisions. Let’s face it, technology is moving super-fast, those who procrastinate will crumble and fall behind in this modern age competitive arena. It is becoming increasingly clear that as we dive into the digital age, the term “adapt or be left behind” has never been more appropriate.

At the end of the day, e-Invoicing offers more pros than cons in respect of minimising the workload, slashing the time consumed and standardising the quality of invoicing compared to the traditional old school paperbased invoicing. Change can be a frightening thing but companies must learn to adapt or risk falling behind time. For organisations and employees alike, the only real security is the ability to grow, change and adapt. ■

Dato’ Seri Dr. Raymond Liew is a Tax Practitioner & the President of McMillan Woods, a global business advisory network.

Industry