Retail Opportunities in Malaysia

An Expert's View about Retail Sales in Malaysia

Last updated: 17 Jun 2011

The outlook for retailing is positive with the country’s improved economy and rising consumer confidence. The retail sector contributed about £12bn (RM57bn) to GNI in 2009 and created almost 500,000 jobs.

Sector briefing Retail Opportunities in Malaysia Why Malaysia? ? The national pastime is shopping! ? An affluent and growing middle-class with a desire for high quality foreign goods. ? 60% of population is in the middle to high income group with growing purchasing power. ? Recorded strong economic growth of 7.2% in 2010. Trade ? UK and Malaysia ties remain strong based upon a thriving trade and investment relationship (£3.52bn bilateral trade goods and services 2009), close historical and educational ties, a familiar commercial and legal framework and the widespread use of English. th ? Malaysia is the UK?s 35 largest export nd market for goods (2 in South-East Asia after Singapore), worth £1.2billion in 2010 (+18% yoy). st ? Ranked 21 globally by the World Bank for ?Malaysia sees an increase in ?ease of doing businesses.? demand for lifestyle and F designer brands reflected by ind general information on Malaysian market conditions on UKTI?s website. The Doing growing affluence?. Business Guide for Malaysia gives an overview of Malaysia?s economy, business culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Retail opportunities in Malaysia UK & International retail brands present Opportunities in Malaysia Marks & Spencer, Clarks, Body Shop, Royal ? The outlook for retailing is positive with the Doulton, Hugo Boss, Warehouse, Debenhams, country?s improved economy and rising Tesco, Jardines, Dr Martens, Top-shop, Tiffany consumer confidence. The retail sector & Co, Massimo Dutti, Armani Exchange, contributed about £12bn (RM57bn) to GNI Mikimoto, Liz Claiborne, Coach, Ralph Lauren in 2009 and created almost 500,000 jobs. Children, United Colours of Benetton, Thomas ? With rising living standards, consumer Pink, Anya Hindmarch, Ted Baker, DKNY, Paul buying habits have changed from the simple Smith, Mulberry, Paris Hilton, Tommy Hilfiger need for sustenance to sophistication. and Zara. Lifestyle fashion, health and beauty have Malaysia has a dynamic mass grocery retail risen in consumer importance, resulting in a sector with international retailers like demand for designer brands. Carrefour, Dairy Farm, Jusco and Tesco. ? With rising living standards, consumer Expansion plans have been confirmed by the retail buying habits have changed from the simple majors regardless of the impact of the downturn in need for sustenance to sophistication. economic growth. Value sales of food and beverage Lifestyle fashion, health and beauty have products through modern retail outlets are forecast risen in consumer importance, resulting in a to increase by 36.9% by 2013. Tesco has 39 demand for designer brands. hypermarkets and supermarkets throughout ? Malaysia has a young population with 32% Malaysia with new outlets planned. aged 15 years and below and 63.5% in the 15-64 years age group. ? The peak sales period takes place during If you have any questions on the opportunities July/August each year, timed with the above, contact the UKTI Malaysia contacts arrival of tourists from the Middle East. named in this report. Business opportunities aimed specifically at UK companies are added ? Expansion plans in Malaysia?s shopping daily to UKTI?s website. These leads are malls offer many opportunities to sourced by our staff overseas in British international players, where there is already Embassies, High Commissions and Consulates, a strong British presence. Current malls regularly refurbish and reposition across all sectors and in over 100 markets. themselves, while new, large malls are coming up and expanding in the suburban You can be alerted to opportunities in Malaysia areas to offer Malaysian wider access to on a regular basis by registering on the UKTI popular brands. website. More on UKTI?s business opportunities service High Food and Beverage Spending in Malaysia ? With a young population of 28.3 million, Malaysia is one of Southeast Asia's most developed nations with per capita income of US$7,700. 61% of the citizens are belonging to the middle-to-upper-income group. ? Food and beverage expenditure accounts for 25% of the total consumer spending. The per capita food and beverage consumption in Malaysia is forecast to reach a regionally impressive US$479 in 2012. UK Trade & Investment Sector briefing: Retail opportunities in Malaysia Major events and activities Next steps - How UKTI can help Find full details of all Retail related events on the UKTI website. New export events are British companies wishing to develop their added daily to the site and you can register to business in the Malaysian market are advised be alerted to them on a daily, weekly or to undertake as much market research and monthly basis planning as possible in the UK. UKTI?s team in Malaysia, with its wide local knowledge and UKTI?s Tradeshow Access Programme (TAP) experience, can provide a range of services to provides grant support for eligible Small & British-based companies wishing to grow their Medium Sized Enterprises (SME's) to attend business in the Malaysian market. trade shows overseas. Find out more about UKTI support for attendance at overseas This can include: events ? Provision of market information ? Validated lists of agents/distributors Other Retail Related Exhibitions in ? Key market players or potential Malaysia customers in the Malaysian market ? Establishment of interest of such Malaysia International Jewellery Fair (MIJF) contacts in working with you 7-10 July 2011 ? Organise seminars or other events for www.elite.com.my you to meet contacts and promote your company in the Malaysian market Malaysia International Food & Beverage Trade ? Arranging appointments Fair (MIFB) 13-15 July 2011 This work is available via our Overseas Market www.expomal.com Introduction Service (OMIS) a chargeable service which assists British-based companies Food Hotel Malaysia (FHM 2011) wishing to enter or expand their business in 20-23 Aug 2011 overseas markets. www.mes.com. To find out more about commissioning this Malaysia International Jewellery Festival work, or accessing other UKTI services and 7-10 October 2011 specialist advice, please visit the UKTI website www.mij.co.hk to find contact details for your local UKTI office. UKTI contacts Angie Yen Senior Manager for Trade & Investment British High Commission Tel: (00603) 2170 2268 Email: angie.yen@fco.gov.uk www.uktradeinvest.gov.uk Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © Published 2011 by UK Trade & Investment. ©Crown Copyright 2011 You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Retail opportunities in Malaysia
Posted: 16 June 2011, last updated 17 June 2011

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