KUALA LUMPUR: Retailers need to brace for volatility and uncertainties in the next five months despite a positive growth in the first half of this year, MRCA president Datuk Ken Phua said.
Phua said retailers will seek turnarounds to restore their financial health if they encounter challenges, noting that 60 per cent of the global population are single, prompting a need for strategy recalibration.
Phua 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 ever changing 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 atrract the buying behaviour of the population," he said at the Retail Conference organised by MRCA today.
Jeffrey Ng, RHB Banking Group group community banking managing director, 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," he said at the event.
Officiated by Deputy Minister in the Prime Minister's Department (law and institutional reform) M. Kulasegaran, the conference is held in conjunction with the Franchise Expo Malaysia (FEM) 2024.
Themed as "Post Pandemic Retail: Challenges and Transformation", MRCA Retail Conference discussed the new retail landscape and pivot strategies for thriving in this environment.
Phua highlighted that the government gives steadfast support to small and medium enterprises (SMEs), which have been instrumental in fostering growth and innovation within the sector.
"This commitment has been instrumental in fostering growth and innovation within our sector.
"Retailers, being a significant part of the SME ecosystem, have shown resilience and adaptability in these challenging times," he added.