"Malaysia Retail Report Q4 2015" now available at Fast Market Research

From: Fast Market Research, Inc.
Published: Wed Sep 09 2015

A series of economic changes are set to impact the Malaysian retail sector negativel y in 2015. Decline of oil price made the government to introduce Goods and Services Tax in April in attempts to diversify its sources of income. Fuel subsidies have been removed, ringgit is on a decline against US dollar and consumers' budgets are becoming tighter. As a result, growth in the Malaysian retail sector will slow down in 2015-2016.

As a highly oil & gas dependent country, Malaysia has been hit by the changing oil price landscape in 2015. Fossil fuels directly contribute to 30% of all government revenues in Malaysia and a 40% drop in oil price in 12 months requires the country to rebalance its budget. First, fuel subsidies were removed allowing petrol price to rise. Consumers and businesses are facing higher transportation costs, and due to inelastic nature of demand for petrol, Malaysians will see their disposable incomes decline in 2015-2016. Second, the government moved further in rebalancing the budget and introduced a Goods and Services Tax (GST) in April 2015. Most of the retail products qualify for the new 6% tax which is in turn squeezing profit margins for retailers and decreasing the purchasing power of Malaysian wages. As a result, consumer sentiment fell to a six-year low in July 2015, according to the Malaysian Institute of Economic Research. The holy month of Ramadan, which typically generates large volumes of sales as stores launch promotions in order to attract customers, was disappointing for retailers, some of whom faced 20% declines in sales compared with last year. Consequently, we forecast that total household spending will have fallen by 5.2% in US dollar terms by the end of 2015.

Full Report Details at
- http://www.fastmr.com/prod/1038309_malaysia_retail_report_q4.aspx?afid=302

The Malaysia Retail Report has been researched at source and features BMI Research's independent assessment and forecasts for the retail sector. The report examines key drivers of retail sales growth and future prospects, including consumer spending and private sector investment.

BMI's Malaysia Retail Report also examines the level of development and potential for growth of the retail sector, the commercial initiatives of major players, changing consumer demographics that influence demand and the regulatory environment. Key sub-sectors include mass grocery retail, autos, over-the-counter pharmaceuticals, computers and consumer electronics.

Key Benefits

* Benchmark BMI's independent retail industry forecasts for Malaysia to test other views - a key input for successful budgeting and strategic business planning in the Malaysian retail market.
* Target business opportunities and risks in Malaysia through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.


BMI Industry View

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Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001

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