Amanda Siddharta
Research expert covering Malaysia
Retail trade in Malaysia - statistics & facts
When Malaysia’s latest shopping mall, The Exchange TRX, opened on November 29, 2023, in its capital, Kuala Lumpur, thousands of people queued up at its door eager to experience the new retail space that offers more than 500 stores. With a total of more than 17 million square meters of shopping complex area within hundreds of luxurious megamalls, Malaysia is a shopping haven for both local and international consumers. Malaysia’s retail trade has grown to be one of the largest industries in the country, contributing around 8.5 percent to the gross domestic product (GDP) in 2023.
One key reason brick-and-mortar retailing remains the most popular choice is that shopping malls have become an integral part of Malaysian consumer culture and the country’s retail industry. Especially for those living in big cities, shopping centers are a place people spend much of their free time. Leading retailers like AEON Malaysia provide one-stop-shopping experiences where consumers can get almost everything they need under one large roof.
As the inflation rate moderated in 2023, the retail industry will likely experience more growth in 2024 as compared to the previous years. Nevertheless, around 25 percent of respondents surveyed in Malaysia in 2023 stated that they were still worried about the country’s economic situation . Thus, some consumers will still be cautious of their spending.
Malaysia’s e-commerce market and resilient mall culture
From 2020 to 2022, the e-commerce market value in Malaysia saw an increase of around 48 percent. The rise of online retail was driven by the restrictions imposed by the government during the COVID-19 pandemic. Nevertheless, the majority of Malaysia’s consumers stated in a 2023 survey that physical stores were still their preferred shopping channel, especially for products like groceries and furniture.One key reason brick-and-mortar retailing remains the most popular choice is that shopping malls have become an integral part of Malaysian consumer culture and the country’s retail industry. Especially for those living in big cities, shopping centers are a place people spend much of their free time. Leading retailers like AEON Malaysia provide one-stop-shopping experiences where consumers can get almost everything they need under one large roof.
Retail rebound as inflation eases
The COVID-19 pandemic and political uncertainties amidst conflict and war have taken their toll on the global economy in recent years. And like other countries, Malaysia is facing the consequences. Increasing prices of basic goods caused by inflation in the country that reached its peak in 2022 highly affected consumers’ purchasing power. According to a 2023 survey, more than half of Malaysian households were impacted by the rising prices.As the inflation rate moderated in 2023, the retail industry will likely experience more growth in 2024 as compared to the previous years. Nevertheless, around 25 percent of respondents surveyed in Malaysia in 2023 stated that they were still worried about the country’s economic situation . Thus, some consumers will still be cautious of their spending.
