Fuelled by e-commerce, Indonesia and Malaysia in top 5 of retail index: Page 3 of 3
By Masyitha Baziad June 8, 2016
With a population only one-eighth that of its neighbour Indonesia, Malaysia sits at the respectable No 3 spot of the GRDI list, thanks to its low country risk index.
According to A.T. Kearney, Malaysia has the most business-friendly environment among South-East Asian countries, and that is why retailers remain positive about its potential despite its slowing GDP (gross domestic product) growth, depreciating currency, and recent corruption scandals.
But the consulting firm also noted that the modern retail space in Kuala Lumpur has already reached saturation point, and that such development should be shifted to other cities such as Kuching.
The A.T. Kearney report also found that the market for both small-format grocers and hypermarkets is on the rise, noting that 7-Eleven Malaysia announced a plan to upgrade 200 stores and open 200 more.
The report noted the aggressive expansion by regional e-commerce players, especially Zalora, which has offered to absorb the 6% Goods and Services Tax (GST).
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