According to a report by Maybank IBG Research, retail revenue in 2025 could increase by 9.3% year-on-year, although still below pre-COVID levels due to weak consumer sentiment. Consumer confidence has diminished due to global trade instability and counterfeit goods issues. Nonetheless, it is predicted that by 2026, consumer sentiment will improve thanks to government economic support measures such as extended VAT reductions, free public schooling, and income tax reforms to raise disposable income. The retail sector is expected to continue its growth, with Q3 2025 net profit seeing a 96% increase. Large companies like MWG and MSN are anticipated to lead the market due to their scale and compliance advantages. Furthermore, tightened regulations will create opportunities for modern retail to thrive, reducing the influence of informal retailers. Although not yet dominant, the retail market still shows significant growth potential, especially in groceries, pharmaceuticals, and jewelry.
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