For the past weeks before the General Election, we have made cold-calls to businesses in virtually every part of Penang and made visitations to all forms of businesses and meeting entrepreneurs. From bakery to hair salons, from restaurants to optical shops. From start-ups to companies in the process of listing.
One of the things that we noted and we are in agreement with an article recently published in BizWeek, The Star dated 22 March 2008 under Companies & Strategies, that there is an absence of world-class companies within Malaysia. (Refer http://malaysiafinance.blogspot.com/2008/03/absence-of-world-class-companies.html)
Definitely the article raised relevant issues that are prevailing within an organisation or an institution. However, we write to provide certain widely-acceptable answers to the questions in the checklist of the article, based on our personal experiences, expectations and not supporting anyone including us, being advisors and consultants.
For the questions, kindly refer to the said article provided in the website.
a) All businesses whether in making, strictly new or still active, do have some form of product strategy. Nevertheless, the key word, "strong product strategy" needs to be considered.Most entrepreneurs deliberately learn about the 4Ps; product, price, place and promotions before setting up businesses.
In fact, in our recent meeting with an arm of Boon Siew Group, we were "tried" by the managers on our knowledge of retail mix.Our deliberation on the strong product strategy would be, how does one measure the success of the product strategy and its strength. To a newcomer in business, just breaking-even within 6 months would have the same satisfying effect as to the making $120 million revenue of a company with strong financial support.
b) To do business, is to profit. If its non-profiting, it is either charity-based or public service. Definitely top management wants to seek improve margins and ways to manage finance better.
c) In most cases, business owners are consumed to know who, what and how are the competitors performing. In relation to this, business owners take efforts to find innovative ways to increase their market shares.
d) Whilst business owners are often innovative and creative in finding new solutions, often the solutions bring about newer problems to be addressed such as resources and time factors to implement the ideas. In the world of retailing especially, quality and quantity in human resources and raising fresh capital often delays even the best plans in mind. Over time, the innovation or inqenuity had been superseded by better ideas or plans which may come from competitors.
e) Companies that are established over years often adopts certain workable strategies that are often repeated. Where business growth is concerned, the same management may utilise the same key performance indicators that had largely made them successful.
In our mind, whether the strategy on growth is organic or via acquisitioning (buying advance products, services or franchised systems), a learning organisation should not put thoughts in one basket but to create newer business units and divisions to handle different product or services business growth rate. Hence companies such as Procter & Gamble or L'Oreal often have several brand managers taking care of many different types of product ranges.
As for other questions in the checklist itemised f to k, it is of note that is the basic model for a world-class companies albeit at a start-up level.
For a company to be world-class, in our opinion, they would have to go beyond the checklist.
Current active businesses hoping to turn world-class would have often amalgamate the checklist with their management responsibility and by participation, through their business experiences gained, through years of dealing with different types of staff and staff turnover, and through business associations or getting advisors and consultants in for the businesses; they have gained the understanding of what is required for the business to be world class.
In this aspect of understanding the needs and wishes of our business owners, we will depart from the article in which it firstly hypothesised,
"We also have far too many family-run enterprises. They have to learn to let go and let professionals to take over. Nepotism is rife in Aisa and only a very small percentage of family run companies do very well".
From our perspective, even if professionals were to take over the businesses but doing it for the sake of pay and trying to get results by virtue of business orientation - meaning to say, sending a memo to all the staff, please smile when attending to customers as part of the Customer Relationship Program, that memo will be largely ignored and business will surely fail.
Sam Walton of Wal-Mart made Wal-Mart today because he practiced what he preached. And how he practices it, is to do it himself. He then rub his life philosophy onto his children, their children, his staff and their children, creating a wholesome culture appreciated by the common people who buys from Wal-Mart.
The only time family run companies will perform badly; will be when there are internal conflicts amongst the family members and the people in the companies taking sides.
On the second hypothesis,
"Their mentality also restricts how a good company can grow further. Professional managers know better. Do we have the political will to employ them? Or are the entrenched interests too strong to dismantle?"
Their mentality is also our mentality. Their children and our children study in the same science/art stream, same college and in some cases, same universities. They are exposed to the same environment as we all are.
Critically we wish to point out, in most cases, a professional manager will push for his/her ideas to be generally accepted because its the role that he/she has to play. Whether a professional manager knows better or not, it is depending on skill level to explain, sell the idea, negotiate even and gaining momentum for the ideas to be fully accepted. Ideas that are pounded into acceptance or used to dismantle another idea, would often be subjected to future criticism and put on microscope at a later stage of management study when cracks start to appear.
We do strongly agree with the writer, Salvatore Dali, for the companies to be going somewhere, creating value and knowing what the critical success factors are - only then the companies will be world class. We believe that to achieve world-class is something that all of us should strive together to perform and support one another.
To be the next New York Fifth Avenue, all the businesses whether inter-business or intra-business should co-operate to launch their sector actively to a target market nation such as US, Australia or EU to ensure heads are turned this way.
To end this remarkable article published in BizWeek, we wish to summarise our contribution, We are Not Alone in Thoughts. Every business owner, every Malaysian, has the wants to be world-class, the good questions to ask, is how and when.
Monday, March 24, 2008
Sunday, March 23, 2008
Automobile Industry 22 Mar 2008 (The Star)
Tan Chong Aims For Bigger Market Share
The company aims for 1% increase every year, says exec director Datuk Dr Ang Bon Beng.
Nissan Motor Co Ltd President and CEO Carlos Ghosn reaffirmed that strong products would be necessary for Nissan to achieve sustainable and profitable growth in Malaysia.
He outlined that clear business goals, a well-timed and concrete product introduction strategy, and well-established service operations network would be key drivers behind the dynamic partnership between Nissan and Tan Chong Motor.
Proton Can Survive if Managed Well
Nissan Motor Co. Ltd. and Renault SA President and CEO Carlos Ghosn believes that car manufacturers can survive if they know their markets well and their business well.
"Working in a company with a different culture is not easy. However, when people who come from different cultures and speak different languages come together with one purpose and one vision, they can be very powerful and eliminate the competition."
Ferrari Names Naza Italia Sole Distributor for M'sia
CEO S.M. Faisal S.M. Nasimuddin said,
The group will invest substantial amount in customer relationship management, sales and after sales services, training, branding and marketing activities.
Ferrari Asia-Pacific regional business manager Simon Inglefield said,
The group would study the Malaysian market demand first and supply according to that.
The company aims for 1% increase every year, says exec director Datuk Dr Ang Bon Beng.
Nissan Motor Co Ltd President and CEO Carlos Ghosn reaffirmed that strong products would be necessary for Nissan to achieve sustainable and profitable growth in Malaysia.
He outlined that clear business goals, a well-timed and concrete product introduction strategy, and well-established service operations network would be key drivers behind the dynamic partnership between Nissan and Tan Chong Motor.
Proton Can Survive if Managed Well
Nissan Motor Co. Ltd. and Renault SA President and CEO Carlos Ghosn believes that car manufacturers can survive if they know their markets well and their business well.
It is not true that only large car manufacturers can service because evenhe said.
they can collapse,
"Working in a company with a different culture is not easy. However, when people who come from different cultures and speak different languages come together with one purpose and one vision, they can be very powerful and eliminate the competition."
Ferrari Names Naza Italia Sole Distributor for M'sia
CEO S.M. Faisal S.M. Nasimuddin said,
We see Ferrari as an iconic brand with good growth potential in the niche market
of high-end automobiles and we see te need to maximise the ownership experience
of Ferrari users.
The group will invest substantial amount in customer relationship management, sales and after sales services, training, branding and marketing activities.
Ferrari Asia-Pacific regional business manager Simon Inglefield said,
Ferrari is selling dreams, not cars.
The group would study the Malaysian market demand first and supply according to that.
Tuesday, March 4, 2008
Penang Retail Outlook 2010
By 2010, we will see some 25.0 million square foot of retail space in Penang.
This figure is just a rough estimate given project sizes of Paragon Hunza, Gurney Plaza New Wing, Penang Time Square, The Light, PGCC, Juru Autocity and malls that are planned and developed on continuous growing year by year basis.
Given that the population growth of more or less the same every year, some 1.5 million people on the Island and additional 0.5 million people on the Seberang Prai area, the economics for retail may be in present, downward spiral. There is also an national inflation of 2%-20% to be added to current pricing.
Contributory to the effect, worldwide recession has started with United States due to prime home loans affair and also inflation in China, that create future problems even though there may be an increase of tourists to the Island but the spendings may be limited by the same tourists.
Every year as the new generations of youths aging 20-40 years old becoming more entrepreneurial, we shall see some 15,000 new brand or businesses emerging (assuming each business is to take up 1,000 sq.ft for retail).
At present,
Penang Retail Outlook 2008
There are an estimated figure of over 10 million square foot of lettable retail space in Penang.
(8.0 million sq. ft. based on NST report in 2004 excluding Queensbay Mall)
Sources:
http://www.nst.com.my/Weekly/PropertyTimes/News/Focus/20040724125056/Article/
http://www.hbp.usm.my/RetailPG/bayan%20baru.htm
http://www.penangresort.com/rhi/news2.php?subaction=showfull&id=1123133533&archive=&start_from=&ucat=1&
http://biz.thestar.com.my/news/story.asp?file=/2007/6/23/business/18100855&sec=business
http://www.seri.com.my/oldsite/EconBrief/EconBrief2002-11.PDF
http://announcements.bursamalaysia.com/EDMS/subweb.nsf/7f04516f8098680348256c6f0017a6bf/a5165d375a53769d48256f3c00309cd1/$FILE/Suiwah-AnnualReport2004.pdf
http://www.tourismpenang.gov.my/page.cfm?name=se02c
This figure is just a rough estimate given project sizes of Paragon Hunza, Gurney Plaza New Wing, Penang Time Square, The Light, PGCC, Juru Autocity and malls that are planned and developed on continuous growing year by year basis.
Given that the population growth of more or less the same every year, some 1.5 million people on the Island and additional 0.5 million people on the Seberang Prai area, the economics for retail may be in present, downward spiral. There is also an national inflation of 2%-20% to be added to current pricing.
Contributory to the effect, worldwide recession has started with United States due to prime home loans affair and also inflation in China, that create future problems even though there may be an increase of tourists to the Island but the spendings may be limited by the same tourists.
Every year as the new generations of youths aging 20-40 years old becoming more entrepreneurial, we shall see some 15,000 new brand or businesses emerging (assuming each business is to take up 1,000 sq.ft for retail).
At present,
Penang Retail Outlook 2008
There are an estimated figure of over 10 million square foot of lettable retail space in Penang.
(8.0 million sq. ft. based on NST report in 2004 excluding Queensbay Mall)
- Queensbay Mall (1.5 million sq. ft) 500 shops
- Sunshine Square (452,000 sq.ft)
- Bukit Jambul Shopping Complex (999,604 sq.ft) 414 shops
- Gama (no details offered by Evelyn, Business Dev. Mgr 06 March)
- Bayan Central Complex (440,640sq.ft?)
- Gurney Plaza (754,000 sq.ft)
- Island Plaza (320,000 sq.ft)
- Komtar Complex (148,534 sq.ft)
- One-Stop Midlands Park Centre
- Prangin Mall (900,000 sq.ft) 593 shops
- Suiwah (combined space) Sunshine Farlim, Sunshine Jelutong
- Sunshine Square
- Sunway Carnival (500,000 sq.ft)
- Pan Palaca Plaza (110,000 sq.ft)
- Penang Plaza
- New World Park
- Pacific Megamall
- Bukit Mertajam Plaza
- Kompleks Pekan Rabu Datuk Kailan
- retail squares at Sungai Dua, Penang.
- Prima Tanjung, Medan Fettes.
- Ivory Properties behind USM.
Sources:
http://www.nst.com.my/Weekly/PropertyTimes/News/Focus/20040724125056/Article/
http://www.hbp.usm.my/RetailPG/bayan%20baru.htm
http://www.penangresort.com/rhi/news2.php?subaction=showfull&id=1123133533&archive=&start_from=&ucat=1&
http://biz.thestar.com.my/news/story.asp?file=/2007/6/23/business/18100855&sec=business
http://www.seri.com.my/oldsite/EconBrief/EconBrief2002-11.PDF
http://announcements.bursamalaysia.com/EDMS/subweb.nsf/7f04516f8098680348256c6f0017a6bf/a5165d375a53769d48256f3c00309cd1/$FILE/Suiwah-AnnualReport2004.pdf
http://www.tourismpenang.gov.my/page.cfm?name=se02c
Tuesday, January 29, 2008
Trapped By Development (Email)
Today was a field day for me as I was in two meetings, walked an entire mall and several streets of Penang.
The activities that I was in or witness to, they made me feel disheartened about the way of life in Penang and of things to come.
In the months to come I will be seeking out new people who are particularly interested in what I am fond of, which is to see to good changes in Penang.
What I mean as good changes is not purely on monetary value but also on providing societal transformation street by street.
The Penang’s economies are not recession proof. Part of the reasons for bad economies comes from poor co-operative planning where people continue to work on developments individually.
Belleview recently announced its plan to launch a new upmarket shopping mall in the heart of Georgetown, with some 600,000 sq. ft. of lettable area. This comes on top of the Paragon Mall (Hunza), the Gurney Plaza’s new wing (CapitaRetail), Penang Time Square (Ivory Prop.) and then there is D’Piazza Mall at Bayan Baru that claims 89 out of 90 units 3-storey shoplots have been snapped up but now open for leasing by Henry Butcher. Then, there is the unaccounted for Penang Global City Centre.
So, if we are talking about some 15,000,000 sq ft of retail space, which is 3 times the size of the new 1 Utama plus IKEA and all else, can Penang and other states business owners have sufficient capital to rent or buy up shop-lots and then run a successful retail business?
If yes, then working out on a 1,000 sq ft per unit per business, my advisory firm may get a chance to perhaps advise a percentage of the 15,000 business owners. Wow.
In the best interest of Penang and its people, I am thinking of getting good people to sit, discuss and draw up plans which can be presented to the State Government and interested parties on developing industries in Penang. Although big businesses had come out to say that sentiment in consumer sector can help to sustain the industry, those that are interviewed are giants, such as Carrefour, F&N, Nestle, Poh Kong, BAT and Pelikan whose businesses do not rely on local market to succeed.
Whether it’s a retail, a financial bank, a SME or a stock broking firm to try to survive tomorrow; advisory and research companies located far away from Penang, predicting good growth potential should go down to the streets on a Tuesday.
The Government’s initiative to relax the EPF Account 2 to stimulate consumer spending on consumable (retail) and non-consumable good (property), which led our Bank Negara to imply that there are RM31 billion extra to spend, has all the tale of property development by the affordable. The 2 million people in the whole of Penang will not categoretically spend that bit and definitely not going to buy 5 shop-lots and make into a single business.
What is presented here is a challenge. For us, the thinkers, to continue to make Penang attractive since we will be here for a while. (I was more impressed by the trishaws in the hutongs, China than dirty state of trishaws taking our tourists around Penang).
Do let me know if we have common interests.
Best regards,
Erasmus
The activities that I was in or witness to, they made me feel disheartened about the way of life in Penang and of things to come.
In the months to come I will be seeking out new people who are particularly interested in what I am fond of, which is to see to good changes in Penang.
What I mean as good changes is not purely on monetary value but also on providing societal transformation street by street.
The Penang’s economies are not recession proof. Part of the reasons for bad economies comes from poor co-operative planning where people continue to work on developments individually.
Belleview recently announced its plan to launch a new upmarket shopping mall in the heart of Georgetown, with some 600,000 sq. ft. of lettable area. This comes on top of the Paragon Mall (Hunza), the Gurney Plaza’s new wing (CapitaRetail), Penang Time Square (Ivory Prop.) and then there is D’Piazza Mall at Bayan Baru that claims 89 out of 90 units 3-storey shoplots have been snapped up but now open for leasing by Henry Butcher. Then, there is the unaccounted for Penang Global City Centre.
So, if we are talking about some 15,000,000 sq ft of retail space, which is 3 times the size of the new 1 Utama plus IKEA and all else, can Penang and other states business owners have sufficient capital to rent or buy up shop-lots and then run a successful retail business?
If yes, then working out on a 1,000 sq ft per unit per business, my advisory firm may get a chance to perhaps advise a percentage of the 15,000 business owners. Wow.
In the best interest of Penang and its people, I am thinking of getting good people to sit, discuss and draw up plans which can be presented to the State Government and interested parties on developing industries in Penang. Although big businesses had come out to say that sentiment in consumer sector can help to sustain the industry, those that are interviewed are giants, such as Carrefour, F&N, Nestle, Poh Kong, BAT and Pelikan whose businesses do not rely on local market to succeed.
Whether it’s a retail, a financial bank, a SME or a stock broking firm to try to survive tomorrow; advisory and research companies located far away from Penang, predicting good growth potential should go down to the streets on a Tuesday.
The Government’s initiative to relax the EPF Account 2 to stimulate consumer spending on consumable (retail) and non-consumable good (property), which led our Bank Negara to imply that there are RM31 billion extra to spend, has all the tale of property development by the affordable. The 2 million people in the whole of Penang will not categoretically spend that bit and definitely not going to buy 5 shop-lots and make into a single business.
What is presented here is a challenge. For us, the thinkers, to continue to make Penang attractive since we will be here for a while. (I was more impressed by the trishaws in the hutongs, China than dirty state of trishaws taking our tourists around Penang).
Do let me know if we have common interests.
Best regards,
Erasmus
Monday, January 14, 2008
Who's Who in Your Company
In Malaysia scene, most of the times, companys hide behind layers of corporate veils in terms of recognising Founding members of businesses and strong corporate profiles.
Why is that?
Malaysian retail business is still considerably small.
As such, either the business owners are often pestered by sales people. Or, they do not wish their competitors to get whiff of where the business is heading.
In international business scene, such as in US, their entrepreneurs are particularly proud of their business and often portray as the strong leader for the business front.
However, again the ones that we know of are big in the business industry.
Nevertheless, it doesnt really matter if your business is very big (how big is big?) or small, but how wonderful is your business to your customers and how satisfying is it to deal business with you as partners, suppliers and even consultants.
Be the person in business and put your profile where the world can see.
Why is that?
Malaysian retail business is still considerably small.
As such, either the business owners are often pestered by sales people. Or, they do not wish their competitors to get whiff of where the business is heading.
In international business scene, such as in US, their entrepreneurs are particularly proud of their business and often portray as the strong leader for the business front.
However, again the ones that we know of are big in the business industry.
Nevertheless, it doesnt really matter if your business is very big (how big is big?) or small, but how wonderful is your business to your customers and how satisfying is it to deal business with you as partners, suppliers and even consultants.
Be the person in business and put your profile where the world can see.
Wednesday, January 2, 2008
Retail Industry Needs Bigger Pie
Selection text from NST, Biz News, 2 Jan 2008, pg 38.
2008 Outlook by Toh Peng Koon, President of Malaysia Retailers Association
Q1. Challenges for local retail industry this year.
Too many shopping complexes that have just been completed or under construction or being planned.
Increased by 20% with the opening of 6 malls and expansion of one mall in Kuala Lumpur.
The retail industry could not expand in tandem to support this sudden explosion of retail space.
Explosion of retail space, shortage of staff is worsening. This would add pessure to salary and costs of operations to the retailers.
Growth in the the retail industry would be capped by the higher cost of living which has been escalating.
With oil prices touching the US$100 (RM 331) per barrel mark, the worsening rising cost of living expenses would post a major challenge to the industry.
Q2. Ways to overcome these challenges?
To enlarge the retial pie via tourism.
To extend the Visit Malaysia Year 2007 to 2008 as 25% of total tourists receipts is from shopping. So far, VMY 2007 has been successful.
For Malaysia to be as a preferred shopping destination in the region, it is mandatory that retailers should keep up with the latest development in store layout, design, materials, concept, fixtures, current hot brands of merchandise (that would require realignment of layout) as well as appropriate maintenance to keep the store fresh and presentable.
Hope the Government through Inland Revenue Department would help to reduce costs of operations by allowing full cost of refurbishment to be tax-deductible.
Q3. Trends that could shape the retail industry this year.
Increase interest from the Malaysian and foreign institutional investors and property funds in commercial properties. Sell and lease-back activities were also common. This would help improve the overall complex management standard.
Hypermarkets are on aggressive trail and department stores rae making significant tenancy commitment as anchor tenants in the major shopping complexes. This could add pressure to productivities.
Q4. Prospects for the Retail Industry 2008
Average rate for past 3 years had been 8% and 2006 retail sales growing 8.4% year-on-year.
Positive factors that can sustain growth rate for 2007 include salary adjustment for civil servants, increased public spending and a bouyant stock market.
Hypermarkets topped the value sales growth in 2006 due to authorities' relaxation in the ruling governing the opening of hypermarkets.
Non-grocery sectors are also expected to perform better for 2007. So the year end prediction is expected to be 8%.
For 2008, it is not so optimistic. Retail are expected to perform more or less in tandem with the country's Gross Domestic Product growth.
2008 Outlook by Toh Peng Koon, President of Malaysia Retailers Association
Q1. Challenges for local retail industry this year.
Too many shopping complexes that have just been completed or under construction or being planned.
Increased by 20% with the opening of 6 malls and expansion of one mall in Kuala Lumpur.
The retail industry could not expand in tandem to support this sudden explosion of retail space.
Explosion of retail space, shortage of staff is worsening. This would add pessure to salary and costs of operations to the retailers.
Growth in the the retail industry would be capped by the higher cost of living which has been escalating.
With oil prices touching the US$100 (RM 331) per barrel mark, the worsening rising cost of living expenses would post a major challenge to the industry.
Q2. Ways to overcome these challenges?
To enlarge the retial pie via tourism.
To extend the Visit Malaysia Year 2007 to 2008 as 25% of total tourists receipts is from shopping. So far, VMY 2007 has been successful.
For Malaysia to be as a preferred shopping destination in the region, it is mandatory that retailers should keep up with the latest development in store layout, design, materials, concept, fixtures, current hot brands of merchandise (that would require realignment of layout) as well as appropriate maintenance to keep the store fresh and presentable.
Hope the Government through Inland Revenue Department would help to reduce costs of operations by allowing full cost of refurbishment to be tax-deductible.
Q3. Trends that could shape the retail industry this year.
Increase interest from the Malaysian and foreign institutional investors and property funds in commercial properties. Sell and lease-back activities were also common. This would help improve the overall complex management standard.
Hypermarkets are on aggressive trail and department stores rae making significant tenancy commitment as anchor tenants in the major shopping complexes. This could add pressure to productivities.
Q4. Prospects for the Retail Industry 2008
Average rate for past 3 years had been 8% and 2006 retail sales growing 8.4% year-on-year.
Positive factors that can sustain growth rate for 2007 include salary adjustment for civil servants, increased public spending and a bouyant stock market.
Hypermarkets topped the value sales growth in 2006 due to authorities' relaxation in the ruling governing the opening of hypermarkets.
Non-grocery sectors are also expected to perform better for 2007. So the year end prediction is expected to be 8%.
For 2008, it is not so optimistic. Retail are expected to perform more or less in tandem with the country's Gross Domestic Product growth.
Tuesday, November 6, 2007
Drafted Review on Economic Report 2007/2008
The stated Review is temporary due to lack of evidence or data to be extracted herein. The Review is based on personal opinions, thoughts for the day or specific issues to be addressed.
For more concise and accurate Review, kindly revisit this page again.
---------------------------------------------------------------------------------------------
For the purpose of discussion, the Economic Report 2007/2008 had been reviewed for its data in the Retail Market especially in Penang.
In a management book, (to be quoted), the US Retail contributes 9% out of 12% Gross Domestic Product (GDP) growth for the country back in Year 2004.
In Malaysia's scene, our retail market had not been truly measured or had been given proper highlight in the economic front.
In the coming months ahead, especially in Penang, more malls will ready for retailers to occupy. Some of the on going projects include; Hunza (Kelawei Rd), expansion of Gurney Plaza (Kelawei Rd) and Penang Time Square (Georgetown).
Given that the consumer price index (CPI) has increased by 2%, and in reality prices of consumer products had increased from 20% to 30%, this will put pressure on the consumer's wallets and thereby affects the retail sectors.
So far, in the Economic Report 2007/2008 that provides our economic outlook did not provide CPIs and in fact, indicated "not available" in matters related to inflation and price index growth.
In the pie chart showing the various sectors involved by the Malaysians, the retail sector was indicated as having some 20% or more percentage (to be made accurate) and no details had been given on actual retail brand outlets or floor space but more onto retail services related to construction and other matters.
In the next few weeks, we will provide better capture of the Economic Report 2007/2008 and present herein.
For more concise and accurate Review, kindly revisit this page again.
---------------------------------------------------------------------------------------------
For the purpose of discussion, the Economic Report 2007/2008 had been reviewed for its data in the Retail Market especially in Penang.
In a management book, (to be quoted), the US Retail contributes 9% out of 12% Gross Domestic Product (GDP) growth for the country back in Year 2004.
In Malaysia's scene, our retail market had not been truly measured or had been given proper highlight in the economic front.
In the coming months ahead, especially in Penang, more malls will ready for retailers to occupy. Some of the on going projects include; Hunza (Kelawei Rd), expansion of Gurney Plaza (Kelawei Rd) and Penang Time Square (Georgetown).
Given that the consumer price index (CPI) has increased by 2%, and in reality prices of consumer products had increased from 20% to 30%, this will put pressure on the consumer's wallets and thereby affects the retail sectors.
So far, in the Economic Report 2007/2008 that provides our economic outlook did not provide CPIs and in fact, indicated "not available" in matters related to inflation and price index growth.
In the pie chart showing the various sectors involved by the Malaysians, the retail sector was indicated as having some 20% or more percentage (to be made accurate) and no details had been given on actual retail brand outlets or floor space but more onto retail services related to construction and other matters.
In the next few weeks, we will provide better capture of the Economic Report 2007/2008 and present herein.
Subscribe to:
Posts (Atom)