UNITED MISSION PRESS SDN BHD (755329-X) No. 15, Perindustrian BS 9, Jalan BS 9/10, Taman Bukit Serdang, 43300 Seri Kembangan, Selangor. Tel: +603-8958 0186 Fax: +603-8945 5168
Mark Leow, Group Managing Director and Founder of Verity Intelligence
President’sMessage
Dear Members,
As we pass the halfway mark of 2025, I take this opportunity to reflect on the momentum we have built over the past weeks. What stands out is not only the breadth of activities undertaken by MRCA, but also the unwavering commitment of our members and stakeholders in keeping Malaysia’s retail industry vibrant, relevant, and resilient.
One of the most significant highlights is our role in the Franchise Expo Malaysia 2025 scheduled to be held from 21-23 August 2025. The excitement surrounding this event is palpable—projected to generate over RM120 million in transaction value and draw 18,000 visitors, this platform is more than just a business expo. It is a stage where local entrepreneurs, regional brands, and global networks converge.
We also continued our mission of fostering industry collaboration through various engagements. Our F&B Division’s visit to Kopi Kenangan served as a platform for knowledge exchange and peer support. These intimate sessions allow us to learn from one another, share operational insights, and strengthen the sense of community that makes MRCA so unique.
MRCA continues to engage with external partners – our recent meetings with Merchantrade Asia and Maxis exemplified the importance of partnerships in driving digital transformation, financial inclusion, and operational efficiency. It is through such dialogues that we identify shared goals, explore innovation, and cocreate solutions that benefit the wider ecosystem.
At a national level, MRCA remains vigilant and vocal on policy matters that affect our members. We have voiced our strong opposition to the expansion of the SST to include commercial property rentals, joining hands with fellow retail and SME associations to present a united front. While we understand the government’s fiscal responsibilities, we believe any new policy must consider the real-world challenges retailers face. Increased operating costs, compounded by SST expansion, could severely impact margins, business confidence, and consumer spending. MRCA will continue advocating for fairer solutions through meaningful dialogue.
Meanwhile, I am heartened by the overwhelming support and camaraderie shown during our MRCA Charity Golf & Champion Durian Gala Dinner. It was a night to remember—an evening of elegance, laughter, and durian indulgence, thoughtfully curated by Malaysia’s own Chef Wan. Beyond the festivities, the event successfully raised funds for our Branding, Education and Charity Foundation, reminding us of the importance of giving back even as we grow our own businesses.
Lastly, I urge all members to participate in the Malaysia Retail Sales Survey for Q1 2025, a joint effort by MRCA and MRA in partnership with Retail Group Malaysia. Your participation will not only provide valuable data for benchmarking but also help shape the national conversation on retail trends, opportunities, and challenges.
In closing, I want to thank each of you for your unwavering support, participation, and trust. MRCA is not just a business association—it is a community, a movement, and a force for progress in the retail industry. Let’s continue to uplift each other, push boundaries, and champion Malaysian retail with pride and purpose.
See you at our next event. Have a good read.
Datuk Dr. Ken Phua President 2024-2026
Malaysia Retail Chain Association
VERITY INTELLIGENCE: EMPOWERING SMARTER, SAFER HIRING ACROSS SOUTHEAST ASIA
Transforming the way businesses approach hiring.
In today’s fast-paced hiring landscape, trust and transparency have become essential for businesses of all sizes. From retail chains to growing SMEs, the need to make informed hiring decisions has never been more critical. Verity Intelligence is leading the way in transforming background screening across Southeast Asia. By making these essential services faster, more affordable and more accessible, Verity empowers businesses to protect themselves from costly mistakes, one hire at a time.
A LEGACY ROOTED IN GRIT AND SALES
For Mark Leow, the Group Managing Director and Founder of Verity Intelligence, the entrepreneurial journey began at home. Growing up, he watched
his father build a seat belt factory from scratch and eventually turn it into a publicly listed company. That early exposure to business and the sacrifices it required left a lasting impression on him.
His own journey began at the age of 14, selling toys during school holidays. That part-time job ignited a love for sales. Later, he worked at his father’s factory, handling signage and installations, which further instilled the values of grit and hard work. Although he struggled academically in school due to language barriers, his mindset shifted in college, where he discovered his passion for learning. This led to a scholarship in the United States and a degree from San Francisco State University, followed by a 1-year stint working in San Francisco.
Upon returning to Malaysia, he joined the family business, but
eventually chose to forge his own path in IT and tech innovation. In 2002, he launched a rental-based software model before the term SaaS (Software as a Service) even existed. This innovation would later become the foundation for Verity Intelligence.
ADDRESSING GAPS IN HIRING
While working as a head-hunter, he noticed that nearly half of the resumes he reviewed contained false information or exaggerated claims. These inaccuracies often led to serious consequences: fraud, theft, rehiring costs and underperformance. More concerning was that background screening services were expensive and limited to C-level hires in multinational corporations. Small businesses and retailers were left vulnerable. This realisation led to a bold vision: to make background
Many
of my clients were frustrated by the wait time for background checks. So in 2020, I founded a tech company using AI to screen names against criminal records, watchlists, and blacklists. Our system flags issues in 15 to 18% of cases. For retailers and SMEs facing high staff turnover and pilferage, instant checks are a game changer.
–
Mark Leow, Group Managing Director and Founder of Verity Intelligence
screening accessible, affordable, and standard practice for all businesses, especially SMEs and retailers where risks are high and margins thin. In 2020, this vision came to life with the creation of VERISafe, a fast, affordable and instant screening tool tailored specifically for these industries.
BUILDING A BETTER SOLUTION
Traditional background checks were expensive and timeconsuming, often handled by private investigators at a cost of thousands per check. This was unsustainable for fast-paced industries like retail. Mark saw an opportunity to disrupt this
model by developing a tech-driven solution that was fast, reliable and cost-effective.
Starting from scratch, he built the technology, processes and reporting standards in-house. His goal was simple: every business, no matter how small, should have the power to protect itself.
VERITY INTELLIGENCE’S SCREENING SOLUTIONS
Today, Verity Intelligence offers two main products:
1. Verity BGC: An enhanced screening service with up to 20 types of checks, including criminal records, credit standing, employment history, education verification and business interests. This is suited for more sensitive hires such as store managers, finance staff and head office executives.
2. VERISafe: An instant background screening platform designed for speed, affordability and highvolume use. It is ideal for frontline hires like cashiers, warehouse staff, promoters and seasonal workers. With a flat annual license and unlimited checks, it’s a costeffective tool for any business.
According to CEO Mark, “Many clients want checks to be instant. When you meet someone for a role, you want to know immediately if they’re blacklisted or have a criminal record. That’s why we built AI that collates all legally available data into one system, enabling realtime checks.”
THE RETAIL SECTOR: HIGH RISK, HIGH STAKES
Retail environments are especially prone to risks such as theft, fraud and data breaches due to the nature of their operations. Employees often handle cash, inventory and customer data. One retail chain avoided a major fraud case by flagging a procurement executive who had hidden business interests.
According to Mark, about 15 to 18 out of every 100 individuals screened are flagged with serious issues like criminal records or being on watchlists. This underscores the importance of thorough screening. Retailers, often hiring in volume and under pressure, are particularly vulnerable. One major convenience store chain reported a 2% pilferage
rate despite having extensive CCTV and audit systems. That translates to millions in annual losses.
CHOOSING BETWEEN VERISAFE AND VERITY BGC
VERISafe acts as a first line of defense, especially effective for high-volume and entry-level roles. Its unlimited checks under a single license make it ideal for businesses with frequent hiring needs. Many clients use it to pre-screen candidates before interviews.
For higher-level or more sensitive roles, Verity BGC provides a deeper, more comprehensive screening layer. Retail chains often use both tools in tandem for maximum protection and efficiency.
COMMITMENT TO DATA PRIVACY AND COMPLIANCE
Verity Intelligence adheres strictly to legal and regulatory standards. The company is ISO 27001–certified and fully compliant with the Personal Data Protection Acts (PDPA) in both Malaysia and Singapore.
Key safeguards include:
● Consent-based screening with documented proof
● Secure data handling on encrypted platforms
RECOGNITION AND IMPACT
Today, Verity Intelligence is recognised as a leading background screening provider in Southeast Asia. Some notable achievements include:
● Multiple HR awards in Malaysia and Singapore
● Trusted by top banks, conglomerates, and over 500 SMEs
● Nominated for Ernst & Young Entrepreneur of the Year (Tech) 2019
● The only screening expert appointed by Singapore MoM for verifying education qualifications for Employment Pass applications in Malaysia.
● Launched VERISafe, the first instant screening platform in Southeast Asia
To achieve its goal, Verity is:
● Partnering with HR software providers for seamless integration
● Expanding its regional reseller network
● Automating processes for large-scale retail operations
● Legitimate Interest Assessments for every client
● Regular audits and system access controls
● Strict vendor and data source vetting
OVERCOMING THE ODDS
Verity Intelligence was bootstrapped from day one. Mark had no external funding and had to borrow money to pay his first employee. He handled everything from sales to operations alone in the early days. Gaining traction was difficult, as many companies did not see the need for background checks beyond executive roles.
However, his persistence paid off. Despite hundreds of cold calls and numerous rejections, the company grew through grit and constant innovation. Adapting to regulatory
challenges and staying ahead of evolving fraud tactics became part of Verity’s DNA.
THE ROAD AHEAD
Looking to the future, Verity Intelligence aims to become the go-to background screening solution for SMEs and retailers across ASEAN. Over the next five years, the company plans to help 10,000 businesses strengthen their hiring practices.
The goal is ambitious: prevent one million frauds or scams by 2030. So far, VERISafe has flagged over 2,000 suspicious hires. At an estimated loss of RM20,000 per bad hire, that equates to RM40 million in savings for employers.
“At the end of the day,” says Mark, “I don’t just want to sell software. I want to create real change. Fraud, scams and bad hires hurt real people. If Verity can help prevent that, then we’ve done something meaningful.”
With a strong foundation, clear vision, and relentless drive, Verity Intelligence is transforming the way businesses in Southeast Asia approach hiring, one check at a time. ■
Powering Growth with Global Partnerships and Regional Synergy
The 8th Franchise Expo Malaysia is expected to generate RM120 million in transactions and draw 18,000 visitors, strengthening the country’s position as a regional hub for franchise innovation and retail collaboration.
The Malaysian Retail Chain Association is setting ambitious targets for the 8th Franchise Expo Malaysia (FEM) 2025, aiming for RM120 million in transactions – a 20% increase from last year’s RM100 million.
Slated to take place from August 21-23, 2025 at the Kuala Lumpur Convention Centre, the three-day event promises to be the largest and most dynamic edition yet.
With over 364 booths across four exhibition halls, the expo expects to attract approximately 18,000 visitors, including entrepreneurs, investors, franchisors and global trade partners.
RECORD PARTICIPATION
Themed “Invest in the Future”, FEM 2025 will spotlight growth opportunities in digitalisation, tourism recovery and regional integration, with a strong emphasis on cross-border franchising and innovation.
“The theme reflects the spirit of collaboration in today’s interconnected world,” said FEM 2025 Organising Chairman Terry Tay.
“With over 400 booths from around the globe, this expo stands as a testament to the unwavering confidence in Malaysia’s retail and franchise sectors.”
This year’s event sees record international participation, with pavilions from China and Taiwan, and the presence of countries such
as Thailand, Singapore, Indonesia, Cambodia and India. New entrants including the US, Japan, and the UK have also confirmed participation, signalling growing global interest in Southeast Asia’s retail landscape.
MRCA President Datuk Dr. Ken Phua highlighted that Malaysia’s ASEAN chairmanship this year adds weight to the event’s regional appeal.
“Strong consumer spending, a strengthening ringgit, and our strategic ASEAN role create fertile ground for local businesses to thrive,” he said during the launch press conference June 30.
In a move to connect retail with tourism, Tourism Malaysia has joined FEM 2025 as a supporting partner. Phua noted that tourists today seek not only sightseeing
but also shopping and cultural experiences, positioning them as potential franchise investors.
“FEM 2025 offers a timely platform for regional engagement and brand visibility,” he added.
TRADE PARTNERSHIPS
A notable highlight at the press conference was the announcement of the International Business Exchange Programme between MRCA, the Royal Thai Embassy and Taiwan External Trade Development Council.
The initiative aims to foster stronger trade relations and spur regional franchise partnerships through dedicated country pavilions and networking forums.
The Expo’s evolution since its early days as the Malaysia International Retail and Franchise exhibition in 2016 underscores its growing importance.
Today, FEM is an essential fixture in Malaysia’s retail calendar, enabling knowledge exchange,
strategic partnerships and franchise matchmaking across borders.
INDUSTRY CONCERNS
Beyond the celebratory tone of FEM 2025’s growth, MRCA has also raised industry concerns. Chief among them is the expansion of the Sales and Service Tax.
During recent dialogues with the Ministry of Finance, MRCA and several business associations urged the government to defer or revise the SST increase, especially the application of SST to rental costs.
“Eight per cent is significant when gross margins are only about 10–20%. Many businesses may see their profits shrink drastically or even face closure,” Phua warned.
He also emphasised the burden of increased labour costs, including the newly implemented 2% EPF contribution for foreign workers.
Phua welcomed the government’s move to raise the SST registration threshold from
RM500,000 to RM1 million, but stressed that it’s insufficient.
“Together with other associations, we’re appealing for the threshold to be raised to RM3 million or for a deferment,” he added.
He further called for a pause in electricity tariff increases, citing pressures already faced by exporters due to external tariff challenges, particularly from the US.
With over 550 MRCA members representing 40,000 retail outlets and 400,000 employees nationwide, the association remains committed to advocating for the industry while championing platforms like FEM that promote unity, innovation and resilience.
As FEM 2025 approaches, anticipation continues to build not just for a showcase of global franchise talent but for the transformative conversations and commercial connections that will shape the future of retail in Malaysia and beyond. ■
Retail And SME Associations Sound Alarm Over Expanded SST Scope
Malaysia’s retail and business community is raising red flags over the government’s recent decision to broaden the scope of the Sales and Services Tax (SST), warning that the move could burden businesses, dampen consumer sentiment, and hinder economic recovery. In a show of unity, six of the country’s major trade associations—the SME Association of Malaysia, MRCA, Malaysia Retailers Association (MRA), Bumiputra Retailers Organization Malaysia (BRO), Malaysia Shopping Malls Association (PPKM), and the Federation of Malaysian Business Associations (FMBA)—issued a joint statement on Tuesday voicing their collective opposition to the widened tax net.
The associations cautioned that expanding the SST, particularly without sufficient stakeholder engagement, could increase the cost of doing business and threaten the survival of small and medium enterprises already grappling with inflation, supply chain disruptions, and post-pandemic recovery challenges. They emphasised that the additional tax burden would
likely be passed on to consumers, leading to higher prices and potentially weaker consumer spending. Describing the move as “untimely,” the statement urged the government to reconsider the implementation timeline and scope of the SST changes. The associations also called for more transparent consultations with affected industries to ensure policies are aligned with on-theground realities.
The associations highlighted that the abrupt expansion of SST, especially in areas involving logistics and warehousing, will not only affect retail prices but also disrupt supply chain efficiency, and called for greater clarity and dialogue between policymakers and industry stakeholders. The associations also highlighted that businesses need breathing room to adapt to changing policies. Many SMEs, they noted, are still in recovery mode following prolonged lockdowns and reduced margins over the past few years. Adding new tax layers without proper transitional support could derail hard-won progress and lead to a contraction in retail activity.
Additionally, businesses are not
only contending with the expanded SST but also facing a confluence of other rising cost pressures. These include increased electricity tariffs, the imposition of minimum wage and EPF contributions for foreign workers, and the infrastructural costs associated with implementing the new e-Invoicing system. The cumulative effect of these changes— introduced simultaneously—places considerable financial strain on retailers and SMEs who are still navigating post-pandemic recovery.
Their joint appeal underscores the vital role the retail and SME sectors play in Malaysia’s economic engine, accounting for a significant portion of employment and domestic trade. With a shared voice, these associations hope to engage constructively with the government to find a more balanced path forward—one that safeguards national revenue needs while sustaining business growth and consumer confidence. The associations remain hopeful that the government will open the door to dialogue in the interest of economic resilience and national competitiveness. ■
Women Leading the Way In Retail Innovation
The Women’s World Retail Summit 2025 opened with strong messages of collaboration and resilience from industry leaders
In his opening speech, MRCA President Datuk
Dr Ken Phua warmly welcomed delegates and industry partners, noting the importance of building stronger ties, establishing collaborations and expanding networks.
He highlighted recent developments from the Ministry of Finance, including the Sales and Service Tax extension starting from 1 July, which will affect retailers and operators.
While the government seeks to balance fiscal needs, Ken acknowledged the pressure on businesses due to higher costs, from SST to electricity tariffs and foreign worker EPF contribution, and pledged MRCA’s continued engagement with authorities to lessen the burden on members.
On an optimistic note, he pointed to ASEAN’s growing significance with its 700 million population, strong trade surplus and position as the fourth-largest economy in the world.
“Our export outlook and trading potential with ASEAN partners remain very good,” he said, encouraging members to seize opportunities in the region.
JUST GETTING STARTED
MRCA Chief of Women’s Division
Aiveen Wong called the event more than just a gathering. She said it is a celebration of how far women have come and a chance to reignite leadership.
Formed during the pandemic by Shirley Tay, the Women’s Division now counts 110 members and operates on four pillars: entrepreneurial learning, networking, social and community engagement, and strategic alliances.
“Women make up 56.2% of Malaysia’s labour force,” Aiveen noted.
“One in every five businesses in the country is owned by women. We are just getting started.”
She emphasised that women are now leading in both retail and digital ventures, while staying grounded in family life.
“We are not here to compete with men but to collaborate, partner and rise together in harmony,” she said.
LEADING WITH PURPOSE
Delivering the keynote at the Women in Retail World Leadership Summit 2025 is Datin Lavina Melwani Valiram, Executive at Valiram Group, overseeing Wycon, Charles & Keith and Pedro Malaysia. She is also Director of Anaika Collections and runs her own shipping and logistics company, POSable.
In her view, retail success hinges on three key elements: customer experience, agility and talent development.
“The customer is at the centre of everything we do. It’s about creating a memorable journey, not just a transaction,” she said.
This customer focus is supported by data-driven insights, enabling the group to anticipate trends and respond quickly to market shifts.
TEAM WORK
Equally important to Lavina is building a strong, motivated team. She invests in training, mentorship and leadership development, ensuring that employees are equipped to grow with the company.
Lavina outlines her leadership values:
● Critique in private, praise in public
● Respect everyone’s time
● Allow space for mistakes
● Build a culture you would want to work in
● Hire smarter people
● Don’t micromanage
“People are your greatest asset,” she often tells young entrepreneurs. “When you empower them, you empower your business.”
Her leadership style blends decisiveness with empathy, qualities she believes are vital in navigating challenges, from global market disruptions to shifts in consumer behaviour.
The pandemic tested these principles, but it also accelerated innovation, with the group embracing e-Commerce, omnichannel engagement and new retail formats.
Beyond business, Lavina is deeply committed to community impact. She supports initiatives in education, healthcare and women’s empowerment, aligning with her belief that business leaders have a responsibility to give back.
“Sustainability isn’t just about the environment,” she said.
“It’s about sustaining communities, opportunities and growth for future generations.”
For aspiring entrepreneurs, her advice is direct: “Have clarity of purpose, be ready to adapt, and never underestimate the power of relationships.”
ALL ABOUT PEOPLE
But the heart of her speech was about people. She said leadership is not about power. It is about purpose. Business is not about profit. It is about people.
She ended with a Chinese proverb: The fish rots from the head. Culture starts at the top.
“If someone joins my company riding a motorbike, I want them to leave driving a car. If they live in a rented home, I want them to own one. If their kids were in average schools, I want them in better ones. Leadership is about changing lives.” ■
Boosting Productivity, Growth for Retail SMEs
At the Women in Retail World Leadership Summit 2025, POSable.ai CTO
David Ng challenged SME retailers to reimagine their operations by replacing fragmented manual systems with clean, consolidated data.
Posable.ai CTO David Ng opened his presentation with a direct question:
“How many of you are still running your business on spreadsheets?”
He asked attendees to identify a major challenge they face because of missing or inconsistent data. The examples came quickly – stock allocation that is not optimised, supplier delays that go unnoticed, untracked shrinkage and customers who disappear without warning.
NO MORE GUESSWORK
David looked at one of retail’s most persistent challenges: inventory management. Stockouts result in missed sales opportunities, while overstocking ties up capital and leads to wastage. Both outcomes stem from poor demand planning and reliance on guesswork.
He highlighted the limitations of instinct-driven decisions: “Guessing has consequences. Without accessible and accurate data, you may miss seasonal peaks, promotional surges or downturns. The data could have told you if you had it in the right form.”
David positioned POSable.ai’s Business Intelligence (BI) as the essential first step in retail digital transformation. A BI dashboard can consolidate sales orders, store sales, inventory levels and purchasing into a single, unified view. This 360-degree perspective enables informed decision-making.
While BI analyses past and current performance, AI takes it further by forecasting future trends.
“BI shows you what happened; AI tells you what’s coming,” David explained. This predictive capability helps retailers anticipate demand, avoid stockouts and respond proactively to market changes.
AI-READY FOUNDATION
David outlined a three-step process for preparing a retail business for AI adoption:
1. Consolidate data sources
2. Clean and standardise data
3. Store in a central data cloud Transitioning from scattered spreadsheets and siloed systems to a cloud-based BI platform eliminates data fragmentation, improves collaboration and enables real-time insights.
THE PRODUCTIVITY SHIFT
David contrasted the “before” and “after” scenarios: previously, retailers worked with manual reports, outdated information and
generic mass communications. With BI and AI, the business operates from the same, current data set, enabling accurate predictions and highly targeted customer engagement.
“Data is the fuel for your AI engine. Dirty fuel leaves you stranded; clean fuel keeps you cruising,” he explained.
Well-organised, reliable data ensures that AI delivers accurate and actionable results.
SUSTAINABLE GROWTH
David advised starting with small, measurable improvements such as reducing stockouts or refining customer targeting before scaling up AI initiatives. This approach builds confidence, demonstrates value and lays the groundwork for more advanced applications.
His closing message was succinct: “See it. Solve it. Scale it. Once you have visibility, you can resolve issues quickly, and that’s when sustainable growth becomes possible.” ■
Retailers Weather Global Headwinds, Malaysia Holds Steady
In a recent talk, MIDF Research Founder Imran Yassin unpacks the external risks threatening Malaysia’s retail sector, from geopolitical tensions and trade wars to inflation, while pointing to the resilience of the domestic economy and the promising future of e-Commerce.
The retail industry, often seen as a barometer of consumer confidence, is facing a complex set of challenges that stretch far beyond Malaysia’s shores.
According to MIDF Research Founder Imran Yassin, retailers need to brace themselves for a combination of policy shocks, trade tensions and inflationary pressures that could reshape the business landscape in the coming years.
MIDF suggests that Malaysia’s GDP growth could be impacted mainly through weaker US demand and slower global economic momentum.
While Imran doesn’t foresee Middle East tensions completely derailing global growth, he warned that a combination of higher energy prices and sagging sentiment could weigh on economies worldwide, with stagflation risks particularly acute in the US.
RESILIENT FRONT
Despite these headwinds, Imran offered a measured optimism for Malaysia’s economic trajectory. MIDF forecasts GDP growth of 4.0% in 2025, down from an earlier estimate of 4.6%, as trade tensions take their toll.
Yet, strong domestic demand, rising wages, steady employment, government cash assistance and a rebound in tourism are expected to cushion the blow.
Inflation is projected to rise to 2.5% in 2025, from 1.8% this year, largely due to supply and policy changes.
Nevertheless, risks remain, namely from deepening geopolitical conflicts and sticky inflation to sharp slowdowns in the US and China. But the labour market remains healthy, exports are rising and retail trade, while moderating, continues to benefit from strong consumer fundamentals.
THE GROWTH ENGINE
Imran highlighted e-commerce as one of the brightest spots in Malaysia’s retail outlook. High mobile penetration, digital payment adoption and government support for digital transformation are fuelling rapid growth.
Between 2025 and 2029, Malaysia’s e-commerce market is forecast to expand steadily, supported by initiatives like MyDigital, better logistics and lastmile delivery, and the integration
of AI and analytics into retail platforms.
Looking ahead, Imran sees a clear trajectory for retail. Over the next year, expect continued recovery, digital retail acceleration, omnichannel integration, and a stronger push for sustainability and local sourcing.
By 2030, retailers could see market expansion into tier-2 cities, widespread adoption of smart retail and automation, highly personalised shopping experiences and deeper regional integration, all underpinned by supportive policy frameworks.
“Retailers should prepare for uncertainty but also position themselves to seize the opportunities that come with change,” Imran concluded. “The future will belong to those who are agile, tech-savvy and deeply connected to their customers.” ■
A Night of Swings, Flavours, And Durian Delights: MRCA C harity Golf & Gala Dinner 2025
With Malaysians all abuzz about the king of fruits, the thorny local favourite made its way into the MRCA’s much-anticipated Charity Golf & Champion Durian Gala Dinner at the elegant Grand Ballroom of the Bangi Golf Resort. The event brought together retail leaders, business elites, and durian enthusiasts for an unforgettable evening of culinary indulgence and charitable spirit.
The highlight of the gala was none other than Chef Wan, Malaysia’s beloved celebrity chef, who curated a sumptuous dinner that left guests raving. Known for his vibrant personality and culinary flair, Chef Wan delivered a dining experience that masterfully balanced tradition and innovation—adding his signature touch to every dish served.
However, the real star of the evening was the King of Fruits. Attendees were treated to an all-you-can-eat experience of champion-grade durians, sourced from the best orchards across Malaysia. The indulgence was more than just a buffet—it was a durian lover’s dream, featuring rich, creamy varieties that satisfied even the most discerning palates.
Adding an educational twist to the evening was a special presentation on the Champion Durian Competition, which shed light on how the finest durians are cultivated, judged, and awarded. It was a fascinating glimpse into the world of durian farming and a tribute to the growers behind Malaysia’s most iconic fruit.
The event was not just about
luxury and leisure—it also had a heart. As part of MRCA’s ongoing charity efforts, the gala raised funds to support various social causes under the association’s Branding, Education, and Charity Foundation. It was a celebration of community, giving, and the shared joy of food and fellowship.
The event drew a full house of enthusiastic guests who came dressed for an evening of elegance and enjoyment. From the tee-off at the green to the final bite of durian, MRCA once again proved its ability to bring people together for a good cause—wrapped in fun, flavour, and flair.
As the aroma of durian lingered and conversations flowed late into the night, one thing was clear – the MRCA Charity Golf & Champion Durian Gala Dinner 2025 was indeed a memorable experience. ■
A Community In Action
Hosted by GDEX x Shopify at the Hilton PJ, the July 2025 MRCA Members Meet and Greet was an evening of networking, reflection and forward momentum, which brought together the best of the retail community.
The evening began with opening remarks from MRCA Council Member
Stan Singh, Founder of Ironhorse Asia Sdn Bhd, followed by a warm welcome address by MRCA President Datuk Dr Ken Phua, MD of Bentley Music Sdn Bhd.
Secretary-General Terry Tay then delivered his report, highlighting the association’s active engagement over the past months. Since the last members’ gathering in May, MRCA has hosted 43 events – a testament to its dynamic role in retail advocacy, education and community building.
CHAMPIONING RETAILERS
Among the key initiatives were MRCA’s participation in the National
Cost of Living Action Council
Meeting at Perdana Putra, Putrajaya. This meeting, led by high-level stakeholders, sought to address cost-of-living challenges and explore coordinated policy responses with direct impact on the retail industry.
The association also joined a critical engagement with the Minister of Domestic Trade and Cost of Living to discuss challenges facing the F&B and restaurant sectors.
MRCA voiced industry concerns on cost pressures, regulatory clarity and pricing controls, emphasising the need for business-friendly policies that support long-term sustainability.
Further amplifying its advocacy, MRCA attended a high-level session with the Ministry of Finance. With
key officials including Treasury Secretary General Datuk Johan Mahmood Merican and Tax Division
Undersecretary John Patrick, MRCA raised concerns on the expanding scope of SST and its cascading impact on business operations.
The association reaffirmed its commitment to continued dialogue to shape practical, growth-oriented tax policies.
DIVISION-LED HIGHLIGHTS
Leaders of MRCA’s divisions and pillars also shared updates on recent activities.
● The F&B Division held a highimpact webinar on SST changes and co-hosted an industry dialogue with Unilever Food Solutions at the Chefmanship Center.
● The Women’s Division successfully organised the Women in Retail World Leadership Summit 2025, a key platform for empowerment and leadership.
● The Youth Division visited Sonic Lobby Studios, gaining valuable exposure to content production and creative brand development.
● The Digital Pillar hosted the “Future-Proof Your Retail Business” forum at Shangri-La Kuala Lumpur, focusing on digital resilience and innovation.
● The Franchise Pillar, in collaboration with Pernas, strengthened franchise ecosystem support through knowledge-sharing and strategic programmes.
PURPOSEFUL EVENTS
MRCA continued to foster purposedriven engagement through major events such as the MRCA Charity Golf & Champion Durian Gala Dinner, which brought together members and partners for networking and giving.
Other key highlights included the Franchise Expo Malaysia 2025 official press conference and exhibitor briefing, held on 30 June, at KLCC, drawing strong participation and industry buzz.
INVESTING IN THE FUTURE
The July gathering wasn’t just about updates. It was also a night of celebration and impact.
● Four homes received RM10,000 mock cheques as part of the MRCA Charity Golf 2025 initiative.
● Two deserving students –Meekesh Rueban (Diploma in Interior Design) and Brayan Lee Chun Ket (MBBS) – were awarded RM20,000 in financial aid from the MRCA Branding Education Charity Foundation.
● The event also saw the official launch of the MRCA Academy Scholarship Programme, which will offer:
1. Executive Diploma in Retail Management
2. Micro-Credential in Marketing Management
3. Certificate in Advanced Food Safety Protocols
4. Executive Diploma in Franchise Operation
These programmes aim to empower the next generation of retail leaders through accessible and relevant education.
LOOKING AHEAD
With momentum building, members can look forward to a strong lineup of upcoming events, namely the MRCA CEO Get Together at Culinart in August 2025, the MRCA Trade Mission to Shenzhen, China, in November 2025 and the MRCA Anniversary Members’ Night at Sunway Resort in December 2025. ■
Foundation Offers 100 Scholarships For Retail Workforce
The MRCA Academy Scholarship 2025 offers retail employees from member companies the chance to gain industry-recognised qualifications through programmes in partnership with top institutions.
In late July, MRCA launched its Academy Scholarship 2025, a comprehensive programme offering 100 fully funded scholarship places through partnerships with Sunway University, the London Examinations Board, Perbadanan Nasional Bhd (PERNAS) and INTI International University and Colleges.
The scholarship is open exclusively to full-time employees of MRCA member companies, certified by the programme’s partners, and offers industryrecognised certifications.
Scholarship recipients can choose from four industryfocused qualifications, including the Micro-Credential in Retail Marketing, Micro-Credential in F&B Management, Executive Diploma in Retail Management and Executive Diploma in Franchise Operation, each designed to equip participants with practical skills tailored to
Malaysia’s dynamic retail and food and beverage sectors.
“This initiative reflects MRCA’s deep commitment to nurturing talent in the retail and franchise sectors,” said MRCA President Datuk Dr Ken Phua.
“We believe in empowering our workforce with practical skills and recognised qualifications that fuel both individual and industry growth.”
This scholarship initiative is expected to enhance professional capabilities across Malaysia’s retail workforce, contributing to improved industry standards and competitiveness.
Successful graduates will join a network of professionally qualified retail practitioners, positioning them for career advancement and enabling their companies to achieve operational excellence.
The scholarship programme was funded by the proceeds from MRCA’s CNY Gala Dinner 2025, which
successfully raised RM348,076 through auctions.
This demonstrates how industry celebrations can be transformed into meaningful educational opportunities through the MRCA Branding Education Charity Foundation.
As part of the broader initiative, the Foundation has also separately given out RM10,000 each in direct financial assistance to two deserving students, namely Lee Chun Ket (Brayan), who is pursuing a Bachelor of Medicine and Bachelor of Surgery, and Meekesh Rueban A/L Nagayah, who is pursuing a Diploma in Interior Design.
As the charity arm of MRCA, MRCA Branding Education Charity Foundation was established in 2010 under the leadership of then-President Dato’ Tay Sim Kim, successfully raising RM1 million for its launch. One of the Foundation’s core objectives is to provide educational assistance to underprivileged and deserving students, helping them pursue academic goals and build brighter futures.
The announcements were made during the bi-monthly MRCA Members’ Meeting, which featured presentations by participating members as well as guest speakers from the industry and government.
Among the attendees was Tourism Malaysia Senior Director and Head of the Visit Malaysia 2026 Secretariat Mohd Amirul Rizal Abdul Rahim. ■
New Connections
The MRCA CEO Networking Evening gathered retailers for insights on sleep health, intellectual property and business growth.
MRCA held a successful CEO Get Together recently, hosted by Adastra Intellectual Propertym and held at the elegant at Bungalow 37 in Bangsar.
The event brought together C-level executives and business leaders for an evening of strategic sharing, networking and professional development.
President Datuk Dr. Ken Phua opened the evening with a warm welcome to MRCA Exco members, Secretariat and attendees. He extended his appreciation to the organising committee and the two distinguished speakers, Dr Bala Saravanan, Clinical Director of Omnia Dental Care Sdn Bhd, and Christine Ng, IP Valuation Director from Adastra Intellectual Property.
A NEW CHAPTER FOR MRCA
In his address, Ken Phua announced that the Association is exploring
plans to acquire its own property. Currently based in One City, MRCA aims to establish a dedicated space to host meetings, training sessions and conferences, reflecting its growing role as a hub for Malaysian retailers.
Reaffirming the association’s mission, he referenced his presidential tagline “Unite, Voice and Triumph for Retailers”, a call to action as MRCA continues to uphold through regular dialogues with government ministries and agencies.
NAVIGATING POLICY SHIFTS
Ken Phua also highlighted the numerous challenges and developments confronting the retail sector in Malaysia—including the minimum wage hike to RM1,700, the rollout of e-invoicing, and changes in the Sales and Services Tax (SST) structure.
“These sudden implementations
affect operations. As an industry, we must be proactive—consulting together before policies roll out,” he urged. He proposed direct engagement with the Ministry of Domestic Trade and Cost of Living (KPDN) and noted MRCA’s increasing influence with agencies like PERNAS and MATRADE.
He also mentioned Bank Negara Malaysia’s recent symposium on the Ringgit’s role in the economy, reinforcing the need for retailers to stay strong amid uncertainties.
“Retailers don’t give up despite the challenges. We talk to the government, we engage them.”
He also stressed the importance of participation, referencing MRCA’s impressive track record of over 240 events in 2024, with 120 more scheduled this year.
“This is the value of being a member,” he said. “Your involvement brings back benefits from what MRCA achieves for all.”
Before concluding, Ken invited
members to join the upcoming Durian and Golf Day, a light-hearted networking event combining business and leisure.
“Sign up, connect, and enjoy,” he encouraged.
RELEVANT LEARNING
The event’s Organising Chair, Patrick Sim, Managing Director of Secret Recipe, gave attendees a runthrough of the day’s sessions.
“We have in store exciting talks and highly relevant topics for CEOs and business leaders. Christine Ng of Adastra Intellectual Property will offer real-world success stories on monetising IP for growth.
“While Dr Bala Saravanan will offer insights into a surprising CEO concern: sleep. Most executives are sleep-deprived yet need to function at a high level. Dr Bala will demonstrate how modern sleep monitoring tools can help executives detect and manage sleep apnea.” (see next page for the story)
THE VALUE OF IP IN GROWTH
Christine Ng of Adastra Intellectual Property, gave a compelling presentation on how intellectual property (IP) goes beyond legal protection, becoming a strategic asset for growth, funding and valuation.
“IP isn’t just a checkbox. It’s a competitive moat, a valuation multiplier and a growth lever,” she said.
She cited the example of Microsoft’s investment in OpenAI – USD1 billion in 2019 and another USD10 billion in 2023. These massive deals were not only about capital, they were tied to exclusive access to proprietary IP, including GPT-4 and training data.
Christine outlined what types of IP can be valued, including:
● Geographical Indications like Champagne or Darjeeling Tea
● Trade Secrets such as recipes, manufacturing methods or customer databases
● Copyrighted Works, both creative (books, music, films) and digital (software, games, apps)
She illustrated a real-life case study where software was valued and used as a capital contribution to meet regulatory requirements for a micro-lending business.
“With a proper valuation, IP can even be used to meet paid-up capital thresholds,” she explained.
IP rights, she added, enable companies to:
● Protect and defend their innovations
● Monetise through licensing or sale
● Enhance strategic positioning for M&A or funding rounds
“Young entrepreneurs are especially drawn to the potential of IP,” she noted. “It allows collaboration, branding and exponential growth.”
LOOKING AHEAD
The evening concluded on a high note. With meaningful conversations, shared learnings and a renewed sense of community. In the face of economic challenges and regulatory shifts, MRCA’s leadership reaffirmed its role as a strong, collective voice for the retail industry.
As Ken Phua aptly put it: “Together, we don’t just weather the storm – we shape the future.” ■
The Hidden Dangers of Snoring
In an eye-opening talk on sleep apnea, Omnia Damansara Clinical Director Dr Bala Saravanan helps participants understand this medical condition and why ignoring it could be dangerous.
At a recent MRCA networking session, Omnia Damansara
Clinical Director Dr Bala Saravanan shone the spotlight on a health issue that often slips under the radar – obstructive sleep apnea (OSA).
While snoring may seem like a harmless, albeit annoying, part of sleep, Dr Bala made it clear that it could actually be a loud cry for help from your body.
Sleep apnea is a potentially serious sleep disorder in which breathing repeatedly stops and starts during sleep. The most common type, obstructive sleep apnea (OSA), occurs when the muscles in the throat relax excessively, causing airway blockage.
Dr Bala introduced participants to the Apnea-Hypopnea Index (AHI), which measures the severity of sleep apnea. AHI counts the number of apnea (complete blockage)
and hypopnea (partial blockage) episodes per hour of sleep. According to the scale:
● AHI less than 5 is considered normal
● AHI between 5 and 15 is mild OSA
● AHI between 15 and 30 is moderate OSA
● AHI over 30 indicates severe OSA
He said this index is a crucial diagnostic tool and often the starting point in evaluating the risk and extent of the disorder.
THE
SILENT DAMAGE
Perhaps the most impactful part of Dr Bala’s presentation was the slide titled “Sleep Apnea’s Impact on the Body”. Sleep apnea has been linked to:
● High blood pressure
● Heart disease
● Stroke
● Diabetes
BEHIND THE NUMBERS
● Depression and anxiety
● Daytime fatigue
● Cognitive dysfunction
Dr Bala said that sleep apnea also affects organ function and overall quality of life.
“The cumulative effect of interrupted sleep leads not only to personal health consequences but can also result in decreased productivity, poor mental focus and even increased risk of accidents due to drowsy driving,” he said.
Despite the serious implications, many people remain undiagnosed because the signs are often dismissed or go unnoticed. Loud snoring, choking during sleep and constant fatigue are not always seen as red flags.
Dr Bala emphasised that increased awareness is key both for individuals and their families. The good news is that OSA is treatable. For more information, contact Dr Bala at 017 633 1737 or email omnia. damansara@gmail.com. ■
To accurately diagnose sleep apnea, several types of sleep tests:
● Level 1: A supervised overnight sleep study conducted in a hospital or sleep centre.
● Level 2: An unattended comprehensive study that can be done at home but with similar parameters to L1.
● Level 3: A simplified, portable test that records a limited number of parameters and is often used as an initial screening tool. These tests evaluate various metrics such as oxygen levels, breathing patterns, heart rate and respiratory effort.
When reviewed together, they give a fuller picture of what is happening to the body during sleep and why intervention may be critical.
Malaysia Retail Industry Report (June
2025)
Compiled
PREAMBLE
Members of Malaysia Retailers Association (MRA) and Malaysia Retail Chain Association (MRCA) were interviewed on their retail sales performances for the first half-year of 2025.
This is the 28th anniversary of Malaysia Retail Industry Report. The first report was published in 1998 during the Asian financial and economic crisis.
by Retail Group Malaysia TABLE 1: YEAR ON YEAR PERCENTAGE
LATEST RETAIL PERFORMANCE
For the first quarter of 2025, Malaysia’s retail industry recorded a positive growth rate of 5.6% in retail sales, as compared to the same period in 2024 (Table 1).
This latest quarterly result was slightly below the estimate made by members of MRA and MRCA at 5.9% in March 2025.
During the first quarter of 2025, retail sales were driven by the Chinese New Year festival in end January, the month-long national school holidays from January to February as well as the Hari Raya celebration at the end of March.
Chinese New Year was celebrated from January 29 this year. Retail
spending started from end of last year and the whole month of January.
The final school holidays for academic school calendar 2024/25 started from January 17 for one whole month. This allowed parents more time to bring their children for frequent shopping activities.
Source: MRA/ MRCA/ Retail Group Malaysia
Hari Raya Aldilfitri was celebrated from the last day of March. Festive shopping started a month before the largest festival in Malaysia.
Malaysia attracted 10.1 million foreign tourist arrivals during the first quarter of 2025. It was the most visited country in Southeast Asia during this quarter.
The attractive Malaysian currency as well as the visa-free entry for visitors from China and India brought in large number of foreign tourists to the country during this period.
COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS
For the first quarter of 2025, the Malaysian national economy recorded a slightly slower growth rate of 4.4% (Table 2, at constant prices), as compared to 5.6% for retail sales (at current prices).
This latest economic result was contributed by sustainable private consumption, steady growth of private investment, stronger spending on government investment projects, stable labour market condition as well as higher tourist arrival.
The services and construction sectors remained the main drivers of growth. Services sector grew by 5.0%, while the construction sector expanded by 14.2%.
The average inflation rate during the first quarter of 2025 moderated at 1.5%. Higher grocery prices, increasing cost of eating out as well as rising utilities bills were the main causes of higher inflation during the first 3 months of this year.
During the month of March, the prices of Personal Care, Social Protection & Miscellaneous Goods & Services recorded the highest increase with 3.6% in growth rate as compared to the same period a year ago.
In addition, the prices of Restaurants & Accommodation
TABLE 2: COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS, 2024/25
Source: Bank Negara/ Department of Statistics/ MIER/ Retail Group Malaysia
Services rose by 2.9%. Prices of Food & Beverages increased by 2.5%. Furthermore, the costs on Housing, Water, Electricity, Gas and Other Fuels climbed up by 1.9%.
Private consumption grew by 5.0% during the first quarter of 2025 due to sustainable retail spending and strong labour market.
Unemployment rate during the first quarter of 2025 slowed down further at a growth rate of 3.1%. Labour force participation rate reached a new historical high of 70.7% during the quarter.
RETAIL SUB-SECTORS’ SALES COMPARISON
The sales performances of retail sub-sectors during the first quarter of 2025 (Table 3) were mixed.
The Department Store cum Supermarket sub-sector recorded a positive growth rate of 5.8% during the first quarter of 2025, as compared to the same period a year ago.
The Department Store sub-sector achieved a moderate growth rate of 2.7% in terms of sales during the first 3-month period of this year.
The Supermarket and Hypermarket sub-sector reported an encouraging growth rate of 3.7% during the first quarter of 2025.
The Mini-Market, Convenience Store & Cooperative sub-sector continued to perform well with a
growth rate of 8.2% during the first quarter of this year.
During the first quarter of 2025, the Fashion and Fashion Accessories sub-sector achieved a sustainable growth rate of 12.2%. This was the highest growth rate achieved among the retail sub-sectors during this quarter.
On the other hand, the sales of Children and Baby Products subsector declined by 2.4% during the first 3 months of this year.
During the first quarter of this year, sales of the Pharmacy subsector rose by 4.6%, as compared to the same quarter a year ago.
Conversely, the Personal Care sub-sector suffered another decline in sales. During the first 3-month period of this year, the business of this sub-sector contracted by 3.7%.
Similarly, the performance of the Furniture & Furnishing, Home Improvement as well as the Electrical & Electronics sub-sector slipped into the negative territory again. During the first quarter of 2025, the growth rate of this subsector was -1.1%.
The sales of Other Specialty Stores sub-sector (including photo shop, fitness equipment stores, stores retailing musical instruments, sports stores, second-hand goods’ stores as well as stores offering lifestyle products) fell by 5.8%
TABLE 3: YEAR ON YEAR PERCENTAGE CHANGE IN RETAIL SALES BY RETAIL SUB-SECTOR, 2024/25
Notes:
*- children and baby products include apparel, accessories, equipment, school uniform and toys
Source: MRA/ MRCA/ Retail Group Malaysia
during the first quarter of 2025, as compared to the same period last year. This was the worst performing retail sub-sector during the quarter.
NEXT 3 MONTHS’ FORECAST
Members of the two retailers’ associations were pessimistic on the retail sales performance for the second quarter of 2025.
They anticipate business to drop by 1.0% during the next quarter (Table 4).
This projected contraction may be due mainly to the Hari Raya spending patterns this year as compared to the previous year. The bulk of the retail spending related to this festival had taken place in the month of March.
The department store cum supermarket operators are expecting its business to decline by 0.7% for the second quarter of this year.
The department store operators are expecting its sales to drop by 10.6% for the second 3-month period of this year. This subsector has the worst retail sales forecast for the quarter.
Similarly, the supermarket and hypermarket operators are not optimistic of its sales during the second quarter of 2025. It expects to weaken by 9.5% for the quarter.
On the other hand, the operators of mini markets, convenience stores and cooperatives are hopeful of its growth momentum for the second 3 months of this year. They are foreseeing their sales to expand by 5.9% during this period. This sub-sector has the best estimate among the retail sub-sectors during the quarter.
Retailers in the fashion and fashion accessories sector expect its businesses to rise moderately by 1.1% in terms of growth rate during the second quarter of 2025, as compared to the same period a year ago.
Retailers selling children and baby products predict its retail growth rate at -2.7% for the second 3-month period of this year.
Pharmacy operators anticipate its retail sales during the second quarter of this year to grow at a slower pace by 2.1%.
Retailers in the personal
care sub-sector are expecting its businesses to perform better during the second quarter of 2025 with a growth rate of 5.7%.
Operators of furniture & furnishing, home improvement as well as electrical & electronics are foreseeing its business to remain in the negative zone with a growth rate of -0.8% during the second 3 months of this year.
Retailers in other specialty stores sub-sector (including photo shop, fitness equipment stores, strores retailing musical instruments, sports storew, second-hand goods’ stores as well as stores offering lifestyle products) are projecting its business to shrink by 9.4% during the second quarter of 2025.
THE YEAR 2025
In March this year, Retail Group Malaysia (RGM) estimated a 4.3% growth rate in retail sales for 2025. RGM has revised downwards Malaysia’s annual retail industry growth rate for 2025 to 3.1% (Table 5). This revision was mainly due to the much lower projection for
the second quarter as well as the economic challenges for the rest of the year.
The current international trade war will have direct impact on Malaysia economic outlook for 2025. The country’s economy will likely to grow slightly slower than the earlier forecast of 4.5%-5.5% by Bank Negara Malaysia.
The main geopolitical risk of Malaysia in 2025 is the current United States tariff war. This will have impact on costs of imports into Malaysia due to disrupted supply chains. At the same time, it will slow down Malaysian export market.
Malaysia retail industry was projected to grow by 4.8% during the second quarter with contribution mainly from Hari Raya festival. However, it has been revised downwards to -1.0% because bulk of the retail spending had taken place in the month of March.
The retail sector in the country is anticipated to expand moderately by
2.8% during the third quarter of 2025.
For the last quarter of 2025, Malaysia retail industry is hopeful of a 3.5% growth rate as compared to the same period a year ago.
Malaysians have been struggling with higher retail prices on goods and services since beginning of this year. Higher prices were observed from groceries bought from supermarket, foods consumed outside of home as well as services such as car park charges, transportation and logistics services, repair services, medical fees, insurance premiums, etc.
There will be an electricity tariff hike from second half of this year. While 85% of Malaysian households will continue to enjoy government subsidy on electricity usage, businesses will incur higher operation cost due to this increment. Retail businesses are likely to pass this cost to end consumers.
Beginning of 1 July, the coverage
FORECAST
Notes:
#- furniture & furnishing, home improvement and electrical & electronics
Source: MRA/ MRCA/ Retail Group Malaysia
of Sales and Service Tax (SST) will include leasing services, construction services, financial services, private healthcare for non-citizens, education fees for non-citizens as well as beauty service providers with annual turnover above RM500,000.
Higher sales tax rates (5% to 10%) will also be imposed from 1 July on selected luxury items such as king crab, salmon, cod, truffle mushroom, essential oil, imported fruits, silk, antique hand painting, racing bicycles, etc.
e-Invoicing in Malaysia has begun since 1 August 2024 for all large corporations. For the second time of this year, Malaysian government has delayed the implementation of e-invoicing for small and mediumsized businesses. Businesses with annual turnover below RM500,000 are now exempted from the e-Invoice system.
For businesses with annual income exceeding RM5 million but not more than RM25 million, the e-Invoice system shall begin from 1 July 2025. For annual sales of more than RM1 million but not more than RM5 million, the commencement date has been delayed to 1 January 2026. For business income group between RM500,000 and RM1 million, e-Invoicing will begin from 1 July 2026. These latest amendments will have no impact
(e)- estimate
Source: Retail Group Malaysia
TABLE 4: 3-MONTH RETAIL SALES
5: MALAYSIA
on majority of the small retail businesses in Malaysia.
Monthly minimum wage has increased from RM1,500 to RM1,700 since 1 February 2025. Enforcement for companies with less than 5 workers will start from 1 August 2025. This new policy has impacted retailers and food operators that rely heavily on foreign workers. Higher operation cost of these retail operators has led to higher retail prices.
The current subsidy on RON95 fuel was to be removed from middle of 2025. As announced by the Misnistry of Finance at the end of May 2025, the implementation of the RON95 subsidy rationalisation has been delayed to the second half of the year. The government is now considering the use of MyKad as a mechanism for implementing targeted RON95 subsidies.
In early March this year, the Dewan Rakyat had passed amendments to the Employees Provident Fund Act 1991 which make EPF contribution mandatory for all foreign workers in Malaysia. Starting from the fourth quarter of this year, employers will have to contribute 2% of a foreign worker’s salary while the foreign employee’s contribution has also been set at 2%.
FOOD & BEVERAGE SECTOR
For the first quarter of 2025, food & beverage establishments enjoyed robust sales during the Chinese New Year festival as well as the monthlong school holidays.
In addition, higher foreign tourist arrivals from Singapore, Indonesia, India and China contributed to strong F&B sales in major cities and tourist attractions.
Footnote:
TABLE 6: MALAYSIA FOOD & BEVERAGE INDUSTRY QUARTERLY GROWTH RATE, 2024/25
Notes:
-Cafe and restaurant include fast food restaurant, cafe, coffee cafe, bakery cafe, restaurant, full-service restaurant and caterer.
-Take-away, kiosk and stall include food outlet caters for take-away only, bakery without seating, kiosk and food stall. (e)- estimate
Source: MRA/ MRCA/ Retail Group Malaysia
World coffee prices increased since end of last year due to unfavourable weather conditions in key coffee producing countries. This had led to many independent and chain coffee cafes to increase the prices of coffee drinks in Malaysia during the first quarter of 2025.
The never-ending IsraelPalestine conflict continued to affect sales of several international F&B franchises. Many Malaysian consumers were still avoiding these restaurants and cafes. This had led to heavy losses of several F&B brands operating in Malaysia. Some outlets remained closed down temporarily, while numerous underperforming outlets were shut down permanently.
The new opening of many independent cafes and the new entry of many international F&B chains had worsened the situation.
Food & Beverage Outlets (Cafe and Restaurant) achieved
a promising growth rate of 6.5% during the first quarter of 2025, as compared to the same quarter a year ago (Table 6). This was higher than the estimate (5.4%) made by F&B operators in March this year.
In addition, the sales of Food & Beverage Outlets (Take-Away, Kiosk and Stall) recorded 12.3% in growth rate during the first quarter of 2025, as compared to the same period one year ago. This was much higher than the estimate (0.1%) projected by these operators in March this year.
Cafe and restaurant operators are upbeat that their business will retain its growth momentum for the next quarter. Its sales should rise by 8.5% during the second 3 months of this year, as compared to the same period a year ago.
On the other hand, food and beverage kiosk and stall operators are projecting their business to decline by 8.2% during the second quarter of 2025. ■
• This report is provided as a service to members of MRA, MRCA and the retail industry. It provides industry data that give retailers better analytical tools for running their retail businesses.
• This report is not allowed to be reproduced or duplicated, in whole or part, for any person or organisation without written permission from Malaysia Retailers Association, Malaysia Retail Chain Association or Retail Group Malaysia.
• Retail Group Malaysia is an independent retail research firm in Malaysia. The comments, opinions and views expressed in this report are of writer’s own, and they are not necessary the comments, opinions and views of MRA, MRCA and their members.
• For more information, please write to tanhaihsin@yahoo.com.
Leading With The Brain In Mind
Neuroscience offers powerful insights into how leaders can influence behaviour, motivation and decision-making. DR VICTOR SL TAN explores how understanding the brain can transform leadership from reactive to truly impactful.
Many leadership programmes fail to create a lasting impact because they overlook the root causes of behaviour.
Neuroscience – the study of the brain – offers critical insights into how leaders think, act and influence others.
It helps not just what effective leaders do but why they do it.
HUMAN BEHAVIOUR
Human behaviour is driven by complex neural circuits and powerful chemical messengers.
The prefrontal cortex enables planning, reasoning and calm decision making while the amygdala triggers emotional reactions under stress, what scientists call an “amygdala hijack”.
Fear-based leadership activates the amygdala, reducing creativity, problem-solving skills and collaboration.
CASE: SATYA NADELLA
When Satya Nadella became Microsoft CEO in 2014, he replaced a fear-driven culture with psychological safety and empathy. Promoting a growth mindset, he shifted focus from blame to learning.
This reactivated employees’ creativity, collaboration and trust, helping Microsoft’s employees to share knowledge more openly, innovate faster and rebuild trust. This led to one of the most successful corporate turnarounds in history.
CASE: ELON MUSK
Motivation is fuelled by dopamine, the brain’s reward chemical. Recognition, progress and achievement activate it, reinforcing positive behaviour.
Elon Musk taps into this by framing bold missions, like colonising Mars or advancing sustainable energy, as purposedriven goals. His public celebration of milestones excites teams but also creates intense pressure, highlighting the need for balance in mission-driven leadership.
CASE: JACINDA ARDERN
Emotional intelligence relies on brain networks that support empathy and social connection. Leaders who regulate emotions avoid amygdala hijacks and foster team emotional stability.
During the Christchurch Mosque shootings, former New Zealand Prime Minister Jacinda Ardern’s calm and compassionate response built unity and trust. Neuroscience shows that empathy boosts oxytocin levels, enhancing connection and resilience.
DECISION-MAKING AND BIAS
Leaders constantly face cognitive biases, such as confirmation bias and status quo bias. Leaders slow down thinking, broaden perspectives and use structured processes to counter these biases.
Jeff Bezos encourages diverse viewpoints, such as “disagree and commit”, while Nadella promotes inclusive decision-making. These strategies rewire habitual thinking patterns.
STRESS AND RESILIENCE
Chronic stress increases cortisol, impairing focus, memory and creativity. Leaders like Arianna Huffington and Satya Nadella promote mindfulness, recovery and well-being in order to build resilience and enhance performance.
BUILD TRUST
Trust activates oxytocin, the brain’s bonding hormone. Starbucks’ Howard Schultz showed this during the 2008 financial crisis by prioritising employee well-being over layoffs. Nadella did the same at Microsoft, replacing fear with fairness and empathy.
BRAIN-BASED LEADERSHIP
Leaders like Nadella, Ardern, Schultz and others show how neuroscience can be applied effectively. Here are some ways:
● Foster psychological safety
● Reward progress, not just outcomes
● Regulate emotions to prevent fear-driven reactions
● Challenge biases with diverse input
● Promote recovery and resilience
● Build trust through empathy and transparency
THE FUTURE OF NEUROSCIENCE
As technology advances, leaders will increasingly use neurosciencebased tools, like neurofeedback and brain imaging, to optimise
performance and better understand their teams.
Neuroplasticity – the brain’s ability to rewire itself – means leadership skills aren’t fixed. Nadella’s growth shows that with practice, leaders can reshape not just behaviour but brain pathways too.
In conclusion, neuroscience doesn’t replace traditional leadership wisdom. It explains human behaviour, helping leaders align strategy with how people truly think and feel.
The best leaders of the future will unite strategic insight with neuro-understanding to create trust, safety and motivation.
Ultimately, great leadership is not just about managing tasks. It’s about managing the minds and emotions that drive behaviour. Neuroscience shows us exactly how. ■
Dr Victor SL Tan is the CEO of KL Strategic Change Consulting Group. He was formerly the Corporate Planner of Public Bank Group and a Manager at Accenture. He holds a BSc in Biochemistry (Elmira College, New York, Phi Beta Kappa), an MBA from Ohio State University and a PhD from Hawaii. Author of 21 books, including Changing Mindsets, Releasing Trapped Minds, and Changing Your Corporate Culture, he can be reached at victorsltan@klsc. com or 012-390 3168.
