PETALING JAYA, Nov 23 — Malaysia’s retail industry is expected to grow by 3.3 to 3.5 per cent in 2024, according to the Malaysia Retail Chain Association (MRCA).

Deputy president Datuk Ken Phua said this is based on a moderate and conservative estimation due to factors such as the increase in the Sales and Service Tax, rise in raw material costs, and geopolitical issues.

"We have decided to retain this estimate although Bank Negara Malaysia recently forecast a Gross Domestic Product (GDP) growth of 4.0-5.0 per cent for next year,” he told reporters after witnessing the signing of a memorandum of understanding (MoU) between Web Bytes Sdn Bhd and E3 Capital Sdn Bhd here today.

He said the retail sector will continue to grow in tandem with the GDP growth this year.

"The GDP growth has reached 3.9 per cent for the first three quarters of 2023. So that means we are able to meet a four per cent growth or more for the whole year,” Phua said.

He said that for the third quarter of this year, the F&B kiosk and store operators are anticipating a growth of 10.4 per cent.

Meanwhile, retail management software company Web Bytes Sdn Bhd signed the MoU with E3 Capital Sdn Bhd, which operates entrepreneur community platform E3Hubs, to accelerate the digital transformation of E3Hubs’ F&B entrepreneur members by empowering them with scalable, cloud-based technology.

In a statement issued at the event, Web Bytes said the MoU aims to help them optimise their business processes, increase operational efficiency, and adapt to the dynamic demands of the industry, with a lower cost of investment. — Bernama