PETALING JAYA: The retail industry is expected to experience a 4% growth rate in 2025, says Retail Group Malaysia (RGM).
This growth is based on anticipation of the economy expanding between 4.5% and 5.5% next year.
However, RGM highlighted several challenges the industry may face, including the rising cost of living and e-invoicing.
E-invoicing has been implemented for larger corporations since Aug 1, 2024, while small retail businesses with an annual turnover of at least RM150,000 will be required to comply by July 1, 2025.
“This will pose a great challenge for many independent retailers, traditional shop operators, small business owners and online retail sellers,” RGM said in its retail industry report for November 2024.
New policies and measures announced during Budget 2025 in October 2024, such as higher monthly wage, an increased excise duty on sugar sweetened beverages, and an expanded Sales and Service tax are expected to have minimal impact on the industry next year.
As 2024 comes to a close, RGM projected an average growth rate of 4.4% for the fourth quarter.
The personal care subsector is expected to lead with a growth rate of 17.4%, followed by the department store-cum-supermarket subsector with a 4.4% growth.
