Public checking Kwai Chai Hong near Petaling Street and take photos with the Chinese New Year decoration. 25 JANUARY 2025 CHAN TAK KONG/The Star
PETALING JAYA: Malaysia’s position as Asean Chair this year, coupled with a series of festive celebrations and preparations for Visit Malaysia 2026, is expected to drive significant growth in the retail and tourism sectors.
Malaysia is targeting 35.6 million visitors and RM147.1bil in tourism receipts by 2026.
Pavilion Kuala Lumpur chief executive officer (retail) Datuk Joyce Yap described this period as an “extraordinary opportunity for sustained retail momentum”.
“As Asean Chair this year, Malaysia is uniquely positioned to attract visitors from neighbouring Asean countries, as well as long-haul markets like China, the Middle East and Europe,” she said yesterday.
The convergence of Christmas 2024, and Chinese New Year and Hari Raya celebrations this year, alongside Malaysia’s Asean chairmanship, is amplifying retail activity across the country, she added.
Yap said Pavilion Kuala Lumpur is reporting a 10% increase in foot traffic compared with pre-pandemic levels.
She attributed the growth to free independent travellers (FITs) and high-value shoppers from markets like China and India.
She also highlighted the importance of key government initiatives, such as visa exemptions for Chinese and Indian nationals, in boosting Malaysia’s appeal as a travel destination.
Lotus Capital CEO Ryo Lam agreed that these policies are expected to drive tourist arrivals, particularly from China and India.
“Companies are going all out on marketing since Christmas and now heading into Chinese New Year. We have even made preparations for (the fasting month) and Hari Raya,” he said.
Lam added that sectors such as fashion, lifestyle, food and beverage (F&B), tourism, and hospitality are poised to benefit the most from this momentum.
To capitalise on the upbeat F&B mood, he said Lotus Capital opened a Ministry of Crab franchised outlet at the Tuah 1895@Bukit Bintang City Centre mall in Kuala Lumpur.
Malay Chamber of Commerce Malaysia president Norsyahrin Hamidon pointed to opportunities for local businesses to capitalise on Malaysia’s cultural heritage.
“Tourists visiting Malaysia are seeking a diverse shopping experience and are drawn to local fare, in particular, Malaysia’s rich array of handicraft such as batik, songket and intricate woodcarvings,” he said.
Federation of Malaysian Consumers Associations CEO Saravanan Thambirajah said increased arrivals will likely boost sales in key shopping areas such as Kuala Lumpur, George Town and Johor Baru, benefiting businesses and the economy.
“Malaysia’s Asean chairmanship and Visit Malaysia 2026 are expected to attract a significant influx of foreign tourists, driving growth in the retail sector and contributing to the economy,” he said.
However, he cautioned that the surge in foreign tourists may also bring challenges for Malaysian consumers.
“We anticipate that retailers will introduce new products, expand their offerings, and cater to international tastes to meet rising demand.
“There are concerns that the heightened focus on tourist spending could result in price inflation, making some products less accessible to local consumers.”
He said the influx of tourists might lead to price hikes, product shortages, and affordability concerns for local consumers.
“Authorities must ensure balanced policies to promote fair pricing and protect local consumers while maximising economic benefits,” he said.
Saravanan advised consumers to plan purchases early and explore online options to mitigate potential disruptions.
