‘Smart spending not a bane for retailers’


Careful choices: Patrons doing last-minute shopping at Mid Valley Megamall ahead of the Chinese New Year celebrations. — ART CHEN/The Star

PETALING JAYA: Shoppers are more cautious and prudent with their spending as they welcome the Chinese New Year (CNY) festivity and Ramadan fasting month period, say business groups.

Malaysian Shopping Centre Association president Phang Sau Lian said while consumers are more willing to spend, their spending decisions are simultaneously more rational, cautious and savvy.

She said there has been a signi­ficant increase in shoppers ­recently, especially in Kuala Lumpur, due to the long weekend of public holidays and the influx of foreign tourists during Visit Malaysia 2026 (VM2026), further boosting mall foot traffic.

Phang said for this year’s Chinese New Year period, consumer retail spending habits has increased compared to last year.

“Seeing that this year’s Chinese New Year falls in mid-February, it provided consumers some breathing room to spend more after the year-end and back-to-school expenses of last year.

“Coupled with Malaysia’s robust economic performance, a strong ringgit and a low unemployment rate, the overall economic and political environment is stable, all of which support market sentiment,” she added.

Phang said consumption has continued to rise in the first two months of this year, indicating a return of market confidence.

“Overall, sales in January and February this year are expected to grow by an average of over 5%, depending on the brand.”

Sunway Malls chief executive officer HC Chan said even though shoppers are becoming more selective, there is still a stronger ­buying pattern this year, partly due to the longer festive shopping period before CNY, adding that festive shopping has been consis­tent from mid-January onwards.

Chan also noted that the Muslim community is making preparations as Ramadan begins earlier this year – the holy month is expected to begin on the third day of CNY – which further boosts public spen­ding.

“Our malls have reported a steady increase in customer traffic starting mid-January and the numbers continue to be at peak levels every day since the past two weeks.

“From our observation, there is a good buying balance between cheaper options and premium goods,” he said.

For CNY shoppers, Chan said fresh produce and high-quality festive food products like yee sang and bak kwa top the list for consumers, in addition to an increase in fashion purchases.

On purchasing habits among tourists, he said there has been an increase of tourists since last year, especially from China, Indonesia and Singapore.

“Depending on locality, some of our malls will see higher numbers, amounting to 10% of the mall’s footfall.

“On average, tourist spending goes up two to three times than local consumption,” Chan said.

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