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CapitaLand Malaysia Mall Trust
Annual Report 2015
Independent Retail Market Overview
2010
2011
2012
2013
2014
2015
f
Consumer Price Index
(Average Prices)
1
(2010=100)
Malaysia
100.0
103.2
104.9
107.1
110.5
112.2
Peninsular Malaysia
100.0
103.3
105
107.1
110.7
-
Inflation
1
1.7% 3.2% 1.6% 2.1% 3.2% 2.0-3.0%
Consumer Sentiment Index
2
114.4
107.8
116.6
104.3
94.5
70.2
Growth Rate
14.5% -5.8% 8.1% -10.6%
-9.4
–
Population (’000)
3
Malaysia
28,589
29,062
29,510
29,915
30,261
31,000
Kuala Lumpur
1,675
1,693
1,702
1,717
1,732
1,732
Selangor
5,502
5,600
5,702
5,796
6,020
6,140
Penang
1,576
1,601
1,623
1,645
1,680
1,690
Pahang
1,502
1,527
1,547
1,564
1,584
1,600
Urbanisation Rate
4
Malaysia
71.0%
–
–
–
–
–
Kuala Lumpur
100.0%
–
–
–
–
–
Selangor
91.4%
–
–
–
–
–
Penang
90.8%
–
–
–
–
–
Pahang
50.5%
–
–
–
–
–
Unemployment Rate
4
3.3% 3.1% 3.0% 3.1% 2.9% 3.2%
Overnight Policy Rate
5
2.7% 3.0% 3.0% 3.0% 3.2% 3.2%
Base Lending Rate
5
6.0% 6.5% 6.5% 6.5% 6.7% 6.8%
Tourist Arrivals
6
(million persons)
24.6
24.7
25.0
25.7
27.4
29.4
Tourist Receipts
6
(RM billion)
56.5
58.3
60.6
65.4
72.0
89.0
Retail Market Overview
The overall retail scene in the region was challenging
in 2014 and 2015. 2015 was a consolidation and
rationalization year for retailers. The fashion industry
in Malaysia was affected by the volatile economy,
implementation of Good and Services Tax (GST), weak
consumer sentiment and low discretionary spending.
Retail margins, especially in the fashion industry,
were squeezed and profit levels fell by double digits.
According to the Malaysian Institute of Economic
Research (MIER), the Consumer Sentiment Index
has been trending downwards since 2013 to the third
quarter of 2015, and was constantly below 80 index
points for the first three quarters of 2015 (new low of
70.2 points in Q3 2015). This is the worst period since
the Global Financial Crisis (GFC) of 2008. Consumer
confidence level is expected to improve in the mid to
long term as consumers get used to GST and backed
by stable economic and political conditions.
With the influx of retail space scheduled to be
completed in 2016 and 2017, competition should
intensify. The best shopping centres will continue
to perform whereas centres in secondary locations
which do not benefit from good catchment areas will
most likely struggle.
Despite the stif f and competitive retail market,
international retailers, such as the FJ Benjamin
Group, H&M and Uniqlo continued to expand within
Malaysia although the focus remains within Greater
Kuala Lumpur. Greater Kuala Lumpur includes Wilayah
Persekutuan Kuala Lumpur and parts of Selangor
such as Petaling, Gombak, Hulu Langat, Klang and
Sepang districts.
f: forecast
1
Bank Negara Malaysia, Department of Statistics Malaysia for 2015’s figures.
2
Malaysian Institute of Economic Research: 2015’s figure is as at Q3/2015.
3
Department of Statistics Malaysia.
4
Ministry of Finance Malaysia: 2015’s figure is as at Q3/2015.
5
Bank Negara Malaysia.
6
Tourism Malaysia.
