Retail News CRM

Tag: Malaysia

  • Furla opens largest Malaysian store

    Furla opens largest Malaysian store

    Italian luxury label Furla has launched its largest store in Malaysia. The new 1290sqft boutique in Kuala Lumpur’s Suria KLCC has been lavishly decked out in rosewood and Italian travertine marble alongside opalescent glass and champagne gold finishing on product displays. Several local celebrities were spotted in attendance at the store’s launch.

    The brand’s new range is now featured in store, including the Furla Cometa quilted camera bag and the Cometa tote. Furla is also offering its Cruise 2019 fur-free collection.

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  • Vietnam ratifies Asia-Pacific trade pact

    Vietnam ratifies Asia-Pacific trade pact

    Vietnam became the seventh country to ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Monday afternoon. With its ratification, the National Assembly (NA) has assigned the task of reviewing related bills and legal enactments to the Government, the Supreme People’s Court, the Supreme People’s Procuracy and other relevant bodies.

    Once reviewed, the government agencies shall request that competent authorities amend, supplement or enact new laws in a timely manner to ensure uniformity and adherence to the roadmap for implementing commitments contained in the CPTPP.

    The Prime Minister will be responsible for approving and directing the relevant central or local agencies in implementing the CPTPP pact.

    The CPTPP is a major trade pact between Vietnam and 10 other countries that seeks to boost trade by reducing tariffs.

    Speaking at a recent NA session, Deputy Prime Minister Pham Binh Minh said that the CPTPP “will benefit Vietnam overall.”

    Because the trade pact will cover 13.5 percent of global GDP, Vietnam’s GDP will be able to grow by 1.32 percent, and its exports 4.04 percent by 2035, he added, citing a report by the Ministry of Planning and Investment.

    However, the Deputy PM also enumerated challenges that Vietnam would face when joining the CPTPP.

    Domestic products such as pork and chicken might face strong competition from imported products. Other products that can have trouble competing include paper, steel and cars, Minh said.

    The other six countries to ratify the pact are Australia, New Zealand, Canada, Japan, Mexico and Singapore.

    The four countries still to ratify it are Brunei, Chile, Malaysia and Peru.

    Originally a 12-member agreement known as the Trans-Pacific Partnership (TPP), the pact was thrown into limbo when U.S. President Donald Trump withdrew his country from the deal in January 2017.

    Following the U.S. withdrawal, the remaining 11 countries renegotiated parts of the TPP, removing some of Washington’s demands. In March, they signed the revised CPTPP, also known as TPP-11.

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  • Big C to open in Malaysia

    Big C to open in Malaysia

    Thai Hypermarket Big C appears to be preparing to enter Malaysia. According to several websites, Fraser and Neave, a subsidiary of billionaire Charoen Sirivadhanabhakdi’s TCC Group, is in the process of completing local regulatory requirements through Ministry of International Trade and Industry to prepare for the launch of Big C Malaysia.

    The target opening date has not been confirmed.

    However, the first Big C Malaysia Supercentre is expected to be located in Kedah in northwest Malaysia, near the Thai border.

    Big C currently operates in Thailand, Vietnam and Laos.

    Many Malaysians reportedly cross the border into Thailand to shop at the Big C hypermarket in Hat Yai, in Thailand’s south, giving the company confidence its offer would be popular among residents of its neighbouring country.

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  • Moody’s downgrades Petronas LNG’s ratings outlook to negative

    Moody’s downgrades Petronas LNG’s ratings outlook to negative

    Moody’s Investors Service has downgraded Petronas LNG Ltd’s (PLL) ratings outlook to “negative” from “stable”, following the same outlook revision for its parent company Petroliam Nasional Bhd’s (Petronas) yesterday. At the same time, the rating agency has affirmed PLL’s A3 foreign and local currency issuer ratings.

    Moody’s said the changes reflects its negative outlook on Petronas’ ratings and its expectation of PLL’s continued strong support from and linkages with its ultimate parent.

    PLL is 100%-owned by Petronas, which is in turn wholly-owned by the government.

    Moody’s said given the negative ratings outlook, a ratings upgrade is unlikely and it will revise PLL’s ratings outlook to stable from negative only if Petronas’ ratings outlook is stabilised.

    It said that PLL’s ratings will be downgraded if: Petronas’ rating is downgraded; there is a decrease in Petronas’ ownership of PLL; there is a reduction in Petronas’ supervision of and operational and financial support to PLL; or there is a material increase in PLL’s risk appetite.

    PLL’s ratings were assigned using a top down approach by evaluating the company’s full ownership by Petronas, its strong operational and financial integration with Petronas, and the willingness and ability of Petronas to extend support to PLL in an event of distress.

    Meanwhile, Moody’s assistant vice president and analyst Rachel Chua said PLL’s A3 ratings are positioned two notches below the A1 ratings of its ultimate parent.

    She noted that PLL enjoys ongoing liquidity support from Petronas and it can draw from Petronas’ umbrella credit facility for liquidity management, adding Petronas has continued to support PLL financially through cash injections of almost $400 million over the past three years.

    “Petronas’ support for PLL extends beyond financial assistance. Petronas also provides PLL with significant management support and oversight, including monthly reporting on risk and governance to a committee chaired by Petronas.

    “PLL also has an integrated treasury function with Petronas, where its cash is held centrally by Petronas and cash flow requirements are shared with its parent,” she added.

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  • Indonesia Will Not Cut Export Levy on Palm Oil: Minister

    Indonesia Will Not Cut Export Levy on Palm Oil: Minister

    Indonesia has decided not to make any changes to export levies on palm oil, Coordinating Economic Affairs Minister Darmin Nasution said on Thursday. “Even though we have had discussions on the issue, we prefer not to change the policy on this area. There is no change,” Darmin said at a press briefing in Kuala Lumpur.

    “In the long term, I cannot confirm, but in the short term there is no change,” he said.

    Darmin said at an industry conference in Bali last week that Indonesia was considering a move to reduce the levy.

    Indonesia, the world’s top producer and exporter of the edible oil, currently slaps a levy of $50 per metric ton on crude palm oil, and a range of $20-$40 for refined palm products.

    The Indonesian Palm Oil Association (Gapki) said last month that it had proposed cutting the palm oil export levy by $20 per ton until prices of the vegetable oil reach $700 per ton.

    The government’s reference price for crude palm oil has stayed below $750 per ton for over a year.

    Speaking in Kuala Lumpur, Darmin said Indonesia decided against the cut in export levy as such a move would result in lower prices that would benefit consuming countries, not exporters.

    The minister has in the past said Indonesia was considering reducing the levy to boost exports, which would then reduce stockpiles, but he said on Thursday that this would be achieved by boosting the use of biodiesel.

    “Our policy is to increase the utilization of biodiesel, so of course, it takes time but I believe the result will be there in six months,” Darmin said.

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  • ShopBack: More people aware of 11.11 this year

    ShopBack: More people aware of 11.11 this year

    Leading Cashback platform ShopBack conducted a survey recently and found the awareness level towards 11.11 Singles’ Day among Malaysian online shoppers has grown to 96% this year, from 69% in 2016. “In a 2016 survey to 2,000 Malaysian online shoppers, 69% answered they know what Singles’ Day is and 31% said they don’t. This year, 96% answered it is a huge online event (68%) or just another online shopping event (28%); only 3% from 2,000 respondents said they don’t know what 11.11 is, and 1% indicated that day has other meanings to them. This is an approximately 40% increase compared to 2016,” Alvin Gill, Country General Manager of ShopBack Malaysia says.

    According to Alvin, Alibaba’s investment in Lazada and massive promotions rolled out via multiple online and offline channels, as well as education efforts done by reward partners throughout the years likely contributed to the awareness growth. “Alibaba’s Taobao and Tmall have been collaborating with ShopBack on a regional level to boost market performance via cash rewards and multimedia educational efforts since 2014, of which include multi-lingual contents, digital and on-ground marketing exposures, as well as customer service support to encourage purchases through either Taobao, Tmall or Lazada’s Taobao collection, whichever suits their needs,” he adds.

    “While it is encouraging that a majority of them are looking forward to 11.11, online sellers should also target those who feel 11.11 is ‘just another shopping event’ via better product and promotional strategy. 98% of respondents said they are willing to make more purchases if the products they need are available with greater offers online. The top three offers that would encourage them to spend are high product discounts, free shipping/delivery, and promo codes/coupon,” Alvin points out.

    When asked to choose three online marketplaces that they feel would provide the best 11.11 deals this year, Lazada emerged as the top choice, followed by Shopee and 11street.

    The survey also reveals that online shoppers prefer their shopping to be affordable, fast and safe. “Mobile & Electronics emerges as the most popular category for 11.11 without surprise; the second is Home & Lifestyle which suggests shoppers could be looking for items to make over their living spaces before the New Year, followed by Fashion as well as Health & Beauty.”

    The 2018 ShopBack 11.11 online shopping survey covered views from 2,000 of ShopBack’s active online shoppers, of which 98.7% are aged 21 years old and above and around 85% have RM2,000 monthly income and above. 68.1% of the survey respondents use credit/debit card to make online payments while 25.4% select online banking as the preferred method, followed by cash on delivery 3.3%, Paypal 2.8%, and others 1.3%.

    “We witnessed 10 times more than usual web traffic directed to our partner’s sites on 11.11 in 2017, more than RM6 million worth of transactions were made through our platform and over RM200,000 cashback saved by using ShopBack. Together with our partner merchants, ShopBack Malaysia has tailor-made the 2018’s 11.11 campaign according to shopper’s needs and we aim to break the record by doubling our performance as well as cashback number this year,” Alvin says.

    Currently, more than 1 million Malaysians are using ShopBack for their daily purchases. The company works with online sites like Lazada, 11street, Taobao, Tmall, Booking.com, Expedia, Traveloka, ZALORA, Hermo, etc to give up to 30% cashback as a loyalty reward to online shoppers. Besides Malaysia, ShopBack also operates in Singapore, Indonesia, Philippines, Thailand, Taiwan and Australia. Over RM25 million worth of cashback has been given to its Malaysian users thus far. The cashback savings can be transferred out to a user’s bank account upon validation.

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  • Public Bank launches all-in-one digital payment platform

    Public Bank launches all-in-one digital payment platform

    Public Bank Bhd, in partnership with Revenue Group Bhd, today launched the all-in-one digital payment terminals. This all-in-one digital payment terminal has been piloted at selected merchant outlets of Public Bank and will be made available tomorrow.

    Public Bank managing director and CEO Tan Sri Tay Ah Lek said the first all-in-one digital payment terminal in Malaysia, developed by Revenue, will simplify the payment acceptance process as it will enable the physical retail merchants to accept both card payments and mobile wallet payments in a single digital payment terminal thus providing convenience to them.

    As at end September 2018, Public Bank has more than 60,000 electronic data capture terminals nationwide.

    Tay said it will continue with its strategy of increasing its merchant base and adding on more new acceptance services.

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  • Genting Malaysia will act to mitigate impact of higher casino licence fee, duties

    Genting Malaysia will act to mitigate impact of higher casino licence fee, duties

    Genting Malaysia Bhd is assessing the full implications of additional taxes announced in Budget 2019 and will take appropriate action to mitigate their impact. The action includes a review of its marketing expenditure as well as cost structure, it told the stock exchange.

    Genting Malaysia said it has been advised by the Finance Ministry that the annual casino licence fee will be revised from RM120 million to RM150 million and casino duties will be revised to up to 35% of gross collection.

    “The increase in casino duties represents a 10 percentage point increase over existing duty rates. The amendments will take effect from Jan 1, 2019,” it added.

    On Bursa Malaysia today, Genting Malaysia closed 3 sen or 0.83% higher at RM3.64 after hitting limit down on Monday.

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  • Malaysia’s September trade surplus climbs to 10-year high

    Malaysia’s September trade surplus climbs to 10-year high

    Malaysia’s exports rebounded by 6.7% year on year (yoy) in September 2018 to RM83 billion after a dip of 0.3% in the previous month, boosting the trade surplus to a 10-year high of RM15.3 billion, the Statistics Department said. The surplus represents an 85.9% jump compared with the same month last year.

    Imports, however, registered a decrease of 2.7% yoy to RM67.8 billion. This was the second lowest import value in 2018.

    Total trade, which was valued at RM150.8 billion, increased RM3.3 billion or 2.3% in September 2018.

    The export growth was contributed by expansion in exports to Hong Kong, Taiwan, Singapore, Australia and South Korea. Lower imports were mainly from India, South Korea, Vietnam, the United Arab Emirates and the European Union.

    The main products which contributed to the expansion in exports were electrical & electronic products (+6.5%); refined petroleum products (+20.5%); crude petroleum (+54.5%) and liquefied natural gas (+1.8%).

    However, declines were recorded for palm oil and palm oil-based products (-11.5%); timber and timber-based products (-0.4%) and natural rubber (-1.9%).

    The lower imports by “end-use” were mainly attributed to intermediate goods, capital goods, and consumption goods.

    MIDF Research said export growth for Q3 averaged 5.3% yoy, moderated from 8.4%yoy in Q2. It was the lowest gain in seven quarters.

    Looking at the final quarter of 2018, it expects exports to perform better than in the earlier three quarters.

    “Amid higher base effects and signs of easing key global indicators, we foresee exports to expand by 7.3% this year (18.9% in 2017). This is supported by lower exports growth for the first nine months which registered at 6.5% compared to double-digit growth of 21.6% in the same period last year.

    “The moderating pace is consistent with gradual rise in global commodity prices, expectation of slight slowdown in overall business performance on top of the heating Sino-US trade conflict.”

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  • FedEx QR Pay targets SMEs in five major Asian markets

    FedEx QR Pay targets SMEs in five major Asian markets

    Transport company FedEx has launched a QR-code based mobile payment system in Hong Kong, Malaysia, Philippines, Singapore, Thailand and Australia. The system, FedEx QR Pay (the QR stands for quick response), is targeted specifically at SMEs.

    Supplementing the firm’s existing online payment methods, FedEx QR Pay is a secure mobile payment option activated by QR codes embedded with unique payment links. QR Pay eliminates the need to have shopping carts, booking engines or checkouts, allowing customers to make payments with credit cards and e-wallet services.

    FedEx’s president for Asia Pacific Karen Reddington said: “FedEx is constantly looking for ways to innovate, pioneer new solutions and offerings to address customers’ evolving needs in the region … QR Pay provides greater flexibility and convenience for our customers, and ultimately a better experience when it comes to managing their logistics needs.”

    Asia Pacific leads the world in mobile payment with 53 per cent of connected consumers using their mobile devices to pay for goods or services at point of sale. Rising mobile penetration is a key driver, with the number of smartphone users across region now over a billion. Seeing the clear trend towards mobile payment adoption, SMEs are also harnessing new technologies to expand their business.

    According to a recent research commissioned by FedEx, 73 per cent of SMEs are already current users of mobile payments, with 69 per cent of these businesses likely to increase usage in the next 12 months. Thirty per cent of current non-users are likely to begin using mobile payments as well.

    FedEx QR Pay will soon be expanded to other markets in Asia Pacific.

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  • Petronas has sufficient headroom to absorb one-off exceptional dividend

    Petronas has sufficient headroom to absorb one-off exceptional dividend

    Petroliam Nasional Bhd’s (Petronas) solid balance sheet, sizeable net cash position and ample liquidity provide ample buffer against the payment of one-off dividend to the government that could reach RM30 billion. According to S&P Global Ratings, the financial impact of a one-off dividend of this size is moderate considering Petronas’ cash position and balance sheet quality.

    “The company can finance this dividend, given cash and short-term equivalent of nearly RM180 billion as of June 30, 2018; immaterial reported debt of about RM66.3 billion as of June 30, 2018 and a net cash position of nearly RM114 billion as of June 30, 2018; and solid operating cash flows,” it said in a statement.

    It added that the exceptional dividend of RM30 billion would effectively offset inflows of nearly RM30 billion the company received following the completion of the transaction with Saudi-based oil and gas producer Saudi Aramco in the first quarter of 2018.

    “We project Petronas will remain in a net cash position in 2019 and, depending on the pace of capital spending disbursement, in 2020 as well. This underpins our ‘aa’ stand-alone credit profile on the company.

    “We currently project operating cash flows of at least RM80 billion in 2019 amid higher hydrocarbon prices. These are sufficient to fund capital spending that we forecast at about RM55 billion and regular dividends to the government and minority interest that we estimate at about RM25 billion,” it said.

    The rating agency said the special dividend will not affect Petronas’ solid liquidity as the group’s short-term debt maturities were minimal at about RM11.5 billion as of June 30, 2018, representing less than 10% of its cash balance.

    “We estimate that Petronas’ balance sheet can absorb negative discretionary cash flows of RM40 billion for two years before the headroom under its ‘aa’ stand-alone credit profile starts to reduce. Assuming no change to the company’s investment plan, this implies additional one-off dividends of RM40 billion to RM50 billion, on top of the regular and exceptional dividends in the 2019 budget,” it said.

    It said that the special dividend validates its long-standing credit view that Petronas can be subject to periodic cash calls from the government given its solid financial position, high importance to the national budget and ownership control by the government.

    It added that a sustained period of higher oil prices over the next two to three years will translate into higher dividends from Petronas, and potentially, additional one-off dividends to the state.

    “We cap our issuer credit rating on Petronas (foreign currency A-/Stable/–; local currency A/Stable/–) to that of the sovereign of Malaysia (A-/Stable/A-2; local currency A/Stable/A-1), despite Petronas’ stronger stand-alone credit profile, given this government intervention risk.”

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  • Insufficient measures to boost retail spending : RGM

    Insufficient measures to boost retail spending : RGM

    The latest budget announcement is not expected to stimulate consumer spending in the near term, as there is insufficient economic policies aimed at increasing retail spending, opined retail consulting firm Retail Group Malaysia.

    Managing director Tan Hai Hsin said that Budget 2019 is focusing more on managing government deficit and social programmes for the B40 group.

    “We hope the economic activities will improve significantly in the immediate future. Higher economic activities will lead to higher take-home pays (and higher retail spending subsequently),” Tan said.

    Prior to the Budget announcement, he said Malaysian consumers were told that they should not expect monetary incentives from the government in 2019. Malaysians were also informed that more taxes could be expected next year.

    “Based on the latest announcement, it should improve consumer confidence. At least in the next six months,” said Tan.

    For next year, the government continues to distribute one-off monetary incentives to Malaysians (including civil servants) to reduce their financial burden. About 4.1 million households are expected to benefit from it.

    Increment of minimum wage by RM50.00 will also lessen the financial burden of B40 group.

    “On the other hand, higher minimum wage will lead to higher cost of goods for retailers. It will lead to higher retail prices eventually.”

    He said the soda tax will not have major impact on retail spending, while noting that it is still early to comment on the impact of RON95 until more announcements have been made.

    “Same as previous budgets for many years, there were no direct incentive and new government policies related to retail industry.”

    Sunway Malls & Theme Parks Chan Hoi Choy said the 2019 Budget balances fiscal discipline while emphasising development in the right sectors.

    “Initiatives announced particularly with the emphasis on B40 group is lauded while efforts to grow Industry 4.0 especially knowledge transfer, artificial intelligence development, matching grants will drive higher productivity and cost rationalisation in mall & retail industries.”

    Similarly, it is encouraged by the government’s focus in housing, public transportation and education initiatives to form the bedrock for Malaysia’s economy into the future. The drive for greener adoption and women representation also signifies a greater sustainable and inclusive approach.

    “We take note of the significance of Malaysia’s economy projected GDP growth rate of 4.8% for 2018 and 4.9% for 2019, against IMF’s projected slowdown of global growth of 3.7% in 2019. This underscores the relative resilience of the Malaysian economy in face of global headwinds and protracted trade war. In the light of this and the current country’s fiscal position, the overall Budget 2019 is targeted while exercising prudence,” said Chan.

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  • Malaysia’s exports rebound in September

    Malaysia’s exports rebound in September

    Malaysia’s exports rebounded by 6.7% in September 2018 to RM83 billion year-on-year (y-o-y) after a slight decrease in the previous month, according to Statistics Department. Total trade which was valued at RM150.8 billion increased RM3.3 billion or 2.3% in September 2018, chief statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said in a statement.

    Mohd Uzir said the trade surplus recorded the highest value since October 2008 at RM15.3 billion, increased RM7.1 billion or 85.9% from a year ago.

    Re-exports was valued at RM16.5 billion registering an increase of 26.2% y-o-y and accounted for 19.9% of total exports, while domestic exports increased 2.7% or RM1.8 billion to RM66.5 billion.

    The export growth was contributed by expansion in exports to Hong Kong, Taiwan, Singapore, Australia and Republic of Korea. Meanwhile, lower imports were mainly from India, Republic of Korea, Vietnam, UAE and EU.

    The main products which contributed to the expansion in exports were electrical & electronic products, refined petroleum products, crude petroleum and liquefied natural gas (LNG).

    However, the department said decline was recorded for palm oil and palm oil-based products, timber and timber-based products and natural rubber.

    For imports, the lower in imports by ‘end use’ was mainly attributed to intermediate goods, capital goods, and consumption goods, it added.

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  • Parkson Retail Asia continues drowning

    Parkson Retail Asia continues drowning

    Struggling department store operator Parkson Retail Asia has hinted it may close further stores as it posted yet another loss. For the first quarter of the new trading year, the Singapore headquartered company lost S$11.1 million, a slight improvement on the $12.9 million of a year ago.

    Last full trading year, the company lost $40.1 million for the full year.

    In a statement, the company said it would will continue to prioritise on enhancing product offerings “as well as on optimising both our operational efficiency and network of stores,” suggesting further exits, most likely in Vietnam where it has just five stores remaining from a peak of 10 and continues to lose money.

    Parkson credited the reduced loss on an improved performance of the Malaysian and Indonesian store networks, together with the effect of the closure of seven loss-making stores last financial year.

    Group sales rose 1.7 per cent to $92.6 million.

    On Friday the company announced the immediate resignation of its CFO Chia Cang Yang, with immediate effect. CEO Michael Remsen will oversee financial matters until a replacement is recruited.

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  • Twenty4 opens cash-free retailer in Ipoh Malaysia

    Twenty4 opens cash-free retailer in Ipoh Malaysia

    Malaysian convenience store Twenty4 has opened in Ipoh as the region’s first cash-free retailer of its kind. The “smart” convenience store accepts only cashless transactions, earning it a spot in the Malaysia Book of Records. The brand’s CEO Kenny Ng said: “The shop is open round-the-clock and customers can purchase a variety of items, including food and personal care items, through cashless transactions.

    Customers can buy products at the store using debit cards, credit cards, Paywaves, Samsung Pay, Apple Pay or use other E-Wallet payments. We hope the concept will set the pace … be a pioneer in Malaysia, where people buy items without using cash.”

    Twenty4 sells various local and international products via self-service machines.

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