Malaysia: The Depreciation Of The Malaysian Dollar Has Led To A 11.9% Fall In Sales Of Clothing And Other Industries.

The recent political instability in Malaysia has led to a 11.9% decline in the sales of clothing and other industries. The retail sales in the second quarter of the department store industry fell by 12% over the same period in 2014. The third quarter is expected to remain negative growth, down 3.6%.

The Malaysia Retailers Association (MRA) said that since the Malaysia government implemented the consumption tax in April 1, 2015, the tax rate is 6%, and the recent chain depreciation of the Ma and the government turmoil has seriously affected consumers' purchase intention, resulting in a second drop in retail sales in the second quarter of this year, the worst performance since the 1997/98 financial turmoil in East Asia.

The impact of consumption tax is stronger than expected. Malaysia consumers tighten their spending in the second quarter, wait for the change in the prices of retail goods and services, and wait for businesses to launch more promotional activities before deciding to buy.

The implementation of the excise tax system has caused confusion to consumers and businesses, such as mobile phone prepaid card bonus, catering service fees and temporary tax levying, which also bring heavy pressure on retail sales.

According to the survey, the retail sector affected by the implementation of the consumption tax, including grocery retailers,

In many industries, such as toys, gifts, mobile phones, furniture, electronics and electrical appliances, many retailers have fallen in the range of 20% to 50%.

The impact of consumption tax has not subsided, and the consultation is estimated from July to September.

It is not expected to recover strongly, and forecast third quarter sales growth of only 0.1%.

The second quarter retail sales fell by 12% compared with the same period in 2014. The third quarter is expected to remain negative growth, down 3.6%.

After a brief recovery in the first quarter, the department store's performance in the second quarter was down 15.8%. It is estimated that in the third quarter, the retail sales of the department store industry still fell by 12%, and the third quarter is expected to remain negative growth, or 3.6%.

After a brief recovery in the first quarter, the department store's quarterly performance fell 15.8%, with an estimated 7.3% negative growth in the next 3 months.

Supermarkets and high department stores grew by 0.7% in the second quarter and 9.4% in the garment industry. It is estimated that these 2 sectors will recover in the third quarter, growing 4.3% and 1.1% respectively.

Other retail businesses such as camera products and services, sporting goods, health products and toys continued to grow negatively for the first quarter. The second quarter fell by 19.4%.

It is estimated that the third quarter will recover and achieve a 2% growth rate.

The association is also based on the recent political instability in Malaysia, the possible impact of consumer confidence, and the continued weakness of the Ma exchange rate, resulting in higher import costs and business costs. The fourth forecast of retail sales growth this year is down to 4% from the previous 4%.