by ANIS HAZIM / Pic by TMR FILE

THE Malaysian retail industry has proven its resilience and adaptability during the pandemic, with 71% of businesses in retail, food and beverage (F&B) and hospitality sectors growing their revenue by 20% last year.

Adyen head of commercial for South-East Asia and Hong Kong Priyanka Gargav said Malaysian companies that outperform competition are those reaping the benefits of investing in the digital transformation which is now expected to provide an opportunity worth RM334 billion.

“Malaysian consumers’ love for tech-enabled, seamless shopping experiences stands out on a global level and the time is ripe for retailers to capitalise on the RM334 billion opportunity in digital transformation,” Priyanka said during the media briefing of Adyen Malaysia Retail Report 2022 today.

She foresees a bright future for Malaysian retail and expects it to reach greater heights this year as many retail players have unified commerce as a strategic growth driver.

Meanwhile, the majority of businesses intend on continuing to ride the digital wave, with 97% planning to invest in business improvement over the next year, based on the report.

“The acceleration of digital transformation will contribute an additional 5.6% to the total growth of Malaysia’s retail sector over the next five years,” she noted.

The report, commissioned by Adyen and sponsored by KPMG, interviewed over 40,000 consumers across 26 markets, including 1,000 from Malaysia to understand how they feel about the state of retail.

It also surveyed 11,500 businesses across 23 countries, including 500 from Malaysia to learn about their concerns, aspirations, strategies and investments for 2022 and beyond.

KPMG Malaysia ED and head of technology consulting Alvin Gan said that Malaysian business are well adapted to the challenges posed by the pandemic.

“A lot of them started collaborating better with their business partners and the use of technology — a good take-up of technology in that sense,” Alvin said.

Additionally, Malaysian businesses are optimistic about the future as more businesses are looking to embrace digitalisation.

Despite the accelerating technology in retail, physical stores will remain favourable as 76% pick physical stores for shopping pleasure, while online shopping is about convenience.

“One way to meet their expectations is through melding online and offline realms to create new customer experiences,” the report said.

Meanwhile, 87% of Malaysian consumers are more likely to shop with retailers that use technology to enhance the customer experience, which 32% above the global average.