ETP: The Wholesale & Retail Story - Nor Haida Shahimi

Economic Transformation Programme: The Wholesale & Retail Story

Nor Haida Shahimi

Manager, Wholesale & Retail NKEA

Kuala Lumpur & Selangor Chinese Chamber of Commerce & Industry

25 February 2012

PM introduced 4 strategic thrusts towards

developed nation status

10th & 11th Malaysia Plan

People First Performance Now

1

• 6 NKRAs • 29 MKRAs

2

4

• 12 NKEAs • 131 EPPs • 60 Biz Opps

3

The Connection

• Grow the economy • Increase revenue • Increase job / income

• Spend the revenue based on rakyat needs

• Distribute the revenue (RBI & LIH)

We must do both

Making us a rich country,

for everyone & for a long time

High-Income

Inclusiveness Sustainability

Target USD 15,000 GNI per capita by 2020

Enables all communities to

benefit from the wealth of

the country

Meets present needs without compromising future generations

Quality of Life

Wholesale & Retail: One of the 12 National Key Economic Areas

Entry Point Projects - Wholesale & Retail, NKEA 2011 Achievement

Opportunities for Chinese Retailers

Agenda

1

2

3



Agenda

1

2

3

1. TUKAR 2. Pasar Komuniti – PAKAR 3. Automotive Workshop

Modernisation 4. Makan Bazaar 5. Large Format growth 6. 1Malaysia Mall 7. Virtual Mall 8. Foreign Brand Acquisition 9. Wellness Resort 10. Duty Free Malaysia 11. 1Malaysia Unified Sale 12. Big Box Boulevard 13. KLIA Retail Hub

13 Entry Point Projects (EPP)

Wholesale & Retail

RM83.4 billion GNI

(additional in 2020)

~364,686 additional

jobs created

(2020 total)

RM69.1 billion

Investment (for 2010-2020 period)

RM350 billion Revenue

(in 2020)

Large format retailers to assist small retailers in modernising at least 10% of estimated 500,000 businesses to remain competitive

3.8 23,743

RM

billion

Jobs

Created

GNI

Impact

Wholesale & Retail

Modernising the Traditional Sundry Shops (TUKAR)


Modernisation 4. Makan Bazaar 5. Large Format growth 6. 1Malaysia Mall 7. Virtual Mall 8. Foreign Brand Acquisition 9. Wellness Resort 10.Duty Free Malaysia 11.1Malaysia Unified Sale 12.Big Box Boulevard 13.KLIA Retail Hub

Pasar Komuniti to consolidate existing markets such as Pasar Tani, Pasar Malam, Pasar Minggu and Pasar Tamu into an environment that provides proper infrastructure to attract customers and increase willingness to spend

8.8 141,000

RM

billion

Jobs

Created

GNI

Impact

Wholesale & Retail

Developing Pasar

Komuniti (PAKAR)



Standardise and improve the skill level of automotive workshops and develop a centralised database and website to categorise and grade workshops according to service levels

1.1 9,100

RM

billion

Jobs

Created

GNI

Impact

Wholesale & Retail

Automotive Workshop

Modernisation (ATOM)



Develop one-stop food centres which combine family, quick-service and fine dining restaurants with cafes, bars and street hawkers while maintaining a high level of quality and hygiene

230 4,300

RM

million

Jobs

Created

GNI

Impact



Wholesale & Retail

Makan Bazaar

Increase current floor space by 50% within 10 years from current base of 1.4 million square meters

8.5 68,600

RM

billion

Jobs

Created

GNI

Impact



Wholesale & Retail

Large Format Growth

Develop malls and provide business space for Malaysian retailers in targeted foreign cities to increase export-based GNI as well as expanding the market for home-grown brands

2.2 3,800

RM

billion

Jobs

Created

GNI

Impact



Wholesale & Retail

1Malaysia Mall

Develop an online replication of a brick-and-mortar hypermarket to enable small-and-medium-sized retailers to more effectively distribute their products

820 6,600

RM

million

Jobs

Created

GNI

Impact



Wholesale & Retail

Virtual Mall

Acquire stakes in foreign hypermarkets through several models, including a holding company in which GLICs and local retailers are equity partners

1.0 400

RM

billion

Jobs

Created

GNI

Impact



Wholesale & Retail

Acquire Foreign Retail

Business

Establish resorts that integrate supporting retail outlets and accommodation to complement the medical tourism industry and increase the number of foreign tourists in this industry to 500,000 annually

2.7 212,500

RM

billion

Jobs

Created

GNI

Impact



Wholesale & Retail

Setting Up Wellness

Resort

Exempt duty on retail products, especially those considered non-essential or luxury items, that have high elasticity and pent-up demand to encourage spending

3.3 31,100

RM

billion

Jobs

Created

GNI

Impact



Wholesale & Retail

Making Malaysia Duty

Free

1.8 14,300

RM

billion

Jobs

Created

GNI

Impact



Wholesale & Retail

1Malaysia Unified Sale

Increase awareness of annual sales events and involve more retailers across a greater range of industries

Develop very large outlets that integrate various categories of retailers within a single location to cater for the demand for a large-scale retail experience

1.2 9,600

RM

billion

Jobs

Created

GNI

Impact



Wholesale & Retail

Big Box Boulevard

Leverage KLIA2 and KLIA Aeropolis master plan to turn KLIA into an attractive shopping destination for passengers as well as residents in the vicinity

960 7,700

RM

million

Jobs

Created

GNI

Impact



Wholesale & Retail

KLIA Retail Hub



Agenda

1

2

3

519

55

20

Stores transformed

Workshops transformed

Sites identified

Duty Free Malaysia

17.5% increase

Cost, Insurance and Freight (CIF) Value

worth RM2.47 b

1Malaysia Unified Sale

3,182 outlets across 50 sub sectors RM21.5 b total spending

2011 Performance

15th June – 31st August 2011



Agenda

1

2

3

Large format retailers to assist small retailers in modernising at least 10% of estimated 500,000 businesses to remain competitive

3.8 23,743

RM

billion

Jobs

Created

GNI

Impact

Wholesale & Retail

Modernising the Traditional Sundry Shops (TUKAR)



The Amazing Transformation – GST Ready and better Pricing Options

BEFORE AFTER

BEFORE AFTER

The Amazing Transformation – GST Ready and better Pricing Options

TUKAR Opportunity not to be missed by the Chinese Community

An exchange for a modern feel while remaining the friendly neighborhood store but with

• Better inventory management • Better assortment and merchandising • Better pricing options • Physical upgrade (layout / design)

Soft Loan

Administered by Bank Rakyat

15 years @ 3%

Up to RM 60,000

• LESS than RM12 a day

for repayment

Standardise and improve the skill level of automotive workshops and develop a centralised database and website to categorise and grade workshops according to service levels

1.1 9,100

RM

billion

Jobs

Created

GNI

Impact

Wholesale & Retail

Automotive Workshop

Modernisation (ATOM)



ATOM Opportunity not to be missed by the Chinese Community

An exchange for efficiency of the automotive service and repair sector that • Keep pace with latest technology • Increase skills and knowledge of technicians in automotive sector • Increase competitive advantage of local after-sales sector • Has better opportunity for expansion and upgrading of workshop

facilities • Has ability to enhance public confidence in standards of service

Soft Loan

Administered by Bank Rakyat

15 years @ 3%

Up to RM 100,000

• LESS than RM20 a day

for repayment

IN THE PIPELINE SUCCCESSFULLY MODERNISED

Engaged Interested Clear CTOS &

CCRIS

Completed This Week Cumulative Update

(26 - 31 Dec 2011)

639 600 393 15 55 Malay Chinese Indian Others

Breakdown by Race # 42 12 1 0

Breakdown by Race % 76% 22% 2% 0%

AAM AAIM MARTDS PPIBM HYL ITE PNT FAWOAM

Breakdown by Sponsor # 22 2 1 9 17 2 2 0

Breakdown by Sponsor % 40% 4% 2% 16% 31% 4% 4% 0%

TUKAR & ATOM

Chinese Participation 2011

7% for

TUKAR

and 22% for

ATOM

Contractors (F class) Mall operators SMEs players Retailers Automotive and Retail consultants Medical experts (wellness)

1

2

3

4

5 6

THANK YOU + www.pemandu.gov.my/etp + www.pemandu.gov.my/etp/blog + www.facebook.com/etpmalaysia + @etp_roadmap

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ETP: The Wholesale & Retail Story - Nor Haida Shahimi