Nov 15, 2015
INTENSIVE GOVERNMENT EFFORTS TO PROMOTE SHOPPING IN MALAYSIA
The Malaysian shopping sector has
progressed from local to global, an outstanding feat, no less, since
more than three decades ago. It has emerged from the back engine of
Malaysia’s economic growth to the forefront of the country’s tourism
industry, contributing the second biggest share of tourist expenditure
after the accommodation sector in recent years.
In
2014, tourists spent RM21.6 billion on shopping in Malaysia, an
increase of 9.3% compared to RM19.8 billion in 2013. Total tourist
receipts for 2014 were RM72 billion, making tourism as the second
largest foreign exchange earner for Malaysia (after manufactured goods).
Today, the retail sector is one of Malaysia’s most dynamic industries,
thanks to the consistent efforts by the Malaysian Government through
the Ministry of Tourism and Culture and the Ministry’s agency Tourism
Malaysia.
Recognising
the potential of the retail sector to further boost tourist expenditure
in the country, Tourism Malaysia formed Secretariat Shopping Malaysia
12 years ago in 2003 to streamline all efforts in intensifying the
development of the shopping sector as a major component of Malaysia’s
tourism economy. The Secretariat’s strategies, including development
initiatives and collaborations with relevant parties, were instrumental
in positioning the shopping sector to a higher level. By bridging the
gap between government agencies and the private sector, the Secretariat
continues to foster relationships crucial in positioning the Malaysian
shopping sector on par with other world-renowned shopping destinations.
The
relationship with industry players was built over time to promote
shopping not only to the locals but also foreign tourists. One of the
early initiatives was to increase the annual nation-wide Mega Sales
Carnival from once a year previously to thrice yearly to spur shopping
in Malaysia. The three national level annual campaigns are the 1Malaysia
Grand Prix Sale in March, 1Malaysia Mega Sale Carnival from June to
September and 1Malaysia Year-End Sale from November to January. These
mega shopping seasons lure shoppers with big marked down prices, huge
range of products, including duty-free goods, as well as value buys and
numerous promotional activities. Shopping malls and retailers nationwide
have continued to support these campaigns by offering highly attractive
bargains, incentives and rewards for shoppers, including special
shopping schemes for tourists, such as special redemptions and exclusive
tourist privilege cards with a host of shopping benefits.
Shopping
Malaysia eventually becomes a recognisable brand associated with top
notch shopping. It is promoted in the country and overseas through all
Tourism Malaysia’s offices as well as via various online marketing
platforms, including websites and social media that reach out to a
worldwide audience. Tourism missions, dialogues and meetings at national
and international levels encompass the promotion of Shopping Malaysia.
These are part and parcel of strategies under the Malaysia Tourism
Transformation Plan 2020 towards 36:168, which positions the Ministry of
Tourism and Culture at the forefront to encourage innovation and
creativity to achieve the target of 36 million tourist arrivals and
RM168 billion in receipts by 2020. In 2014, Malaysia registered 27.4
million tourist arrivals and RM72 billion in receipts. Clearly a
concerted effort must be put in place to achieve these targets. The
Government henceforth introduced a detailed plan under the Economic
Transformation Programme (ETP), which amongst others set the target for
the tourism industry to raise its contribution to the Gross National
Income (GNI) to RM103.6 billion by 2020 from RM36.9 billion in 2009.
Achieving the target has also been spelt out in the Tourism National Key
Economic Areas (NKEA) strategic plan with 12 Entry Point Projects
(EPPs), three of which are related to shopping and clustered under the
theme ‘Affordable Luxury’. They are:
EPP 1 – Positioning Malaysia as a duty-free shopping destination: Competitive
pricing has been used as a key driver to attract tourists and increase
tourist expenditure on shopping. The abolishment of import duties
results in tax-exempted products, making them more attractive for
shoppers. Duty-free items include electronic gadgets, chocolates,
fragrances and cosmetics as well as nearly 400 other items.
EPP 2 – Designating vibrant shopping precincts in Malaysia: This
strategy has resulted in the formation of the BBKLCC Tourism
Association in 2011, comprising of major shopping malls in the area. The
joint efforts of Tourism Malaysia and the association has turned BBKLCC
into one of Malaysia’s major shopping precincts with seamless
connectivity via covered walkaway and public transportation between
shopping malls and hotels in the two areas. The association further
drives the vibrancy of this shopping destination by organising top
quality, world-class events and attractions involving various retail and
service sectors, such as shopping malls, hotels, retailers and F&B
outlets. In fact, the concerted efforts by the association and merchants
in the area as well as the undivided support and guidance by Tourism
Malaysia paid off when Kuala Lumpur received international accolades, as
listed on page 3. The progress made in BBKLCC was one of the key
reasons for the recognition of Kuala Lumpur as a world-class shopping
destination.
EPP 3 – Establishing three new premium outlets in Malaysia: ‘Affordable
Luxury’ has already been made available at two premium outlets in the
country, namely Johor Premium Outlets (JPO) with 130 designer and brand
stores clustered in Kulaijaya, Iskandar Malaysia, Johor, and Mitsui
Outlet Park which features 127 outlets of top international and local
brands. Mitsui Outlet Park is located 6km from KLIA in Sepang. Transit
passengers are provided a shuttle bus service to and from KLIA and
KLIA2, while flight check-in systems, flight information displays and
free baggage storage service are also available at the park. A third
premium outlet in Penang is on the cards to attract shoppers in the
northern region particularly tourists holidaying in Penang as well as
top Indonesian tourists en route to Thailand. A target has been set for
Malaysia to earn RM900 million from these premium outlets by 2020 and
help drive the national economy forward.
Under
the Tourism NKEA, eight clusters of major shopping destinations have
also been identified for high-impact development, namely (1) Klang
Valley – Kuala Lumpur & Selangor (2) Penang (3) Johor (4) Malacca
(5) Kota Kinabalu, Sabah (6) Federal Territory of Labuan (7) Kuching and
Miri in Sarawak, and (8) Langkawi in Kedah. Additionally, Extended
Shopping Zones with attractive shopping attributes have also been
earmarked for development and promotion along with the major shopping
destinations. The Extended Shopping Zones are Jalan Tuanku Abdul Rahman
Heritage Shopping Zone, Kuala Lumpur (private sector participation in
this area is driven by the Batu Road Retailers Association or BARRA,
representing some 300 businesses at Jalan Tuanku Abdul Rahman); Bandar
Utama, Bandar Sunway, Subang Jaya and Mutiara Damansara, Selangor;
George Town, Penang; Malacca; Johor Bahru, Johor; and Kota Kinabalu in
Sabah, and Kuching and Miri in Sarawak.
Going
to the various shopping hubs in the country will be much easier with
the newly launched Tourism Malaysia’s Shopping Malaysia Maps. There are
four separate Shopping Maps covering Malaysia’s major shopping precincts
with a high potential of attracting both foreign and local shoppers.
The first map covers Kuala Lumpur, Selangor and Putrajaya; the second
one highlights Penang; third – Johor and Melaka; and fourth – Sabah and
Sarawak. Besides featuring a detailed map of each shopping precinct,
various places of interest and a list of shopping malls in various
locations are included, making it easy for tourists to identify and
choose where to go. The maps also contain useful information on
Malaysia’s Tourist Refund Scheme. A step-by-step guide is given to help
tourists claim GST refund of 6 per cent on shopping spend of at least
MYR300, including GST in a single invoice or receipt. Refund validation
counters are located at Kuala Lumpur International Airport (KLIA) and
KLIA 2 as well as airports in Subang, Kuantan, Senai, Kuching and Kota
Kinabalu. There are also approved refund agents in these locations to
help tourists with their GST refund claims.
In
line with the recent trends in shopping in major shopping capitals of
the world, such as London, New York and Tokyo, Tourism Malaysia is also
focusing on promoting experiential shopping packages in Malaysia. The
promotion essentially highlights unparalleled shopping experiences with
the elements of lifestyle that incorporates the enjoyment of culinary
delights, entertainment, and rest and recreation for all age groups in
integrated, contemporary shopping malls. In addition, places of
significant interest surrounding the malls are also included in the
total shopping experience packages.
In
promoting a total retail and travel experience that enhances the modern
lifestyle, less emphasis is given on the range of products and
discounts. However, value buys and attractive promotions for a wide
range of products, including duty-free goods, continue to be promoted to
attract shoppers at large.
Another
strategy is having more tactical campaigns instead of generic ones.
Tactical campaigns to reach specific target markets, namely Indonesia,
Vietnam, Brunei, Singapore, Thailand, China, Hong Kong, and Australia
and New Zealand have already been initiated. The Tourism Malaysia
offices in these countries have been mobilised to develop more specific
shopping packages tailor-made for the specific country’s target market
in collaboration with both conventional and online travel agencies, as
well as airlines.
Tourism
Malaysia also holds regular dialogues with representatives of the
retail industry and supporting industries. Dialogues are a platform to
exchange information, raise concerns, and share ideas and solutions for
the common goal of making Malaysia’s shopping sector more dynamic than
ever. Exchanging ideas, introducing best practices and updating each
other on industry trends and performances will lead to the common goal
of continuing to make shopping a lucrative and vibrant sector.
Continuous
collaborations with the industry players and the steadfast commitment
of the government to bring the performance of Malaysia’s shopping sector
to the highest possible level have brought rewards in recent years in
the form of coveted international awards and accolades. These are:
• The
second top position in the Muslim Travel Shopping Index for the
category of the Best Shopping Destination 2015 for Muslims in the OIC
Destination voted by CrescentRating and MasterCard. Kuala Lumpur is
second only to Dubai but is ahead of Istanbul and Antalya in Turkey and
Manama in Bahrain, thus making the top five on this international Index.
Penang also made it to the Top 10 on this Index, securing the 9th
position ahead of Sharjah, United Arab Emirates.
• Kuala
Lumpur was voted by global news network CNN as the world’s 4th Best
Shopping City, after New York, Tokyo and London, and ahead of Paris,
Hong Kong and Dubai, for two consecutive years – 2012 and 2013.
• Kuala
Lumpur was ranked by Geneva-based Globe Shopper Index as the 2ndBest
Shopping Destination in Asia Pacific in 2012, with a score that was only
3.5 behind Hong Kong. Kuala Lumpur beat Singapore, Bangkok, Sydney,
Tokyo and Seoul. This ranking, together with the recognition by CNN,
made Kuala Lumpur the best shopping destination in Southeast Asia and
among the top in Asia.