Margin compression fears grow amid slow consumer spending in Malaysia

Kuala Lumpur

AFTER a sluggish year for Malaysian retail, a slower-than-expected recovery in consumer spending is prompting concerns that margin compression is taking root.

With only two weeks to year-end, retailers caution 2017 remains challenging as daily expenses continue to rise on the back of a shrinking ringgit and anticipation of further price increases which may be difficult to pass on to consumers given smaller wallets.

"The continued weakening of the ringgit will impact the cost of retail goods," Retail Group Malaysia (RGM) said in a statement earlier this week, adding that retailers may be forced to increase prices again during the first six months of 2017. The retail group expects prospects of a sales recovery …