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.