Malaysia is currently the cheapest shopping destination in Asia, primarily due the weak ringgit, revealed Nomura Research.
With this, Nomura Asean property analyst Sai Min Chow expects Malaysia’s relatively attractive prices of goods and services to lure in more visitors, particularly for shopping within the next 12 months.
Sai, who is also the report’s author, noted that prices in Kuala Lumpur are 10 to 20 percent lower compared to other Asian countries.
He shared that they surveyed 10 items which ranged from entertainment to accommodation in Singapore, Tokyo, Hong Kong and Kuala Lumpur.
“Even if we were to take into account the impending Goods and Services Tax in Malaysia, prices still look relatively cheap. The outlook for Malaysia’s retail market therefore remains positive,” said Sai.
Meanwhile, Malaysia Shopping Malls Association adviser H.C. Chan was not surprised by Nomura’s findings, noting that CNN had, in fact, ranked Malaysia fourth as a shopping destination for two straight years behind New York, London and Tokyo.
“The weaker ringgit only makes Malaysia more cost competitive,” said Chan.
He added that the ringgit lost around 20 percent of its value and currently trades at around 3.7 to the dollar.
“For tourists that amounts to an additional 20 percent discount for goods.”
Aside from shopping, Malaysia also offers affordable food, travel and accommodation, said Chan, who also serves as Sunway Shopping Malls’ CEO.
Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
