It was only after gaining independence that Malaysia’s retail landscape was truly transformed, with the abundance of purpose-built shopping malls marking a bold new chapter in urban living. From the first standalone mall in 1973 (see page 4) to a total of 490 malls at the end of 2024, the number of shopping malls has grown at an annual compound rate of 12.9%. This figure doesn’t take into account other retail centres such as supermarkets, hypermarkets and bazaars, which add another 243 establishments, bringing the total to 733 malls and retail centres in the country, according to Malaysia Shopping Malls Association (PPK Malaysia). How has the industry sustained this growth over the years?
Part of the answer is that private consumption continues to be the economy’s main driver. Apart from a dip from 2020 to the first quarter of 2021, private consumption as an expenditure component of Malaysia’s GDP rebounded with double-digit growth in certain quarters in 2022 and has since moderated to a range of 4.1% to 6% every quarter year-on-year.
