KUALA LUMPUR: Malaysian retailers must accelerate the adoption of artificial intelligence (AI), automation and data analytics to manage rising operating costs, improve efficiency and protect profit margins amid changing consumer behaviour and intensifying competition.
Malaysia Retail Chain Association (MRCA) president Datuk Liew Bin said technology adoption must deliver measurable business outcomes rather than simply follow digital trends, as traditional retail strategies become increasingly inadequate in a rapidly evolving market.
“Smart retail is not about adopting tech for the sake of novelty, it is about real impact. In an operating environment shaped by rising overheads and evolving shopper behaviours, traditional playbooks alone are insufficient.
“Whether it is using AI-driven predictive analytics to forecast demand, orchestrating automated inventory, or delivering hyper-personalised customer journeys, technology serves as our sharpest tool for sustainable scaling,” he said at the MRCA Retail Tech Summit 2026 here today.
AI and automation should also be viewed as tools to enhance workforce productivity, allowing retail employees to spend less time on routine tasks and more time on customer service and other higher-value activities.
“When we talk about artificial intelligence and automation, the conversation often revolves around technology replacing people. In retail, however, the real breakthrough lies in augmentation empowering our workforce to do higher value work,” said Liew.
Retailers are also facing consumers who increasingly move between social media, online marketplaces and physical stores, creating greater demand for seamless shopping experiences and faster fulfillment.
Liew said technology could help retailers respond to changing consumer expectations through data-driven decision-making and more personalised shopping experiences.
“Today’s consumers no longer shop along a linear path they browse on social channels, compare prices across platforms, and expect instant fulfillment in-store,” he added.
Government support under Budget 2027, including funding for AI adoption and measures to promote fair competition, could help Malaysian retailers modernise their operations.
“Budget 2027 has allocated RM30 million dedicated to AI adoption and automation. I urge every retailer here today explore this grant, test new technologies, and modernise your operational workflows,” Liew said.
The government has also outlined allocations to support young online entrepreneurs and digitise rural products for international markets, potentially expanding opportunities for businesses to reach new customer segments.
“With RM142 million allocated for young online entrepreneurs and RM10 million to digitise rural products for global export, the foundation is being laid for an inclusive, digital first merchant ecosystem,” he said.
Themed “Smart Retail, Real Impact”, the summit brings together retail industry players, technology providers and policymakers to discuss practical applications of technology in improving business performance.