MRCA urges retailers to embrace AI to cut costs, stay competitive

KUALA LUMPUR: Malaysian retailers must accelerate the adoption of artificial intelligence (AI) and digital technologies to manage rising operating costs, improve efficiency and remain competitive, according to the Malaysia Retail Chain Association (MRCA).

MRCA president Datuk Liew Bin said technology must deliver tangible business benefits as retailers grapple with rising overheads and changing consumer behaviour.

"Smart retail is not about adopting tech for the sake of novelty; it is about real impact," he said at the MRCA Retail Tech Summit 2026.

Liew said AI-driven predictive analytics, automated inventory management and personalised customer experiences could help retailers forecast demand, streamline operations and support sustainable business growth.

He said the measures introduced under the 2027 Budget, including support for AI adoption and efforts to promote fairer market conditions, could help Malaysian retailers modernise their operations.

The summit, themed "Smart Retail, Real Impact", brought together retail industry leaders, technology providers and policymakers to discuss how businesses could move beyond basic automation towards data-driven and predictive retail operations.

Selangor State Legislative Assembly Speaker Lau Weng San, who attended as guest of honour, said technology had become critical infrastructure for the retail and wholesale trade sector as physical stores and digital platforms increasingly converged.

He said cloud computing, real-time analytics, automated inventory systems and secure digital payments were becoming essential for retailers seeking to strengthen their competitiveness.

Lau also highlighted the alignment between retail digitalisation and the government's broader digital initiatives, including the National Artificial Intelligence Office's role in promoting AI adoption across industries.

He urged retailers to leverage available funding mechanisms while strengthening data governance and consumer trust following amendments to the Personal Data Protection Act.

The discussions come as retailers face pressure to balance investments in digitalisation with the need to control costs and respond to evolving shopper expectations.