In a volatile retail market environment, two local brands, namely 99 Speedmart Retail Holdings Bhd and Farm Fresh Bhd, emerged as leaders with financial performance that exceeded expectations.
According to a recent report from CIMB Securities, both companies managed to beat market forecasts in the third quarter of 2025, while other retailers faced pressure due to high operating costs and weak demand.
99 Speedmart's success was largely aided by benefits from government assistance programs, particularly the Basic Rahmah Contribution (SARA) which stimulated increased consumer spending at affordable retail stores.
More than 2,000 99 Speedmart outlets or around 67% of their total stores have participated in this SARA program.
Meanwhile, Farm Fresh recorded a strong performance supported by the launch of new products that were well-received and stable domestic demand for dairy products.
CIMB Securities analysts also explained that better operating leverage (promotional feedback) helped Farm Fresh increase their profits.
Meanwhile, other retailers such as Bonia Corporation Bhd, Aeon Co (M) Bhd and 7-Eleven Malaysia Holdings Bhd recorded below-expected financial results due to weak demand and ongoing cost pressures.
Moving into 2026, consumer spending is expected to increase in the first half of next year thanks to the one-off RM100 SARA assistance scheduled for February.
The government has also increased the allocation for the SARA programme to RM9.9 billion in 2026, compared to RM5.1 billion in 2025, giving a big advantage to retailers of basic goods.
