


OVERVIEW
Retail & Food & Beverage
Productivity Nexus is a dedicated platform providing enhancement programs for enterprises to encourage productivity growth of the industry at the sectoral level. The productivity initiatives were drafted to address the key challenges of the retail and F&B industry, associated with technology, workforce, and the industry structure. The Nexus, represented by industry associations and related government ministries and agencies, is committed to governing and implementing productivity enhancement initiatives. Four productivity initiatives have been outlined in the Malaysia Productivity Blueprint (MPB) namely:
R1: Provide support to high potential SMEs for digitalisation of business operations and build e-commerce capabilities
R2: Promote opportunities for sharing economy
R3: Strengthen Retail and F&B competencies
R4: Provide assistance to Retail and F&B players to grow internationally
The Malaysian Productivity Corporation (MPC) under the Ministry of Investment, Trade and Industry (MITI) has been entrusted as a Delivery Management Office (DMO) to support and monitor the implementation of such productivity initiatives.
Productivity Performance

In 2022, Malaysia's economy continued its recovery momentum, with its annual Gross Domestic Product (GDP) recorded at 8.7%, exceeding the 3.1% recorded in 2021. Services sector was the main contributor to the Malaysia’s economy, rose by 10.9% in 2022.
Challenges
Workforce/Talent
- Talent mismatch between local graduates and industry needs
- Inability to attract and retain local talent
- High proportion of low skilled and low-wage foreign workers
Technology & Digitalization
- Low adoption of e-commerce: limited resources and lack of know how to invest in technology and digitalization.
Regulation
- Unnecessary Regulatory Requirements
- Inconsistencies in the requirements and standards
- Re-submission (Vetting the applications & query on documentations)have caused time (delay) and money, and this escalates the cost of doing business.