Petaling Jaya, 5 November 2025 – As Malaysia’s retail sector grapples with escalating operating costs, the Malaysia Retail Chain Association (MRCA) and Xilnex Holdings Sdn Bhd are urged retailers to accelerate adoption of Artificial Intelligence (AI) and data analytics to enhance efficiency and improve profitability.
At a joint workshop organized by MRCA and retail software company Xilnex Holdings Sdn Bhd, MRCA members were introduced to the real-world benefits of using Data Scientist as a Service (DSaaS), which help retail businesses leverage AI and predictive analytics without needing in-house data teams. The event highlighted the growing urgency for data-driven decision-making in the retail sector and demonstrated how even small to mid-sized retailers can leverage data-driven tools.
According to MRCA, the increase in the Sales and Service Tax (SST), which now applies to commercial property rentals — has further intensified financial strain on retail chains. With landlords passing down the additional tax burden to tenants, retailers faced higher fixed costs alongside rising electricity tariffs, a higher minimum wage, and new requirements for mandatory Employee Provident Fund (EPF) contributions for foreign workers. The combination of these factors is reshaping Malaysia’s retail landscape and forcing business owners to rethink how they manage costs.
Datuk Dr Ken Phua, President of MRCA said, “The expanded SST and manpower expenses have pushed many retailers to their limits. We have consistently called for a gradual rollout of SST to avoid destabilising the sector. However, retailers must now look inward and leverage technology to become more efficient. Technology and data analytics are no longer optional – they are essential for survival and growth. MRCA fully supports our members to adopt innovative solutions so they can maintain competitiveness in this more challenging cost environment.”
Echoing this, Ooi Boon Sheng, CEO of Xilnex Holdings Sdn Bhd added, “While costs are increasing, data is the one asset that can consistently deliver returns—if used well. Data and AI can help optimise every part of the business — allowing decision-makers to move from reactive to predictive operations. Additionally, with DSaaS, retailers can access expert analytics and ready-to-use retail data models to forecast sales, optimize inventory, and improve margins. We want to help Malaysian retailers make smarter decisions backed by real-time insights.”
He added that Xilnex’s DSaaS, part of the Xilnex Insights platform, provide hundreds of prebuilt retail analytics models that allow businesses to turn raw data into actionable strategies — from workforce scheduling to promotional planning — without long development cycles or steep investment costs.
“In today’s challenging retail landscape, it’s crucial for retail businesses—large or small—to adopt data-backed operations,” Ooi emphasized. “Our goal with MRCA is to make AI and predictive analytics accessible to everyone, not just big brands.”
The workshop is part of Xilnex’s ongoing collaboration with MRCA to raise digital literacy and empower Malaysian retailers through practical, scalable technology adoption.
