Taking Action in East Malaysia
Target the Right Shoppers, Outlets and Promotions
Growth has been consistent across both Sabah and Sarawak, with Sarawak continuing to be the higher-spending state, also making slightly more shopping trips. While opportunities exist in both states, Sarawak contributes more significantly to East Malaysia’s overall FMCG value.
This highlights the need for state-specific strategies, as shopper behaviour can differ not just in shopping patterns, but also in category preferences and outlet choices.
The channels driving growth in East Malaysia are Mini Markets and Drug, Beauty & Pharmacy stores. Among these, the Drug, Beauty & Pharmacy channel is the only major one to have grown its shopper base. Although both channels currently have smaller value shares, their continuous growth suggests they could soon surpass Hypermarkets in value. In fact, the shopper base for Drug, Beauty & Pharmacy has already overtaken Hypermarkets in the past year.
Nonetheless, Supermarkets remain a vital channel despite a decline in their value share and buyer base. Over 80% of East Malaysians still shop at Supermarkets, and it’s essential to identify the key players in each state that can effectively draw shoppers.
With more frequent trips, it’s no surprise that both promotional and non-promotional shopping trips have increased. The fastest-growing segment includes trips where both types of items are bought together. Interestingly, trips that did not feature any promotional products still grew and saw a larger absolute increase than purely promotional trips. While there is some reliance on promotions in East Malaysia, it is important not to overuse them and risk creating similar dependency as seen in Peninsular Malaysia. Understanding which types of promotions appeal most to East Malaysians—and whether these can be standardised across both regions—will be essential.
This report highlights the key trends shaping the in-home FMCG landscape in East Malaysia. It is a region ripe with opportunity, warranting tailored strategies distinct from those applied in Peninsular Malaysia. Brands must consider different demographics, retail partners, category focuses, and shopping behaviours.
The full analysis will dive deeper into the reasons behind East Malaysia’s increased FMCG shopping trips, category priorities, and the key retailers to target in Sabah and Sarawak. Understanding and responding to the contrasting dynamics of East and Peninsular Malaysia will help you serve a broader shopper base—and keep your brand several steps ahead in this small but fast-evolving market brimming with potential.
