“We remain a purpose-led organisation committed to delivering high-quality, value-for-money products to Malaysian households. Staying true to our belief that “the best starts from home” — a promise carried directly within our Company’s name, BESHOM"
This MD&A reflects the financial results and operations of Beshom Holdings Berhad (“BESHOM” or “Company”) and its group of subsidiaries (“BESHOM Group” or “Group”) for the financial year ended 30 April 2026 (“FY2026”). This MD&A outlines the Group’s operating model, strategies, future prospects, and provides a review of our operational performance for FY2026. For context, it also provides insights into how we operate and allocate resources and capital to achieve our objectives. In this MD&A, the discussion covers our three major operating segments, namely Multi-Level Marketing (“MLM”), Wholesale and Retail. We have also included a brief discussion on our Group’s other businesses in manufacturing, credit & leasing, investment and property holding.
This MD&A may contain forward-looking statements in relation to the BESHOM Group, including statements regarding the Group’s intent, beliefs, goals, objectives, initiatives, commitments or current expectations with respect to the Group’s business and operations, market conditions, results of operations and financial conditions. These forward-looking statements are based on management’s good faith, current expectations, judgements, assumptions, estimates and other information available as at the date of this Annual Report. They are, by their nature, subject to significant uncertainties, many of which are beyond BESHOM Group’s control, that could cause the actual results, performance or achievements of the Group to be different from the future results, performances or achievements expressed or implied by the statements. The information provided is in a summary form and does not purport to be complete as of the date of this Annual Report. Where appropriate, information relating to activities that have occurred subsequent to FY2026 has also been included. In addition, this MD&A may contain statements that have been prepared by BESHOM on the basis of information from publicly available sources, other third party sources, and information that has not been verified by the Company.
Information in this MD&A is not intended to be and should not be relied upon as advice to shareholders or potential investors. Shareholders and potential investors are cautioned not to place undue reliance on forward-looking statements contained herein.
BESHOM was incorporated on 11 January 2021 and assumed the listing status of Hai-O Enterprise Bhd on 29 November 2021 pursuant to the Group’s internal reorganisation. Hai-O Enterprise Bhd, was incorporated since 1975 and has established a strong market presence through the “Hai-O” branding, supported by an extensive network of retail stores, MLM distribution networks nationwide, as well as a range of digital platforms (both in-house and through 3rd party digital marketplaces). These allowing us to deliver seamless physical and digital experiences to our retail customers and MLM members.
To widen our market reach, our Group has also expanded our market footprint through consignment presence in major department stores and reputable pharmacies, apart from the traditional neighbourhood medical halls, which have been part of our community presence since our early days. We remain a purpose-led organisation committed to delivering high-quality, value for money products to Malaysian households. Staying true to our belief that “the best starts from home” — a promise carried directly within our Company’s name, BESHOM.
BESHOM’s reportable segments from continuing operations are Wholesale, MLM, and Retail. Other business operations that are not separately reportable primarily include manufacturing, investment and property holding. Our Group’s brand portfolio can be broadly categorised under Hai-O Group (for Wholesale segment), Sahajidah Hai-O Marketing (for MLM segment) and Hai-O Raya Chain Stores (for Retail segment) as follows:
While the BESHOM Group initiated various strategies to build sales momentum in FY2026, the results fell short of our expectations. It was a challenging year for the retail industry, against the backdrop of subdued customer spending, particularly on non-essential and discretionary products. For FY2026, our Group operated in an environment characterised by elevated volatility and uncertainty. The global economy continued to be affected by trade tensions and geopolitical frictions, disrupting business confidence and supply chain. Consumer spending remained under sustained pressure, contributing to a more challenging operating landscape for the Group. The United States and Iran conflict continued unabated without a clear resolution in sight. The resulting global landscape has introduced heightened volatility and uncertainty into the Group's operating environment.
Amid a challenging consumer environment, our Group recorded revenue of RM144.8 million for FY2026 as compared to RM155.1 million in the previous financial year, representing a decrease of RM10.3 million or 6.6%. The decline reflected slower growth in discretionary lifestyle products and subdued consumer confidence, both of which weighed on sales in the MLM and Retail segments. Reflecting strength, the Wholesale segment demonstrated its resilience and recorded an improvement in revenue.
Driven primarily by the drop in revenue, the Group recorded gross profit of RM58.1 million (FY2025: RM62.7 million). Despite the drop in gross profit, cost of doing business was tightly managed with gross profit margin maintained at around 40%. Profit before taxation (“PBT”) for FY2026 was RM10.3 million (FY2025: RM12.2 million), a decline of RM1.9 million or 15.6% as compared to the PBT recorded a year ago. Aligned with the Group's top-line performance, PBT declined across both the MLM and Retail segments, while the Wholesale segment showed better performance. Following the review of the Group’s overall financial performance and financial position, the performance of each operating segment is elaborated below.
Although recent financial results have been challenging, they do not reflect the Group's underlying long-term potential. The Group has consistently remained focused to resist temptation on short-term decisions to drive short-term results to the detriment of sustainable long-term profit growth. This disciplined approach enables the Group to maintain a solid financial position and remain resilient throughout different phases of the economic cycle.
As at 30 April 2026, the consolidated net assets (“NA”) of the Company or the equity attributable to owners of the Company stood at RM305.4 million (FY2025: RM309.5 million), with total assets ofRM347.5 million (FY2025: RM355.2 million) and total liabilities of RM31.6 million (FY2025: RM34.3 million). The drop in the total assets and total liabilities was largely due to lower inventories held by the Group and lower trade and other payables as at the end of the financial year, respectively. The marginal variance in the Company's NA reflects the Group’s challenging financial results, alongside with the Group's commitment in maintaining a high dividend payout ratio.
The three largest components of the Group’s assets are (i) Property, Plant and Equipment, (ii) Inventories and (iii) other investments of financial assets in unit trusts. The Group is predominantly involved in cash-based business activities, hence, the Group maintained high liquidity in the form of cash and cash equivalents and other investments of financial assets in unit trusts, which amounted to RM94.3 million as at 30 April 2026 (FY2025: RM92.6 million).
During the financial year, there was no requirement for the Group to obtain funding from the debt market, except for trade facilities and accordingly, the total borrowings of the Group was maintained at the same level as last financial year at RM4.9 million. The Group endeavours to maintain strong balance sheet and financial flexibility to take advantage of opportunities as they arise. The Group’s minimal gearing provides the flexibility for the Group to access diverse sources of funding and optimise funding costs, as and when required.
At BESHOM, we seek to drive shareholder returns by strengthening our existing businesses, accelerating profit and cash flow growth, and strategically acquiring or divesting assets to deliver sustainable shareholders’ returns. On 16 June 2026, our subsidiary, Hai-O Enterprise Bhd announced to dispose of 3 plots of industrial lands which have been held by the Group since 2008. The said disposal will enable the Group to crystalise a material gain of more than RM50 million and generate gross cash inflow of RM85.5 million to the Group. Subject to the completion of the said disposal and a comprehensive review by the Board, BESHOM endeavours to maximise shareholder returns through the deployment of these sale proceeds, where permissible after operational requirements.
For FY2026, despite the Group’s subdued performance, we maintained our dividend payout policy of distributing not less than 50% of the Group’s profit after tax. This serves as a guiding reminder for the Group to achieve profitability and deliver sustainable returns to shareholders. A total dividend of 2.5 sen per share was declared for FY2026, of which the final single-tier dividend of 1.5 sen is subject to shareholders’ approval at the forthcoming AGM. This represents a dividend payout ratio of 102%.
In a year when many retailers faced rising costs of doing business and consumers faced increasing cost of living pressures, the Group’s business segments remained focus on what we could control and manage including enhancing customer service and experience, strengthening digital and in-store execution, and innovating our product ranges to maintain our market presence. Work is progressing across each of our business segments as we navigate evolving market needs and ongoing shifts in consumer spending patterns.
Multi-Level Marketing Segment
The MLM segment operates the businesses of multi-level direct marketing of nutritional food & beverage, wellness, supplements, skincare, beauty & cosmetic, personal care and household products. For FY2026, the MLM segment contributed approximately 28% of the Group’s revenue. The segment operates through both online and offline distribution networks. Our online network features a dedicated Members Portal, which serves as both a sales platform as well as a central hub for the latest information on the Company’s product, promotional, and compliance information. Our offline or physical network comprises 27 physical stores across Malaysia, in a form of branches, stockists and a sales point, as well as one branch in Brunei. Sahajidah Hai-O Marketing Sdn. Bhd. (“SHOM”) is the principal subsidiary underpinning the Group’s MLM operations.
For FY2026, the MLM segment recorded a weaker financial performance, and recorded revenue of RM40.5 million against the revenue of RM53.5 million in FY2025, a decrease of 24.3%. PBT contracted by RM1.7 million from RM4.4 million to RM2.7 million, which represents a drop of 38.6%. The performance of the MLM segment in recent years has been affected by cautious consumer spending on discretionary products, while the rapid expansion and growing dominance of e-commerce platforms have resulted in structural challenges, hindering the segment's turnaround efforts. The segment also faced increasing competitive pressure from other MLM players, particularly in members recruitment and retention. Throughout the year, the MLM segment implemented various measures to address the challenging operating environment, including continued investment in key areas, particularly “People” and “Products” to strengthen its business fundamentals and support sustainable growth.
Various initiatives were implemented to support our agents and members to drive network growth, including products training roadshows, leadership development programs, recognition nights, and on-going online engagements activities. Among others, the MLM segment rolled out a network based coaching program with both external and internal coaches. The program was designed to provide a more focused and targeted approach by addressing the specific needs of different members networks, while aligning the coaching and training initiatives with existing reward programs. As we transitioned the MLM segment to a network-based model this year, we established a baseline to sharpen program focus, refine data-driven insights and optimise resource allocation for greater impact, which delivered encouraging results in terms of the effectiveness of the coaching initiatives, paving the way for further refining and enhancing the targeted implementation next year.
We deployed multiple leadership pipeline initiatives to elevate the quality of our MLM distributors, focusing on developing leaders with strong sales, coaching, and management skills. During the year, our training programs successfully delivered three development modules across thirty individual training sessions. The scope of the leadership pipeline initiatives covered key areas including goal setting, essential business techniques, effective marketing plan and in-depth product knowledge.
The leadership pipeline development trainings were well received by our existing leaders and distributors aspiring to become higher ranking leaders, attracting almost 1,600 participants throughout the year and surpassing our initial estimate. Following the completion of the training programs, more than 20% of the participants advanced to the next ranking level within next 6 months, demonstrating the effectiveness of the programs. Leveraging on our in-house expertise to enhance mentoring and knowledge sharing, we shortlisted top performer of selected branches to conduct branch visits, identify service gaps and mentor frontline staff in enhancing the customer experience.
Incentive trips and recognition events remain a primary driver for motivating our distributors and accelerating sales performance. During the year, we successfully organised two incentive trips to reward high-performing distributors and to drive network engagement. Distributors who achieved their sales targets were rewarded with incentive trips to Beijing, China and Bali, Indonesia. Apart from the incentive trips, the MLM segment also executed three recognition events including the SM/SSM Nights, Glitz and Glam Diamond Nights and the 33rd Anniversary Celebrations held at the Shah Alam Convention Centre.
Alongside supporting our existing distributors, we deployed targeted acquisition campaigns to expand our network and attract new members. These initiatives included structured onboarding and mentorship programs, business opportunity programs, regional recruitment bootcamps and sponsorship entrepreneurship programs.
To strengthen our product branding, we focused on the consistent delivery of unique selling propositions. Ten of our top-selling products across the wellness, food and beverage, personal care, household, and lifestyle (Thera) categories were selected for this initiative. Through this program, we developed concise, impactful selling point cards, training videos, and infographics that can be readily shared through social media. These materials were designed to reinforce distributors’ product knowledge, understanding and adoption. Building on the momentum of the above, other branding initiatives executed by MLM segment were multiple workshops/sales campaigns for our popular product range in Thera, Infinence, Nurich and Min Kaffe.
Other product strategy focused on delivering new product launches and product extensions. Two new products were launched in FY2026 under the MLM segment and they are JTX Tribomax Motor Oil and Bloom Royale Yu Feng Treasure Pills.
In terms of product range extension, several products were introduced to the market, such as the Bellaglo Collagen with Red Orange formula, Thera socks and knee guards, enhanced Bio Seleza, Min Kaffe Chill brew and festive low sugar and healthy cookies.
Apart from People and Product, operationally, the MLM segment also implemented various initiatives to enhance efficiency and strengthen cost control. These included enhancing and maintaining the SHOM corporate website to provide up-to-date information on new products launches, product features, short videos on products and important announcements including updates on compliance. These efforts enabled us to convert website visits into sales transactions while supporting the PDPA (“Personal Data Protection Act 2010”) compliance requirements in a more efficient manner. In terms of cost optimisation, ongoing efforts were undertaken to negotiate better pricing and promotional support with suppliers and improve inventory management through stock clearance campaigns.
Wholesale Segment
For FY2026, the Wholesale segment is the largest revenue contributor to the Group, and contributed approximately 45% of the Group’s total revenue for the year under review. The Wholesale segment operates wholesaling and trading in patented medicines, Chinese medicated tonic, cooking wine, healthcare and wellness products, general & value herbs, tea & others. The Wholesale segment remains an important intermediary for the MLM and Retail segments in sourcing and supplying of products distributed through these segments, while also serving more than 2,000 external customers comprising wholesalers, Chinese medical halls, restaurants, as well as modern trade channels such as hypermarkets, supermarkets and other retailers.
For FY2026, the Wholesale segment was the Group’s best performing business segment which recorded improvement in revenue and PBT at RM65.5 million (FY2025: RM59.4 million) and a PBT of RM4.4 million (FY2025: RM4.1 million). Revenue of the Wholesale segment improved by 10.3% while the PBT improved by 7.3%. Despite recognising additional provision for slow moving inventories during the year, higher sales of wellness products and Chinese medicated tonics, and promotional activities conducted ahead of a planned price increase, fueled the Wholesale segment's growth. Favourable exchange rates had also contributed to the improved segmental profit. The Wholesale segment strategically delivered strong results in FY2026 was supported by strategic initiatives focused on events and promotions, product/market expansion, digital visibility and operational enhancements.
Events and promotions
Events and promotion activities within the Wholesale segment were designed around specific themes or tied to selected high potential products. Broadly, these activities were categorised into three key areas: (i) wine and liquor events; (ii) physical roadshows/exhibitions; and (iii) stock clearance campaigns. Notable wine and liquor events held during the year included Hai-O Kuantan Night, Kapaly Wine & Liquor Event and anniversary celebrations organised in collaboration with various associations. Wine and liquor events are generally organised on a cost-sharing basis, enabling the Wholesale segment to offset event expenses through ticket sales to participants and sponsorship contributions from suppliers, including door gifts and products for lucky draws to reward and enhance engagement with participants and customers.
Driven by their cost-effectiveness, the Wholesale segment hosted five wine and liquor events during the financial year. While these events contributed to sales generation, their broader value lies in strengthening relationships with customers and suppliers, enhancing engagement and fostering long-term business collaborations.
Physical roadshows were conducted primarily in collaboration with supermarkets and mall operators to enhance product visibility and customer engagement. During the year, the Wholesale segment conducted a total of ten physical roadshows in collaboration with AEON outlets nationwide to promote the OSAMI range of products. These roadshows provided customers with the opportunities to taste OSAMI range of products and purchased them at special promotional prices or with complimentary gifts. To strengthen brand equity, the Wholesale segment also sponsored well known external events, such as the UOB Select Breakthrough Sport Day, Miss Asia Pageant 2025, and The World Golden Chef Competition. These engagements provided exclusive access to customers for the Group while enhancing our brand image.
Stock clearance campaigns were undertaken primarily to achieve two key objectives, firstly, to support effective inventory management through the clearance of selected stocks; and secondly, to contribute to the community through corporate social responsibility (CSR) initiatives. During the financial year, we participated in the Malaysia Independent Living Association for Disabled (MILAD) charity sale held at IOI Mall Puchong and Little Entrepreneurs Charity Bazaars. By participating in these charity events, the Wholesale segment successfully cleared some excess inventories at discounted prices while supporting meaningful social causes.
Product and market expansion
Product and market expansion is an important pillar for the Wholesale segment to achieve its objectives for the financial year. One of the initiatives under this strategic move is to penetrate the 2nd tier China liquor brands to the Malaysia market. Development of this initiative was at different stages across various China liquor brands, where some products were successfully launched during the financial year such as the Xiang Ru Gu Baijiu while others remained under application process and were awaiting for official approvals from the relevant authorities. In addition, the Wholesale segment successfully launched few fastmoving consumer goods (FMCG) products that achieved encouraging results including the new stock keeping units (SKU) for Yu Yuan Tang dark plum beverage series, heat-releasing granule sachets. In terms of market expansion, we secured a new customer for the “Vinut Ready-to Drink” range with good initial order volume. The segment also expanded its customer base by securing a new wholesale distributor – “Kapaly”, through the successful distribution of Kimdaegam Seaweed products.
Building on our strong relationships with Chinese medical halls, we enhanced product visibility at select retail outlets by installing newly designed signage and refreshing product displays to better capture customer attention. To further incentivise our anchor sales personnel, we implemented a tiered sales structure that based on sales targets for primary and secondary product lines. This scheme was designed to encourage the sales team to continue promoting existing products while actively driving sales of new products, thereby supporting broader product portfolio growth. The sales incentive program carried out during the year was well-received by the customers, with the number of qualifiers exceeding initial projections for both the Asia and Southeast Asia reward trips to Sichuan, China and Sapa, Vietnam.
Digital visibility
Digital visibility is no longer merely an extension of marketing, but an essential component of the overall market and product development ecosystem. As customers increasingly rely on digital channels to seek product information and make purchasing decisions, we continued to invest resources in strengthening our market presence through social media platforms and our official websites. During the year, we maintained a consistent flow of fresh contents by uploading new videos every week, alongside digital giveaways, contests and festive promotions conducted throughout the year. These initiatives expanded our reach to customers across both physical and digital touchpoints, strengthening our market visibility and customer engagement.
Operational enhancement
As topline growth becomes increasingly challenging in the current economic landscape, cost optimisation and tightening expenses remain essential to Wholesale segment’s business strategy. To address this, the segment implemented several operational enhancements aimed at reducing costs, driving efficiency, and simplifying workflows. A key milestone achieved during the financial year was the successful attainment of a 100% adoption rate for the SAP Order Portal. Following phased testing and implementation, all orders are now placed exclusively through this platform. To complement this digital transition, we fully deployed a barcode-equipped warehousing system and to ensure wide adoption of these new systems, staff participated in regular training sessions, including KAIZEN continuous improvement and forklift handling programs. Furthermore, we expanded the use of e-catalogues to provide customers with real-time product updates. Our operational commitment to sustainability and efficiency also advanced through the widespread adoption of digital workflows, including e-approvals, electronic receipts, and paperless meeting minutes, briefings, and trainings. Moving forward, we will continue to leverage on the SAP Order Portal to further simplify and streamline our administrative processes.
Retail Segment
Among the three major operating segments of the Group, the Retail segment was the smallest revenue contributor, accounting for approximately 22% to the total Group revenue for FY2026. The Retail segment delivers the Group's brick-and-mortar and digital shopping experiences to retail consumers. Our Retail segment's physical footprint has a wide reach throughout Malaysia with 49 chain stores and six franchises. While our physical market presence is primarily focused in Peninsular Malaysia, our retail network also extends to one store in the East Coast and another in East Malaysia. As consumers increasingly pivot towards online shopping for its convenience, 24-hour accessibility, and price transparency, we have continued to strengthen our online presence through our official website as well as popular e commerce marketplaces, including Shopee and Lazada. Our strategy is underpinned by customer experiences, with our success dependent on delivering convenient shopping channels and competitive pricing that encourage customers to choose us over our competitors. Revenue is generated from sales across both our physical stores and online channels. The Group’s retail business operates under Hai-O Raya Berhad.
Akin to the MLM segment, the Retail segment was persistently affected by subdued retail environment, characterised by consumers prioritising essential purchases over discretionary products, which affected sales of higher-margins products, as well as increasing value-conscious seeking behaviours that resulted in margin squeeze. The Retail segment recorded revenue of RM32.3 million (FY2025: RM35.5 million), reflecting a decrease of approximately 9.0% year-on-year.
The cost of operating the retail business remained challenging, primarily attributable to rental expenses and higher labour costs, and commission imposed by online platforms. These cost pressures, coupled with the challenging retail environment, resulted in the Retail segment posted a loss of RM1.3 million against a smaller loss of RM0.4 million in the previous financial year.
Apart from the impact of lower sales of higher margins products, reduced sales volume of house brand products, which typically provide better margins, further dragged down the Retail segment’s performance. Despite these challenges, the Retail segment implemented various strategies across both physical stores and e-commerce channels for long-term viability. These initiatives were primarily focused on “Promotions”, “Products” and “Network expansion”.
Promotions – Promotions and events play an important role in driving customer traffic across both our physical and digital stores. Accordingly, the Retail segment launched monthly promotions throughout the year, with activities tied to specific themes, including festive seasons, special occasions, and targeted products, to achieve specific marketing objectives and enhance customer engagement.
Notable promotion events held included CNY Hamper sales events together with the introduction of new gift box series, the Hai-O Group 50th Anniversary Sales and e-stores 4th Anniversary that held throughout August 2025, with various promotional activities rolled out progressively and giveaways during the month. In terms of promotional activities driven by products, the Retail segment shortlisted specific high-priority products for year-round promotional campaigns to promote sales growth including DIABETEA Special Promotion, OxiJuice Product Promotion, Kimdaegam Seaweed Special promotion and Cordyceps King Promotion.
During the financial year, we collaborated with our business partners on various promotional activities to optimise costs, broaden market reach and enhance mutual brand recognition, creating mutually beneficial partnerships. Events that held in collaboration with business partners were One Utama Free Tasting Events, GrabMart – CNY Hampers & Gift, Astro CNY Roadshow, Public Bank CNY Roadshow and UOB Puchong CNY Roadshow.
Products – Strategies initiated for products were focused on strengthening our house brands and premium herbs, including the revamping of packaging and gift boxes to drive consumer appeal and support products sustainability. Products selected for packaging revamps included the Imperial Instant Bird’s nest and premium herbs gift box series. Building on the sales momentum from previous financial year, the Retail segment continued driving Tian Xian Liquid awareness through bi-monthly offline seminars and intensive staff training. With these initiatives, the sales for the Tian Xian Liquid had received encouraging results doubling the sales of last financial year. To expand our product portfolio, several key products were launched during the year including Loricae Good Dream, Hansamin Korean Ginseng, Tongkat Ali Red and Yellow, as well as liquor products such as Xian Ru Gu Baiju and Red Star Erguotou and Red Jar Baijiu.
Network expansion – Guided by our commitment to reach out to more customers and improve footfall across our physical and digital stores, we executed initiatives to unlock high-potential markets. These strategic initiatives aimed to enhance brand visibility while building the foundation and capabilities required to support future digital growth. The Retail segment remains focused on engaging younger consumers with our Group's branding. During the financial year, we adopted a proactive outreach strategy by bringing our brands directly to our target youth audience through two campus events held at SEGi University and Asia Pacific University of Technology & Innovation (APU) respectively. These events featured interactive product experience booths alongside gamified customer engagement zones.
To expand its digital network, the Retail segment drove initiatives across social media and our proprietary eStore. We also utilised third-party marketplaces Shopee and Lazada, while extending our online reach via a new launch on GrabMart. Consequently, online sales increased from RM1.3 million over 14,000 transactions in FY2025 to RM1.9 million over 21,000 transactions in FY2026.
Other Operating Activities
Alongside the Group’s three main operating segments, the Group engages in property investment and the manufacturing of food supplements and traditional Chinese medicines. In FY2026, these activities generated RM6.5 million (FY2025: RM6.7 million), representing a decrease of 3.0% in revenue, a marginal decline of RM0.2 million. Despite this revenue dip, PBT rose to RM4.5 million (FY2025: RM4.1 million). This PBT growth was driven primarily by rental income from investment properties, which successfully offset a contraction in the manufacturing activities' financial performance.
Uncertainties surrounding global trade and capital flow dynamics will continue to shape the 2026 outlook. Developments in the Middle East have added another layer of uncertainty with potentially far-reaching spillovers, given implications on commodity prices and financial market conditions. The extent of impact on growth and inflation is highly contingent on the duration, intensity and severity of the conflict. At the same time, while rapid advances in artificial intelligence present opportunities to raise productivity and efficiency, there are risks of inventory and market corrections as well as heightened financial market volatility given potential overvaluations.
The ongoing geoeconomic shifts represent structural changes and continues to evolve with long lasting implications. At this juncture, we must recognise that the global landscape is becoming less predictable, as geopolitical considerations increasingly shape economic outcomes.
(Source: Bank Negara Malaysia Annual Report 2025)
Growth projection for 2026 is expected to be within the range of 4% - 5%, supported primarily by continued domestic demand and exports. Household spending will be driven by positive labour market conditions and policy support. The domestic economy continues to be supported by resilient fundamentals. The outlook, however, is subject to uncertainties stemming from heightened global developments. Downside risks to growth outlook include the prolonged Middle East conflict, potential economic slowdown in key trading partners, higher cost of living as well as lower than expected commodity production. Upside risks to growth outlook could arise from a better global growth outlook, increased inbound tourism as well as trade and investment diversion.
Headline inflation is projected to average within 1.5%-2.5% in 2026, and may trend closer to the upper end of the range. Following the Middle East conflict, higher global prices for energy and other key commodities are causing inflation to edge higher, broadly in line with expectations.
(Source: Bank Negara Malaysia Quarterly Bulletin 1Q2026)
The economic environment presents opportunities and challenges. Cost of doing business pressures continue to impact businesses, while geopolitical developments create uncertainties globally, with Malaysia not being immune to these challenges. Nonetheless, the Malaysian economy remains resilient, with decent growth and moderate inflation.
The upcoming years will be an important period for rebuilding momentum across the Group as our business segments execute their priorities and advance our strategy. BESHOM has built the business foundation over five decades and is well positioned with established assets, capabilities and experience across the Group that give us a unique competitive advantage and potential for future growth. Realising that potential rests on us staying true to our purpose while intensifying our focus on execution, delivery and performance.
Our business segments will continue to execute productivity initiatives, including investments in technology to digitise operations. This includes the increased use of technology to manage inventory and to improve ordering processes, creating a more rewarding working and buying experience for our employees and customers, while strengthening the competitiveness of our businesses and enabling us to deliver more value to customers and shareholders over time.
As we enter the next financial year, we remain clear on our priorities for the year ahead; ensuring our product offering resonate with the customers and markets we serve; delivering consistent quality and product availability; continuously improving customer experience across our stores and online channels; and managing our cost base effectively.
I would like to express my gratitude to our dedicated team members across the Group for their relentless contributions throughout the year, and to the members of the Board for their invaluable support and guidance. I would particularly like to acknowledge our management team, whose ongoing commitment, dedication and support have been instrumental in bringing the Group to where it is today. I am confident that the Group is well-positioned to sustain growth and deliver long-term value to our shareholders.
Tan Keng Kang
Group Managing Director