03/11/2025

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MONDAY | NOV 3, 2025

IKEA Malaysia gets closer to consumers

Elaborating on IKEA Malaysia’s plan to ensure the long-term success, Pruys said Blueprint 2025 is the brand’s roadmap to stay relevant and resilient in the face of today’s economic challenges. “At the heart of this strategy is the IKEA commitment to affordability. As household budgets tighten, we’ve lowered prices on a range of our most popular products not as a promotion, but as a long-term promise. “We believe now is the time to invest in pricing, not profit, so more Malaysians can create better homes, no matter their budget. “We are also focused on expanding our omnichannel presence, and we’re growing both our digital and physical reach, including adding more EVs to our delivery fleet to support sustainable, last-mile fulfilment. “Currently, we have three electric vehicles on the road, with a further 10 newly purchased and expected to be operational in the year ahead, as part of our journey towards 100% sustainable deliveries by 2030.” Highlighting IKEA Malaysia’s progress and challenges in transitioning to a fully electric vehicle (EV) fleet for last-mile deliveries, Pruys said IKEA Malaysia’s goal is to fully transition to EVs or other sustainable transport solutions for its home deliveries to customers by 2030. However, challenges remain, particularly in terms of infrastructure limitations, the availability of charging stations and the cost associated with maintenance. “IKEA Malaysia is also investing in more charging infrastructure across IKEA stores nationwide to support our growing EV fleet and ensure efficient last-mile delivery operations. The transition is a learning journey, but one we are fully committed to for the benefit of the many people and the planet. “We cannot achieve our goals alone, nor do we have all the answers. By working closely together with suppliers, partners, and like minded organisations, we can find innovative solutions to reduce our environmental impact and build a more sustainable future,” Pruys said. more than their partners or doctors. The Harmful Leader Behaviour Model identifies patterns such as intimidation, excessive pressure and self-centredness as corrosive to organisational health. These behaviours create toxic cultures, fuel attrition and erode stakeholder confidence. “When businesses cut corners or embrace unethical practices, they don’t just risk fines or sanctions. They risk irrelevance in a world that is moving towards conscious capitalism,” Yap warned. As Asean economies chase ambitious growth targets, Malaysia’s ethical transformation could set a regional benchmark. Analysts believe the nation’s RM44 billion allocation for MSME support under Budget 2024 provides a unique opportunity: to tie financial aid to ethical compliance, ensuring that expansion does not come at the expense of integrity. By embedding ethics as a competitive differentiator, Malaysia could lead a shift where corporate governance becomes a regional growth driver. Such a move would also align with the bloc’s aspirations to be among the world’s top 30 economies by 2030. “Profit and ethics are not enemies,” Yap emphasised. “In fact, the businesses that successfully balance both will be the ones shaping the future of Asean’s economy.”

o Iconic brand strengthens omnichannel strategy, prioritises affordability amid softer sentiment and living cost pressures

costs to customers. “We have lowered prices on some of our most popular and essential products and introduced tiered delivery pricing starting as low as RM10, making it easier for Malaysians to access IKEA regardless of their budget,” Pruys said. When asked about IKEA Malaysia adapting its business strategy to reach new markets, such as the recent move to expand into Sarawak and enhance accessibility in East Malaysia, Pruys said the brand recently launched a dedicated e commerce platform for Sabah and Sarawak, supported by a central fulfilment centre and collection point in Kuching. “This allows customers in East Malaysia to access our best-selling products at the same affordable prices as in Peninsular Malaysia, with faster delivery and greater convenience. This expansion is part of our omnichannel strategy to make IKEA more accessible through both digital and physical touchpoints,” he added. Elaborating on how Malaysia fits into IKEA’s overall Southeast Asia growth strategy, Pruys said the country is a key market in the region, both strategically and operationally. He said Malaysia is home to one of IKEA’s largest regional distribution centres, and customers here have a deep-rooted love for the brand. “The country’s growing middle class, urbanisation trends and increasing digital adoption present strong growth opportunities. That said, the retail landscape is evolving quickly, rising costs and changing consumer behaviours are challenges we must navigate. “But with a strong foundation, an agile omnichannel strategy and a passionate team, we believe Malaysia will continue to play a pivotal role in our regional expansion,” Pruys said. audits, Asean businesses that lack such structures risk exclusion from lucrative markets. But policies alone will not drive change. Ethical leadership will become the cornerstone of Malaysia’s and Asean’s business future. A study of Malaysian SMEs in the ICT industry found ethical leadership significantly improved organisational effectiveness. “Consistency, integrity, empathy and sustainability are no longer just leadership traits. They will be non-negotiable standards for CEOs in the next decade,”Yap said. “Future leaders must empower teams, foster equality, and make decisions with the long-term societal impact in mind. This is how businesses will gain trust and outlast competition.” Examples already exist. Sunway, founded on sustainability principles, demonstrates how embedding ethics into the DNA of operations attracts global partnerships and talent. Across Asean, companies adopting similar practices could form a new class of corporations defined by transparency, accountability and resilience. The flipside is stark. Research shows that unethical leadership not only damages reputation but also undermines mental health and productivity. A 2023 Workforce Institute study found that 69% of employees said managers had the greatest impact on their mental health, even

Ű BY JOHN GILBERT sunbiz@thesundaily.com

KUALA LUMPUR: IKEA Malaysia is focusing on consolidating and optimising its existing stores in response to softer consumer sentiment and inflationary pressures – particularly in key markets such as the Klang Valley, Penang and Johor – while strengthening its omnichannel strategy. IKEA Malaysia country retail director Malcolm Pruys said the home furnishing brand will continue to expand its reach through its omnichannel network, including collection points and online stores, to better serve customers in areas where it does not have a physical presence, such as Kuching, Ipoh, Malacca, Kuantan and Terengganu. “A key milestone was the launch of our dedicated East Malaysia online store, supported by a central fulfilment centre in Kuching. This enables faster delivery by facilitating packing, assembly and shipping of online orders. “Our e-commerce platform reflects IKEA’s commitment to accessibility, making it easier and more affordable for Malaysians to enjoy the comfort and functionality of our products, while strengthening our presence in East Malaysia. “Together, these efforts ensure that more Malaysians can access IKEA wherever they are, however they choose to shop – always at prices they can afford,” Pruys told SunBiz . He noted that FY24 was a challenging year across the global retail sector, with Malaysia feeling the impact of rising inflation and higher living costs. “These macroeconomic pressures have affected consumer confidence and, in turn, our overall performance.” Despite these headwinds, IKEA Malaysia has prioritised affordability over passing on rising

Pruys says Malaysia is a key market in the region operationally and strategically.

Malaysia’s business ethics push could redefine Asean’s corporate future

corporate liability consultant. “If we want to see Asean compete at a global scale, building ethical culture cannot remain optional, it has to be the new business currency.” Malaysia is already laying the

PETALING JAYA: As Southeast Asia’s economies race to strengthen resilience and attract global capital, Malaysia is positioning itself not only as a hub for trade and investment but also as a regional leader in corporate ethics. Experts believe that building a strong ethical culture among businesses – particularly micro, small and medium enterprises – will be a defining factor for sustainable growth across Asean. Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

groundwork. Bursa Malaysia’s corporate governance guidance, coupled with frameworks like those from the Institute of Business Ethics, point to a future where companies are assessed not just by profit but by how they integrate environmental, social and governance standards and diversity, equity and inclusion principles into operations. According to Yap, nine building blocks will define the region’s ethical business landscape: governance, risk assessment, codes of ethics, communication, training, open culture, recruit ment, reward systems and monitoring. “Embedding these values is what will distinguish tomorrow’s competitive enterprises from those stuck in yesterday’s mindset,”she told SunBiz . Industry observers argue that by 2030, international investors and supply chains will increasingly demand verifiable proof of ethical practices. From carbon disclosures to fair labour

With MSMEs making up 97% of Malaysia’s businesses and contributing 11.6% gross domestic product growth in 2022, outpacing the national average of 8.7%, their importance cannot be understated. Yet, they remain under the microscope for ethical lapses, from industrial pollution to procurement irregularities. Cases of collusive tendering and corruption complaints tied to licensing and enforcement underscore the urgency of reform. “MSMEs form the backbone of not only Malaysia’s economy but the regional supply chain,” said Ivlynn Yap ( pic ), a crisis communication and