25/04/2026

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SATURDAY | APR 25, 2026

IKEA Malaysia prioritises affordability even as costs rise

Sarawak Metro secures private frequency spectrum for KUTS project PETALING JAYA: Sarawak Metro Sdn Bhd became the first organisation in Malaysia’s railway and public transport industry to obtain a dedicated private frequency spectrum to operate its wireless communication system, an essential component of the Autonomous Rapid Transit (ART) system. The company recently received the private frequency spectrum from the Malaysian Communications and Multi media Commission (MCMC) for the Kuching Urban Transportation System (KUTS) communication network. This milestone makes Sarawak Metro the first to be awarded the Future Railway Mobile Communication System (FRMCS) – the next-generation global standard for railway wireless communication, pro mising enhanced digital rail services, increased safety, and high-capacity data transmission. Sarawak Metro CEO Mazli Mustaffa highlighted the importance of adopting future-ready technologies, particularly regarding the evolution of FRMCS. “We are now closer towards implementing a highly reliable and efficient communications system for the KUTS project, and with FRMCS available for our ART system, we will also be able to ensure the system remains aligned with MCMC’s regulatory direction as well as future spectrum planning and allocation,” he said in a statement. Sarawak Metro successfully completed live trials of its radio telecommunication system, which is based on FRMCS architecture, in October 2024. During a recent courtesy visit to MCMC’s headquarters in Cyberjaya, Mazli expressed his appreciation to the commission for its support in advancing the digitalisation efforts in Sarawak’s public transport sector. “Moving forward, we look forward to continuous engagements and streng thening collaborations with all industry stakeholders, especially with MCMC. This will be key to ensuring alignment, knowledge sharing, and the sustainable development of the ecosystem.” During the visit, Mazli was welcomed by MCMC chief regulatory officer Dr Ahmad Nasruddin ‘Atiqullah Fakrullah and MCMC officials to express appre ciation for the approval and allocation of the bandwidth.

PETALING Swedish furniture brand IKEA Malaysia is emphasising affordability and smaller-format expansion as Malaysian consumers pull back on Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com JAYA:

do more with less. At the same time, IKEA Malaysia is sharpening its product focus, placing greater emphasis on entry level offerings to cater to budget conscious households, while maintaining its core range. On the digital front, e-commerce continues to play a stable but growing role, accounting for about 16% of total sales. While stores remain central to the business model, recent trends suggest a renewed shift online. “Last month in particular, we saw a little bit more shift to e commerce; people are still shopping, they’re just not driving to the store,” he said, noting online sales exceeded expectations and outpaced physical stores in March. Looking ahead, expansion plans are being recalibrated to reflect changing consumer dynamics and urban realities. Rather than rolling out more large-format outlets, IKEA Malaysia is prioritising smaller stores in underserved markets. “We don’t think you’re going to see a really big IKEA box again, you may see something smaller, but really we will penetrate the market with 3,000 to 3,500 square metre units,” Pruys said, citing potential locations such as Ipoh, Malacca and Kuantan. The group will continue to invest in and modernise its existing flagship stores in Damansara (Petaling Jaya), Tebrau (Johor Bahru) and Batu Kawan (Penang). On the supply chain side, IKEA is increasingly benefiting from a more regionalised sourcing strategy, supported by its distribution centre in Port Klang, which serves multiple Asian markets. As IKEA Malaysia marks its 30th anniversary this year, the focus remains firmly on delivering value to “the many Malaysians”, even as external uncertainties persist. “Our plan is not to raise prices at all, and hopefully our prices will continue to drop over time,” Pruys said.

o Swedish furniture brand doubles down on price cuts, smaller-format expansion as consumers pull back on big purchases

Beyond logistics, global develop ments are also feeding into cost structures. Pruys pointed to geo political tensions, including dis ruptions linked to the Middle East, as having wider knock-on effects across supply chains, from fuel to fertiliser, ultimately impacting prices further down the value chain. Despite this, IKEA Malaysia has opted to hold prices steady for now, even as diesel prices and delivery costs rise. “It’s too easy to say we have to lift the price because diesel has gone up,” Pruys said, adding that the company prefers to absorb short term volatility rather than risk burdening consumers. On operations, the retailer is focusing on internal efficiencies to offset cost pressures, including optimising warehouse usage and reducing reliance on external storage. Pruys said the group is “leaving no stone unturned” in identifying savings, reflecting a broader push to

big-ticket spending, even as cost pressures across logistics and supply chains intensify. Country retail director

In response, IKEA Malaysia has intensified its “price investment” strategy, cutting prices on nearly 2,500 items over the past two years, in some cases below pre-Covid-19 pandemic levels. Pruys said the group has so far absorbed rising costs rather than passing them on to customers.

Malcolm Pruys ( pic ) said the retailer is seeing a clear shift in purchasing behaviour, with shoppers opting for incremental home upgrades instead of major purchases. “What we are seeing is a bigger uptake in home furnishing accessories; people want to make changes in their home, but smaller changes,” he said, noting customers are increasingly deferring larger buys such as sofas in favour of lower-cost alternatives like replace ment covers. The trend reflects broader cost of-living pressures, with consumers becoming “a little bit more conservative with their wallets”, reshaping demand across the home furnishing segment.

“We are absorbing it all today, and we will shield the customer from that by just about any means,” he said. However, he acknowledged that sustaining this approach is be coming increasingly difficult as external pressures mount. Logistics costs, particularly transport, have emerged as the biggest strain on operations. “Anything that involves moving product around has a cost increase to it today. That’s where most of the pressure lies,” Pruys said.

IKEA has so far absorbed rising costs rather than passing them on to customers.

MPOC: CPO to remain above RM4,500 a tonne on biodiesel expansion KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) anticipates crude palm oil (CPO) prices to remain supported at RM4,500 per tonne in the near term, backed by stronger biodiesel economics, elevated crude oil prices, and a possible onset of El Nino. Since the West Asia conflict escalated on Feb 27, the MPOC said vegetable oil prices have been uneven, with palm oil and US soybean oil rising 15-16% mid-April, while sunflower oil, rapeseed oil and Argentine soybean oil recorded only marginal gains of 2% to 5%. support to the CPO price. “Malaysia has experienced re duced rainfall since mid-March, and according to the Malaysian Meteo rological Department, these con ditions are expected to persist until June this year,“ it noted. costs, alongside softer Indonesian exports following their pre-March rush to ship before the higher levy took effect. “Despite global headwinds, ex

be absorbed by stronger domestic demand in the second half of 2026. “Malaysia would require an estimated additional 300,000 tonnes per annum under its B15 biodiesel mandate, while Indonesia would need a further 3 million tonnes per year to fulfil its B50 mandate if fully implemented, although biodiesel producers may con tinue at B40, depending on capacity readiness,“ said MPOC. On El Nino, the council said there is also potential risk that the natural climate phenomenon will develop, which could provide additional

ports in the first quarter of 2026 rose 29.1% year-on-year, with shipments improving across all regions, except the Americas. “North Africa recorded the strongest growth at 94%, followed by South Asia (74%), other Europe and Central Asia (47%), Asia-Pacific (24%) and Sub-Saharan Africa (20%),“ it added. – Bernama

To recap, Malaysia’s palm oil stocks fell 16.1% to 2.26 million tonnes in March, as exports surged to 1.55 million tonnes against production of 1.37 million tonnes. According to the MPOC, the strong export performance was driven by front-loading ahead of rising shipping

“However, further gains are likely to be capped by softer export demand amid inflation and weaker economic growth in key importing countries, alongside rising stocks as palm oil production gradually enters its seasonal peak,“ it said in a statement yesterday.

It noted that palm oil and US soybean oil have been the primary beneficiaries of pent-up biodiesel policy and demand, underpinned by elevated energy prices. “An estimated 1.0-1.5 million tonnes of palm oil in Southeast Asia are expected to