MST Golf managing director KP Low is optimistic about the outlook for the golf industry in Malaysia once the Movement Control Order (MCO) is lifted, believing that things will rebound faster than in other leisure sectors.
“We’ve been through a number of recessions before and golf actually picked up fast and we expanded then. Our sales increased as businessmen tend to take to the golf course more often during economic downtimes. Of course, the Covid-19 pandemic is an entirely different scenario as we have had to shut down all our stores, but I believe that golf will pick up much faster than other leisure activities once the MCO is lifted,” said Low.
“There is a possibility that golf will revert to becoming more of a niche pastime moving forward as the rich will remain rich even if some businesses close. We actually saw this trend earlier with sales of high-end products increasing significantly over the last year or so, compared to entry-level equipment,” he added.
Low cited the example of China, where movement controls have been relaxed as domestically-transmitted Covid-19 cases dropped drastically in recent weeks. “The golf courses and driving ranges in China are packed now,” he noted.
Established in 1989, MST Golf is one of the largest golf retail chains in the region with 35 stores in Southeast Asia. The company is also the distributor for numerous leading brands and is at the forefront of custom-fitting, golf instruction and event management.
“We were actually doing pretty well this year until the MCO. Business was good in Singapore too before the government imposed the Circuit Breaker controls there,” shared Low.
While other retail businesses are expected to shift to more online-oriented models moving forward, Low doesn’t think that golf will follow suit.
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“We have had an online store for some time and are well prepared for any move towards virtual retail, but I don’t believe it will become a significant part of our business even in these times. It will eventually grow but golfers still want to have the physical retail experience, which is even more important now with the increased awareness of custom-fitting,” he said.
Low believes that most golf retailers will be able to survive the MCO, unless it drags on for too long. “The smaller retailers do not have high overheads as the big chains like us. Our primary goal right now is to make sure that all our staff remain fully employed and get paid. Some of our landlords have waived rentals during the MCO, which is a great help.
“The situation is fluid and hopefully we can flatten the curve soon. If the MCO continues to be extended beyond May, then there will be a problem of sustainability for some. We will also have to look at taking some financial measures if that happens,” he said.
Low stressed that more long-term measures are needed to help get the Malaysian economy back on its feet. “Long-term measures have to be implemented to revive the overall economy in Malaysia. MST Golf employs more than 300 people and we are a crucial part of the economic chain, not only by providing a living for our staff but also as a corporate taxpayer,” he noted.
