KRI: Night markets a key driver of Malaysia's economy
KUALA LUMPUR: Night markets have emerged as a key driver of the Malaysian economy, especially during economic downturns, according to a study by Khazanah Research Institute (KRI).
In its second discussion paper under the night market project, it said that night markets are found to be an "essential lifeline", particularly in times of crisis.
The sector offers employment opportunities to individuals who have been laid off and provides a platform for those seeking to transition into business or self-employment to sustain their livelihoods, said the paper.
The discussion paper titled "Why Night Markets Matter?: A Review of Literature" is authored by Nur Sofea Hasmira Azahar and Dr Mohd Amirul Rafiq Abu Rahim.
It examines the evolving economic, cultural, and social significance of night markets in Malaysia.
"This publication builds upon KRI's earlier work published in January this year on the overall hawking landscape by shifting the focus specifically to night markets as dynamic, multifunctional spaces that blend entrepreneurship, community life, and cultural vibrancy.
"While night markets continue to serve as accessible economic platforms for diverse groups, there remains a need for a deeper and more systematic understanding of how they adapt to urbanisation trends, evolving food consumption patterns, rising living standards, and digital transitions," said Nur Sofea.
The discussion paper underscored that night markets are deeply embedded in Malaysian society and are seen as an alternative to supermarkets.
Night markets have also benefitted many amid the shifts in consumption patterns where more individuals are opting for food away from home.
"With a wide variety of stalls offering goods at generally more affordable prices, night markets also help ease financial pressures, particularly in the face of current economic challenges."
However, several emerging issues surrounding night markets require deeper examination.
KRI said that findings from the literature review revealed that the evolution of night markets is closely tied to urbanisation trends and changing food consumption patterns.
There is also limited empirical work that explores how these shifts intersect with licensing frameworks, spatial access, and trader resilience.
"Persistent gaps in waste management, food safety compliance, and enforcement by local authorities suggest systemic weaknesses that cannot be resolved through regulation alone. Moreover, rising living standards and evolving consumer expectations around health, convenience, and retail experiences may increasingly challenge the traditional night market model, while the benefits and risks of the food-away-from-home consumption trend remain underexplored.
"Although digitalisation is reshaping operations, evidence on its full impact, particularly in promoting inclusive entrepreneurship among women, youth, and B40 groups, remains limited," it added.
Through this ongoing work, KRI aims to generate new empirical insights that capture the lived realities of night market traders and consumers across diverse income and demographic groups.
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