Retail theft is becoming an increasingly serious concern for small and medium-sized businesses in Malaysia. According to the Department of Statistics Malaysia, property crime rose by 3.8% in 2023, totaling 41,991 reported cases, up from 40,465 in 2022. This category includes theft, burglary, and other non-violent crimes against property many of which impact commercial premises. The upward trend signals a growing need for businesses to take proactive steps in managing security risks.
(Source: Department of Statistics Malaysia, Crime Statistics, Malaysia, 2024)

For many SMEs, especially those in retail, theft isn’t just about missing stock. It can lead to operational delays, cash flow problems, customer dissatisfaction, and even long-term damage to a brand’s reputation. While physical security measures are essential, they are often not enough on their own.

1. Understanding Theft Risks in Retail
Retail environments such as boutiques, convenience stores, and electronics outlets often carry valuable inventory and cash, making them attractive targets. Despite visible deterrents like CCTV or alarm systems, thefts still occur, sometimes through forced entry, but also via more subtle methods like shoplifting or internal theft.

What to Consider:
Business owners should regularly assess their security vulnerabilities. This includes checking for blind spots in surveillance coverage, ensuring proper cash handling procedures, and training staff to detect suspicious behaviour.

2. The Operational Cost of a Break-In
Theft affects more than just inventory. It can mean damaged doors or windows, interrupted operations, restocking costs, and sometimes, the inability to serve customers for days. For smaller retailers, this disruption can be difficult to absorb.

What to Consider:
It’s worth looking at the total cost of a potential theft incident, not just the goods stolen, but the impact on your team, finances, and customer trust.

3. Balancing Prevention with Preparedness
Prevention is always the first line of defense through physical security, clear store policies, and vigilance. But when prevention fails, businesses also need to be financially prepared for recovery.

What to Consider:
Insurance should be seen as part of your risk management strategy, not a last resort. It provides financial support that can help you recover faster, from replacing inventory to covering repair costs and potential interruptions to your operations.

Supporting SMEs with Tailored Protection
At Berjaya Sompo, we work with local businesses to understand their specific risks and challenges. Our SME insurance plans are designed to support retailers by offering coverage options such as:
•    Burglary and theft protection for stolen goods and damage caused by forced entry
•    Property damage coverage for break-in-related repairs
•    Business interruption support, helping to manage losses from operational downtime

While no business can eliminate all risk, combining solid security practices with the right insurance coverage can significantly reduce the impact of theft, helping SMEs stay resilient in a challenging environment.

Final Thoughts

Rising theft statistics serve as a reminder that risk is a part of doing business. But with awareness, preparation, and the right safeguards in place, retail businesses can protect both their assets and their long-term stability.

If you're reassessing your business’s security and risk coverage, consider speaking to a professional to explore what protection might suit your needs best.