Running Costs for Watch Business Malaysia 2026: Monthly Expenses Every Dealer Should Budget
Knowing your real running costs separates successful dealers from those who struggle. This guide breaks down the monthly expenses Malaysian watch dealers actually face, with realistic ranges for different locations and business sizes.
Here's what we'll cover:
- Rent costs by location (KL, JB, Penang, malls vs shophouses)
- Staff costs and structures
- Utilities and operational expenses
- Security and maintenance costs
- Stock protection budgeting
- Total monthly cost scenarios
Rent: The Biggest Variable
Rent is typically your largest fixed cost, and it varies dramatically by location. The difference between a prime mall and a suburban shophouse can be 10x or more.
Mall Locations
| Mall / Location | Size Range | Monthly Rent (RM) | Notes |
|---|---|---|---|
| Pavilion KL (prime) | 300-500 sqft | RM35,000 to RM80,000 | Premium positioning, high footfall |
| KLCC Suria | 300-500 sqft | RM30,000 to RM60,000 | Tourist traffic, luxury positioning |
| Mid Valley Megamall | 300-500 sqft | RM15,000 to RM35,000 | High volume, mixed traffic |
| 1 Utama | 300-500 sqft | RM12,000 to RM28,000 | Suburban premium |
| Sunway Pyramid | 300-500 sqft | RM12,000 to RM25,000 | Good mix of local and tourist |
| JB City Square | 300-500 sqft | RM8,000 to RM18,000 | Singapore visitor traffic |
| Gurney Plaza Penang | 300-500 sqft | RM10,000 to RM22,000 | Penang's premium mall |
| Queensbay Mall Penang | 300-500 sqft | RM6,000 to RM15,000 | High volume, value positioning |
Shophouse and Street Locations
| Location Type | Size Range | Monthly Rent (RM) | Notes |
|---|---|---|---|
| Bukit Bintang shophouse | Ground floor unit | RM15,000 to RM30,000 | Tourist area, street presence |
| Bangsar | Ground floor unit | RM8,000 to RM18,000 | Affluent catchment |
| TTDI / Damansara | Ground floor unit | RM5,000 to RM12,000 | Residential affluent area |
| JB town area | Ground floor unit | RM3,000 to RM8,000 | Lower rent, good margins |
| Georgetown Penang | Ground floor unit | RM4,000 to RM10,000 | Heritage area, tourist traffic |
| Suburban commercial | Ground floor unit | RM2,000 to RM5,000 | Lower footfall, appointment-based |
Additional Rent-Related Costs
Mall locations typically charge extra for:
- Service charges: RM3 to RM8 per sqft monthly
- Promotion fund: 1-3% of rent
- Utilities deposit: 2-3 months equivalent
- Renovation deposit: Variable
Staff Costs
Staff costs depend on your operating hours and service level. Most watch shops need at least 2 people on the floor during business hours.
Salary Ranges
| Role | Monthly Salary (RM) | Notes |
|---|---|---|
| Sales associate (entry) | RM2,000 to RM3,000 | Plus commission structure |
| Sales associate (experienced) | RM3,000 to RM5,000 | Watch knowledge, client relationships |
| Store supervisor | RM4,000 to RM7,000 | Opening/closing responsibility |
| Store manager | RM6,000 to RM12,000 | Full P&L responsibility |
| Watchmaker/technician | RM4,000 to RM8,000 | If you offer in-house service |
Statutory Contributions
Add to base salaries:
- EPF (employer): 12-13% of salary
- SOCSO: ~1.75% of salary
- EIS: 0.2% of salary
Typical Staff Structures
Small operation (owner-operated):- Owner on floor
- 1 part-time assistant
- Total staff cost: RM2,000 to RM4,000/month
- 1 supervisor
- 2 sales associates
- Total staff cost: RM10,000 to RM18,000/month
- 1 manager
- 1 supervisor
- 3-4 sales associates
- Total staff cost: RM25,000 to RM40,000/month
Utilities and Operational Costs
Monthly Utilities
| Expense | Shophouse (RM) | Mall Unit (RM) |
|---|---|---|
| Electricity | RM300 to RM800 | RM500 to RM1,500 |
| Water | RM50 to RM150 | Included in service charge |
| Internet/Phone | RM150 to RM300 | RM150 to RM300 |
| POS/Software | RM100 to RM500 | RM100 to RM500 |
| Accounting/Bookkeeping | RM300 to RM800 | RM300 to RM800 |
Operational Supplies
- Packaging materials: RM200 to RM500/month
- Cleaning supplies: RM100 to RM200/month
- Office supplies: RM100 to RM300/month
- Display materials: RM200 to RM500/month
Security Costs
Security is non-negotiable for watch retail. Budget for both equipment maintenance and monitoring.
Monthly Security Expenses
| Item | Monthly Cost (RM) | Notes |
|---|---|---|
| CMS alarm monitoring | RM200 to RM500 | 24/7 monitoring with response |
| CCTV cloud storage | RM50 to RM200 | If using cloud backup |
| Alarm maintenance (amortized) | RM50 to RM100 | Annual contract divided by 12 |
| CCTV maintenance (amortized) | RM50 to RM150 | Annual contract divided by 12 |
| Safe maintenance (amortized) | RM25 to RM75 | Annual service divided by 12 |
Stock Protection
Stock protection is often overlooked in running cost calculations, but it's a real monthly expense.
Typical Stock Protection Costs
Stock protection typically costs 1-2% of your stock value annually. Monthly calculation:
| Stock Value | Annual (1.5%) | Monthly Equivalent |
|---|---|---|
| RM500,000 | RM7,500 | RM625 |
| RM1,000,000 | RM15,000 | RM1,250 |
| RM2,000,000 | RM30,000 | RM2,500 |
| RM5,000,000 | RM75,000 | RM6,250 |
This should be treated as a fixed operating cost, not an optional expense.
Marketing and Customer Acquisition
| Channel | Monthly Budget (RM) | Notes |
|---|---|---|
| Social media (organic) | RM0 (time cost) | Instagram, Facebook essential |
| Social media ads | RM500 to RM3,000 | Targeted campaigns |
| Google Ads | RM500 to RM2,000 | Search and display |
| Marketplace listings | RM100 to RM500 | Carousell, Mudah featured |
| Photography/content | RM300 to RM1,000 | Product photography |
Total Monthly Cost Scenarios
Scenario 1: Small Operation (Suburban Shophouse)
| Expense | Monthly (RM) |
|---|---|
| Rent | 3,500 |
| Staff (1 part-time) | 2,500 |
| Utilities | 800 |
| Security | 500 |
| Stock protection (RM500k stock) | 625 |
| Marketing | 1,000 |
| Miscellaneous | 500 |
| Total | RM9,425 |
Scenario 2: Medium Operation (Suburban Mall)
| Expense | Monthly (RM) |
|---|---|
| Rent + service charges | 18,000 |
| Staff (3 full-time) | 14,000 |
| Utilities | 1,500 |
| Security | 800 |
| Stock protection (RM1.5M stock) | 1,875 |
| Marketing | 2,500 |
| Miscellaneous | 1,000 |
| Total | RM39,675 |
Scenario 3: Premium Operation (Prime Mall)
| Expense | Monthly (RM) |
|---|---|
| Rent + service charges | 55,000 |
| Staff (5 full-time) | 30,000 |
| Utilities | 2,500 |
| Security | 1,200 |
| Stock protection (RM5M stock) | 6,250 |
| Marketing | 5,000 |
| Miscellaneous | 2,000 |
| Total | RM101,950 |
Frequently Asked Questions
Berapakah kos bulanan minimum untuk menjalankan kedai jam di Malaysia?
At minimum, expect RM8,000 to RM12,000 monthly for a small suburban operation. This covers basic rent, one part-time staff, utilities, security, and stock protection. Prime locations and larger operations can easily exceed RM50,000 monthly.
What percentage of revenue should go to rent?
Industry guidance suggests rent should be 8-15% of revenue. If rent exceeds 20% of revenue, you're likely in the wrong location for your price point. High-rent locations need to generate proportionally higher sales.
Should I budget for slow months?
Yes. Watch retail has seasonal variations. Budget for 3-6 months of operating costs as reserve. Don't commit to a location where one slow month puts you in trouble.
How much should I pay for stock protection?
Budget 1-2% of stock value annually. This is a real cost of doing business, not an optional expense. For RM1 million in stock, that's RM10,000 to RM20,000 per year, or roughly RM1,000 to RM1,700 monthly.
Is it cheaper to operate from home?
Home operations save rent but come with limitations: zoning restrictions, limited customer access, and different security requirements. Running costs can be RM3,000 to RM5,000 monthly, but growth potential is capped.
What costs are often underestimated?
Most new dealers underestimate: service charges on top of mall rent, staff statutory contributions, security maintenance, marketing spend needed to build awareness, and the cost of stock protection.
How do running costs compare between KL and JB?
JB running costs are typically 30-50% lower than KL for comparable locations. Rent is the main difference. Staff costs are similar. This makes JB attractive for dealers targeting Singapore buyers with Malaysian pricing.
MINT Conclusion
Understanding your real running costs is essential for sustainable operations. Too many dealers focus only on stock and sales while underestimating the fixed costs that drain margins.
Stock protection is a running cost, not an optional extra. Budget for it alongside rent and staff. The dealers who treat it as a core operating expense are better positioned when something goes wrong.
MINT works with Malaysian dealers who understand that proper budgeting and protection go together. When you're ready to discuss how stock protection fits into your operating budget, we're here to help.
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