Padini was first listed on the Malaysian stock exchange back in 1998, giving it a public track record of nearly 30 years.

At first glance, you might assume it’s a brand from overseas. But Padini is a true-blue Malaysian business that has survived many economic storms over the years.

For many people growing up in Malaysia, memories include the annual trip to the store to buy new clothes for Hari Raya—back when getting a single new outfit a year was a big deal. Over time, Padini made buying trendy clothes far more affordable for everyday life.

As Malaysia grew wealthier, people wanted to travel more and buy better cars. But they still wanted to look good without spending a fortune. Padini adjusted its business to meet that need, especially through Brands Outlet (launched in 2006), which offered cheap, decent-quality clothes for the whole family under one roof.

It might be hard to imagine today, but Padini used to make its own clothes in its own factories, starting all the way back in 1971. But when China joined the World Trade Organization (WTO), local Malaysian factories couldn’t compete with China’s low production costs. By 2007, Padini closed its factories and hired outside manufacturers instead—keeping all the brand ownership, style, and design work in-house while letting foreign factories handle the manufacturing.

As new shopping malls popped up everywhere, Padini moved in. Whenever a new mall opened, you could almost always find a Padini store inside. But if a location didn’t make enough money, management didn’t hesitate to shut it down quickly.

Padini expanded across the country and into neighboring markets like Thailand and Cambodia. It even tried opening cafés under the Seed Café name. When the café business didn’t work out, they closed the mall outlets and finally shut down their last office café in 2020 during the pandemic to cut costs.

Through nearly 30 years as a public company, Padini tried many things—some worked, some didn’t—and the business did very well while rewarding its shareholders with steady dividends.

Then came 2026, bringing a massive wave of online competition directly from China. First it was shopping apps like Shopee and Taobao, followed by platforms like Pinduoduo (Temu). Buying factory-direct clothes online became so easy that paying high rent for physical stores suddenly became much harder to justify.

Padini didn’t sit idle. They upgraded their computer systems (ERP) and invested over RM10 million in smart RFID tags to track inventory in real time. They also closed small individual shops and combined them into giant Padini Concept Stores and Brands Outlets. A bigger store means customers spend more time browsing, while Padini saves money on overheads by needing only one store manager instead of five.

Even with these changes, Padini reported a net loss in its fourth quarter of FY2026. Higher store rent, new taxes, and rising staff expenses squeezed profits during a non-festive season. The company that survived COVID-19 is now facing a brand-new threat from massive Chinese online sellers.

The Malaysian government has put some taxes on cheap imported goods to help local businesses, but time will tell if that’s enough to stem the tide.

For long-time boss Mr. Yong Pang Chaun—who helped build Padini into what it is today—this is another big battle. For his son, Mr. Andrew Yong Tze How, it is the opening chapter of his leadership.

The final outcome isn’t decided yet. Even global fast-fashion giants like Shein are running into roadblocks overseas. Padini has survived almost 30 years of big changes, and it could very well find a way to adapt and thrive for another 30 years.

Only time will tell.