Retail company, AEON Co (M) Bhd, has allocated a capital expenditure (capex) of RM650 million this year to invest on expansion and refurbishment of its malls in line with rapid market changes.

Managing director Nur Qamarina Chew Abdullah said 30 percent to 40 percent of the capex would be used to refurbish its high performance malls including in Mid Valley Megamall, Kinta City, Ipoh and Tebrau City in Johor.

"We are also working to open two new malls next year in Kempas, Johor, and Kuching, Sarawak," she told a press conference after the company's annual general meeting (AGM) here, today.

On its e-commerce business through 'www.shoppu.com.my' operated since November last year, Nur Qamarina said AEON was still in the midst of strengthening the merchandising system for online and offline shopping experience.

However, she said it would not take up a substantial amount of the capex.

Meanwhile, Chairman Datuk Abdullah Mohd Yusof said despite the fast growing e-commerce businesses, the company had not seen a significant impact on sales at its 32 malls in operations currently.

"However, we are wary about it and has certainly been monitoring the e-commerce progress. And, we will be ready for it when the time comes," he said.

He said consumer sentiment on the Goods and Services Tax, as well as the weaker ringgit against the US dollar which badly affected business last year, had also settled down.

"But going forward, the cost of doing business, which has been increasing, has pushed us to be more productive, efficient and profitable," Abdullah said.

He also said shareholders at the AGM had approved a first and final single tier dividend of four sen per ordinary share in respect of the financial year ended Dec 31, 2015.

As at 3pm today, AEON's share price was flat at RM2.80, with 131,700 shares changing hands.