KUALA LUMPUR (March 12): Malaysia’s distributive trade growth slowed in January this year, as retail in non-specialised stores and wholesale of essential consumer goods offset decline in vehicle sales, official data on Wednesday showed.

Wholesale and retail trade grew 4.6% to RM148.9 billion in January, the Department of Statistics Malaysia (DOSM) said in a statement. The rate was slower than December’s 5.7% year-on-year gain. On a month-on-month basis, sales declined 2.1% in January.

Nevertheless, wholesale and retail is expected to “maintain its growth momentum, supported by stable domestic consumption and continuous tourism activities,” the department said.

Retail trade expanded 8.2% to RM66.1 billion, largely driven by the Chinese New Year celebrations, school holiday season, and an increase in tourist arrivals. Further, automotive fuel also rose, reflecting a rise in travel activity,while consumer demand for home appliances also climbed.

The wholesale sub-sector, meanwhile, grew 4.9% to RM66.8 billion. Wholesale of household goods was mainly supported by the increased sale of clothing and pharmaceutical-related products. The festive season also boosted consumption of food, beverages and tobacco.

The motor vehicle segment, however, saw a 9.1% decline in sales to RM16.0 billion, as the number of vehicles sold dropped, following strong purchasing activity in the final months of 2024.

Retail sales over the internet, meanwhile, surged 9.9% in January, driven by various promotions in conjunction with festive celebrations and back-to-school preparations. After adjusting for seasonal variations, the index advanced 7% month-on-month.

A volume index of wholesale and retail trade, which adjusts for price fluctuations, increased 3.8%. On a seasonally adjusted month-on-month basis, the volume index inched up 0.4% in January.

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