KUALA LUMPUR (April 11): Malaysia’s wholesale and retail trade growth picked up in February as consumers splurged on food and non-essential goods ahead of Ramadan while parents spent on school supplies, official data on Friday showed.
Distributive trade grew 5.1% to RM148.3 billion in February, the Department of Statistics Malaysia (DOSM) said in a statement. The rate was faster than January’s 4.6% year-on-year gain. On a month-on-month basis, sales slipped 0.4%.
“Looking ahead, the sector is expected to sustain its growth momentum, supported by stable domestic consumption and seasonal festive spending,” DOSM said. “Continued positive consumer sentiment is also anticipated to reinforce the sector’s outlook in the near term.”
On a year-on-year basis, retail trade expanded 5.9% to RM65.2 billion, which was boosted by the new academic session that began in mid-February and Ramadan, which began on March 1 this year.
The wholesale sub-sector reported 5.3% growth to RM65.5 billion, mainly driven by demand for essential goods and household products. Demand rose for hardware materials commonly used by households for furnishing and redecorating homes in anticipation of the festive season.
Further, wholesale was also supported by higher spending for food as well as clothing, jewellery, and pharmacy-related items, which reflect positive consumer sentiment ahead of festive celebrations, DOSM noted.
The motor vehicle segment, meanwhile, rose 1.5% to RM17.6 billion in February, thanks to increase in sales of both new vehicles and parts-and-accessories as well as maintenance of motorcycles.
Retail sales over the internet, meanwhile, climbed 8.5% in February on the back of festive promotions and back-to-school preparations. After adjusting for seasonal variations, the index declined 2.1% month-on-month.
A volume index of wholesale and retail trade, which adjusts for price fluctuations, increased 3.9% in February. On a seasonally adjusted month-on-month basis, the volume index inched up 1.8%.