KUALA LUMPUR (May 13): Malaysians spent more in March ahead of Ramadan, thanks to government cash aid and festive deals — lifting retail, wholesale, and even car sales, official data showed.

Malaysia’s distributive trade — which includes wholesale, retail, and vehicle sales — grew 5.7% year-on-year (y-o-y) in March to RM154 billion, according to the Department of Statistics Malaysia (DOSM). This is the highest growth in three months and stronger than February’s 5.2% rise. On a month-on-month (m-o-m) basis, trade increased by 3.7%.

“Moving forward, the sector is expected to maintain its growth trajectory, supported by resilient domestic demand and continued positive sentiment,” the DOSM said in a statement.

On a y-o-y basis, retail trade expanded 6.6% to RM67 billion, as the government’s special Aidilfitri assistance to civil servants and RM1.7 billion under Sumbangan Tunai Rahmah led to higher consumer traffic in supermarkets, shopping malls and other retail outlets.  

The wholesale sub-sector reported a 5.7% growth to RM67.8 billion, mainly driven by demand for household-related goods and food items, in conjunction with the festive season. Demand rose for household-related products, commonly used by households for furnishing and redecorating homes in anticipation of the festive season.

Wholesale was also supported by higher spending for food, pharmaceutical and medical goods, perfumes, cosmetics, soap and toiletries, as well as jewellery, the DOSM noted.

The motor vehicle segment, meanwhile, rose 2.3% to RM19.2 billion in March, thanks to sales of new vehicles and parts-and-accessories in line with promotional activities undertaken by automotive companies during the festive season.

Retail sales over the internet climbed 7.1% in March, on the back of festive promotions.

A volume index of wholesale and retail trade, which adjusts for price fluctuations, increased 5% in March. On a seasonally adjusted m-o-m basis, the volume index inched up 0.3%.

In a separate statement, the DOSM said for the first quarter of 2025, wholesale and retail trade saw a 4.3% increase y-o-y, reaching 159.4 points. This growth was mainly driven by wholesale (up 5.4%) and retail trade (up 5.2%). However, the motor vehicle sector declined by 3.6%.

On a quarter-on-quarter basis, the overall volume index saw a slight decrease of 0.3% compared to the previous quarter.

However, when adjusted for seasonal changes, the wholesale and retail trade sector grew by 1.5% from the fourth quarter of 2024, with retail trade up 2.4% and wholesale trade up 1.1%.