KUALA LUMPUR (March 12): Consumer spending in Malaysia expanded at a slower pace in January as wholesale and retail sales eased from the strong pace recorded a month earlier.

Wholesale and retail trade totalled RM159.8 billion in January, an increase of 7.3% when compared to the same month in 2025, the Department of Statistics Malaysia said in a statement. In December 2025, distributive trade had risen 7.6% year-on-year, the fastest pace in nearly three years.

On a month-on-month basis, distributive trade fell 2.4% in January.

Retail trade recorded sales of RM70.2 billion, a 6.1% year-on-year increase, driven by stronger sales at provision stores, department stores and supermarkets, supported by school holidays, the festive season and the disbursement of Bantuan Awal Persekolahan aid.

The wholesale sector, meanwhile, rose 6% year-on-year to RM70.8 billion mainly attributed to stronger sales of perfumeries, cosmetics, soap and toiletries, as well as stationery, books, magazines and newspapers, and jewellery.

The motor vehicles sector expanded 17.3% to RM18.8 billion as vehicle sales surged on stronger demand ahead of the festive season and year-opening promotional campaigns by automotive dealers.

In terms of volume, wholesale and retail trade registered growth of 5.8% in January compared with the same month in 2025. However, the seasonally adjusted volume index fell 2.4% month-on-month.

The index for retail sales over the internet rose 5.9% year-on-year in January compared with the same month last year, reflecting sustained strong demand in the e-commerce segment.