KUALA LUMPUR: MBSB Investment Bank Bhd (MBSB IB) projects Malaysia’s retail sales to grow by 4.6 per cent in 2025, driven by a resilient labour market, low and stable inflation, minimum wage adjustments, recovering tourism and the recent monetary policy easing.
In a research note, it said these factors are expected to boost household disposable income and support broad-based private consumption, despite headwinds from the expanded sales and service tax and electricity tariff adjustments.
“Although the impending fuel subsidy rationalisation could weigh on spending, we expect the overall impact on household demand to remain contained.
“Robust domestic consumption will remain a key growth driver, cushioning against external trade uncertainty,“ it said.
However, MBSB IB noted that the latest round of the United States (US) tariffs could dampen sentiment and spending among consumers and businesses.
Meanwhile, it said global spending is likely to soften in the coming months after US President Donald Trump’s tariff announcement, which could heighten trade tensions.
It added that the measures may stoke inflation expectations, erode consumer confidence and dampen future spending. - Bernama
