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MALAYSIA’S wholesale and retail trade sector began 2025 on a strong note, registering a total sales figure of RM148.9 billion in January, reflecting a 4.6% year-on-year growth.
The growth was primarily driven by the retail and wholesale subsectors, while the motor vehicle sector saw a decline.
Datuk Seri Mohd Uzir Mahidin, Chief Statistician of Malaysia, revealed that retail trade alone accounted for RM66.1 billion, marking an 8.2% increase, or RM5.0 billion, compared to January 2024.
“The surge in retail sales was largely driven by the Chinese New Year celebrations and the school holiday season. These factors significantly boosted consumer spending, particularly in both specialised and non-specialized retail segments,” he explained.
This growth was especially evident in non-specialized retail stores, which saw a 9.7% increase to RM25.5 billion, while specialized retail stores rose by 8.3% to RM14.0 billion. Vehicle fuel retail sales also saw a 7.8% increase to RM6.0 billion, reflecting higher travel activity.
In addition to the festive season, Malaysia hosted the first-ever Chinese New Year celebrations outside China, which attracted more tourists and had a positive impact on the retail sector.
Meanwhile, wholesale trade generated RM66.8 billion in sales, a 4.9% increase, or RM3.1 billion, from the previous year.
“Wholesale trade has continued to show resilience, driven by strong demand for household goods, apparel, and pharmaceutical products. This indicates stability in consumer spending patterns,” said Mohd Uzir.
Key contributors to the wholesale trade growth included household goods, which saw a 5.3% increase to RM13.9 billion, and wholesale food, beverages, and tobacco, which rose 5.0% to RM13.9 billion, driven by heightened consumption during the festive season. Other specialized wholesale categories grew by 2.6%, signaling continued stability in the sector.
On the downside, the motor vehicle sector experienced a significant drop of 9.1%, with sales reaching RM16.0 billion, a decrease of RM1.6 billion compared to January 2024.
The Malaysian Automotive Association (MAA) reported a drop in vehicle sales, with only 48,732 units sold in January 2025, down from 66,923 units in the same period last year.
The Road Transport Department (JPJ) also recorded 53,930 vehicle registrations, a decrease from 70,186 registrations in January 2024.
“The decline can partly be attributed to the surge in vehicle purchases during December 2024, when consumers took advantage of year-end promotions. However, the automotive parts and maintenance segment still recorded positive growth,” Mohd Uzir added.
Despite the decline in vehicle sales, vehicle components and accessories saw an 8.0% increase in sales, while vehicle maintenance and repair services rose by 5.1%.
Online retail continued its strong performance, with the sales index rising 9.9% year-on-year. Adjusted for seasonal fluctuations, the online retail sales index grew by 7.0% month-on-month, reflecting the continued positive trend in e-commerce.
In terms of volume, the wholesale and retail trade sector grew by 3.8% year-on-year. After seasonal adjustments, the volume index increased by 0.4% month-on-month compared to December 2024.
Although the wholesale and retail trade sector showed a slight slowdown compared to the previous month due to the decline in the motor vehicle segment, the outlook for the sector remains positive.
Stable domestic consumption, coupled with the continuing growth in tourism, is expected to support growth momentum throughout 2025. – March 12, 2025