Bimb Research Highlights

Author: kltrader   |   Latest post: Tue, 17 Nov 2020, 5:57 PM


Economics - Consumption Continue To Improve As Economy Recovers

Author:   |    Publish date:

  • Distributive trade sales declined 2.3% yoy
  • Wholesale and Retail trade recorded a lower drop
  • Retail sales supported by pent-up demand globally
  • Retail sales to grow amid pandemic recovery continues

Malaysia’s distributive trade recorded RM111.4bn in August with a growth of -2.3% yoy from -3.5% in July. Although distributive trade declined for the fifth consecutive month, this was the highest sales value since the implementation of Movement Control Order due to COVID-19.

Motor vehicles grew positively for two consecutive months to record 1.0% yoy or an increase of RM0.1bn. This increase was driven by sale of motor vehicles which registered a growth of 3.1% and sale, maintenance & repair of motorcycles 2.4%. A total of 52,800 vehicles were delivered in August (-8% mom, +3% yoy). YoY growth was driven by the SST exemption sales which started mid-June, and will last up to December 2020. Whereas, the MoM drop was due to the clearance of backlog orders in July 2020 and short working month in August 2020 from a few festive holidays.

Wholesale trade generated sales value of RM51.9bn in August, a decrease of RM2.1bn (-3.9%) as against August 2019. Other specialised wholesale and wholesale on a fee or contract basis recorded a fall of 13.5% yoy and 6.2% yoy respectively. Sales of retail trade registered a negative growth of 1.5% yoy. Among groups that contributed to this fall were retail sale of cultural & recreation goods in specialised stores (Aug: -9.7%; Jul: -10.5%; Jun: -18.7%; May: -27.8%; Apr: -53.2%), retail sale of other goods in specialised stores (Aug: -7.2%; Jul: -10.8%; Jun: -17.1%; May: -28.0%; Apr: -56.8%), and retail sale of automotive fuel in specialised stores (Aug: -5.6%; Jul: -7.6%; Jun: -15.8%; May: -27.2%; Apr: -56.3%).

On monthly basis, sales value of Wholesale & Retail Trade grew 2.5% in August, contributed mainly by the wholesale trade sub-sector. The wholesale trade sub sector, which contributed the most to the increase of Malaysia’s sales, rose 3.7% to RM51.9bn, followed by retail trade, which increased 7.1% to RM45.8bn. However, sales of motor vehicle declined 0.7% to RM13.8bn.

Source: BIMB Securities Research - 13 Oct 2020

Share this

  Be the first to like this.

I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
View Trading Signals and run Live Backtest
MQ Affiliate
Earn rewards with MQ Affiliate Program

241  924  499  511 

Top 10 Active Counters
 AT 0.155-0.015 
 PHB 0.030.00 
 SAPNRG 0.115-0.005 
 VIVOCOM 0.855-0.365 
 KANGER 0.18-0.015 
 PA 0.145-0.005 
 MTRONIC 0.105-0.01 
 KGROUP-WC 0.020.00 
 XDL 0.07-0.005 
 ARMADA 0.27-0.005 


1. The Equity Market Index Benchmark in Malaysia CMS
2. Trading Scenarios of Derivatives Bursa Derivatives Education Series
3. Derivatives 101 Bursa Derivatives Education Series
4. Why Trade FKLI? Bursa Derivatives Education Series
5. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!