• Distributive trade sales fell 23.8% yoy

• Retail sales declined albeit at a softer pace

• Declining performance in all three components

• Global retail sales collapsed in May

• Decline in retail sales continues in May, but the worst may be over

Malaysia’s distributive trade declined for the second consecutive month in May albeit at softer pace of -23.8% yoy or RM26.4bn to RM84.4bn. All three major components recorded lower fall with retail sales registering the fastest improvement.

Motor vehicles sales contracted -49.5% yoy, significant improvement compared to April (-93.2%) as sales of motor vehicles increased for the month (May: -58.6%; Apr: -93.7%). Meanwhile, wholesale trade which accounted for the largest share of total distributive trade continued recording fall above -20% as sales of this sub-sector drop 23.6% yoy. Other specialised wholesales and wholesale of machinery, equipment and supplies recorded the biggest fall of 41.8% and 26.4% respectively.

Retail sales declined by -16.2% yoy, halved than previous month’s fall. Sales via stalls and markets continued to increase (May: +4.9%; Apr: +4.3%; Mar: +1.7%) whilst retail trade not in stores, stalls or markets improved further (May: +8.2%; Apr: +3.7%; Mar: +2.4%). Meanwhile, sales growth eased for sale of other goods in specialised stores (May: -28.0; Apr: -56.8%); sale of automotive fuel in specialised stores (May: -27.2%; Apr: -56.3%); sale of cultural & recreation goods in specialised stores (May: -27.8%; Apr: -53.2%) and sale of other household equipment in specialised stores (May: -25.5%; Apr: -48.3%).

On monthly basis, sales value of Wholesale & Retail Trade rebounded 26.3% to record RM17.6bn in May. The increase was attributed by motor vehicles and retail trade which increased 709.0% (RM5.9bn) and 30.5% (RM8.6bn) respectively. Wholesale trade also increased by 8.0% (RM3.0bn).

Source: BIMB Securities Research - 10 Jul 2020