• Distributive trade sales moderated by 3.5% yoy
• Growth recorded in all distributive trade sub-sectors
• Global retail sales disrupted by rising omicron and inflation
• Distributive trades and retail sales to stay on expansionary path

Malaysia’s distributive trade recorded sales of RM120.5bn in December, but moderated by 3.5% yoy from a 6.5% gain in November 2021. The expansion was the third straight month of increase, while continued the highest sales value on record.

Sales value of motor vehicles sub-sector went up by 1.5% yoy (RM0.2bn) to RM14.5bn in December. This moderation was caused by the slower sale of motor vehicles during the month. A total of 65,184 units were delivered in December 2021, which was 6,442 units or 10.97% higher than the 58,741 units sold in November. On a year-on-year basis, total industry volume (TIV) fell by 5.3% from 68,854 units sold in the same period a year earlier. Likewise, TIV for 2021 fell far short of that accomplished in 2020. For the year 2021, Malaysia's new vehicle sales fell 3.89% to 508,911 units from 529,514 units.

Sales of retail trade grew by 3.5% yoy or RM1.6bn to RM48.5bn, the third growth in 7 months. The positive growth was attributable to retail trade not in stores, stalls or markets (27.5%) and retail sale of automotive fuel in specialised stores (11.1%). Meanwhile, wholesale trade generated a sales value of RM57.6bn in December, rose by RM2.3bn (+4.1% yoy) due to the increase of wholesale of agricultural raw materials & live animals which up by 14.7% to settle at RM4.7bn. This was followed by wholesale of food, beverages & tobacco 8.1% and other specialised wholesale 2.3%.

On a monthly basis, the sales value of wholesale & retail trade grew by 2.5% in December, up from a 1.1% gain in November. Sales of wholesale and retail increased by 2.2% mom 1.3% mom, respectively. Meanwhile, motor vehicles sales rebounded by 8.2% during the month.

For 2021 as a whole Wholesale & Retail Trade rebounded by +4.0% to reach RM1.3tn (2020: -5.8% to RM1.2tn)

Source: BIMB Securities Research - 10 Feb 2022