• Distributive trade sales accelerated by 7.7% yoy

• Growth recorded in wholesale and retail sub-sectors, but not in motor vehicles

• Global retail sales see solid start

• Distributive trades to ride the endemic transition

Malaysia’s distributive trade recorded sales of RM120.5bn in January 2022, accelerating by 7.7% yoy from a 3.6% gain in December 2021. The expansion was the fourth straight month of increase and the highest growth since June 2021. This expansion was attributed to motor vehicles which surged 19.4%. Similarly, retail trade and wholesale trade also increased +7.3% and +5.7% respectively.

Sales value of motor vehicles sub-sector went up by 19.4% yoy (RM2.1bn) to RM12.9bn in January. This performance was attributable to the low base effect. A total of 40,581 units were delivered in January 2022, which was 24,603 units or 37.7% lower than the 65,184 units sold in December 2021. On a year-on-year basis, total industry volume (TIV) jumped by 21.5% from 33,392 units sold in the same period a year earlier.

Sales of retail trade grew by 7.3% yoy or RM3.3bn to RM49.0bn, the fourth growth in 8 months. The positive growth was attributable to retail trade not in stores, stalls or markets (26.8%), retail sale of automotive fuel in specialised stores (19.5%), retail sale in non-specialised stores (10.1%), retail sale of food, beverages & tobacco in specialised stores (8.4%), and retail sale via stalls & markets (8.2%). Meanwhile, wholesale trade generated a sales value of RM58.6bn in January, rose by RM3.2bn (+5.7% yoy) due to the increase of wholesale of agricultural raw materials & live animals which up by 15.3% to settle at RM4.7bn. This was followed by wholesale of food, beverages & tobacco 9.5% and other specialised wholesale 5.2%.

On a monthly basis, the sales value of wholesale & retail trade dropped by 0.2% in January, a reversal from a 2.6% gain in December. Motor vehicles sales plummeted by 11.5% during the month. However, sales of wholesale and retail increased by 1.7% mom and 1.0% mom, respectively.

Source: BIMB Securities Research - 14 Mar 2022