• Distributive trade sales went up by 9.8% yoy

• Growth recorded in all wholesale and retail sub-sectors

• Global retail sales will grow but at a slower rate

• Retail sales will likely continue to stay supported

Malaysia’s distributive trade set a new record sale of RM123.8bn in March 2022, up by 9.8% yoy from an 8.4% gain in the previous month. The expansion was the sixth successive month of increase and the highest growth since June 2021. This expansion was attributed to motor vehicles which went up by 11.1%. Similarly, retail trade and wholesale trade also increased by +10.8% and +8.6%, respectively.

Sales value of motor vehicles sub-sector went up by 11.1% yoy (RM1.7bn) to RM16.7bn in March. This performance was attributable to the higher delivery during the month. A total of 73,222 units were delivered in March 2022, which was 28,171 units or 62.5% higher than the adjusted 45,051 units sold in February 2022. On a year-on-year basis, total industry volume (TIV) rose by 12.8% from 64,938 units sold in the same period a year earlier. Meanwhile, year-to-date March 2022, Malaysia's new vehicle sales went up by 7.8% to 159,752 units from 148,155 units.

Sales of retail trade grew by 10.8% yoy or RM4.9bn to a record high of RM49.9bn also the highest growth in 11 months. The positive growth was attributable to retail trade not in stores, stalls or markets (26.5%), retail sale in non-specialised stores (16.2%), retail sale via stalls & markets (11.8%), retail sale of cultural and recreation goods in specialised stores (11.4%), and retail sale of food, beverages & tobacco in specialised stores (9.9%). Meanwhile, wholesale trade generated a sales value of RM57.2bn in March, which rose by RM4.5bn (+8.6% yoy) due to the increase of wholesale of agricultural raw materials & live animals which up by 18.2% to settle at RM5.1bn. This was followed by wholesale of food, beverages & tobacco 9.4% and other household goods 9.0%.

On a monthly basis, the sales value of wholesale & retail trade went up by 5.7% in March, reversing a 2.6% drop in February. Sales of motor vehicles spiked by 33.9% mom during the month. Wholesale trade and retail sales recovered by 2.5% and 2.2%, respectively.

Source: BIMB Securities Research - 13 May 2022