• Distributive trade sales went up by double-digit growth of 15.2% yoy

• Growth recorded in all wholesale and retail sub-sectors

• Sustained growth in global retail sales as consumers show resilience

• Retail sales to stay robust despite heightened inflation risk

Malaysia’s distributive trade set another new record sale of RM128.0bn in April 2022, up by 15.2% yoy from a 9.8% gain in the previous month. The expansion was the seventh successive month of increase and the highest growth since June 2021. This expansion was attributed to retail sales which went up by 20.9%. Similarly, wholesale trade and motor vehicle sales also increased by +11.5% and +11.3%, respectively.

Sales of retail trade spiked by 20.9% yoy or RM9.3bn to a record high of RM53.6bn, the highest growth in 11 months. The positive growth was underpinned by retail sale of automotive fuel in specialised stores (37.7%), retail trade not in stores, stalls or markets (28.6%), retail sale in non-specialised stores (26.4%), retail sale of other goods in specialised stores (19.2%), and retail sale via stalls and markets (17.3%). Meanwhile, wholesale trade generated a sales value of RM59.0bn in April, which rose by RM6.1bn (+11.5% yoy) due to the increase of wholesale of household goods which up by 22.9% to settle at RM12.1bn. This was followed by wholesale of agricultural raw materials and live animals 14.9% and food, beverages & tobacco 11.8%.

Sales value of motor vehicles sub-sector went up by 11.3% yoy (RM1.6bn) to RM15.4bn in April. A total of 56,213 units were delivered in April 2022, which was 17,009 units or 23.2% lower than the 73,222 units sold in March 2022. On a year-onyear basis, total industry volume (TIV) slipped by 3.6% from 58,329 units sold in the same period a year earlier. Meanwhile, year-to-date, Malaysia's new vehicle sales went up by 8.0% to 215,965 units from 200,043 units.

On a monthly basis, the sales value of wholesale & retail trade went up by 3.4% in April following a 5.6% gain in March. Retail sales spiked by 7.4% mom while wholesale trade gained by 3.1%. However, sales of vehicles dropped by 7.7% during the month.

Source: BIMB Securities Research - 10 Jun 2022