Bimb Research Highlights

Malaysia Economy - Robust Domestic Spending Continues

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Publish date: Wed, 12 Oct 2022, 06:14 PM
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Bimb Research Highlights
  • Distributive trade sales expanded by 33.7% YoY in August
  • Growth recorded in all wholesale and retail sub-sectors
  • Global retail sales appear to be on a softening trend
  • Retail spending remained on upward trajectory

Malaysia’s distributive trade sales growth continued on double-digit expansion rate for 5-consecutive months, expanded by 33.7% YoY with sales value of RM133.7bn. The positive growth was contributed by all sub-sectors.

Domestic spending particularly retail trade remained strong, on the back of solid growth of 34.5% YoY to RM57.0bn, eleventh straight month of increase. Sales growth was strong for retail sale of automotive fuel in specialised stores (54.0%), retail sale of other goods in specialised stores (45.7%), and retail sale in non-specialised stores (37.1%). Meanwhile, wholesale trade generated sales value of RM60.1bn in August with a growth of 16.0% YoY. This increase was attributed to wholesale of household goods (27.9%), wholesale on a fee or contract basis (23.9%), and other specialised wholesale (16.8%).

Sales value of motor vehicles registered a positive growth of 185.3% YoY to RM16.6bn in August. The increase was attributed to sale, maintenance & repair of motorcycles (471.2%) and sale of motor vehicles (206.3%). New vehicle sales in Malaysia almost quadrupled to 66,614 units in August 2022, up 272% or 48,691 units higher from 17,923 units a year earlier. Month on month, sales rose 36%, reflecting an overall easing of supply chain bottlenecks. Year-to-date total industry volume for the first eight months of 2022 comes to 447,209 units, which is up 62.8% (or 172,609 units) over the 274,600 units sold across the same period last year. The current trend of sales volume is expected to hold until the end of this year as car companies will continue to fulfil backlogged vehicle orders made during the sales exemption period.

On a monthly basis, the sales value of wholesale & retail trade increased by 2.6% in August following a 1.8% declined in June. Retail sales increased marginally by 0.7%, wholesale trade and sales of vehicles up by 0.7% and 17.8%, respectively.

Source: BIMB Securities Research - 12 Oct 2022

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