• Distributive trade sales expanded by 23.9% YoY in September

• Growth recorded in all wholesale and retail sub-sectors

• Inflationary pressure bite global retail sales

• Sentiment in domestic spending may remain steady though cautious in the  near term

Malaysia’s distributive trade sales growth continued on double-digit expansion rate  for 6-consecutive months albeit at a slower pace of 23.9% YoY (Aug: 33.6%) but with  another record high sales value of RM134.0bn. The positive growth was contributed  by all sub-sectors.

Retail spending expanded strongly by 30.0% YoY to RM57.7bn, twelfth straight  month of increase. Sales growth was strong for retail sale of automotive fuel in  specialised stores (Sep: 44.4%; Aug: 54.0%), retail sale of other goods in specialised  stores (Sep: 43.4%; Aug: 45.7%), and retail sale in non-specialised stores (Sep: 31.9%;  Aug: 37.1%). Meanwhile, wholesale trade generated sales value of RM60.0bn in  September with a growth of 13.3% YoY. This increase was attributed to wholesale  on a fee or contract basis (Sep: 27.5%; Aug: 23.9%), wholesale of household goods  (Sep: 21.9%; Aug: 27.9%), wholesale of agricultural raw materials & live animals (Sep:  16.0%; Aug: 12.7%), and other specialised wholesale (Sep: 13.9%; Aug: 16.8%)

Sales value of motor vehicles moderated to 51.0% YoY to RM16.3bn. The increase  was attributed to sale, maintenance & repair of motorcycles (Sep: 80.2%; Aug:  471.2%) and sale of motor vehicles parts & accessories (Sep: 65.8%; Aug: 135.2%).  Sale of motor vehicles slowed to 40.2% in September as a total of 67,659 vehicles  were delivered to buyers for month, a marginal increase of 99 units from the 67,560  units or an increase of 0.15% in volume. YTD, the total vehicle sales increased 62.0%  to 516,798 from 318,827 in 2021.

On a monthly basis, the sales value of wholesale & retail trade slowed to 0.3% in September following a 2.5% increase in August. Retail sales increased strongly by  1.2%, but wholesale trade and sales of vehicles declined by 0.2% and 1.3%, respectively.

Source: BIMB Securities Research - 10 Nov 2022