Malaysia’s retail sales record double-digit growth in the fourth quarter

Malaysia’s wholesale and retail trade recorded the highest monthly sales value amounting to RM120.5 billion in December, with annual sales recording a four percent growth to reach RM1.3 trillion in 2021 compared with the preceding year, according to the Department of Statistics Malaysia (DOSM).

On a month-on-month comparison, the sales value of wholesale and retail trade rose 2.5 percent, supported by the reopening of various economic sectors including interstate travels. Recall that sales for the whole of 2020 contracted by 5.9 percent ― a historical low.

In a statement today, chief statistician Datuk Seri Mohd Uzir Mahidin said 2021’s performance was underpinned by wholesale trade, which increased 6.4 percent to RM641.8 billion, followed by retail trade which expanded 4.4 percent to RM533.6 billion.

In contrast, the motor vehicles sub-sector recorded lower sales compared with 2020, down by 8.2 percent to RM124 billion. Against 2019 pre-pandemic sales, the sector contracted 2.0 percent.

On a monthly basis, the 3.5 percent rise in wholesale and retail trade in December was contributed by the retail trade sub-sector, which expanded 3.5 percent to RM48.5 billion, due mainly to the six percent growth in non-specialized stores to RM18 billion.

However, retail sales in specialized stores remained negative, contracting 3.1 percent. The index for retail Internet sales for December recorded a 20.7 percent growth compared to a year ago.

On a wholesale level, trade also expanded with a 4.1 percent growth to RM57.6 billion in December 2021 driven by an 8.1 percent expansion to RM11.5 billion in food, beverages, and tobacco, followed by agricultural raw materials and live animals with 14.7 percent growth to RM4.7 billion.

Similarly, other specialized wholesale increased 2.3 percent to RM22.5 billion.

On a month-on-month basis, wholesale trade grew 2.2 percent, contributed mainly by household goods which rose 4.4 percent.

Meanwhile, Mohd Uzir said the 1.5 percent growth recorded in the motor vehicles sub-sector was attributed mainly to car parts and accessories sales which rose 11.7 percent to RM3.5 billion. December motor vehicle sales slipped 4.5 percent.

On a quarterly comparison, the fourth quarter of 2021 (Q4 2021) saw wholesale trade expanding 5.1 per cent to RM169.7 billion, underpinning the wholesale and retail trade combined. Retail trade saw a 5.0 per cent growth to RM142.6 billion.