Malaysia Distributive Trade - 10 August 2023

Sales growth moderated in June due to the high base effect recorded last year

Distributive trade sales moderated in Jun (4.3% YoY; May: 6.6%) mainly due to a waning lower base effect

  • Sales value (RM138.5b; May: RM138.0b): rose to a three-month high as MoM growth (0.3%; May: 1.5%) expanded for the second straight month, albeit slower.
  • 2Q23: Growth moderated sharply to 5.7% (1Q23: 12.8%), a six-quarter low, partly as the lower base effect dissipated in spite of QoQ growth expanded by 1.2% (1Q23: 0.6%).

Growth was mainly attributable to expansion in the sales of retail trade

  • Retail trade (5.8%; May: 5.0%): expanded due to higher sales in the non-specialised stores (10.9%; May: 8.4%) and food, beverages & tobacco (12.6%; May: 10.0%), thanks to the gradual increase in tourist arrivals.
  • Wholesale trade (3.1%; May: 4.4%): growth slowed, attributable to moderation in household goods (4.8%; May: 7.9%), but partially supported by higher fee or contract basis (9.2%; May: 7.3%).
  • Motor vehicles (3.4%; May: 22.0%): slowed sharply due to weak sales of motor vehicles (-3.8%; May: 29.8%), which partly attributed to the high base effect, as MoM unit sales (62.6k units; May: 61.8k units) expanded.