KUALA LUMPUR (September 12): The value of wholesale and retail sales in Malaysia increased by 41% year-on-year (year-on-year) to reach RM130.7 billion in July 2022, thanks to an increase in the value of motor vehicle sales, retail trade and wholesale value, according to the Department of Statistics Malaysia (DOSM) on Monday (September 12th).
Motor vehicle sales value increased by 613.8% to RM14.4 billion, retail jumped 37.5% to RM56.6 billion, while wholesale rose 20.6% to RM59.7 billion, DOSM said in a statement.
For the month-over-month comparison (mom), the value of wholesale and retail trade sales fell 1.6%, with the value of motor vehicle sales falling 10.5%.
In terms of volume index, wholesale and retail trade recorded year-on-year growth of 33.7%. The expansion, according to the DOSM, was contributed by motor vehicles, which rose 681.6%, and retail trade, which rose 31.6%. Similarly, the wholesale trade also recorded a positive growth at 10.8%.
However, for the seasonally adjusted volume index, it was down 1.4% month-on-month, the DOSM said.
“For performance across all subsectors, the retail subsector’s growth of 37.5% in July 2022 was supported by retail sales at non-specialty stores which increased by 39.1% or RM5.9 billion to reach RM20.8 billion. Similarly, other groups within this sub-sector also recorded positive growth, namely retail sales in specialty stores (47.1%), retail sales of automotive fuels (73.7%) and retail sales of housewares (28.8%),” he said.
Meanwhile, the 613.8% jump in the motor vehicle subsector this month was boosted by motor vehicle sales which soared 431.5% to RM7 billion, sales motor vehicle parts and accessories (911.6%), maintenance and repair of motor vehicles (1,062.3%), and maintenance and repair of motorcycles (916%).
” The raise of [the] The wholesale trade sub-sector with 20.6% was mainly attributed to other specialized wholesale trade (22%). Among the groups that contributed to this growth were wholesale trade in household goods (35%), wholesale trade in agricultural raw materials and live animals (17.8%), wholesale trade in machinery, equipment and supplies (20%) and wholesaling of food, beverages and food products. tobacco (7.2%)”, adds the DOSM.
MIDF predicts retail growth of 17.6% for 2022
Looking at the macroeconomic outlook and improving fundamentals, MIDF Research predicts retail growth of 17.6% for 2022. This is driven by pent-up demand that will continue through the end of this year, supported by an improving labor market, stable inflationary pressure and reopening of the national economy.
“Malaysia’s consumer spending is growing strongly, as evidenced by retail sales growth of 21.6% year-on-year in 7MCY22,” the MIDF said in a note on Monday.
Although the Overnight Policy Rate (OPR) is on an upward trajectory, the MIDF believes it would have minimal effect on domestic spending. The OPR is expected to reach 2.75% by the end of this year, still below the 2019 level of 3%.
However, he believes that the country’s monetary policy is on a process of normalization rather than a tightening trajectory, possibly reaching 3% in early 2023.