Resilience in Retail: The Second-Highest Figure for 2024
November 2024 proved to be a remarkable month for Malaysia’s Wholesale & Retail trade, with sales soaring to RM149.3 billion—the second-highest figure for the year.
Despite a slight dip in growth from October’s 5.5% to 4.7% year-on-year (YoY), the numbers underscore the sector’s robust performance.
According to Dato’ Sri Dr. Mohd. Uzir Mahidin, Chief Statistician Malaysia, the growth was propelled by Retail and Wholesale trade sub-sectors.
Retail trade led the charge with a 5.8% increase, reaching RM64.8 billion, while Wholesale trade followed closely at RM66.2 billion, a 4.7% rise.
The Motor vehicles sub-sector also showed modest progress, growing by 1.4% to RM18.3 billion.
Retail’s Remarkable Numbers
Retail trade’s impressive numbers were bolstered by diverse segments.
Sales in non-specialised stores climbed 5.5%, and specialised stores recorded an even stronger growth of 8.2%.
Automotive fuel sales rose 6.3%, while food, beverages, and tobacco enjoyed a 6.5% boost.
These figures reveal an enduring consumer appetite, even amidst economic uncertainties.
Wholesale Trade Anchors the Economy
The Wholesale trade sub-sector proved its mettle with standout performances in key areas.
The Wholesale of agricultural raw materials & live animals experienced a remarkable 13.7% growth, buoyed by a 35.4% spike in crude palm oil prices.
Other notable segments included household goods (up 5%), food, beverages & tobacco (up 5.2%), and machinery, equipment & supplies (up 7.9%).
Dato’ Sri Dr. Mohd. Uzir Mahidin highlighted, “The Wholesale trade sub-sector continues to anchor the economy, fuelled by strong demand from households and businesses.”
Motor Vehicles: A Mixed Bag
The Motor vehicles sub-sector painted a mixed picture, with growth slowing to 1.4% from October’s 2.7%.
Sales of motor vehicles contracted by 4.3%, mirroring a 7.8% decline in units sold as reported by the Malaysian Automotive Association (MAA).
Vehicle registrations also fell by 6.6%, reflecting consumers postponing purchases in anticipation of year-end discounts.
On the brighter side, motor vehicle parts & accessories saw an 8.6% YoY surge, while maintenance & repair services and motorcycle sales posted gains of 6.3% and 13.7%, respectively.
E-commerce Shines During Singles’ Day
Retail sales over the internet held steady, with a 5.2% YoY increase, slightly up from October’s 5.1%.
The 11.11 Singles’ Day sales event played a pivotal role in driving e-commerce activity, although the seasonally adjusted index showed a month-on-month decline of 4.3%.
This performance underscores the growing reliance on online shopping and the opportunities it presents for marketers to tap into Malaysia’s digital-savvy consumer base.
Volume Index: A Broader Perspective
The volume index, which adjusts for price fluctuations, rose by 3.9% YoY, with Wholesale trade leading at 4.7%, followed by Retail trade at 4.1%.
However, month-on-month comparisons revealed a slight dip of 0.7%, signalling seasonal fluctuations in consumer activity.
A Festive December Ahead
December’s festive season is expected to inject fresh momentum into the sector.
The holiday rush, school breaks, increased tourist arrivals, and civil servants’ pay adjustments are all poised to drive spending.
Coupled with year-end sales and promotional campaigns, these factors could culminate in a strong finish for the year.
Marketers’ Takeaway
For marketers, November’s data reveals critical trends: the enduring appeal of e-commerce, the resilience of Retail and Wholesale trades, and the nuanced challenges within the Motor vehicles sub-sector.
Leveraging these insights to craft targeted campaigns—especially during key sales events and festive periods—could unlock significant growth opportunities.
As December unfolds, the Wholesale & Retail trade sector stands on the cusp of a promising finale, setting a hopeful tone for 2025.
