Malaysia’s Festive Spark Behind a Whopping RM154 Billion Retail Surge

By The Malketeer

Retail spending bolstered by government aid programmes and the timeless pull of festive traditions

In a testament to the resilience of Malaysia’s consumer market, the wholesale and retail trade sector saw a remarkable upswing in March 2025, with total sales hitting RM154 billion – a robust 5.7% year-on-year growth.

This impressive figure, reported by the Department of Statistics Malaysia (DOSM), signals a broader economic rebound powered by festive fervour and strategic spending.

As the air filled with the buzz of Ramadan preparations and the joyous celebrations of Hari Raya Aidilfitri, Malaysian consumers opened their wallets wide, driving the retail trade sub-sector to a notable RM67 billion in sales.

This marks a 6.6% jump from the previous year, translating to an impressive RM4.2 billion increase.

Retail spending was bolstered by government aid programs and the timeless pull of festive traditions – the perfect storm for retailers looking to tap into cultural sentiment.

Non-specialised retail stores raked in RM25.8 billion, up 6.5%, while their specialised counterparts surged 7.3% to RM14.2 billion, driven by strong sales in clothing, pharmaceuticals, cosmetics, and jewellery.

These figures reflect a deep-rooted cultural rhythm where seasonal shopping is not merely a commercial act but a vital part of family and community bonding.

Household goods, a cornerstone of domestic spending, also saw a 5.8% uptick to RM7.6 billion, while retail sales of automotive fuel jumped 7.9% to RM6.2 billion – a clear indicator of the increased travel and mobility during the festive season.

Even food, beverages, and tobacco in specialised stores posted a hearty 8.1% rise to RM4.3 billion, echoing the communal spirit of shared meals and gatherings.

Wholesale Trade: The Backbone of Malaysia’s Economy

The wholesale trade sub-sector, a critical pillar of the economy, matched the retail trade’s resilience with RM67.8 billion in total sales, up 5.7% from the same period last year.

This growth was largely supported by domestic demand for household-related products and food items, mirroring the festive shopping patterns in the retail sector.

Within this segment, wholesale of household goods leapt 7.6% to RM14.5 billion, reflecting the continued demand for pharmaceuticals, cosmetics, and jewellery.

Meanwhile, wholesale of food, beverages, and tobacco rose 7.7% to RM14.0 billion, underscoring the ongoing importance of essential goods in driving economic activity.

Revving Up the Motor Vehicles Market

The motor vehicles sub-sector also accelerated, with sales of motor vehicle parts and accessories growing by 4.1% to RM5.2 billion.

Sales of motor vehicles themselves increased by 1.5% to RM10.1 billion, supported by promotional offers and new model releases.

The Malaysian Automotive Association (MAA) and the Road Transport Department (JPJ) have both reported corresponding upticks in vehicle sales and registrations, suggesting that consumer confidence is shifting back into high gear.

The Digital Surge – Online Retail and Volume Growth

Adding to this momentum, online retail sales surged with the volume index rising 7.1% year-on-year, reflecting the ongoing digital transformation of Malaysia’s retail landscape.

The overall volume index for wholesale and retail trade grew by 5.0%, largely powered by the wholesale trade sub-sector (6.3%) and retail trade (4.9%).

As Malaysia’s wholesale and retail trade sector continues to regain its stride, DOSM remains optimistic about sustained growth, driven by resilient domestic demand and buoyant consumer sentiment.

For brands and marketers, this data underscores the critical importance of aligning campaigns with cultural touchpoints and leveraging digital channels to capture a share of this expanding market.

In a world reshaped by global disruptions, Malaysia’s retail sector stands as a reminder that, even amid economic uncertainty, the pulse of the consumer remains as vibrant as ever – and those who listen to that heartbeat are poised to win.