Dispelling the “Kerajaan Gagal” fallacy: wholesale and retail sales hit new high

Malaysians have been shopping like crazy after EPF released cash into the system like what the opposition wanted

(FMT) – Monthly wholesale and retail sales in Malaysia hit a record high of RM123.8 billion in March, accounting for a 9.8% improvement year-on-year, according to the latest data from the department of statistics Malaysia (DOSM).

The segment also reported a record quarter, chalking up sales of RM361 billion from January to March 2022, to give it an 8.6% growth.

Chief statistician Mohd Uzir Mahidin said the improvement was driven by the retail trade sub-sector which rose RM4.9 billion or 10.8% to RM49.9 billion.

On the other hand, wholesale trade expanded 8.6% or RM4.5 billion to RM57.2 billion.

“Within the same period, motor vehicle sales surged 11.1% or RM1.7 billion to RM16.7 billion,” he said in a statement.

For month-on-month comparison, sales value in wholesale and retail rebounded 5.7%, the first month-on-month growth this year, fuelled by the motor vehicles sub-sector, which soared 33.9%.

DOSM said that across the retail trade sub-sector there was a 10.8% increased in sales in March 2022, largely supported by purchases in non-specialised stores which grew 16.2% or RM2.6 billion to RM18.7 billion.

Other groups in this sub-sector that also saw growth are specialised stores (7.5%), household goods (9.6%), automotive fuels (7.8%), food, beverages and tobacco (9.9%), cultural and recreation goods (11.4%), purchases not in stores, stalls or market (26.5%), information and communication equipment (1.5%), and in stalls and market (11.8%).

For month-on-month comparison, the department noted sales of this sub-sector went up 2.2%, with all groups recording growth except for sales not in stores, stalls or markets, which fell 3.9%.

The 8.6% quarterly growth in the wholesale trade was attributed to other specialised sub-sectors which grew 6.8% or RM1.5 billion to RM22.9 billion, followed by wholesale food, beverages and tobacco with 9.4% to record RM10.9 billion.

Similarly, wholesale trade in household goods also increased 9% to RM11.1 billion.

On a monthly basis, wholesale trade grew 2.5%, contributed mainly by other specialised wholesale businesses, which gained 2.4% in March.

Uzir attributed the 11% growth in motor vehicle sales in March to the 10.6% growth of transactions in the sector. This was an increase of RM900 million to RM9.9 billion.

“This was followed by an increase in the sales of motor vehicle parts and accessories and maintenance and repair of motor vehicles of 22.5% and 26.9%, respectively. On the other hand, the sales, maintenance and repair of motorcycles plummeted 22.2% in March.

On a monthly basis, Uzir said, sales in this sub-sector surged 33.9%, helped mainly by increases in the purchase of motor vehicles, which soared 59.5%.

For the quarterly performance, the 8.6% increase in the first quarter this year for wholesale and retail trade was underpinned by the retail trade sub-sector which expanded RM12.7 billion or 9.4% to RM147.6 billion.

This was followed by wholesale trade which rose 6.8% or RM11 billion to record RM171.7 billion.

The motor vehicle sub-sector also grew 13% or RM4.8 billion to reach RM41.8 billion in this quarter, a 1.9% rise quarter-on-quarter.