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KUALA LUMPUR — Malaysia’s distributive trade growth remained steady at +7.3% year-on-year in January 2026, supported by resilient expansion across motor vehicles (+17.3%), retail trade (+6.1%), and wholesale trade (+6.0%). Retail sales continued to grow, though at a slightly softer pace, with strong contributions from non-store retail (+9.0%), non-specialised outlets (+7.9%), and fuel sales (+7.0%).
Analysts expect retail sales to sustain growth of around +6.0% for 2026, aided by festive spending during Chinese New Year and Hari Raya, salary adjustments under SSPA Phase 2, and government cash transfers. However, rising energy costs linked to Middle East tensions may filter through transportation and logistics, potentially dampening consumer sentiment.
While consumption remains resilient, inflationary pressures could weigh on household spending later in the year. Overall, Malaysia’s retail sector is expected to remain stable, though external risks may temper momentum.
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