Malaysia Retail Sector Maintains Positive Outlook Amid Resilient Consumption

Malaysia’s retail sector remains resilient, with February 2026 sales rising 7.5% year‑on‑year despite a slight 0.2% month‑on‑month dip. Unemployment held steady at 2.9% while inflation stayed manageable at 1.4%. Food and beverage inputs showed mixed trends, with cocoa, sugar, and coffee lower year‑on‑year, but crude palm oil and PET costs rising sharply.

Retail Sector

Poultry prices diverged, with eggs easing but chicken strengthening. Feed costs for soybean meal and corn climbed amid war‑driven pressures. The ringgit strengthened year‑on‑year but softened month‑on‑month, keeping import tailwinds intact. Analysts maintain a positive sector view, recommending defensive positioning in staples, with top picks Leong Hup, MR D.I.Y., and 99 Speedmart.

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