KUALA LUMPUR, June 18 — Malaysia’s retail sector recorded a better-than-expected growth rate of 7.8 per cent in retail sales, as compared to the same period in 2023, according to the latest report from Retail Group Malaysia (RGM) released today. It said members of Malaysia Retailers Association (MRA) and Malaysia Retail Chain Association (MRCA) had projected the third quarter growth at 1.
7 per cent. The robust growth was fuelled by various factors including the Chinese New Year festivities, extended school holidays from February to March, and the beginning of Ramadan on March 12. These events boosted consumer spending, alongside the distribution of Sumbangan Tunai Rahmah (STR) Phase 1 to 8.
2 million Malaysians and increased tourist arrivals attracted by favourable exchange rates and visa-free entry for Chinese visitors. However, challenges persisted due to rising food prices and global geopolitical tensions, which led to boycotts of certain international brands, affecting market dynamics. Economically, Malaysia saw a 4.
2 per cent growth overall in the first quarter, with retail sales climbing by 7.8 per cent. This growth was supported by strong consumer spending, increased investments, a stable labour market, and a rise in tourist numbers.
Key sectors such as services and construction expanded by 4.7 per cent and 11.9 per cent respectively, while inflation averaged 1.
7 per cent, driven mainly by higher costs for dining out and utilities. In March alone, dining out expense.
