Market Info
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Malaysia Retail Industry Report (June 2022) Compiled by Retail Group Malaysia
PREAMBLE Members of Malaysia Retailers Association (MRA) and Malaysia Retail Chain Association (MRCA) were interviewed on their retail sales performances for the first half-year of 2022. This is the 25th anniversary of Malaysia Retail Industry Report. The first report was published in 1998 during the Asian financial and economic crisis.
LATEST RETAIL PERFORMANCE For the first quarter of 2022, Malaysia retail industry recorded a promising growth rate of 18.3% in retail sales, as compared to the same period in 2021 (Table 1).
This latest quarterly result was higher than the 16.5% estimate made by members of MRA and MRCA in March 2022. So far, the retail recovery has been sustainable since end of last year. Shopping traffic had returned in all major shopping malls and commercial centres located across the country. Shoppers have returned to physical stores to enjoy what they missed during the long period of lockdowns last year. In addition, the Chinese New Year festival (started in early January and ended in middle of February) contributed to stronger sales for Malaysian retailers. Non-Chinese communities in Malaysia took advantage of this festival to enjoy
TABLE 1: YEAR ON YEAR PERCENTAGE CHANGE IN RETAIL SALES (WEIGHTED), 2021/22 Type
Period
% growth
Retail sales
Jan-Mar 2021
-9.9
Oct-Dec 2021
26.5
Jan-Mar 2022
18.3
Source: MRA/ MRCA/ Retail Group Malaysia
Malaysia Retailer Vol Vol10 10No No11
shopping and travelling as well. Domestic tourism had contributed to higher retail sales. Despite daily positive cases reaching 10,000 on February 6 this year, major shopping centres were still crowded on both weekdays and weekends. When daily positive cases climbed to 20,000 from February 11, shoppers could still be seen everywhere. On February 23 this year, daily positive cases spiked above 30,000. Surprisingly, major shopping malls were still crowded. Although passenger car drivers did not need to struggle to find parking lots, the decline in shopping traffic was not significant.
COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS For the first quarter of 2022, Malaysia’s national economy recorded a better-than-expected growth rate of 5.0% (Table 2, at constant prices), as compared to 18.3% for retail sales (at current prices).
