Kuala Lumpur: Malaysia’s wholesale and retail trade sales reached an unprecedented high of RM1.77 trillion in 2024, with December alone contributing RM152.2 billion, marking a 5.5 percent increase year-on-year.

According to BERNAMA News Agency, Chief Statistician Datuk Seri Uzir Mahidin reported that wholesale trade achieved total sales of RM66.5 billion, reflecting a year-on-year growth of 5.7 percent, equivalent to a RM3.6 billion increase. Retail trade followed closely with total sales of RM65.8 billion, showing a 5.4 percent year-on-year growth with a RM3.4 billion increase.

The motor vehicles sub-sector registered sales of RM19.9 billion, displaying a 6.9 percent year-on-year growth, or RM1.3 billion. The statement highlighted the steady performance of the wholesale sector, significantly supported by other specialised wholesale activities, which grew by 3.6 percent to RM24.7 billion, driven primarily by petroleum-related products.

Additionally, the wholesale of agricultural raw materials and live animals saw a substantial rise of 13.9 percent to RM6.6 billion, largely due to a 40.0 percent increase in crude palm oil prices, surpassing RM5,000 per tonne for two consecutive months. Growth was also supported by the wholesale of food, beverages, and tobacco, which rose by 6.3 percent, driven by purchases in anticipation of holidays and celebrations.

The volume index for wholesale and retail trade recorded a 4.4 percent year-on-year increase, driven primarily by the motor vehicles sub-sector, which rose by 5.5 percent, and wholesale trade, which increased by 5.0 percent. However, after adjusting for seasonal variations, the volume index saw a 0.8 percent month-on-month decline against November.

For the full year of 2024, retail trade expanded by 6.1 percent to RM764.9 billion, wholesale trade increased by 4.7 percent to RM782.1 billion, and motor vehicles grew by 6.5 percent to RM219.1 billion. The wholesale and retail trade sector demonstrated resilience throughout the year, bolstered by strong consumer demand, increased tourism, and a stable economic environment.

Mohd Uzir projected continued momentum for the sector in 2025, supported by steady domestic consumption, international tourism, e-commerce growth, and the rising demand for electric vehicles. However, the sector might face challenges from inflationary pressures, subsidy rationalisation, and global economic uncertainties.