Research firm upgrades forecast for Malaysia’s retail trade growth

A money exchange counter in Malaysia (Photo: AFP/VNA)

KualaLumpur (VNA) – MIDF Research has revised its retail trade growthforecast for Malaysia this year to 17.6%, up from the previous prediction of 10.5%,on the expectation of stronger GDP growth in the second quarter.

Theresearch firm said Malaysia’s consumer spending is expanding strongly asreflected in the retail trade sales growth of 19.1% year on year in the firsthalf of 2022.

Distributivetrade sales in June rose 44% from the same period last year, the fastest pacein 14 months. It grew 26.3% year on year in Q2, compared to 8.6% in Q1.

MIDF Research noted domestic demand continued to stay on an uptrend contributedby improving labour market, stable inflationary pressure, and further revivalof the domestic economy, including international borders reopening and specialEmployees Provident Fund withdrawals in April 2022.

“Looking ahead, the upbeat momentum of domestic demand is set to continue inthe second half of the year, particularly driven by stable overall price growthand lower unemployment rate,” it said.

Itbelieved the pent-up demand will continue until the end of this year, underpinnedby an improving labour market, stable inflationary pressure and the continued reopeningof the domestic economy./.

VNA