Malaysia's wholesale and retail trade saw a 5.5% increase in October compared to the previous year, driven by strong consumer spending during the festive season, according to official data released on Wednesday.

The Department of Statistics Malaysia reported that distributive trade amounted to RM150.1 billion in October. This growth rate slightly exceeded the 5.0% year-on-year increase in September. On a month-to-month basis, the sales value rose by 1.3%.

The performance highlights Malaysia's strong underlying economic fundamentals, stated Chief Statistician Datuk Seri Mohd Uzir Mahidin: “With continued support from government policies and vibrant consumer activity, we expect this upward trend to persist, driving further growth in the months ahead.”

Furthermore, retail trade rose by 7.1% to RM64.9 billion, driven by strong sales in non-specialised stores, followed by food and beverages. The October figures were also influenced by seasonal factors, such as the Deepavali celebrations and school holidays, which led to increased foot traffic in retail outlets, according to the department.

Wholesale trade, on the other hand, grew by 4.8%, contributing RM66.3 billion. This growth was driven by a surge in food and beverages, as well as gains in machinery, equipment, supplies, and agricultural raw materials and live animals, driven by rising demand for essential and high-value goods, The Edge Malaysia reports.

The motor vehicles subsector saw a 2.7% increase to RM18.9 billion, fuelled by maintenance services and sales of parts and accessories during the school holidays, extended public holidays, and the festive season.

Meanwhile, internet retail sales grew by 5.1% year-on-year. After adjusting for seasonal variations, the internet retail sales index rose by 0.5% on a month-to-month basis, reflecting continued strong demand in the digital marketplace, according to the department.

Moreover, the volume index for wholesale and retail trade, which accounts for price fluctuations, increased by 5.1% compared to the same month in 2023. However, on a seasonally adjusted month-to-month basis, the volume index showed a slight decline, indicating “marginal shifts in market conditions,” the department noted.