PETALING JAYA: The wholesale and retail trade is expected to maintain its steady momentum, supported by a firm labour market that continues to underpin private consumption.
According to Phillip Capital Research, the retail sales value remained resilient and grew 6.6% year-on-year (y-o-y) in June, while moderating from 7.2% y-o-y in the previous month.
The increase was driven mainly by non-specialised stores such as supermarkets, hypermarkets and convenience stores, and goods in specialised stores like clothing and footwear.
“On a volume basis, non-specialised stores remained the key driver, maintaining above-average growth for the 11th consecutive month.
“Steady wage growth in the services sector and accelerating wage growth in the manufacturing sector are expected to provide further support to household purchasing power,” the research house said.
However, for non-specialised stores, growth slowed to 7% y-o-y, down from 8.2% in May.
Phillip Capital said sales of other goods in specialised stores grew by 7% compared to the same month last year.
Spending in this category grew 6.7% in May, and 7% in June.
“For household equipment, growth decelerated for the fourth consecutive month to 3.2% y-o-y, dropping from 3.4% in May.”
By sales volume, the total retail trade growth moderated marginally to 4.2% y-o-y, dropping from 4.4% in May, with non-specialised stores remaining the main contributor, recording above-average growth for the 11th consecutive month.
“The expansion in wholesale trade has outpaced retail sales growth for the fourth consecutive month since March, likely driven by elevated global oil prices and higher wholesale activity in petrol, diesel and lubricants,” the research house added.
In June 2026, Malaysia’s unemployment rate remained low at 3%, while total employment continued its upward trajectory.
The wage growth in the manufacturing sector accelerated to 3.1% y-o-y in the second quarter financial year 2026 (2Q26), up from 2.3% from 1Q26.
Meanwhile wage growth in the services sector remained relatively stable at 4.8% y-o-y, during the same period from 5% in 1Q26.
“This suggests that household purchasing power should remain resilient in the near term, supporting private consumption activity,” Phillip Capital said.
