Behind Malaysia’s Retail Growth: What November 2025 Really Shows

This article analyzes the Wholesale & Retail Trade Performance for November 2025, published by the Department of Statistics Malaysia (DOSM) in January 2026. The report provides a comprehensive monthly snapshot of Malaysia’s domestic trade landscape, covering wholesale trade, retail trade, and motor vehicles, using both sales value and volume index (2015=100) to distinguish real economic growth from price effects.

Overall, the November 2025 data confirms that Malaysia’s domestic economy remains resilient, supported by stable consumer demand and broad-based trade activity. While month-on-month indicators softened, year-on-year performance across all major sub-sectors stayed firmly positive, pointing to cyclical moderation rather than structural weakness.

Overall Market Performance: Solid Year-on-Year Growth

In November 2025, total wholesale and retail trade sales reached RM158.9 billion, representing a 6.4% increase year-on-year (YoY). On a month-on-month (MoM) basis, however, sales declined 1.2%, reflecting seasonal normalization after stronger preceding months.

From a real-activity perspective, the Wholesale & Retail Trade Volume Index rose 5.2% YoY to 167.0 points, indicating that growth was driven by actual transaction volumes rather than inflation alone. The seasonally adjusted volume index fell 2.0% MoM, a pattern consistent with year-end inventory adjustments and more cautious short-term spending behavior.

Wholesale Trade: Strong Structural Demand, Temporary Monthly Pullback

Wholesale trade remained a key growth pillar in November 2025, generating RM70.1 billion in sales, up 6.0% YoY. This expansion highlights sustained demand from retailers, manufacturers, and service providers across the economy.

The strongest contributors to wholesale growth were:

• Wholesale of household goods (+8.5% YoY)
• Wholesale of food, beverages & tobacco (+6.7% YoY)
• Wholesale of machinery, equipment & supplies (+6.4% YoY)

In volume terms, wholesale trade reached 154.2 points, also expanding 6.0% YoY, confirming genuine activity growth.

However, wholesale sales declined 1.4% MoM, driven by lower activity in machinery and equipment, non-specialised wholesale, and food-related categories. This suggests short-term supply chain recalibration and inventory optimization, rather than weakening demand fundamentals.

Retail Trade: Consumer Spending Remains Resilient

Retail trade continued to reflect steady household consumption, with sales totaling RM69.0 billion, up 6.4% YoY. Despite this strong annual growth, retail sales edged down 0.4% MoM, indicating more cautious spending after earlier festive and promotional periods.

Key retail segments driving annual growth included:

• Retail sales in non-specialised stores (supermarkets and hypermarkets): +8.7%
• Retail trade not in stores (online, mail order, digital platforms): +7.2%
• Retail sales of automotive fuel: +6.7%

The Retail Trade Volume Index increased 4.3% YoY to 189.5 points, underscoring continued real consumption growth. Month-on-month declines were observed across fuel, food, and discretionary retail categories, suggesting price sensitivity and timing effects, rather than a pullback in consumer confidence.

Motor Vehicles: Fastest Growth, Highest Volatility

The motor vehicles sub-sector remained the strongest performer in November 2025, recording RM19.8 billion in sales, up 8.0% YoY. Growth was supported by:

• Sale of motor vehicles (+8.9% YoY)
• Maintenance and repair services (+8.7% YoY)

In volume terms, the motor vehicles index rose 6.8% YoY to 143.7 points, confirming solid underlying demand.

However, the sector also showed the sharpest monthly volatility, with sales declining 3.0% MoM and the seasonally adjusted volume index falling 7.3% MoM. This reflects the sector’s sensitivity to financing conditions, promotional timing, and consumer sentiment, rather than a structural slowdown.

What the November 2025 Data Signals

Three key insights emerge from the report:

First, Malaysia’s domestic demand remains fundamentally strong, with all major trade segments posting positive year-on-year growth.

Second, growth is volume-driven, not merely price-driven, reinforcing confidence in the real economy.

Third, monthly declines are cyclical, reflecting seasonal effects, inventory management, and cautious short-term behavior, rather than weakening economic fundamentals.

Malaysia Outlook for 2026: Balanced and Cautiously Optimistic

Looking ahead to 2026, Malaysia’s wholesale and retail trade sector is expected to maintain moderate, sustainable growth, supported by stable employment, ongoing digitalization, and resilient household consumption.

E-commerce and non-store retail channels are likely to continue expanding, while wholesale trade should benefit from steady domestic production and services demand. At the same time, global uncertainties, interest rate dynamics, and cost pressures may continue to influence short-term monthly volatility.

Overall, the November 2025 data positions Malaysia’s domestic trade sector as a key stabilizing force for the national economy, entering 2026 with sound fundamentals, disciplined consumption patterns, and balanced growth prospects rather than overheating or contraction.

About VNBIS

This analysis aligns with the broader mission of VNBIS (Vanguard Business Information LLC), a leading provider of business intelligence, market data, and risk assessment services, with a strong focus on Southeast Asia. Through comprehensive datasets, sectoral analysis, and company-level intelligence, VNBIS supports investors, corporates, financial institutions, and policymakers in making informed, evidence-based decisions. By combining official statistics with structured business information and long-term market insights, VNBIS aims to enhance transparency, improve risk management, and provide deeper understanding of economic and industry dynamics across emerging and developed markets.