Malaysia’s retail sector is expected to improve in early 2025 after a weaker-than-expected end to 2024.
Retail sales grew 3.5% in the last quarter of 2024, weaker than the forecast of 4.4% due to rising cost of living and shorter school holidays.
Unemployment remained stable at 3.2%, while inflation averaged 1.8%. However, upcoming policy changes, including fuel subsidy cuts and higher electricity tariffs, are likely to increase business costs, potentially hurting consumers.
Retail Group Malaysia (RGM) raised its 2025 retail sales forecast to 4.3% from 4.0%.
Meanwhile, the food and beverage sector is struggling with high costs and a weak ringgit.
The impact of ongoing boycotts of global franchises has also led to many store closures.
