Malaysia’s retail sales during the fourth quarter have shown significant recovery since the peak of the pandemic, increasing 26.5 per cent year on year, according to Retail Group Malaysia. 

The figure is higher than the estimated growth by the Malaysia Retailers Association and Malaysia Retail Chain Association of 18.3 per cent. However, sales for the whole of 2021 dropped by 2.3 per cent, marking the second consecutive year the country’s retail industry recorded negative growth.

Fourth-quarter sales were fuelled by Christmas and Chinese New Year purchases as consumers were able to return to physical stores and shopping malls.  

“By the last month of the year, shopping traffic returned in all major shopping malls located in Malaysia,” RGM said. 

Despite the strong recovery, Malaysia’s retail sales are estimated to experience a mild impact as customers remain hesitant of the Omicron waves. The group projected that the retail sales will see a 16.5-per-cent increase during the first quarter of this year. 

“The supermarket and hypermarket sub-sector will see its business decline by 6 per cent in 1Q22,” the group said.