MIDF Maintains Retail Sales Growth Forecast Of 4.6 Pct In 2025

KUALA LUMPUR, April 11 (Bernama) -- MIDF Amanah Investment Bank Bhd is maintaining its forecast of retail sales growth of 4.6 per cent in 2025, down from the 5.5 per cent expansion recorded in 2024.

Its research arm, MIDF Research, said the continued growth will be supported by a resilient labour market, manageable inflation, accommodative monetary policy, and a sustained recovery in tourism.

“Government measures, including cash assistance programs, access to flexible retirement savings, higher civil service wages, and an increased minimum wage, are expected to further bolster consumer spending this year,” it said in a note today.

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However, MIDF Research said it remains cautious of downside risks, particularly as escalating global trade tensions could dampen consumer confidence and weigh on spending decisions.

“Despite these external headwinds, we believe that domestic consumption will remain a key pillar of Malaysia’s economic growth in 2025,” it said.

MIDF Research said retail spending growth eased, but wholesale gains led to stronger distributive trade.

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The Department of Statistics Malaysia today announced that Malaysia’s retail trade recorded a 5.9 per cent y-o-y growth in sales in February 2025 compared to 8.2 per cent y-o-y in January 2025.

However, MIDF Research noted that the overall distributive trade growth improved to 5.1 per cent y-o-y in February 2025 from 4.6 per cent y-o-y in January 2025 on the back of stronger rise in the wholesale trade (5.3 per cent y-o-y in February from 4.8 per cent y-o-y in the preceding month) and rebound in motor vehicles sales.

-- BERNAMA