Share of retail trade to the GDP in Malaysia 2015-2023

In 2023, the retail trade sector in Malaysia was estimated to contribute around 8.6 percent to the country’s gross domestic product (GDP). The contribution from this sector has increased by one percent over the past two years, following the decline in the retail trade industry’s contribution experienced in 2021.

Retail market expects more growth

The GDP contribution from retail trade in Malaysia amounted to approximately 155 billion Malaysian ringgit in 2023, marking modest growth compared to the previous year. This could likely be attributed to the inflation rate in the country, which caused the prices of consumer goods to increase. Nevertheless, as the inflation rate was expected to moderate in 2024, this could positively impact the retail trade sector in the next few years.

Offline stores dominate retail sales

Despite the availability and convenience of online stores, Malaysian consumers still indicated in a 2023 survey that they prefer to shop in brick-and-mortar stores, especially for products like groceries and furniture. Supermarkets hold the largest market share of FMCG sales channels in the country, with a share of more than 40 percent in 2023.