KUALA LUMPUR, Feb 8 — MIDF Research is optimistic that retail trade growth will average 8.9 per cent this year in view of the macroeconomic outlook and improving domestic fundamentals.
The research house said pent-up demand will continue underpinned by an improving labour market, stable inflationary pressure, accommodative economic policies and an uptick in the tourism industry.
“Even though the overnight policy rate (OPR) is closer to a normalised rate of 3.00 per cent, it would have minimal effect on domestic spending outlook,” it said in a note today.
MIDF Research said despite inflationary pressure, Malaysia’s consumer spending remained resilient as seen in motor vehicle sales and retail trade.
The upbeat momentum of sales on a yearly and monthly basis proves that Malaysia’s consumer demand is 'still intact and robust'.
“Apart from stable inflation and a steady job market, we foresee the revival of tourism activity is set to support Malaysia’s retail trade spending in 2023,” it said.
In particular, MIDF said China and Japan’s reopening will benefit Asean tourism including Malaysia.
With the re-tabling of Budget 2023, cash assistance, bonuses and local spending incentives will boost further consumer confidence and demand this year, it said.
Earlier, the Department of Statistics Malaysia said Malaysia’s volume index of the wholesale and retail trade registered a 9.9 per cent growth year-on-year in the fourth quarter of 2022, bringing the overall performance for 2022 to 14.3 per cent.
— Bernama
