Malaysia retail sales down 1.2% in Q1

Sales in the Malaysian retail industry contracted 1.2% for the first quarter of 2017 compared with the same period last year, partly due to poor Chinese New Year sales in January on cautious consumer spending, according a report compiled by Retail Group Malaysia (RGM). 

In addition, prices of retail goods continued to rise since the beginning of this year, given the weak ringgit and higher fuel prices. 

All retail sub-sectors sales declined in Q1, except for the pharmacy and personal care sub-sector, which reported an encouraging growth rate of 3.7%.

More news, Malaysia retail sales down 1.2% in Q1

This latest retail sales report news reminded me an article that I came across in early April - TheEdge Malaysia. When I first read it, certain comments caught my attention.

Below is the part extracted from the weekly business newspaper.
 
Deutsche Bank AG Singapore economist and vice-president of global markets Diana Del Rosario says consumer spending in Malaysia will strengthen despite higher inflation. 

"We think that with fiscal transfers expanding further this year [with the 1Malaysia People's Aid (BR1M) budget up 15% in 2017] and new incentives introduced, alongside a likely improvement in sentiment due to higher oil prices and better exports, consumer spending would also strengthen despite higher inflation," she tells The Edge.


Source :
1) www.thesundaily.my
2) THE STATE OF THE NATION - A WEEKLY UPDATE (Title : February trade data adds to optimism on the economy) published by TheEdge Malaysia, 10 April 2017, by Supriya Surendran