Consumer spending showed signs of slowing in November 2025, even as Malaysia’s wholesale and retail trade sector continued to post year-on-year growth. Latest data from the Department of Statistics Malaysia indicates that while overall sales remained higher than a year ago, spending activity eased compared with October, reflecting more cautious purchasing behaviour toward the end of the year

For households, this shift matters as it signals tighter control over non-essential spending, particularly amid ongoing cost-of-living pressures and careful budget management.

Wholesale And Retail Sales Continue To Grow Year On Year

Total wholesale and retail trade sales reached RM158.9 billion in November, representing a 6.4% increase compared with the same month last year. Growth was recorded across all major sub-sectors, including wholesale trade, retail trade, and motor vehicles.

Wholesale trade contributed RM70.1 billion in sales, growing 6.0% year on year. Retail trade followed closely with RM69.0 billion in sales, up 6.4%, while the motor vehicles sub-sector recorded RM19.8 billion, reflecting an 8.0% annual increase.

These figures suggest that consumer demand remains intact overall, supported by employment stability and steady income flows.

Monthly Spending Activity Shows Signs Of Softening

Despite higher annual growth, seasonally adjusted data shows that sales volume declined by 2.0% month on month in November. This indicates that spending activity slowed compared with October, pointing to more measured consumer behaviour.

Such moderation is often linked to households prioritising essential expenses, managing cash flow more carefully, or delaying larger purchases. For consumers, this trend highlights the importance of tracking monthly spending and adjusting budgets as conditions change.

Retail Sales Supported By Essentials And Targeted Assistance

Within retail trade, non-specialised stores such as supermarkets, hypermarkets, and convenience stores recorded stronger growth, with sales rising 8.7% year on year. This was partly supported by continued use of the Sumbangan Asas Rahmah one-off RM100 assistance, which helped offset essential spending.

Specialised retail stores saw a more moderate increase of 5.1%, driven by demand for pharmaceuticals, personal care products, footwear, and jewellery. Retail sales of food, beverages, and tobacco also grew, reflecting steady demand for daily necessities rather than discretionary items.

Vehicle Purchases Remain Resilient

The motor vehicles sub-sector continued to perform well, supported by higher vehicle registrations. Sales of motor vehicles increased to RM10.4 billion, in line with a rise in new car registrations reported by the Road Transport Department.

Spending on vehicle maintenance, repairs, and parts also rose, suggesting that households are continuing to invest in maintaining existing vehicles, even as big-ticket purchases become more selective.

Online Shopping And Digital Payments Stay On An Upward Trend

Online retail sales continued to grow in November, although at a slower pace than the previous month. The online sales index rose 7.3% year on year, compared with 8.7% growth in October, pointing to steady but moderating e-commerce activity.

Digital payment usage remained strong. E-money transactions surged to RM27.0 billion, while transactions through the Real-time Retail Payments Platform reached RM322.6 billion. Credit and debit card usage also increased, reflecting the continued shift towards cashless spending.

How Households Are Adjusting Their Spending

The November data suggests that while Malaysians are still spending, they are doing so more carefully on a month-to-month basis. Stable employment and income conditions are supporting overall demand, but rising costs and financial commitments may be encouraging more cautious purchasing decisions.

For households, this environment reinforces the value of monitoring expenses, prioritising essential spending, and planning ahead for larger financial commitments. As consumer behaviour continues to adjust, spending discipline remains a key factor in maintaining financial stability.

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