Malaysians increased spending in a December marked by school holidays and festive celebrations, helping push wholesale and retail trade to a record high in 2025.

Total wholesale and retail sales reached RM163.7 billion in December 2025, up 7.6% compared with the same month in 2024. The strong year-end performance lifted full-year sales to RM1.87 trillion, representing a 5.6% increase from 2024, according to the Department of Statistics Malaysia.

On a month-on-month basis, distributive trade rose 3.0% in December, reversing a 1.2% contraction recorded in November.

Retail Trade Supported By Holiday And Travel Spending

Retail sales expanded 6.9% year-on-year to RM70.4 billion in December. Growth was driven by provision stores, supermarkets, department stores, and specialised retailers, supported by school holidays as well as Christmas and New Year festivities. Higher travel activity lifted retail sales of automotive fuels by 7.4% to RM6.4 billion.

Demand for information and communication equipment also strengthened, with sales rising 5.9% to RM5.4 billion, reflecting purchases of computers, accessories, telecommunications equipment, and gaming-related products.

The data suggests that households increased discretionary spending during the year-end period, particularly on travel, festive consumption, and technology upgrades.

Wholesale Trade Growth Led By Fuel And Construction Supplies

Wholesale trade rose 6.9% year-on-year to RM71.1 billion in December. The expansion was supported by petrol, diesel, lubricants, construction materials, hardware, plumbing equipment, and heating supplies. Wholesale of household goods also recorded solid growth, including pharmaceutical and medical products, electrical and electronic goods, and personal care items.

Wholesale of food, beverages, and tobacco increased as well, reflecting steady demand for essential goods across supply chains.

Motor Vehicle Sales Reach New Monthly High

The motor vehicles sub-sector recorded the strongest growth among the three main components, rising 12.2% year-on-year to RM22.3 billion.

Sales of motor vehicles alone climbed 15.7% to RM12.5 billion, marking a new monthly high. According to industry data, 90,716 vehicles were sold in December, while 96,970 units were registered.

Year-end rebates, promotional campaigns, and clearance of older stock supported purchasing activity. Sales of parts and accessories, maintenance and repair services, and motorcycle-related sales also recorded increases.

Given that vehicle purchases typically involve financing arrangements, sustained growth in this segment may influence household borrowing levels and long-term repayment commitments.

Online Retail And Digital Payments Accelerate

Online retail sales continued to expand, with the index of retail sale over the internet rising 8.9% year-on-year in December, compared with 7.3% growth in November.

Digital payment activity also strengthened. E-money transactions increased 64.2% year-on-year to RM29.4 billion. Transactions through the Real-time Retail Payments Platform reached RM362.3 billion, while FPX transactions rose 20.6% to RM42.2 billion. Credit card and debit card transactions totalled RM21.4 billion and RM15.0 billion respectively.

The data indicates continued migration towards cashless and digital spending channels.

Full-Year 2025 Performance Shows Broad-Based Expansion

For the full year, retail trade grew 6.1% to RM811.5 billion, wholesale trade increased 5.8% to RM827.4 billion, and the motor vehicles sub-sector expanded 3.2% to RM226.1 billion.

Malaysia’s automotive industry recorded 820,752 vehicles sold in 2025, exceeding 800,000 units for the second consecutive year. Electric vehicle registrations rose sharply to 44,813 units, a 105.7% increase compared with 2024.

The broad-based expansion across retail, wholesale, and motor vehicles reflects sustained domestic demand throughout the year.

Implications For Household Spending And Financial Trends

The record RM1.87 trillion in annual wholesale and retail sales underscores the strength of domestic consumption in 2025.

Stronger retail and motor vehicle sales indicate that households continued spending on both essential and discretionary items, particularly during promotional and festive periods. However, higher vehicle sales often correlate with increased financing uptake, which can affect household debt exposure and long-term repayment obligations.

The rapid growth in e-money and online retail transactions highlights a structural shift towards digital consumption. While cashless payments improve convenience and transaction speed, they may also reduce visibility over day-to-day spending if not actively monitored.

Overall, the December data suggests that consumer demand remained resilient at the end of 2025, reinforcing the central role of household spending in supporting Malaysia’s economic momentum while pointing to evolving patterns in digital and financed consumption.

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