Govt stats show Malaysia’s wholesale and retail sector down 14.7% in July, led by motor vehicles at -85.4%

Govt stats show Malaysia’s wholesale and retail sector down 14.7% in July, led by motor vehicles at -85.4%

Malaysia’s wholesale and retail sector contracted 14.7% year-on-year in July 2021, to RM92.7 billion. According to the department of statistics, reported by Malay Mail, motor vehicles led the negative growth list with -85.4% growth, followed by -8.1% in retail trade and -1.1% in wholesale trade.

In the retail trade subsector, Retail Sale of Automotive Fuel in Specialised Stores fell 14.1%, Retail Sale of Other Goods in Specialised Stores dropped 11.1% and Retail Sale in Non-specialised Stores declined 10.8% compared to the same period last year.

The breakdown of the wholesale trade category is Wholesale on a Fee or Contract Basis (-22.1%), Wholesale of Household Goods (-12.1%), Wholesale of Machinery, Equipment and Supplies (-10.4%) and Non-specialised Wholesale Trade (-1.2%).

Govt stats show Malaysia’s wholesale and retail sector down 14.7% in July, led by motor vehicles at -85.4%

As for motor vehicles, the department of statistics divides it into Maintenance and Repair of Motor Vehicles (-88.7%), Sale of Motor Vehicles Parts and Accessories (-87.4%) and Sale, Maintenance and Repair of Motorcycles (-86.9%).

Now, the figures for motor vehicles are shocking, but bear in mind that we were in the middle of a full lockdown in July, and the automotive sector was essentially frozen – parts suppliers, car factories and showrooms all had to close. People weren’t putting miles on their vehicles, which means that maintenance and repair sales were also down.

The auto sector was allowed to restart in mid-August, and with factories back to making cars and the sales side rushing to clear the backlog, August sales have shot up. With a full month of unhindered sales, September should be even better.

Govt stats show Malaysia’s wholesale and retail sector down 14.7% in July, led by motor vehicles at -85.4%

According to the Malaysian Automotive Association (MAA), the local automotive industry lost over RM14 billion in June and July due to the shutdown, and that’s just from domestic vehicle sales. The sum will be bigger if one adds in lost revenue from exports of vehicles and components, as well as local sales of spare parts.

“Many of us are bleeding. We have used up much of our savings over the past one year. So, it is a huge relief that finally we are allowed to resume our businesses and to revive our industry,” MAA president Datuk Aishah Ahmad said when welcoming the move to allow businesses to resume operations last month.

The good news for the auto industry is that demand is still there, and the government’s sales tax exemption – introduced in June 2020 and extended twice since – will be in place till the end of the year.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.



  • Sick&Tired on Sep 13, 2021 at 11:12 am

    Our brilliant transport Minister said that used car sales not effected by pandemic??

    We have so many government supporters here, anyone care to comment?

    Like or Dislike: Thumb up 3 Thumb down 6
    • If you look at post FMCO, things are picking up steam rapidly, so he wasn’t wrong on demand being there “Malaysian vehicle sales go up by 269%”

      Like or Dislike: Thumb up 8 Thumb down 0
      • Sick&Tired on Sep 13, 2021 at 9:01 pm

        In the original article, he didn’t mention anything about pent up demand. He clearly said that the mco had no effect on used car sales which has been shown to be clearly wrong. Who do you thing the government will listen to when coming up with SOP’s and aid packages for industries effected by the MCO? Obviously the related minister la. So if the transport minister is saying that the used car industry is not effected by the MCO, do you think anyone will provide any moratorium or aid to dealers or people who are working in the used car market?

        And pls don’t get me started on the cabotage fiasco..

        Why is it so difficult for you guys to just critize when someone does something wrong instead of just blindly supporting!?

        Like or Dislike: Thumb up 2 Thumb down 2
        • Damon Lee on Sep 14, 2021 at 12:11 pm

          If he based on preFMCO data its possible he is not wrong. MAA data only tracks new car sales which is not captured in Paul Tan, so you might mislead into believing used car sales was bad. However in bad economy, used cars would typically sell better as these are cheaper to own for buyers with not a lot of cash as before pandemic. There is no doubt that all businesses are affected in one way or another, some more than others. Looking at all the car brands lamenting stock shortages for delivery to customers, one can surmise the economy is far more resilient and demand far more higher than some people would assume. No its not all doom & gloom and the sky will fall. Of course the used car business has earned a bad rep for being scums of the automotive market, so can anyone be blamed for not showing them mercy today when they have been cheating buyers & sellers all these years? And what relevancy does cabotage have to do with this article?

          Come on bro. Constructive criticism should be encouraged but what you are going for is blind hatred!!!

          He has fixed many of the issues that stems from Loke’s seriously bad tenure as TM, such things like legalised black tints, are still an issue he needs to repeal.

          Like or Dislike: Thumb up 5 Thumb down 1
  • Los Lobos on Sep 14, 2021 at 9:20 am

    I dont really trust govt statistic, and what our govt says (especially matters of recent Darurat expiration).

    Thanks for the news paultan, nevertheless.

    Like or Dislike: Thumb up 0 Thumb down 0
  • if the price is right on Sep 14, 2021 at 10:59 am

    If you want to buy new car, make sure you finances are resilient enough, because it’s going to be a long & bumpy road back to recovery.

    Like or Dislike: Thumb up 2 Thumb down 0

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