Retail trade in Malaysia - statistics & facts
When Malaysia’s latest shopping mall, The Exchange TRX, opened on November 29, 2023, in its capital, Kuala Lumpur, thousands of people queued up at its door, eager to experience the new retail space that offers more than 500 stores. With a total of nearly 18 million square meters of shopping complex area within hundreds of luxurious megamalls, Malaysia is a shopping haven for both local and international consumers. Malaysia’s retail trade has grown to be one of the largest industries in the country, contributing around 8.6 percent to the gross domestic product (GDP) in 2024.
Although e-commerce is becoming more common, one key reason brick-and-mortar retailing remains a popular choice is that shopping malls have become an integral part of Malaysian consumer culture and the country’s retail industry. Especially for those living in big cities, shopping centers are a place where people spend much of their free time. Leading retailers like AEON Malaysia provide one-stop shopping experiences where consumers can get almost everything they need under one large roof.
Nevertheless, economic uncertainties caused by geopolitical dynamics remain a challenge for Malaysia. In April 2025, U.S. President Donald Trump announced a 24 percent reciprocal tariff on Malaysia, which will be imposed in July 2025. Since the U.S. was Malaysia’s third-largest trade partner in 2024, the new tariff will disrupt the supply chains and have an impact on the price of consumer goods in the country, especially on imported goods. With the current economic challenge, the retail trade sector in Malaysia will likely experience slower growth in the coming year.
Malaysia’s e-commerce market and resilient mall culture
In 2024, the gross merchandise value in the Malaysian e-commerce market saw an increase of around three billion U.S. dollars. The rise of online retail was driven by the restrictions imposed by the government during the COVID-19 pandemic. Nevertheless, the majority of Malaysia’s consumers stated in a 2023 survey that physical stores were still their preferred shopping channel, especially for products like groceries and furniture. Whereas for fashion items, including clothes and shoes, more than half of the consumers surveyed in 2024 stated that they preferred to shop on e-commerce platforms.Although e-commerce is becoming more common, one key reason brick-and-mortar retailing remains a popular choice is that shopping malls have become an integral part of Malaysian consumer culture and the country’s retail industry. Especially for those living in big cities, shopping centers are a place where people spend much of their free time. Leading retailers like AEON Malaysia provide one-stop shopping experiences where consumers can get almost everything they need under one large roof.
Inflation eases, but economic uncertainties persist
The inflation rate in Malaysia reached around 3.4 percent in 2022, the highest rate within the last five years. While it is expected to ease in 2025, increased prices of basic goods have affected consumers’ purchasing power. These price increases could negatively impact the retail trade sector in the country. The Malaysian government approved the new minimum wage in February 2025, at 1,700 Malaysian ringgit per month, up from 1,500 Malaysian ringgit, which will undoubtedly help the retail industry.Nevertheless, economic uncertainties caused by geopolitical dynamics remain a challenge for Malaysia. In April 2025, U.S. President Donald Trump announced a 24 percent reciprocal tariff on Malaysia, which will be imposed in July 2025. Since the U.S. was Malaysia’s third-largest trade partner in 2024, the new tariff will disrupt the supply chains and have an impact on the price of consumer goods in the country, especially on imported goods. With the current economic challenge, the retail trade sector in Malaysia will likely experience slower growth in the coming year.
