They expect consumer demand to remain resilient in 2026, supported by several factors, with the ringgit’s strength seen as a key driver in sustaining consumer spending through lower imported inflation. “A resilient labour market, lower fuel prices, and a stable interest-rate environment are expected to continue bolstering household purchasing power. It said firm domestic demand should help cushion the economy against external headwinds, including softer export momentum amid higher US tariffs and persistent global trade uncertainties. The wholesale and retail trade segments are expected to expand by about 5.4% and 6.5%, respectively, reflecting a healthy labour market, steady income growth and firm domestic demand. Meanwhile, Kenanga Research is slightly more optimistic, forecasting distributive trade growth to accelerate to 6.1% in 2026, supported by the Visit Malaysia 2026 momentum and resilient domestic demand.

Source: The Star January 13, 2026 11:34 UTC