KUALA LUMPUR (July 14): Malaysia's wholesale and retail trade grew 10.7% to RM96.9 billion in May, from a year earlier, led by retail transaction growth. 

According to the Statistics Department's statement today, retail trade rose 13.1% while wholesale and motor vehicle transactions climbed 9% and 10.2% respectively.

"The sales value consists of wholesale trade (RM46.9 billion), retail trade (RM37.2 billion) and motor vehicles (RM12.8 billion) businesses. The positive growth was contributed by retail trade (13.1%)," the department said.

May's wholesale and retail trade's on-year 10.7% growth compares with April's 9.6% expansion, according to the department.
 
FXTM vice president of corporate development and market research Jameel Ahmad wrote in a note today that Malaysia's above-forecast 10.7% wholesale and retail trade growth in May, added clarity to the notion the country's economy was performing above expectations.

“Optimism is continuously increasing that the GDP reading for Q2 will follow the same trend as the first quarter of the year, in terms of surpassing expectations, following a hat-trick of economic data announcements over the past week.
 
“If the Malaysian economy continues to pull out these numbers consistently above expectations, it won’t be long until think tanks begin upgrading their overall forecasts for growth this year,” Jameel said.