Kathmandu. According to Retail Group Malaysia (RGM), in the first quarter of 2026, Malaysia’s retail sector registered a retail sales growth of 3.7 compared to the same period last year. This increase is lower than the 4.4 increase estimated by retailers in March. 

During the Chinese New Year in February and Eid al-Fitr in March, as well as the government’s cash assistance programs, RGM said in a statement, said. 

Looking ahead, retailers expect business growth to be 4.8 percent in the second quarter.This time it is expected to improve due to the low-base effect (less of the base effect as there was a decline of 3 percent in the same period last year.

However, RGM has lowered its forecast for annual retail sales for 2026 to 3.8 percent, citing concerns that the ongoing conflict in the Middle East may weaken consumers’ purchasing power.