Distributive trade encompasses wholesale and retail trade, hypermarkets and supermarkets, department stores and direct selling, franchising (regulated under the Ministry of Domestic Trade and Consumer Affairs), and other projects approved under the Petroleum Development Act, 1974.

This sub-sector is consistently among the top five contributors of approved investments in the services sector. In 2019, a total of 1,136 projects were approved with investments of RM11.70 billion, representing 10% of the total approvals in this sector. Foreign participation made up the bulk (90.0%) of investments with most of them concentrated in wholesale and retail trade. The approved projects will generate more than 30,000 job opportunities, making it the largest employer within the services sector.

Higher disposable incomes, rising urbanisation and changes in lifestyle are further stimulating the growth of this sub-sector. Capitalising on these trends, Tourism Malaysia is undertaking initiatives to position Malaysia as a premier shopping destination for international and domestic tourists. Malaysia welcomed 26,100,784 international tourists last year, contributing a total of RM86.14bil in tourist receipts to the country’s economy.