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, MDTCA), and other petroleum-related projects approved under the Petroleum Development Act, 1974.

In 2021, a total of 908 projects were approved with investments of RM3.6 billion. Foreign participation made up the bulk (78.8%) of investments with most of them concentrated in wholesale and retail trade. The approved project will generate more than 14,392 job opportunities, making it the largest employer within the service sector.

Despite the declining approved investments, the government’s tenacious initiative to support the sector with the allocation of RM31 billion through Budget 2022 for subsidies, assistance and incentives prompt the recovery of affected areas in the sector. The continuation of several programmes such as the ‘Buy Malaysian Products’ and ‘Malaysian Mega Sales’ generated over RM 3.3 billion of sales in 2020. Moreover, the push for wider usage of e-commerce and digitalisation through the Distributive Trade Master Plan (2021- 2025) is expected to provide clear directions and lead to anticipated growth of 8.7 per cent in 2022.