KUALA LUMPUR, Sept. 12 (Xinhua) -- Malaysia's retail industry recorded a weaker-than-expected growth rate of 0.6 percent in retail sales, as compared to the same period in 2023, amid rising prices, according to the Retail Group Malaysia (RGM).

The RGM said in a report on Thursday that this latest quarterly result was below market expectation, as in June, members of the Malaysia Retailers Association (MRA) and the Malaysia Retail Chain Association (MRCA) projected an average growth rate of 1.7 percent for the second quarter of 2024.

According to the RGM, the festive sales were not encouraging and below market expectations.

It also noted that retail prices continued to rise during the second quarter, and Malaysian consumers needed to manage their monthly expenses carefully in order to maintain their lifestyles.

For the first six months of this year, Malaysia's retail industry grew by 4.6 percent, as compared to the same period in 2023.

The RGM has maintained this year's retail sales forecast of 3.6 percent, taking into consideration the softer retail market during the second quarter and higher estimate for the third quarter.

The retail sector in the country is anticipated to expand by 3.6 percent during the third quarter.

For the last quarter, Malaysia's retail industry is expected to grow 3.2 percent after a weak performance a year ago.

"The rising cost of living continues to be the biggest challenge of the Malaysian retail industry for the rest of this year," the RGM said.

The increased service tax rate and floating diesel prices have also affected retail spending on many retail goods and services, it added. Enditem

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