KUALA LUMPUR, June 8 — Retail sales declined in the first quarter of this year, recording a -1.2 per cent growth compared to the same period in 2016, according to the Malaysian Retail Industry Report.

The declining figures were below the growth projections made by both by Malaysian Retailers Association (MRA) and also the Retail Group Malaysia (RGM), and which wrote and compiled the report.

RGM had predicted a 1.5 per cent growth in the first quarter of 2017 as part of an overall annual 3.9 per cent growth projection, which was already a downgrade from an earlier estimate of a 5 per cent growth.

"A year ago, the retail industry contracted by 4.4 per cent due to strong pre-Goods and Services Tax (GST) sales in (the corresponding period) in 2015. Unfortunately, it could not recover a year later,” the report said.

It also said that the results were due to poor sales during this year’s Chinese New Year celebration period in January.

"Shoppers were careful in their spending of festive goods,” it said.

It also said that excepting pharmacy and personal care, all other sectors reported a decline in sales.

However, RGM remained positive that the overall growth projected for 2017 will remain at 3.9 per cent, with a larger growth projected by retailers for the second quarter of the year.

"The recovery of retail sales is highly dependent on external economic demand and ringgit performance for the rest of the year,” it said.

Yesterday, the Malaysian Retail Chain Association said the retail sales growth for 2017 can still be above 4 per cent, citing a boost from the tourism sector.

The retails sales growth for 2016 came in under 4 per cent, which was lower than initial projected growth of 5 per cent.