KUALA LUMPUR, Dec. 12 -- Malaysia's retail industry grew faster than expected in the third quarter of 2025, expanding 4.9 per cent and prompting Retail Group Malaysia (RGM) to raise its full-year forecast to 3.6 per cent.

RGM said Malaysians were still spending even as retail prices rose and new government policies were introduced between July and September.

These included a new electricity tariff, expanded Sales and Services Tax, higher luxury taxes, Bank Negara Malaysia's Overnight Policy Rate cut to 2.75 per cent, enforcement of the monthly minimum wage for small firms, and a nationwide RM100 credit under the Sumbangan Asas Rahmah (Sara) programme.

By late September, more than 13 million adults had redeemed the RM100 credit at parti...