Posted on 20 May 2015
However, Nielsen Malaysia country manager Richard Hall said that Malaysians in general are more concerned rather than confident with the nation’s economic conditions.
“Economic conditions remain a key concern for Malaysian consumers with almost half of respondents (47%) citing the economy as their biggest concern over the next six months compared to 31% of consumers in Southeast Asia,” the company said on Tuesday.
Hence, this has positioned Malaysia as the most concern country in Southeast Asia with regards to economy, followed by Thailand (43%) and Indonesia (33%).
Although Malaysia's GDP growth has been positive, Nielsen said that consumers believe that the economy of the country is in recession.
Furthermore, it added that the second biggest concern of the consumers was the increasing food prices in the next six months following the implementation of GST.
“Other areas where Malaysian consumers have also expressed anxiety prior to the GST implementation are job security (21%), debt (15%) and work and life balance (15%),” Nielsen said.
On a positive note, it noted that about 65% of Malaysians deposit their spare cash into savings after covering essential living expenses compared to only 48% globally.
“The survey also revealed that 41% of Malaysian consumers have no qualms about spending on big ticket items such as holidays and vacations (up 2% from previous quarter) and home improvements (23%, a 4% increase versus last quarter),” it said.
Despite Malaysians being concerned about the economy, it added that 36% are undertaking investments in stocks and mutual friends while 28% are saving for their golden years via retirement funds.
Hall expects a slowdown in consumer spending in the second quarter of this year, as consumers are being cautious in their spending due to the new tax regime
“Malaysian consumers may also tighten their belt and focus on spending only on necessary daily essentials,” Hall added.
