Malaysia to See Stable Consumer Growth Across H2 and 2024: Research House

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BMI, a unit of Fitch Solutions, said Wednesday that it holds a positive outlook for consumer spending in Malaysia over the rest of 2023, as the economic recovery feeds into strong real consumer spending growth over the full year.

The research house said in a note that it expects the Southeast Asian country’s household spending to grow 5 percent in 2023.

It opined that easing inflation will feed into the consumer spending outlook over the second half this year.

It noted that real household spending in 2023 will improve to 866.6 billion ringgit (186.29 billion U.S. dollars), beyond pre-pandemic levels of 755.1 billion ringgit in 2019.

“Our consumer spending outlook will continue its steady growth as we look toward 2024, as base effects wane,” said BMI.

According to BMI, real household spending in Malaysia will grow 5 percent to a total of 910 billion ringgit next year.

Easing inflationary pressures and a healthy reduction in unemployment will form the base for stable consumer spending outlook, it said.

Risks to its outlook, however, will be higher-than-anticipated inflation and more aggressive economic weakness, which will weigh heavier on household purchasing power. (1 ringgit equals 0.21 U.S. dollar)