- Malaysia’s Consumer Confidence Index rose by 4 per cent year-on-year in January, surpassing the global average as well as Japan and South Korea.
- Key indicators such as job security, future investment, and purchasing power showed significant improvement, reflecting stronger financial confidence among Malaysians.
- However, Ipsos cautioned that geopolitical uncertainties, trade tensions, and policy changes could pose risks to consumer sentiment in 2025.
KUALA LUMPUR, Feb 18 – Malaysian consumer confidence has outperformed several regional counterparts, with optimism levels exceeding the global average, as well as those in Japan and South Korea, according to the latest Ipsos Consumer Confidence Index.
The report revealed that Malaysia’s Consumer Confidence Index rose by 4 per cent last month compared to the same period last year, and by 2 per cent from December 2024, signalling a strengthening sentiment among consumers regarding economic conditions.
“The positive growth of the Malaysian economy and the stable inflation in 2024 has contributed to a favourable consumer outlook,” said Evelyn Tan, interim country director of Ipsos Malaysia, in an accompanying statement.
“Notably, our index surpasses the global average, as well as Japan and South Korea, suggesting that Malaysian consumers are more optimistic about their economic prospects than our regional counterparts.”
The report noted that confidence has grown across key indicators such as job security, future investment, and purchasing power.
These factors indicate that Malaysians feel increasingly secure in their financial situations, which may drive higher consumer spending and boost economic activity.
Among the key components of the index, confidence in job security saw a 6 per cent increase compared to January 2024.
Similarly, confidence in future investment and willingness to make major purchases also grew by 4 to 6 per cent, reflecting a positive outlook on financial stability.
This improvement in consumer confidence aligns with broader economic trends in Southeast Asia, where optimism levels remain higher than the global average.
Malaysia, along with Indonesia and Singapore, leads in consumer sentiment within the region, demonstrating resilience despite external economic challenges.
However, while consumer confidence remains strong, the report also highlighted potential risks that could impact sentiment moving forward.
Tan cautioned that geopolitical uncertainties, trade tensions, and domestic policy changes could pose challenges.
“Looking ahead, there will be new opportunities and challenges in 2025. While anticipating positive economic growth, potential disruptions such as tariffs war, geopolitical instability, and subsidy rationalisation could impact consumer confidence,” she said.
Ipsos’ index was based on monthly surveys of 500 Malaysians aged between 18 and 74.
