KUALA LUMPUR, Dec 28 — Malaysian consumers remained positive about the economic outlook and are focused on securing their long-term financial health through savings, investments and insurance, according to UOB’s flagship Asean Consumer Sentiment Study (ACSS) 2023.
The study found that Malaysian consumers are more optimistic about the economic situation than the region with about two in three respondents expecting themselves to be financially better off by June next year.
Although three in four respondents felt Malaysia would likely face an economic downturn within the next six to 12 months, this downcast sentiment has softened compared with last year.
“With this optimism, about 30 per cent of Malaysian consumers plan to increase their allocation for savings, investment and insurance,” it said.
It said spending on insurance tops the Baby Boomer’s list while Gen Z and Y are more focused on increasing their savings.
“Gen X, on the other hand, prioritises their investments,” it said.
Meanwhile, on daily concerns and spending habits, three out of four Malaysian consumers surveyed are increasingly more concerned about their finances, specifically due to rising inflation, increased household expenses and a decline in savings holdings.
About 37 per cent surveyed indicated they had increased spending on essentials such as groceries with another 35 per cent had spent more on utilities.
Consequentially, Malaysian consumers are most worried about having the ability to set aside money for saving (34 per cent), ability to afford essential items (30 per cent) and ability to maintain current lifestyles (26 per cent).
“Separately, on discretionary spending, consumers are cutting back spending on jewellery (36 per cent), vacation (35 per cent) and dining out (34 per cent),” UOB said.
Malaysian consumers have a strong preference to adopt digital banking channels with 54 per cent of Malaysians considering mobile banking apps as the most trusted banking channel followed by internet banking through web browsers (43 per cent).
“This correlates to the increase in usage of mobile banking apps by 44 per cent and internet banking by 34 per cent.
“One in three Malaysians surveyed prefer to apply for simple products (38 per cent) such as purchasing insurance (32 per cent) and investment products (36 per cent) online,” it said.
In its fourth year, ACSS is UOB’s regional flagship study analysing consumer trends and sentiments in Singapore, Malaysia, Thailand, Indonesia and Vietnam.
The study was conducted from June 1 to 26, 2023 and surveyed 3,400 respondents online across the five countries, including 600 respondents in Malaysia.
— Bernama
