Malaysian Household Spending to Jump 5.2% This Year

thecekodok


Malaysia is expected to experience a significant increase in household spending in 2025, with an expected growth of 5.2%.


This will push total spending to RM954.5 billion, up from RM907.2 billion in 2024.


The increase is due to stable inflation and a strong job market, creating favorable conditions for consumers to spend more.


Steady increases in household income are another key factor that will support spending growth.


Despite this positive outlook, the growth rate is expected to slow slightly compared to previous years, as the overall Malaysian economy expands at a more moderate pace of 4.7% in 2025.


The slower growth is attributed to factors such as weaker global economic conditions and tighter lending conditions.


However, there is a possibility of an increase in unemployment figures as financial support from the government wanes, which will impact spending.


In addition, high household debt and rising loan repayment costs may limit total spending.


With interest rates expected to be lowered in 2025, it may not be able to help all households facing financial difficulties.