KUALA LUMPUR, Dec. 29 (Xinhua) -- Malaysia's consumer sentiment is expected to strengthen in 2026 as the bulk of subsidy rationalization measures have been rolled out and macroeconomic conditions stabilize, research houses said in their recent reports, citing resilient household income, manageable inflation and continued government cash assistance as key supports for consumer spending.
Maybank Investment Bank said with majority of the subsidy rollbacks announced in 2025, it approached 2026 with less economic uncertainty, and hence anticipated improvements to overall consumer sentiment and resumption of a faster pace of recovery in consumer spending.
MBSB Research has also maintained its positive view on Malaysia's consumer sentiment.
According to the research house, Malaysia's household income is projected to remain resilient in 2026, with in-house forecasts of unemployment to remain at an average of 3 percent, while inflation will see a slight, but manageable uptick to 1.8 percent.
It also noted that fiscal and policy levers, notably the government's cash assistance allocations, alongside continued domestic labor strength and tourism recovery, should sustain the consumer momentum.
CGS International also expects the Malaysian consumer demand to remain robust.
"In addition to healthy economic conditions, further cash distributions to lower income households, via the various government programs, should keep demand buoyant, in our view," said the research house. ■
