According to the Conference Board’s Global Consumer Confidence Survey, the country’s consumer confidence index surged in the second quarter of 2018 to 117 percentage points (pp), up 13 points from the previous quarter and up 23 points from the second quarter of 2017.
The survey, which was done in collaboration with Nielsen, attributed the surge to post-election optimism, as well as the zero-rating of the goods and services tax (GST) on June 1.
This high score, according to the survey, propelled Malaysia to become the seventh most confident country in the quarter, up eight spots from the previous quarter.
“In the weeks following the election, there has been a sense of optimism, amplified by the government’s move to stabilise the price of fuel and withdraw GST,” says Raphael Pereda, managing director of Nielsen Malaysia.
“The overall positive sentiment has translated into significant year-on-year improvements in recessionary sentiment, economic outlook and job prospects.”
However, about 65% of Malaysians believe the country is currently experiencing a recession, although more than half are confident that the country will recover in the next 12 months.
The survey also noted that while concerns about the economy have been reduced compared to a year ago, it still remained a top worry among consumers.
There also appears to be a year-on-year rise in concerns about job security, the survey noted.
“While Malaysians see a bright future ahead of them, they are still grounded in reality and continue to express concerns on bread-and-butter issues.
“However, levels of optimism are significantly higher than they were a year ago,” Pereda said.
The country, however, fell behind neighbours Indonesia, Singapore and the Philippines in terms of being avid savers, with 64% of Malaysians saving spare cash.
About 71% of Filipinos, 69% of Singaporeans and 66% Indonesians save their extra cash. The global average is 53%.
About 43% of Malaysian consumers revealed that they spend their spare cash on vacations.
The Conference Board is a global, independent business membership and research association working in the public interest.