KUALA LUMPUR, April 21 — Malaysia’s consumer sector is expected to remain resilient in 2025, driven by structural consumption trends and stable earnings visibility, despite a more subdued macroeconomic outlook, said MIDF Research.
It said household spending is set to remain stable, supported by wage adjustments in the services sector, targeted government assistance, and favourable base effects
“In particular, the consumer staples segment is likely to outperform, benefiting from non-discretionary demand and limited exposure to external shocks.
“With rising disposable income, stable employment, and manageable inflation, we believe domestic consumption will remain a key anchor of gross domestic product (GDP) growth in 2025,” it said in a note today.
On Malaysia’s 2025 GDP forecast, MIDF Research said it has revised its 2025 GDP growth forecast for Malaysia down to four per cent from 4.6 per cent previously, reflecting a more cautious outlook due to rising global uncertainties.
It said the downgrade is primarily attributed to weaker export prospects as external demand softens, in addition to the implementation of United States (US) tariffs, which exert pressure on key trade-dependent sectors.
However, it noted that while industrial production and export-oriented segments may face deceleration, the broader economic impact is expected to be cushioned by the strength of domestic demand.
“The labour market remains healthy, with the unemployment rate projected to average 3.1 per cent in 2025, supported by continued employment growth and rising workforce participation.
“Although inflation is expected to inch higher — driven by subsidy rationalisation, food inflation, and potential sales and services tax expansion — headline price pressures are likely to stay within a manageable range, aided by subdued crude oil prices and still-contained core consumer price index,” it added.
— Bernama
