Consumer sector likely to face lower spending

Kenanga Research believes part of the middle-income group, or the M40, may face cuts to subsidised fuel upon the introduction of a targeted fuel subsidy, thus potentially reducing their spending power.

PETALING JAYA: Kenanga Research has downgraded its stance on the consumer sector to “neutral” from “overweight” amid concerns the impending changes to the fuel subsidy system may impact the future prospects of mid-market retailers.

The research house believes part of the middle-income group, or the M40, may face cuts to subsidised fuel upon the introduction of a targeted fuel subsidy, thus potentially reducing their spending power.