PETALING JAYA: BIMB Research has reiterated its “overweight” call on Malaysia’s consumer sector, citing resilient domestic demand underpinned by rising disposable incomes, sustained tourism momentum, and government cash assistance programmes that have expanded significantly in recent years.
“We see both consumer staples and discretionary segments poised to benefit from Sumbangan Tunai Rahmah’s (STR) cash assistance and Sumbangan Asas Rahmah’s (Sara) blended cash-and-in-kind support,” the research house said in a report published yesterday.
“All-in-all, the consumer sector is well-positioned to benefit from cash assistance, whether through STR or Sara, in comparison to traditional in-kind aid.”
According to BIMB Research, financial aid has become a key catalyst for consumer spending, as government allocations for cash assistance grew from RM7bil in 2021 to RM15bil in 2025, representing a compound annual growth rate of 21%.
It noted that cash handouts have evolved from short-term relief to long-term therapy in Malaysia, adding that support for lower-income households was now “pertinent for socioeconomic development as well as for sustaining consumer spending pace”.
Under the STR programme, beneficiaries receive unrestricted cash transfers, while Sara functions more as in-kind aid with flexibility to purchase from a basket of essential goods.
Sara recipients use their MyKad to buy items such as rice, cooking oil, bread, hygiene products, and school supplies across more than 1,200 stores nationwide.
In addition, the government has announced an extra RM2bil allocation to credit RM100 into the MyKad of all Malaysians aged 18 and above between August and December this year.
BIMB Research highlighted that listed consumer companies stand to benefit directly from these initiatives, such as Nestlé (Malaysia) Bhd, Farm Fresh Bhd
, QL Resources Bhd, Dutch Lady Milk Industries Bhd and Fraser & Neave Holdings Bhd (F&N).
Meanwhile, the research unit said value retailers such as MR DIY Group (M) Bhd and Eco-Shop Marketing Bhd are also expected to gain, with STR spend flowing into Aeon Co (M) Bhd’s outlets as well, before commenting that MR DIY’s small average basket size of RM24.90 and AEON’s RM64 per transaction are seen as well-matched to the cash aid disbursements.
Beyond the investment effect, BIMB Research also noted the broader economic impact of cash handouts, saying that they are likely to ease households’ rising cost-to-income ratios (CIR), which climbed above 80% in 2022 according to data from the Statistics Department.
“With most states facing higher CIR, cash handouts are still needed and relevant at least for the next half of decade,” its report said.
The research house projected Malaysia’s gross domestic product to grow by 4.5% to 5.5% annually between 2026 and 2030, driven by robust domestic demand.
It estimated that private consumption will expand at 5.5% per year, with the services sector holding above 5% growth.
“The Malaysian economy is projected to be covered mostly by the private sector, especially via consumption at 62.4%, higher than 60.7% in the 12th Malaysia Plan period,” BIMB Research said.
