MBSB Research said a tight labour market, manageable inflation and continued fiscal backing under the Madani Economy framework are expected to continue supporting the consumer sector’s outlook.
PETALING JAYA: While there are multiple anticipated tailwinds for the consumer sector, much of the upside has already been priced in by the market, says Rakuten Trade head of equity sales Vincent Lau.
“We may see some pullback, but there is still room for further gains in some stocks like Oriental Kopi Holdings Bhd
.
“The easy money has been made.
“Some consumer stocks have already gone up so much that there is no point in chasing these counters,” he said.
Nonetheless, Lau said any pullback could create buying opportunities for investors who do not yet have exposure.
“Based on a conversation I had with an adviser to Oriental Kopi, there appears to still be some upside potential for the stock, even though it is currently already trading at around RM1.41,” he told StarBiz.
Lau said investors could also consider “under-the-radar stocks” like Oasis Home Holding Bhd, which was recently appointed as the exclusive online distributor of FIFA World Cup 2026 licensed products in Malaysia.
“Oasis Home is still somewhat under the radar. It has secured an online exclusive arrangement and is coming from a small base, so it could also benefit,” he added.
The stock closed unchanged at 32 sen yesterday, but is up by almost 15% over the past year.
In a report yesterday, MBSB Research said a tight labour market, manageable inflation and continued fiscal backing under the Madani Economy framework are expected to continue supporting the consumer sector’s outlook.
The research house added that the country’s retail spending remained “resilient” in November last year, despite moderating on a sequential basis.
Retail trade rose by 6.4% year-on-year (y-o-y) to RM69.02bil in November 2025, supported by continued y-o-y growth across most sub-segments, despite a modest month-on-month pullback of 0.4%.
“Cumulatively, retail sales for the 11-month period of 2025 expanded 6% y-o-y to RM741.22bil, underscoring sustained household consumption momentum, albeit with signs of normalisation before the holiday season in December,” the research house said.
MBSB Research said consumer spending should remain supportive.
Enhanced Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah allocations under Budget 2026 are expected to sustain disposable income and consumption, particularly across the mass-market segment.
Meanwhile, tourism-related initiatives ahead of Visit Malaysia 2026 should provide incremental support to retail and food and beverage activity in key urban and tourist locations.
MBSB Research said headline consumer price index (CPI) edged slightly higher to 1.4% y-o-y, while core CPI was unchanged at 2.2% y-o-y, “signalling still-manageable underlying inflationary pressures”.
“Overall, a tight labour market and moderate inflation continue to support household purchasing power and underpin steady private consumption momentum,” MBSB Research said.
Additionally, ongoing tourist arrivals are expected to provide incremental support to consumer-facing segments, particularly fast moving consumer goods, convenience retail and casual dining.
“Higher traffic through airports, malls, and major tourist hubs should translate into firmer demand for bottled beverages, packaged foods and impulse-led purchases,” the research house said.
MBSB Research maintained a “positive” view on the consumer sector with top picks including MR DIY Group (M) Bhd, Aeon Co (M) Bhd and Leong Hup International Bhd.
The research house has “buy” calls on these counters with target prices of RM2.20, RM1.66 and 90 sen, respectively.
