KUALA LUMPUR: Malaysia's Consumer Confidence Index increased by four percent in January 2025 compared to the previous year, according to a survey conducted by market research firm Ipsos.
In a statement on Tuesday (Feb 18), Ipsos said the country's Consumer Confidence Index has exceeded both the global average and the indices of Japan and South Korea.
"This situation shows that Malaysian consumers are more optimistic about their economic prospects than those in other countries in the region,” the statement read.
Ipsos also said that Malaysia's positive economic growth and stable inflation in 2024 contributed to encouraging consumer expectations.
It also said the growth in the Consumer Confidence Index was driven by increased confidence in job security, future investments and purchasing power.
"This suggests that consumers are more comfortable with their personal financial situation, which in turn contributes to increased consumer spending,” it said.
Ipsos also provided statistics on changes in the Consumer Confidence Index components from January 2024 to January 2025, focusing on several key aspects.
"Confidence across key aspects has risen by four to six percent, indicating a healthy increase in spending willingness, which in turn stimulates the economy," it said, adding that the statistics indicated that confidence in job security rose by six percent in January 2025 (56%) compared to January 2024 (50%).
Meanwhile, confidence in future investments rose to 53% in January 2025, increasing from 49% in January 2024, reflecting a four percent gain over the year.
Ipsos said this year brings new opportunities and challenges, including potential disruptions like tariff wars, geopolitical instability, and subsidy rationalisation, adding that these factors could affect consumer confidence despite the anticipated positive economic growth.
"To address this, Malaysians must remain resilient to manage economic uncertainties in a changing landscape effectively,” it said. - Bernama
