PETALING JAYA: Malaysian confidence in the country’s direction has improved, with the nation emerging as the most optimistic economy in Southeast Asia, according to the latest Malaysia Cost of Living Monitor by global market research company Ipsos.
The study found that public concerns over corruption, poverty and unemployment have eased, while optimism over household spending and future living standards has strengthened.
The report found that 69% of Malaysians felt that the country is heading in the right direction.
A total 73% out of 23,641 respondents aged 16 to 74 years old described the economic situation in Malaysia as good or very good, in comparison to 82% in Singapore.
Three issues remain the top concerns among Malaysians, namely financial and political corruption (39%), poverty and social inequality (26%) and unemployment (25%).
Over the next year in Malaysia, 39% of respondents think that their disposable income will rise, while 45% feel their quality of living will improve.
Ipsos Malaysia managing director Arun Menon said national sentiment had turned more positive following recent policy measures.
"National confidence in the country’s direction is strengthening, reflecting growing positive sentiment towards recent policy measures.
"Malaysia now stands as the most economically optimistic nation in the region, in contrast to declining confidence across several Southeast Asian countries," he said.
Menon said targeted government assistance measures, including Sara, Budi Madani RON95 and electricity tariff adjustments, had helped ease daily financial pressures and reinforced positive sentiment.
"With improving economic confidence, Malaysians expect higher disposable incomes and a better standard of living in 2026," he added.
Easing concerns over poverty, unemployment and corruption also signalled greater public trust in the country's stability, with optimism translating into stronger household spending intentions that are above the global average.
Looking ahead, Menon noted that the 13th Malaysia Plan (13MP), with its focus on income growth, social protection and cost-of-living management, is expected to consolidate these gains and strengthen their long-term impact.
According to Ipsos, the positive sentiment comes amid stronger economic performance, with Malaysia’s economy expanding 5.2% year-on-year in the third quarter of 2025, supported by robust household spending, resilient exports and steady investment.
It said the growth marked the fastest quarterly pace in about a year and has placed full-year targets within reach.
"Net foreign direct investment rose to RM8.5bil, reflecting sustained investor confidence, while inflation remained low at about 1.3%, helping to preserve consumers’ purchasing power," it said in a statement.
