Malaysian consumer behaviour has changed as a result of economic and political turmoil and brands must act quickly to respond, new data has revealed.
Nearly half of Malaysians don’t expect their financial situation to improve in the near future and are tightening spending significantly. Many high spenders have suddenly found themselves back in the middle income zone and are now holding onto their cash – a particular concern for high-end brands.
With imported products now more expensive across nearly every category, spending on ‘nice-to-have’ products has dropped.
Purchase intent for luxury goods is down 22% and travel down 32%, with that spending redirected into more immediate needs: Malaysians are saving for higher priority items such as buying a new house (up 34%), a new car (up 6%), or renovating their home (up 6%).
(Source: WARC.com)