The company said in a note that it held a positive, but cautious outlook for consumer spending in Malaysia over 2024, as the economic recovery feeds through to stronger real consumer spending growth over the year.
It said that household spending growth in Malaysia will be more positive, relatively to 2023, as economic growth persists and consumption levels normalize.
It forecasts Malaysia's household spending to grow 5 percent year on year over 2024, in real terms, to a value of 909.5 billion ringgit (192.39 billion U.S. dollars).
Malaysia's household spending over 2024 will mark the return to pre-COVID levels of growth, with household spending growing at a real average rate of 5.2 percent during the 2015 to 2019 period.
While consumer spending will be constrained by an environment of high debt levels, and its servicing costs, the BMI said that easing inflation and a tight labor market will support spending, as real wage growth returns to positive territory, supporting purchasing power over the year.
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