Qualampur: BMI, a fitch solutions company, has maintained its widespread positive attitude for consumer expenses in Malaysia in 2025, with the country’s healthy macroeconomic approach, domestic income has increased the actual period.
With less inflation than expected in May, BMI reduced its forecast for headline inflation in 2025 by an average of 1.9 percent year-on-year (YOY), which was below 2.1 percent earlier, and average was slightly above 1.8 percent in 2024.
It said that it was less enough to support domestic purchasing power.
“Overall, we estimate domestic expenses to increase more than 2025 in 2025 from RM930.7 billion to 2025 in 2024.
“As a result, domestic spending has returned close to pre-development levels of development, where it has increased from the actual average rate of 5.2 percent YOY during the 2015–2019 period.
“However, Malaysian consumers will continue to spend by high levels of indebtedness and so on high debt servicing costs,” it said in its’ Malaysia consumer approach: forecast a strong growth than commentary of 2025 and 2026.
Given further for 2026, BMI is expected to accelerate consumer expenses, strong gross domestic product (GDP) will be outlined by growth and a stable employment approach.
Consumer confidence and desire to spend will be more supported by a steady inflation environment and bank Negara Malaysia (BNM), which in December 2025 will end up to 2626, for a deduction of 25 basis points from the forecast 2.75 percent to 255 percent from 255 percent to 255 per cent to 25 basis points.
“Therefore, we estimate an increase in total domestic spending, to be 5.0 percent yoy in real terms for 2025, spending RM977.3 billion,” it said.
The BMI stated that retail sales related to solid domestic income and tourism would support a steady increase in spending in the 2025–2029 forecast period. – Bernma
