PETALING JAYA: Malaysian consumers remain positive about the economic outlook and are focused on securing their long-term financial health through savings, investments and insurance, according to UOB’s flagship Asean Consumer Sentiment Study (ACSS) 2023.
The study found that Malaysian consumers are more optimistic about the economic situation than their counterparts in other parts of the Asean region, with about two in three respondents expecting themselves to be financially better off by June next year.
Although three in four respondents feel Malaysia will likely face an economic downturn within the next six to 12 months, this downcast sentiment has softened compared with last year.
“With this optimism, about 30% of Malaysian consumers plan to increase their allocation for savings, investment and insurance,” it said.
UOB said spending on insurance tops the Baby Boomers’ list while Gen Z and Y are more focused on increasing their savings.
“Gen X, on the other hand, prioritise their investments,” it said.
On daily concerns and spending habits, three out of four Malaysian consumers surveyed are increasingly more concerned about their finances, specifically due to rising inflation, increased household expenses and a decline in savings holdings.
About 37% surveyed indicated they have increased spending on essentials such as groceries with another 35% have spent more on utilities.
Consequentially, Malaysian consumers are most worried about having the ability to set aside money for saving (34%), ability to afford essential items (30%) and ability to maintain current lifestyles (26%).
“Separately, on discretionary spending, consumers are cutting back spending on jewellery (36%), vacation (35%) and dining out (34%),” UOB said.
Malaysian consumers have a strong preference to adopt digital banking channels with 54% considering mobile banking apps as the most trusted banking channel followed by internet banking through web browsers (43%).
“This correlates to the increase in usage of mobile banking apps by 44% and internet banking by 34%.
“One in three Malaysians surveyed prefer to apply for simple products (38%) such as purchasing insurance (32%) and investment products (36%) online,” it said.
In its fourth year, ACSS is UOB’s regional flagship study analysing consumer trends and sentiments in Singapore, Malaysia, Thailand, Indonesia and Vietnam.
This year’s study was conducted from June 1 to 26 and surveyed 3,400 respondents online across the five countries, including 600 respondents in Malaysia.