afternoon highlight (09/02/12/023/498) Malaysians more careful with their spending

Malaysians more careful with their spending

Malaysians are spending less on new clothes and out-of-home entertainment as well as switching to cheaper grocery brands and curbing telephone spending.

Malaysians have started to cut down on telephone expenses as a means to manage their budget as concerns over the economy, job security and increasing food prices linger.

At the same time, consumers are switching to cheaper grocery brands, the latest Nielsen Global Survey of Consumer Confidence and Spending Intentions reveals.

While spending less on new clothes and out-of-home entertainment remained the top two strategies to manage discretionary spending, switching to cheaper grocery brands and curbing telephone spending ranked third and fourth.

In the fourth quarter of 2011, the percentage of those surveyed who said that they are opting for cheaper brands increased to 53 per cent from 48 per cent in the third quarter of 2011. Those who cut telephone expenses increased to 48 per cent from 44 per cent in the previous quarter.

Meanwhile, online consumer confidence revealed that Malaysia remained the tenth most confident country among 56 countries surveyed. Malaysia was ahead of Thailand and just behind United Arab Emirates.

Nielsen Malaysia's managing director Kow Kuan Hua said in a press release that despite the higher-than- expected third-quarter gross domestic product (GDP) growth of 5.8 per cent in November 2011, online consumers are uncertain that the jump in both public expenses and private consumption as well as future contributions under the Economic Transformation Programme would be able to fully offset the bearish external conditions.

"Although economists have revised upwards their 2011 full-year GDP growth forecasts, both they and consumers are concerned whether our export-oriented manufacturing growth rate will continue to rise upwards while global economic circumstances remain challenging," Kow said.

Nielsen added that consumer optimism towards job prospects and personal finances is lingering at the same levels.

Source : New Straits Times
Date : 8 February 2012
afternoon highlight (09/02/12/023/498)