Survey: Malaysians’ jitters about inflation higher than global average

January 19, 2023

Survey: Malaysians’ jitters about inflation higher than global average

KUALA LUMPUR, Jan 19 — Malaysian consumers feel less confident about the economy this year as they become increasingly worried about inflation and deteriorating living standards, polling higher than the global average in Ipsos’ consumer national outlook survey.

Up to four-fifths of Malaysians said they are worried about inflation’s impact on their purchasing power, six per cent higher than the global average of 75 per cent.

The number of Malaysians anticipating the Central Bank to raise policy rate this year is also higher than the global average, at 78 versus 74 per cent. More Malaysians also expected the job market to be tougher this year relative to the rest of the world, the survey found.

“When we turn the page to 2023, people in Malaysia and across the world are more cautious about the new year than they were one year ago,” said Lars Erik Lie, Ipsos associate director of public affairs.“Rising cost of living continues to be a major concern, while the fear of stock market volatility is much stronger than it was at the same time last year.”

Still, up to two thirds of Malaysians expect a better year in 2023 than the last year, the survey showed, even as the positive outlook did not match the optimism shown one year ago.

“The same trend is present both among Asian peers and in the West,” the firm said.

DISYORKAN UNTUK ANDA :

The number of Malaysians upbeat about 2023’s prospects dropped 14 per cent to 68 per cent, the survey showed.

Bank Negara Malaysia (BNM) is widely expected to raise the overnight policy rate again somewhere in the first quarter of this year as inflation is expected to remain elevated throughout the year.

Analysts predicted the increase could be anywhere between 25 to 50 basis points. The increase this year would be the fifth time BNM had raised the OPR, with the most recent being November last year.

The OPR is currently at 2.75 per cent.