May 26, 2022 11:57AM
2022 Malaysian Consumer Sentiment Study
As Malaysians are settling into the new norm and recovery phase of COVID-19, there are many questions on how people are feeling during this current time, for example: Are we still concerned about COVID-19? Have we put COVID-19 behind us? Are we fully embracing the new normal and carrying on with our lives just like pre-COVID-19 days? How are Malaysians feeling about the next few years? What’s the impact of the current economy on consumer spending behaviour?
In order to provide answers and insights to these questions, Vodus Research conducted a Malaysian Consumer Sentiment Study where 2,102 Malaysians were surveyed between 9-21 June 2022.
Findings from this study indicate that 2 in 5 Malaysians have already adjusted well to the new norm. We see people meeting family & friends regularly and living their lives as much as they can.
While many in Malaysia are ready to move on from COVID-19, our study shows that people are still cautious about letting their guard down fully, with 3 in 10 Malaysians still concerned about catching COVID-19. This is very different to what we are seeing in Europe and the US, where the majority of people have stopped following many of the COVID SOP’s in a rush to get back to normal.
This shows that Malaysians are still trying to balance and manage the new norm while still being careful and diligent to reduce the risk of becoming infected with COVID-19.
A majority of Malaysians surveyed (70%) indicated they are optimistic about where they are now compared to one year ago, which is mainly driven by many of the emotive well-being surrounding them and keeping them in positive spirits – for example: Being healthy and happy, having a supportive and loving family, able to meet and hang out with friends etc.
What’s keeping Malaysians awake at night? Well, the top 3 things are the current state of the economy, rising inflation and political stability that is impacting government performance. This reflects the global issues of rising costs and the potential of recession. In addition, with an election expected to happen within the next 12 months, people are concerned about their stability and want to see an improvement in how the government is managing the situation
Given the concerns, we are also seeing an impact on how Malaysians are spending their money. Unlike the early days of COVID-19 recovery where we saw people ‘revenge spending’ across many categories including indulgence and luxury items, the current spending behaviour is very different.
2 in 5 Malaysians are worried about money and are only spending on things they need. 1 in 5 are only able to spend on necessities and nothing more. Furthermore, it is rather disheartening to see 1 in 5 indicate they don’t have any money to spend at all.
This reflects the weak economy, weak Ringgit and rising living costs which we have seen across the news and online media over the past few months.
Across the 11 categories surveyed, Malaysians are spending less even on necessities such as food and beverages. We see the higher spending reduction coming from indulgence categories such as Entertainment, Travel/Holiday, and Fashion.
To sum things up there are 3 key learnings on how Malaysians are feeling at this moment in time:
- There is a positive consumer sentiment compared to last year - as many have started to adjust to the new norm and feel good emotionally.
- Living with COVID-19 and striking a good balance to manage COVID-19 – being diligent and cautious as we move forward.
- Having to manage spend more given rising costs and a weak economy – times are tough for most people.
How can companies and brands leverage the current sentiment to better connect with Malaysian consumers? Well, there are 2 opportunities for brands to consider:
- Be empathetic when communicating and engaging with consumers given the challenging environment – showcase empathy and create value to justify choosing the brand
- Being aware of the consumer segments that will impact/drive growth is key – knowing which consumer segments to optimize to drive growth given the current spending behaviour
Download the free full report below to find out the latest Malaysian Consumer Sentiments. Do contact us for more information at contact@vodus.com
