October 24, 2025 6:46AM

Vodus Consumer Sentiment Study 2025: How Malaysians Are Managing Money Amid Rising Costs

Cautious Spending, Careful Saving: Malaysians Adapt to Economic Pressure 

• Essential spending takes priority: Most Malaysians continue to focus on necessities despite growing financial stress, while only 13% report saving more and spending less. 

• Financial confidence weakens: Confidence in budgeting, credit use, and retirement planning has declined, with only 44% feeling prepared for retirement. 

• Strong spending discipline: 45% avoid unaffordable purchases, and 34% save to buy later — showing restraint even under pressure. 

• Savings improve outlook:  4 in 5 who save over 11% of income feel financially better off, yet over 40% still struggle with essential expenses. 

Financial anxiety continues to weigh on Malaysians, yet most remain focused on spending for what they need rather than what they want. Vodus’ Consumer Sentiment Study 2025 finds that while financial stress has intensified this year, Malaysians continue to show discipline in managing their day-to-day finances. 

Survey findings indicate that only a small proportion of respondents are saving more and spending less than before, suggesting that while many intend to build their savings, rising daily living costs continue to constrain their ability to do so.  

Confidence in managing money, credit, and retirement planning has also weakened, showing that although Malaysians remain financially aware, long-term financial security feels increasingly out of reach.  

With the year still underway, the data points to a population that remains cautious yet composed, balancing priorities, adapting habits, and striving to stay financially steady amid rising costs. 

Managing Spending Under Pressure 

Economic pressures continue to shape household behaviour, but Malaysians are maintaining a practical and measured approach to everyday spending. Essentials such as food, utilities, and housing remain the top priority, even as the cost of living continues to climb. 

While some households report tightening their budgets, the majority continue to manage through careful expense planning and reduced discretionary spending. Only 13% say they are saving more and spending less compared to last year, a sign that many are focused on maintaining daily stability rather than accumulating savings. This cautious spending pattern is most common among younger Malaysians aged 18-24 and those from the T20 income group, who may have greater financial flexibility or longer-term savings goals. 

At the same time, financial stress is rising, particularly among Chinese respondents, those aged 35 to 44, and residents of Malaysia’s East Coast. More individuals in these groups report feeling worried about money yet continue to prioritise essential spending, an increase of 5% from last year. This indicates that even as awareness and prudence in money management remain strong, the ability to save or invest is being tested by persistent living cost pressures. 

Overall, the findings suggest that Malaysians are adapting rather than overreacting, making trade-offs, cutting non-essentials, and managing within their means. Despite rising financial stress, households continue to demonstrate resilience through disciplined budgeting and pragmatic financial decisions. 

Confidence and Financial Preparedness 

Our report shows that confidence in managing personal finances has weakened compared to last year, particularly in budgeting, credit use, and retirement planning. While more Malaysians feel prepared for short-term savings, confidence in long-term financial readiness for retirement has declined. 

Short-term financial readiness has shown modest improvement, suggesting that more Malaysians can now manage immediate expenses or short-term shocks. However, only 44% feel prepared for retirement, highlighting a persistent gap in long-term financial security. 

Confidence levels vary depending on the area of financial management. Around 63% of respondents agree that they have a better understanding of how to manage credit use, with stronger confidence seen among those aged 24 - 34, residents of East Malaysia, and households with three to four members. Similarly, 60% say they can prepare their own budgets, with higher confidence among men, postgraduate degree holders, and those working in director or senior management roles. 

When it comes to long-term preparedness, 59% report having a clear understanding of their retirement needs, most notably among respondents from the Central Region. Meanwhile, 51% believe they have enough savings to last six months. Chinese respondents, two-person households, and those living in the Southern and East Coast regions are more likely than average to say they can sustain six months of expenses. 

Spending Discipline and Credit Use 

Malaysians continue to show restraint when faced with financial decisions. Nearly 45% say they simply avoid buying items they cannot afford, while 34% prefer to save up and buy later. This behaviour reflects strong spending discipline, especially among older Malaysians and smaller households. 

However, the growing use of Buy Now, Pay Later (BNPL) and instalment plans raises concern. Vodus survey shows that individuals already under financial strain are more likely to see their situation worsen when relying on BNPL. In contrast, those who choose to save first or use personal loans for major purchases tend to remain more financially stable. 

Debt levels also remain moderate. 65% of Malaysians report being debt-free or owing less than RM50,000, with women more likely to have no long-term debt compared to men. Urban households, particularly in central regions, report higher borrowing due to living costs, while East Malaysia and the East Coast record higher debt-free rates. 

Savings Habits and Financial Well-being 

Savings continue to play a central role in shaping how Malaysians perceive their financial well-being. Among respondents who save more than 11% of their monthly income, four in five say they feel financially better off than last year. In contrast, only about half of those saving 10% or less share the same sentiment, underscoring the strong link between savings behaviour and financial confidence.

Despite this, financial strain remains widespread. Over 40% of Malaysians report often or always struggling to meet essential expenses. The most affected are lower-income households and younger Malaysians who are still establishing financial stability. These findings highlight that even with sound financial awareness, many remain constrained by rising living costs and income limitations. 

Interestingly, some Malaysians continue to demonstrate remarkable financial discipline even under pressure. Around one in ten respondents report saving more than half of their monthly salary, suggesting that saving is driven not only by affordability but also by habit and commitment. This disciplined approach reflects a strong underlying culture of prudence, even in uncertain economic conditions.  

On average, Malaysians save about 16% of their monthly income. Approximately half of respondents (51%) save 10% or less of their earnings, while around 1 in 3 set aside between 11% and 30%. A smaller proportion (16%), save more than 30% of their income each month. 

These findings indicate that while saving is a common financial practice, the majority of Malaysians maintain relatively modest saving rates. Higher saving levels are concentrated among a smaller segment with greater financial flexibility, underscoring persistent challenges in balancing immediate expenditure with long-term financial security. 

Overall, Malaysians display a strong sense of financial awareness, restraint, and prioritisation. Essentials continue to come first, savings are valued, and spending remains deliberate. Yet while short-term adaptability is evident, long-term financial confidence still lags, reflecting the ongoing challenges of balancing present needs with future security. 

Conclusion 

The Vodus Consumer Sentiment Study 2025 paints a picture of Malaysians who are financially cautious, self-aware, and adaptable. Rising costs have not led to reckless spending but have instead reinforced the importance of managing money carefully and prioritising essentials. 

Still, the data highlights growing uncertainty around long-term financial planning. While Malaysians demonstrate clear financial discipline, improving access to financial education, budgeting tools, and retirement planning resources will be crucial in helping them turn awareness into sustained confidence and security. 

Even as economic challenges persist, Malaysians continue to manage within their means, proving that cautious spending and careful saving remain at the heart of their financial behaviour. 

Ultimately, while Malaysians have learned to adapt to short-term challenges, bridging the gap between awareness and long-term readiness will determine the nation’s true financial resilience in the years ahead. 

Research Methodology 

The findings in this report are based on data from the Vodus Consumer Sentiment Study 2025, conducted using an online quantitative methodology among 10,673 Malaysian adults. The sample was stratified to mirror the Malaysian population census, ensuring representation across key demographics and regions, including both Peninsular Malaysia and East Malaysia (Sabah and Sarawak). 

Data collection was carried out through the Vodus Media Network, which includes major partner platforms such as Astro and Media Prima, providing extensive reach across diverse audience segments. The survey employed Vodus (OMTOS) survey method, a low disruption approach designed to capture authentic, unbiased responses from respondents within their natural online browsing environment. 

Fieldwork was conducted from 25 July to 15 August 2025. The target population comprised of Malaysians aged 18 years and above, and the demographics of the sample stratified to accurately reflect the general population. 

This robust methodology ensures that the results presented are representative of Malaysian consumer sentiment, offering valuable insight into national financial attitudes and priorities in 2025.