MALAYSIA RANKS 6TH GLOBALLY
45pc of respondents positive economy will recover in next 12 months, survey shows
MALAYSIA placed sixth on the global consumer confidence index (CCI) in the first quarter with a score of 115 points, largely in line with last quarter’s score of 118 points.
The country posted the fourthhighest gain among 64 countries, up 11 points compared with the first quarter of last year, according to the Conference Board Global Consumer Confidence Survey, produced in collaboration with leading global information and measurement company Nielsen.
The CCI was measured based on three indicators — consumers’ perception on job prospects, personal finances and intentions or readiness to spend.
While perception on personal finances and job prospects were in-line with the previous quarter, the study said there was a significant decrease in readiness or intent to spend.
It said while consumers were positive on the state of their personal finances and job prospects,
two in three believed that the country was in a recession.
Of this, 45 per cent were positive that the economy would recover in the next 12 months, it added.
It should come as no surprise that close to half of the consumers ranked the economy as their top concern. This was followed by job security and worklife balance.
Nielsen Malaysia managing director Luca De Nard said this was the fifth consecutive quarter of consumer optimism for Malaysia and the consumers appeared largely positive about the country’s prospects this year.
“But consumer confidence may not always translate into spending, as a majority of consumers are conservative about spending at this point in time,” he said in a statement.
As such, brands that are able to demonstrate value for money are more likely to appeal to the cautious consumers, he added.
De Nard said perception on the larger economy was shaped by more than just how an individual felt about his or her own financial situation.
“It can be driven by conversations in the public sphere, the influence of family and friends, and speculation about global economic trends,” he said.