Malaysian consumer confidence is weakening. Key drivers are clear and quantifiable

Malaysian confidence in long-term finances is weakening, driving households to cut non-essential spending and focus on daily needs, according to the Vodus Consumer Sentiment Study 2025. Surveys of 10,673 adults show rising worries over budgeting, credit use and retirement readiness, with only 44% feeling prepared for retirement. Most respondents now prioritise food, utilities and housing, reducing discretionary spending. Only 13% reported saving more, indicating many are aiming for short-term stability rather than building long-term savings.

Consumer confidence

Financial stress is rising in several demographic groups. BNPL use is worsening strain for those already struggling. Debt levels remain moderate but savings habits strongly divide those who feel secure from those who do not. Short-term budgeting discipline is solid, yet long-term uncertainty continues to grow.

Main reasons confidence is eroding

1. Rising living costs that force spending to shift to essentials.
2. Low retirement preparedness and declining trust in long-term planning.
3. Increased financial stress among key groups (Chinese respondents, ages 35–44, East Coast residents).
4. BNPL reliance worsening conditions for already strained households.
5. Insufficient savings among a large share of the population.
6. Gap between short-term coping and long-term readiness widening.