KUALA LUMPUR – Malaysians are more gravely concerned about rising inflation compared to the Covid-19 pandemic according to a recent global survey by Ipsos.
According to the market research firm, such is the sentiment of 42% of Malaysians compared to only 24% who are worried about the pandemic as of last month.
This is in contrast to data collected in January, where 70% of Malaysians were worried about the pandemic, compared to only 11% concerned about rising inflation.
The data collected in July also shows that 35% of Malaysians are worried about poverty.
The survey also reflected that Malaysians are dealing with a shrinking disposable income as only 29% said they were living comfortably.
The other vast majority, of which 45% find themselves simply getting by while another 25% find it difficult to manage financially.
Similarly, 39% of Malaysians also opined that their income will likely shrink in the future.
“Concern about inflation and the cost of living is now widespread, and Malaysians are feeling the squeeze on their personal finances. The widely expected increase in interest rates is preparing 4 out of 10 Malaysians for lower disposable income in the near future, resulting in a fall in their standard of living.
“The squeeze from inflation and rising interest rates is impacting consumers’ willingness to spend – a sharp drop in Malaysians’ comfort with making both household and larger purchases indicate that they may need to prioritise what they choose to spend on in the near term,” said Lars Erik Lie, associate director for Ipsos Public Affairs.
According to the report, this is also reflected in Malaysia’s spending patterns despite steady improvement in consumer purchase intent for household or major purchases (house/ automobiles) from July 2021, it seems to be reversing with purchase intent having dropped 10 points over the last two months.
To deal with dwindling resources, 45% of Malaysians say they are willing to cut spending on socialising and while 42% opined they are willing to spend less on holidays.
Malaysians are also prepared to delay larger purchases, rather than cutting the budget for necessities.
The data for Malaysia in this regard also mirrored global sentiments. – The Vibes, August 9, 2022
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