KUALA LUMPUR, Nov 10 — By 2050, Malaysia will grow into one of the region’s most attractive markets as its wealth level grows and the population becoming more urbanised, analysts at BMI Research predicted today.

In its report, the unit of the Fitch Group said consumer spending preference will change as the population increases to 41.73 million in 2050 up from 30.72 million in 2015 — leading to a shrinking younger population compared to the middle-aged.

"Malaysia’s consumer demographics will make it one of the most attractive markets in the region over our long-term forecast period, due to the growing wealth levels and expanding, urbanised population,” said its industry trend analysis report released yesterday.

"We expect to see a shift in consumer spending preferences as the population gradually ages, with the younger population declining as a percentage of the total, while the middle-aged segment will constitute the largest share of the population by 2050.”

BMI forecasted population growth at a modest 0.9 per cent annually between 2015 and 2050, due to slowing birth rates.

The growing population would mean a larger consumer market to be targetted, and should send a positive signal for investors if the trend continues beyond 2050.

Despite that, BMI said the Malaysian population is slowly ageing, as people live longer, leading to a rise in the number of "pensionable population” — or those above 65 years old.

BMI projected that the middle aged group (between 40 to 64 years old), will grow by 6.8 million, while the young adults (20 to 39 years old) will grow by a slower rate at just 138,000 in total.

"As such, retailers will look to target the middle-aged and older segments in the population where we see high growth opportunities,” it said.

Different demographics will buy different things, it said. While the young adults would buy trendy products such as alcohol, technology, fashion and sporting goods, the middle-aged would buy premium ones such as spirits, larger vehicles, financial products, and gardening products.

In comparison, the percentage of the total population of those under 20 is predicted to decline.

Meanwhile, the median age for Malaysia will increase from 27.7 in 2015 to 40.2 in 2050, making the country in the middle in terms of median age for emerging Asia.

In addition, the urban population will constitute a larger chunk of the national population, up by 76 per cent, making Malaysia more attractive due to developed logistics, concentrated consumers in a smaller area and higher spending levels, in urban areas.

"Conversely, the population in the rural areas will fall by 1.9 million as individuals move to cities in search of better jobs… This should result in a larger base of higher income consumers, a boon for those operating in the market,” it said.

While men will still form the majority of the population, the gap between the two genders will shrink by 2050, BMI predicted.

"While males still form the majority of the population, the female demographic will be of growing importance to consumer— facing companies, especially as women increasingly enter the workforce,” it said.

"The rise of the female consumer is becoming an important part of company strategy as they begin to tailor products, advertising and marketing towards women, whereas previously this had been male-focused or neutral.