KUALA LUMPUR, Oct 12 — Consumer spending rose on the back of the government’s “populist” measures as well as factors such as low inflation and unemployment, said Fitch Solutions Macro Research (FSMR).
These include zero-rating the Goods and Services Tax (GST) for three months starting June and freezing pump prices for RON95 and diesel.
“Malaysia remains one of the most attractive consumer markets in Asia,” said FSMR in a statement released today.
“Real private consumption growth in Malaysia is projected to come in at 8.5 per cent in 2018, up from 7 per cent in 2017.”
However the research outfit cautioned that private consumption will ease next year due to the reinstatement of the Sales and Service Tax, saying its effects will only be fully felt then.