DECEMBER 20 — As Malaysia moves through 2025 and approaches 2026, households are undergoing a quiet but significant shift in the way they think about money, consumption and long-term security.
The conversations now centre less on spending freely and more on spending wisely which is driven by rising financial literacy, greater exposure to digital marketplaces, heightened awareness of future preparedness, and the desire for healthier, more sustainable lifestyles.
These factors are prompting Malaysians to re-evaluate not only what they buy, but how each purchase aligns with their values, priorities and aspirations.
Beneath this shift lies a broader behavioural evolution. Consumers are becoming more intentional, analytical and future-focused in their decisions.
They are not merely reducing expenses; they are reallocating resources in smarter and more strategic ways.
The changing realities of 2025 have accelerated this transformation, influencing the way Malaysians will manage their financial choices well into 2026.
One of the most visible shifts is the rise of hyper-value seeking behaviour. Malaysians have transitioned from brand loyalty to value loyalty.
With digital platforms such as Shopee, Grab and MAE offering dynamic pricing, voucher stacking, cashback options, and seasonal promotional cycles, consumers have been trained to expect the best possible deal at all times.
This has cultivated a value-seeking mindset where the price–quality ratio now matters more than the brand name.
Even middle- to higher-income households demonstrate a willingness to trade down in groceries, personal care and everyday essentials.
This behaviour is likely to persist into 2026, even if inflation slows, because once consumers discover cheaper alternatives that deliver acceptable quality, they see little reason to return to premium brands.
The increasing cost of living has also given rise to a pattern of necessity minimalism among Malaysian consumers.
Spending habits have become more intentional. Households now categorise their expenses sharply into essential, semi-essential, and non-essential.
Essentials include food staples, utilities, childcare and education, while semi-essentials encompass dining out, health supplements and digital subscriptions.
Luxury goods, convenience purchases and impulsive online shopping have been pushed firmly into the non-essential category.
This shift reflects a broader behavioural pattern of asking, “Do I need this, or do I want this?” For both industries and policymakers, this means that any product or service that fails to communicate clear value, utility or wellbeing benefits will struggle for attention in an increasingly selective market.
Despite financial pressures, Malaysians continue to indulge selectively, particularly in categories tied to emotional comfort and psychological wellbeing.
Coffee, desserts, personal care items, wellness services and small lifestyle treats remain surprisingly resilient.
This behaviour aligns with what global behavioural researchers describe as the “lipstick effect,” where consumers make small, manageable purchases to maintain emotional balance during stressful times.
The search for comfort, control and small joys plays an important role in coping with economic uncertainty.
Brands that position themselves as sources of emotional relief, convenience or comfort will continue to resonate with consumers who seek balance amid financial strain.
Digital behaviour has also become a default mode of consumption. Online shopping is no longer merely an alternative, but it is now the primary purchasing channel for many Malaysians.
The convenience of delivery, transparent price comparison, access to discount codes and the practicality for busy dual-income households have normalised digital decision-making.
From groceries and household goods to services such as cleaning, tuition and healthcare products, digital dependency has become part of everyday life.
By 2026, digital proficiency will no longer be a youth trend but a nationwide norm.
This shift reflects a deeper behavioural evolution toward algorithm-assisted choices and technology-supported decision making.
However, the digital economy has also contributed to a growing trust deficit among Malaysian consumers.
Rising scams, misleading promotions, hidden fees and complicated subscription models have made consumers increasingly sceptical. Trust has emerged as the new currency of 2026.
Consumers are demanding clear product information, transparent pricing, ethical marketing, honest reviews and consistent service quality.
Brands and even government agencies, must recognise that credibility, accountability and responsible communication are now core components of consumer trust. Without these elements, even high-quality products will struggle to gain traction.
The financial pressures of recent years have also led to a noticeable shift toward financial wellbeing practices.
Malaysians are embracing budgeting apps, digital savings tools, micro-investment platforms and various forms of side income.
Family-level financial planning has become more common, with many households revisiting their budgets and rethinking their long-term priorities.
This highlights the growing importance of financial literacy as more than a form of knowledge and it is now a survival skill.
Policymakers must therefore design financial education and cost-of-living interventions that are grounded in behavioural insight, taking into account the emotional, social and habitual factors that shape real consumer decisions.
Ultimately, the cost of living challenges of 2025 are not simply economic pressures, they are reshaping a new Malaysian consumer identity.
Malaysians are becoming more rational, digitally empowered, emotionally aware and value-sensitive.
For policymakers, this represents an opportunity to design interventions grounded in real behavioural patterns.
For businesses, it is a call to strengthen value, trust and authenticity. For households, it is a journey toward financial resilience and healthier living.
As Malaysia prepares for 2026, understanding the evolving patterns of consumer behaviour is no longer an academic exercise. It is essential to shaping a more stable, equitable and economically confident nation.
* Assoc Prof Dr Zalfa Laili Hamzah is an Associate Professor at the Faculty of Business and Economics, Universiti Malaya, and may be reached at [email protected]
** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
