Malaysian Consumer Sector Likely to Face Softer 3Q

Dow Jones
Sep 14

0101 GMT - Malaysian consumer sector could see seasonally softer 3Q sales, as cautious spending and persistent inflationary pressures weigh on demand, CIMB Securities analyst Walter Aw Lik Hsin says in a note. Consumers are expected to prioritize essentials and value-for-money purchases, while discretionary spending remains subdued, he says. He expects consumer spending to recover in 4Q, supported by year-end festivities, government cash assistance and potential fiscal measures, he reckons. Companies are expected to manage higher costs through selective price increases and tighter cost controls rather than broad-based price hikes, he adds. CIMB maintains a neutral rating on the Malaysian consumer sector, pegging QL Resources, Nestle (Malaysia), Empire Premium Food and Life Water as its top picks to capture defensive spending and consumer downtrading.

 

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