KUALA LUMPUR: Malaysia's consumer spending growth will remain stable as economic growth persists and consumption levels normalise, according to BMI Research.
The firm said the growth will remain at a real rate of 5.0 per cent year-on-year (YoY) over 2024 and 4.8 per cent YoY over 2025.
It also said spending will be constrained by an environment of high debt levels and its servicing costs.
"However, easing inflation and a tight labour market will support spending, as real wage growth returns to positive territory, supporting purchasing power," it said in a note.
On July 11, the Department Of Statistics, in its latest data, retail sales grew 5.8 per cent YoY (seasonally adjusted) in May, while volumes grew 4.2 per cent YoY.
Year to date (January to May 2024), retail sales values grew by an average of 5.9 per cent YoY and volumes grew 4.6 per cent YoY.
"The latest retail sales data will continue to highlight the current strength of the Malaysian consumer," BMI Research added.