Malaysian Consumer Sector Seen Resilient On Stable Spending, Fiscal Support – RHB IB

KUALA LUMPUR, March 30 (Bernama) -- The Malaysian consumer products sector shall continue to provide earnings resilience and visibility, underpinned by stable domestic consumption and ongoing fiscal support, according to RHB Investment Bank Bhd (RHB IB).

In a note today, the investment bank said measures such as Sumbangan Asas Rahmah (SARA) and targeted fuel subsidies (RON95) should help support consumer spending amidst soaring global energy prices.

It said the temporary adjustment of the monthly purchase limit for the Budi MADANI RON95 (BUDI95) to 200 litres implied a limited immediate impact on the mass market.

“Overall, we do not expect any near-term policy shifts that could materially disrupt consumption trends,” it said.

However, RHB IB noted that a prolonged West Asia conflict could pose second-order risks via inflation.

Meanwhile, the investment bank said the sector’s performance for the fourth quarter of 2025 (4Q 2025) was in line with its expectations, as nine of the 17 stocks under its coverage met expectations.

It noted that margin expansion was widely observed during the period, driven by several factors, including the increasing scale of operations and higher sales volumes recorded by companies such as Nestle (Malaysia) Bhd, 99 Speed Mart Retail Holdings Bhd, MR DIY Group (M) Bhd, Eco-Shop Marketing Bhd and Farm Fresh Bhd.

“As usual, there was a pick-up in consumer spending towards the year-end, particularly with the consumer discretionary players.

“This was spurred by favourable seasonality (school holidays, festive season) and could also suggest a steady consumption trend in tandem with the improving consumer sentiment,” it said.

Generally, management guidance range between ‘neutral’ and‘positive’, with a number of discretionary players observing encouraging sales ramp-ups since the start of 2026.

The investment bank said this could be a result of firmer consumer sentiment – underpinned by solid macroeconomic conditions, healthy disposable income growth, a strengthening in the ringgit and positive spillover effects of Visit Malaysia Year 2026.

-- BERNAMA