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Euromonitor International - Analysis
Consumer Lifestyles in Malaysia
Consumer Lifestyles | 06 Jul 2011
STRUCTURE OF THE REPORT
This report forms part of the report series that complements the Euromonitor International Countries and Consumer Database. Each country profile is structured under the following primary headings: Consumer Trends Consumer Segmentation People House and Home Income Consumer Expenditure Work Learning Eating (including Soft Drinks) Drinking Smoking Personal Appearance Fashion Health and Wellness Leisure and Recreation Consumer Technology Transport Money The information in this report was gathered from a wide range of sources, starting with national statistics offices. This information was cross-checked for consistency, probability and mathematical accuracy. As well, the report seeks to fill the gaps in the official national statistics by using private-sector surveys and official pan-regional and global sources. Furthermore, Euromonitor International has undertaken an extensive amount of modelling in order to generate unique datasets that complement the available national standards. The wide range of sources used in the compilation of this report means that there are occasional discrepancies in the data, which were not reconcilable in every instance. Even when data are produced on specific parameters by the same national statistical office, such as total population in a particular year, discrepancies can occur depending on whether the data was derived from a survey, a national census or a projection and whether the data were based on mid-year or January figures. To identify recent past trends, data are presented for 2006, 2007, 2008, 2009 and 2010. For projections, data are presented for 2011, 2015 and 2020.
Euromonitor International - Analysis
Accelerating urbanisation in Malaysia influencing consumer expenditure Malaysia has achieved much success since gaining independence from the British and this has been reflected by a wave of urbanisation, among other successes. Between 1970 and 2010, the number of urban dwellers had grown from three million to 18.4 million. In 2010, 64.4% of the population lived in urban areas. The most important contributing factor towards this growth in Malaysia has been rural-urban migration. Intra-country migration is usually for economic reasons as rural dwellers, desperate to leave the poverty and unemployment in rural regions, seek out better opportunities in cities. This is especially true in the Klang Valley region where nation’s capital, Kuala Lumpur, is located. Many of these migrants are well-educated or college students unable to find well-paying jobs in their home towns. Indeed, many of the new jobs created by Malaysia’s growing knowledge economy are currently available only in Kuala Lumpur. Outlook Over the forecast period, urbanisation in Malaysia is expected to accelerate, with the newly emerging urban centres surrounding Kuala Lumpur becoming increasingly developed and generating job opportunities similar to those now available in Kuala Lumpur itself. In particular, the expansion of the light rail transit and mass-rail transit systems meant to connect Kuala Lumpur to these new urban centres will create significant high-level job opportunities as they link residents in these adjacent urban centres to facilities and retail malls in Kuala Lumpur. As well, other major cities in Malaysia such as Penang and Johor Baharu are expected to increasingly attract a higher proportion of intra-country economic migrants as their local economies continue to grow by leaps and bounds. International companies, international financial institutions and professional service providers are expected to continue increasing their presence in these secondary cities and states, creating more high-value jobs and improving the standard of living of their residents. Such cities and states will increasingly evolve into hubs away from Kuala Lumpur and generate significant economic growth. Impact During the review period, the growth of the number of intra-country migrants seeking new jobs with higher salaries resulted in many more consumers with higher disposable incomes. These consumers have more opportunities to consider a wider array of products and services than they had in rural areas and expenditure patterns reflect that greater choice. Furthermore, living in cities has exposed more Malaysian consumers to popular retail trends and marketing campaigns, influencing what they purchase and how often they purchase products. There is clearly significantly less exposure to advertising and marketing campaigns in rural areas. Urbanisation and its ability to create new consumers is expected to continue to influence the Malaysian economic landscape over the forecast period. It is expected that there will be increasing demand from urban consumers in low- and middle-income brackets for affordable indulgences, such as dining out and going to the cinema. Consumer expenditure on necessities such as groceries, telecommunication services and transportation also soared due to the rising demand from the growing number of urban Malaysians. In many cases, urban consumers will be more prone to indulge in the purchase of luxury goods and premium services in order to project images of wealth.
Digitalisation reshaping the retail landscape in Malaysia In 2008, the household broadband penetration rate in Malaysia stood at only 22%. Broadband users were largely concentrated in urban centres and major cities such as Kuala Lumpur and Johor Baharu. Rural regions and smaller towns in Malaysia were not well-served by the conventional broadband internet infrastructure and service providers were reluctant to reach out to such communities due to the small number of consumers and low profit margins there. Fast-forwarding to 2010, the broadband penetration rate has soared above 55% (when including 3G mobile internet access). It is the rise of 3G mobile phones and mobile broadband data services which has powered this phenomenal growth and made broadband available in rural regions and smaller towns in Malaysia, where there is still a significant lack of conventional broadband infrastructure such as fibre-optic lines and telecommunication exchanges. Telco-subsidized 3G mobile phones are now very affordable for many consumers and they are able to access the internet at broadband speeds through well-developed cellular networks and infrastructure countrywide. They delivered broadband internet access to remote consumers at reasonable price points, significantly accelerating the broadband penetration rate during the review period.
Euromonitor International - Analysis
Outlook As the price of mobile broadband services and data plans continue to fall and become more affordable over the forecast period, a greater proportion of Malaysian consumers will become connected and become part of the digital revolution sweeping the country. On-going works to improve the national broadband infrastructure and to deliver high-speed broadband access seamlessly to rural regions, as well as the introduction of new community internet centres in rural communities providing free broadband access to residents, will also contribute significantly to the increase in the broadband penetration rate. Malaysia is also on schedule to introduce 4G technology and to support nationwide cellular networks thanks to huge investments from South Korean and Russian investors. Already, the telecommunication industry regulator in Malaysia has allocated sufficient bandwidth and radio spectrum for the introduction of 4G technology and networks. This will vastly improve the speed and quality of data being delivered to consumers through mobile broadband networks to their mobile devices. Impact Expansion of mobile broadband is expected to not only drive increased demand for smartphones but to also facilitate growth of e-commerce and m-commerce. More importantly, the rapid digitalization of Malaysian society has resulted in local consumers – in both urban and rural regions – increasingly consuming digital media content. This, in turn, has exposed a growing proportion of rural Malaysian consumers to a wider range of consumer products and brands, many of which were previously only familiar to urban dwellers. In particular, fashion and luxury brands have become better-known and more common in rural areas and this is expected to grow over the forecast period. This increasing connectivity among Malaysian consumers has increased the strategic importance of retailers and brands communicating with their customer base through social networks such as Facebook and other platforms such as Twitter and weblogs, among others. Marketing and advertising campaigns are expected to continue to shift from mainstream media to digital media as digital media becomes more effective – both in cost and reach – in targeting specific consumer segments.
Tourism strongly influences consumption trends in Malaysia Travel and tourism has always been one of the most important contributors to the Malaysian economy, accounting for 7.7% of total GDP in 2010, representing RM56.5 billion. This percentage is significantly above the world average of 5.6%. The sector generates the second-highest level of foreign earnings for the Malaysian economy. Malaysia relies heavy on its travel and tourism sector and works hard to maintain the country’s attractiveness as a tourist destination regionally as well as internationally. Malaysia is the ninth-most visited travel destination in the world. Travel and tourism has been earmarked by the Malaysian government as one of the main routes towards climbing up the value chain and moving the country towards a services-oriented economy. Of the 24.6 million visitors to Malaysia in 2010, 13 million were from Singapore alone, contributing RM28.4 billion out of the total of RM56 billion in tourism receipts. This was despite Singapore’s relatively miniscule population of only 5.4 million. Regardless, Singapore’s proximity to Malaysia and the ease of access Singaporeans enjoy to Malaysia via two major land crossings ensure a high number of visits. On average, it takes a maximum of 30 minutes by car from the furthest point in Singapore to reach either of the border crossings to Malaysia and another 10 minutes to clear immigration and customs (barring any traffic snarls). This convenience, together with the strong Singapore dollar and the relatively low prices of goods and services in Malaysia (on average a good 30% to 40% cheaper compared to equivalent goods/services in Singapore, if not more), encouraged a significant number of Singaporean consumers make regular trips to Malaysia for shopping as well as entertainment. The frequency of visits and the amount spent by visiting Singaporean consumers makes them the most economically significant group of foreign consumers in Malaysia, accounting for more than one-half of total tourist receipts per annum regularly over the review period. Outlook As noted, Singapore and Malaysia are connected through two major border crossings. As well, there is a vast network of daily flights from Singapore to almost all of Malaysia’s main cities as well as a heavy railway system between Singapore and all of Malaysia’s major cities. This network is expected to improve further over the forecast period with the launch of a mass-rail and light rail transit system between the countries. This is expected
their influence on consumption trends in Malaysia is stronger than one would expect from a simple tourist segment. Members of this new generation of consumers are relatively young (30 years-old and younger). especially in Kuala Lumpur and other major Malaysian cities. As well. A significant number of these new Malaysian consumers are young professionals returning from the Malaysian Diaspora. the number of young.euromonitor. There is also an effort on the part of the Malaysian government to reverse the historical “brain drain” from Malaysia by attracting welleducated Malaysian professionals working and living abroad to return home. Such consumers are most often retirees who still retain strong links with Singapore and who keep their Singaporean citizenship. educated at levels higher than the national average (typically they hold at least a Bachelors degree).11/18/11 Euromonitor International . the new transport systems will drive even more significant increases in the number of Singaporeans travelling frequently to Malaysia for shopping and entertainment.portal. taking advantage of the better job opportunities and the modernisation of the Malaysian economy as well as the greater degree of political freedom. well-educated and affluent Malaysian consumers makes its mark Over the review period. New generation of young.com/Portal/Pages/Search/SearchResultsList. combined with the high frequency of visits and the persistent holiday mentality has made Singaporeans and will continue to make Singaporeans an especially important consumer group in Malaysia. buying products and services in Malaysia provides high value for money. often utilizing social networking websites such as Facebook and platforms such as Twitter to communicate and interact with their peers. with retailers adopting popular trends and successful practices previously found only in Singapore. Impact The disposable income and spending power of this new breed of affluent and sophisticated Malaysian consumer is substantial. thanks to their stronger currency and. The similar ethnic make-up and shared history of the two countries means that domestic trends are not affected by cultural barriers and are easily transplanted. Over. https://www. the preferences of Singaporean consumers are influencing domestic consumer trends. sophisticated and affluent Malaysian consumers is expected to rise significantly as education and job opportunities in the country continue to increase. This. consumer trends originating in Singapore are increasingly spilling over into Malaysia. in turn. There is an increasing trend of Singaporeans choosing to reside in Malaysia due to the significantly lower prices for residential properties (as well as for the lower cost of living). Efforts are expected to pay dividends as the government begins to roll back previous race-based affirmative action policies and move towards filling jobs using a needs-based policy. with those aged 20 years to 39 years earning the most in terms of average annual gross income.Analysis to facilitate even more convenient transportation for Singaporeans travelling to Malaysia (and vice versa). It is hoped that this will help contribute to the country’s goal of becoming a knowledge-driven economy. Others include Singaporean professionals working in Singapore but who choose to live in Malaysia to cut costs. study and work and these trends. They are also technologically savvy and are typically connected to the internet. Singaporean consumers come to Malaysia with a pre-set mentality that. earn higher incomes and are more sophisticated in their tastes and preferences. The number of well-guarded and luxurious residential estates and condominiums specifically targeted to such Singaporean consumers is expected to increase over the forecast period. the closest city to Singapore and where most visiting Singaporean consumers tend to spend their money – have increasingly customised their products and services to cater to the lucrative Singaporean consumer segment. Impact With Singaporean consumers regularly accounting for more than one-half of total tourist receipts in Malaysia every year. a new breed of Malaysian consumers emerged and grew in numbers. are starting to appear and take root in Malaysia’s consumer culture. in turn. Outlook Over the forecast period. Retailers in Malaysia – especially those located in Johor Baharu. Indeed. their stronger purchasing power. contributing to the cosmopolitan feel of Kuala Lumpur. This was a key reason why significant numbers of well-educated Malaysians originally sought education and work opportunities abroad. This is especially true considering that the majority of their spending is for consumer goods and services. increasing the number of cross-country residents earning Singapore dollars but spending them in Malaysia.aspx 4/68 . These returnees have brought back with them various cultural influences and trends from the countries where they used to reside.
Rising health consciousness and increased consumption of health and wellness products by older consumers over the forecast period are also expected to prolong their lives and contribute to the aging phenomenon. Specialist retailers solely targeting older consumers are now also a more common sight in major Malaysian cities. Despite this.portal. the Malaysian population will continue to age as birth rates continue to fall and as people live longer. gourmet supermarkets. A rising number of mass-market and luxury retailers are introducing wider ranges of customized goods and services designed around the preferences. The increasing sophistication of young and affluent Malaysian consumers also means that they are moving up the value chain for nearly all of the products and services they consume.8 years in 2020. Older Malaysians are expected to live longer due to continuing advances in medical technology as well as a continued improvement in the quality and provision of healthcare to elderly patients.euromonitor. with their numbers growing by nearly 15% during the review period to reach 1. by 1. many of whom have benefited from improved educational and working opportunities and who now earn higher average incomes. This reflects a relatively https://www.com/Portal/Pages/Search/SearchResultsList. during the review period. Improved financial literacy among this consumer segment also means that more consumers are protected by healthcare insurance and annuity plans. Impact The increased numbers and growing purchasing power of many older Malaysians has created new opportunities in the country’s consumer markets. who themselves are adopting a more consumerist culture and mentality. The increasing number of artisan bakeries. putting the country squarely among the top 25 percentile worldwide in terms of the actual population of babies and infants. Currently.5 years in 2015 and to 27. granting them the peace of mind to spend their remaining disposable income on consumer products and services.11/18/11 Euromonitor International . The median population age is expected to increase to 26. CONSUMER SEGMENTATION Babies and Infants In 2010. In addition. these consumers are not afraid to spend their money on more expensive branded products and luxury goods as well as on dining and entertainment services.3 years in 2010. Older consumers are increasingly changing their formerly conservative attitudes regarding consumption and becoming more liberal and many are now more willing to splurge on indulgences and extravagances. The easy availability of consumer credit means that big-ticket purchases are now more common. Retailers are listening and in response are offering high-end or premium alternatives to traditional products. the population of babies and infants reached 1. with spending funded by both their own retirement funds as well as contributions by their children and grandchildren. Falling birth rates have been largely responsible for the persistent aging of the Malaysian population. there has been a significant increase in the range of consumer products and services with a health and wellness slant. Outlook Over the forecast period.7%. the number of babies and infants in Malaysia has been declining marginally.4 years in 2006 to 25. The median age in Malaysia increased during the review period. premium coffee cafes and retail chains and fine dining restaurants as well as designer household appliances and consumer electronics is an example of how the consumer culture is becoming dominant in Malaysia. together with Malaysians living longer on average thanks to significant improvements in the quality and accessibility of healthcare.8 in Malaysia. They are demanding higher quality and impeccable service everywhere they go.3 million in 2010. Such a change in attitude has also spurred by their children and grandchildren.Analysis Those between 30 and 34 years-old earn the most followed by those 35 to 39 years-old and then by those 25 to 29 years-old. going from 24. Aging population driving demand for special goods and services The Malaysian population is aging at an accelerating pace. needs and limitations of older consumers. Significantly. The purchasing power of this “silver generation” is also significant. designed to appeal to older consumers who are increasingly more aware of their mortality and the importance of good health. These trends are expected to continue over the forecast period and to affect spending patterns throughout. This trend is expected to continue over the forecast period.aspx 5/68 . the older population is the fastest-growing demographic segment in Malaysia.
” In many cases. educational toys meant to enhance growth and development in babies and infants.5 in 2005. This phenomenon has been attributed to the global economic crisis in 2009 which. fewer kids and higher disposable incomes will result in parents buying better-quality and more expensive products for their children. In that year.11/18/11 Euromonitor International . which had been steadily decreasing over the review period thanks to improving healthcare. kids will account for just more than 11% of the total Malaysian population.9 per 1. reaching 7. the number of kids increased by 4. setting them distinctly apart from products meant for adults. to reach 1.portal. Kids During the review period. particularly as rising affluence trickles down to children in the form of increased allowances from parents. https://www. The kids’ consumer segment is increasingly growing in significance.5% over the review period. Malaysian parents are expected to spend more frequently and in larger amounts on their babies and infants. As well. As a result.Analysis recent but nonetheless continuing trend of declining birth rates in the country. tweenagers occupy a strategically important position in the consumer landscape in Malaysia. Accounting for 13% of the total population in Malaysia.com/Portal/Pages/Search/SearchResultsList. according to the Malaysian Department of Statistics. the number of babies and infants is projected to increase only slightly. straddling the formative years between kids and teenagers when the concepts of brand recognition and loyalty begin to take root. Marketing campaigns are also being tweaked and delivered to kids through new media such as Facebook. more sophisticated nutritional products and vitamins to enhance health and stimulate development. the number of kids is expected to decline by 1. many households found themselves unable to afford adequate healthcare for their newborns. As average household incomes in Malaysia continue to rise over the forecast period– although more so in the urban areas such as cities and townships than in rural communities – more affluent and better-educated parents are expected to spend more of there disposable income on products for their newborns in efforts to improve their standards of living. Impact Over the forecast period. down from 18.euromonitor. It is expected that there will be increased demand for such items as designer baby/infant clothing. reaching 3.6 million in 2020. among other things. The infant mortality rate returned to a more stable figure of 6.2 in 2006. by less than one percent.5%. Consumer products are being modified and customized to appeal specifically to kids and to meet their different needs in the Malaysian market. Impact Over the forecast period. kids are one of the major drivers of consumer demand and expenditure in Malaysia. there has been an increasing shift in purchasing decisions from parents to kids over the review period.3 in 2010 once the economic crisis passed and Malaysia returned to positive economic growth. up from 6. As a result.7 million in 2010. the babies and infants population in Malaysia has been significantly reduced by 2010. The infant mortality rate (the ratio of the number of deaths in the first year of life to the number of live births occurring in the same population during the same period of time). Twitter and online games which are popular among kids in Malaysia. Tweenagers The number of tweenagers in Malaysia grew by 6.aspx 6/68 . This made tweenagers the third-smallest segment among overall Malaysian consumers after babies/infants and the older population. reaching 2. Manufacturers and retailers are taking notice and starting to step up their efforts to target this increasingly lucrative consumer segment. led to a significant increase in infant “dumping” by impoverished parents. continuing to support value sales while volume sales slowly decline.000 inhabitants. The crude birth rate in 2009 was 17. Despite the relatively small size of the segment.8 million in 2020.4%.3 million in 2010. Growth was the legacy of Malaysia's high birth rates as far back as a decade ago as well as a testament to the country’s improving infant mortality rates. some busy parents tend to compensate for their increasing absences by purchasing goods to their children. As well. reaching 3. Despite their declining numbers kids are expected to continue wielding considerable consumer power over the forecast period as household incomes rise and as kids themselves participate more in the purchasing decisions for kids-related products through “pester power. activity classes designed for babies and infants and even consumer electronics to record the growing up experience and eventful memories of their babies and infants. spiked suddenly in 2009.
the number of teenagers in Malaysia increased by 4. Rising affluence contributes to this trend as it empowers parents with the financial means to delegate such powers to tweenagers in the first place. Growth will be a reflection of relatively high birth rates between 2001 and 2007. as this consumer segment will be the trend-setters for the all-important teenager and twenty-something consumer segments. are at their most impressionable as consumers and brands have the opportunity to build lasting relationships with teenage consumers in order to lay foundations of brand loyalty which. the number of teens in Malaysia is projected to increase by a significant 11%. reaching 4. more so than other consumer segments. in many cases will extend well into adulthood. more so than tweens. twentysomethings are in the eyes of many the most significant consumer segment in Malaysia. ranging from clothing and footwear to packaged food and beverages. Teenagers in Malaysia are increasingly becoming more connected to the digital world with their mobile devices. Impact Over the forecast period. Where teenagers provide the catalyst to kick-start trends. Teenagers in Malaysia are expected to remain the most important trend-setting consumer segment over the forecast period. twenty-somethings were the second-largest consumer demographic in Malaysia (after middleaged adults). many achieve a level of partial financial independence. socially mobile and affluent groups of people in the country. In 2010.11/18/11 Euromonitor International . An increasing emphasis on making consumer products and services more accessible through mobile devices and engaging tweenagers through digital media platforms such as Facebook and Twitter will be a more prominent trend over the forecast period. where designer apparel. are increasingly delegating purchasing decisions directly to their children.com/Portal/Pages/Search/SearchResultsList. reaching 4. Improving IT and telecommunications infrastructure and increasingly affordable mobile data plans in Malaysia have helped to connect and empower tweenagers. teenagers are the largest and also the most significant in terms of spending power and purchase decision-making.portal. In the process.9 million in 2020.2%. teens and their acceptance or rejection of various products is critically important for many manufacturers and retailers.6%. faced with a more hectic and demanding work lives. a result of the improving economic climate during those years.euromonitor. In Malaysia. It can be the equivalent of a resounding success or a death knell.2 million in 2020.8 million in 2010. most teenagers start working in part-time jobs and/or start receiving significantly higher allowances from their parents. As in the case of tweenagers.aspx 7/68 . it is the twenty-somethings which fuel the growth and determine whether https://www. Teens. more-affordable mobile devices and mobile data plans have empowered Malaysian teenagers. the number of Malaysians in their twenties increased by 7. accessories and consumer electronics are status symbols among teenagers. Many Malaysian parents. The influence of teenagers on consumer demand in Malaysia will be significant in a wide range of sectors. especially in rural communities away from the major Malaysian cities. Twenty-somethings During the review period. A myriad of brands are competing to achieve the “cool” status in the eyes of teenagers. reaching 3. Tweenagers in Malaysia are becoming increasingly connected to the digital world as household internet penetration rates in the country continue to improve.Analysis Tweenagers’ contribution to household purchasing decisions grew during the review period. Teens During the review period. an age segment which is starting to fully exploit the opportunities and advantages provided by the internet. More significantly. This is especially true in brand-conscious Malaysia. As one of the most educated. Impact How tweenagers approach and consume various products and services will set the tone for brands and manufacturers over the forecast period. this trend has helped to expose teenagers in rural communities to a myriad of consumer products and brands that were previously only accessible to urban teenagers. As one of the most visible consumer segments and as amongst the most voracious spenders. Among the young consumer segments. This has helped to significantly increase the opportunities for brands owners and manufacturers.
household budgets are typically devoted to keeping their needs satisfied. household durables and in-home consumer electronics.6%. In large part. Twenty-somethings drive much of the demand for food service and other entertainment products and services. What differentiates the thirty-something consumer from the twenty-something consumer is that people in their thirties tend to be more cautious consumers.Analysis something new is a short-term fad or the start of a significant trend. reaching nearly four million in 2010. such as spa treatments. The steady growth was a result of the less-than-robust growth in birth rates seen in the 1970s. It is expected that this group will continue to drive demand for higher quality goods over the forecast period. On the other hand.5 million in 2020. It is while they are in their thirties that Malaysians typically begin to establish their own families and households.1 years for females. The rising affluence of young consumers and.aspx 8/68 . reaching 4. it is while they are in their twenties that young Malaysians begin to think about establishing their own households and having children. These include increasing social mobility. In 2010. Twenty-somethings are expected to account for 16. including furniture. over the forecast period consumer expenditure on household goods and services is projected to increase by 60. by 4. As well.6 years for males and 25.7% of the total population in 2020. reaching RM29.6%. The thirty-something and twenty-something consumer groups share many attributes in parallels in Malaysia. https://www.portal. increasing disposable incomes together with an increasing number of people waiting b before committing to marriage is expected to drive the appetite for some of the finer things in life among members of this group. It is likely that more mass-market retailers will overhaul their images in order to climb up the value scale and attract more of this new breed of spending consumers Thirty-somethings During the review period. rising disposable incomes and higher levels of education. People in this group drive demand for a wide range of household goods. as are luxury goods retailers in the clothing and footwear and jewellery and watches sectors. People in their twenties dine out much more frequently in restaurants. Thus. the number of thirty-somethings is projected to increase by 18. A higher propensity for discretionary spending has made it possible for mass-market retailers across a number of sectors to climb up the value chain. due to more women entering the workforce and more young Malaysians pursuing education and careers. whether is be for better personal products or better products for their children.11/18/11 Euromonitor International . down slightly from the 17. People in their thirties establishing new households will also continue to drive demand for household-related items. This was largely due to increased family commitments and a lower penchant for discretionary spending on non-essential items.euromonitor. clothing and footwear and toys and games.7% (in real terms).com/Portal/Pages/Search/SearchResultsList. Impact Over the forecast period. reaching 5.8 million in 2020.3 billion in 2020. Over the forecast period. the number of people in their twenties is projected to increase by nearly 10%. it will be consumers from this age group driving that growth. Indeed. more importantly. for those couples who begin to have children. the number of people in their thirties grew slowly but steadily. a survey by MasterCard indicated that thirty-somethings expressed a significantly lower level of consumer confidence compared to twenty-somethings. many are postponing marriage and childbearing. such as artisanal bakeries. a step up from the roadside stalls which have traditionally been the mainstay of Malaysian dining culture. Traditionally.2% of the total recorded in 2006. offering better-quality products and services to Malaysian consumers who are more than happy to pay the higher prices. there is typically high demand for children’s food and beverages. health spas and massage therapists and gourmet supermarkets are all seeing an increased number of local Malaysians (rather than just Singaporeans) among their regular clientele. Such upscale retailers. their increased willingness to spend has been a major reason behind the growth seen in many retail markets during the review period. Impact Over the forecast period. The most recent census revealed that in 2000 mean age at first marriage in Malaysia was 28.
middle-aged consumers were the second-fastest growing consumer group (after the older population). increasing by 15% to 1. the average lifespan of the Malaysian population has been extended significantly and this has significantly increased the number of consumers above 65 years of age. during the review period. a service gratuity payment and medical benefits. they are increasingly interested in their health. manufacturers and brands owners are expected to take note and tailor products and services to better meet the needs of this consumer segment. Accounting for 23. anti-aging beauty and cosmetic products and spa/therapeutic services which claim to revitalize or preserve youthfulness.6%.Analysis Middle-aged Adults The number of middle-aged adults in Malaysia grew strongly. On the other hand. they are significantly less socially mobile and educated than their twenty-something and thirty-something counterparts. Middle-aged consumers in Malaysia are generally conservative in their spending. middle-aged consumers are the largest single consumer demographic in Malaysia. This is one of the lowest retirement ages among Asian countries.7 million in 2010. This is a highly effective marketing tool within this consumer demographic. middle-aged adults are increasingly delegating purchasing decisions and spending power to their children. Eligible civil servants are covered under a government pension scheme under which they enjoy a monthly income. As a result. benefit from a compulsory retirement fund called the Employment Provident Fund.2 million in 2020. Thailand and even Brunei having official retirement ages ranging from 60 to 67 years-old. Regardless.5%. As middle-aged consumers increasingly focus on their own needs instead of their children’s over the forecast period. reducing a sphere of influence they used to dominate.3 million in 2010.portal. At the same time. more affordable and accessible health care. As they did in past years. up from 23. On average.euromonitor. As a result. older Malaysians are often given assistance by their children. spending and consumption patterns are more stable. reaching 8. Examples include evoking nostalgia based on Malaysia’s rich and multi-cultural history to package products and services that would appeal to such consumers. middle-aged adults will account for the largest proportion of the total population. the retirement age for Malaysians is 58 years-old for public sector employees and 55 years-old for private sector employees. reaching 2. the average spending power of the average retiree in Malaysia – spread out across his remaining years – is deteriorating in real terms and this has limited their consumption during the review period. under which Malaysian workers and their employers both contribute a fraction of monthly wages. older Malaysians are not expected to be a robust consumer group. the collective sum of which is then used to provide retirement benefits to Malaysians after their retirement. As middle-aged adults get older. 25%.com/Portal/Pages/Search/SearchResultsList. Disposable income growth for this consumer segment tends to remain steady and doesn’t rise quickly as it tends to do so for younger consumer groups. although a significant number of private sector employers retire their female employees at 50 years-old. are all examples of products and services that see increased sales over the forecast period based on the needs of middle-aged consumers. Packaged food and beverage products fortified with vitamins or other supplements. Older Population The older population was the fastest-growing age group in Malaysia during the review period.6% in 2010 and 22% in 2006. among others benefits. With Malaysians having one of the highest life expectancies in the world. Officially. This rapid growth within the older population is testament to Malaysia’s rapidly aging population.11/18/11 Euromonitor International . As their numbers increase and as their real incomes continue to deteriorate over the forecast period. Laos.2 million in 2020. by 13. The vast majority of retired Malaysians do not enjoy the benefits of a pension scheme. Hence. and an improved health awareness among older folks in general. improving medical standards. reaching 6. driving rising demand for healthoriented products and services. the number of middle-aged adults is projected to increase by 18%.aspx 9/68 . Impact Over the forecast period. Instead. with countries such as Singapore.6% of the total population. improved financial literacy has https://www. the Philippines. the number of older Malaysians is projected to increase by 63. Impact Over the forecast period.
852 % growth -1.6 13.9 3.3 6.839 3. Within the South-East Asian region.Analysis resulted in more older consumers protected by healthcare insurance and annuity plans.623 2.aspx 10/68 .321 14.228 5. In addition to increased demand for OTC drugs and vitamins and dietary supplements.654 2020 1.5 4. By 2020. reaching 28.761 4.150 1.7 million.228 1. As a result.808 4.569 3. it is expected that there will increased demand for herbal/traditional health products.5 2006 1.985 4. https://www. Euromonitor International 1.024 5.638 2.214 3.845 3.286 3. behind regional leader Indonesia. product and services with a health and wellness elements will continue to be in great demand by this group.847 6.929 3.1 11.2%.922 1.11/18/11 Euromonitor International . Euromonitor International PEOPLE Population During the review period.885 6.177 2.com/Portal/Pages/Search/SearchResultsList.517 2.7 Table 2 Consumer Segmentation: 2011-2020 '000 Babies/Infants (0-2 years) Kids (3-8 years) Tweenagers (9-12 years) Teens (13-19 years) People in their twenties People in their thirties Middle-aged Adults (40-64 years) Older Population (65+ years) 2011 1.044 6.645 4.6 million in 2010.355 4.377 7.679 2.755 3.669 2.903 2008 1.429 4.6 18.566 2.141 3.6 4.272 1.196 4.352 3. representing growth of nearly 13% over the forecast period.339 3. the population of Malaysia increased by 7.916 3.564 1.608 2.896 2009 1.8 18.537 3.681 4. Malaysia ranked as the sixth most populous nation.609 4. a number of retailers are expected to increasingly pay more attention to this small but rapidly growing consumer demographic over the forecast period. This trend is set to intensify over the forecast period as the older population grows.320 3.1 63.2 7.879 2010 1.248 % growth 0.669 3.607 2.179 3.5 0. the Malaysian population is projected to reach 32.374 2015 1. As their life expectancy increases and the quality of their lives continues to improve.805 5.795 8.884 2007 1.portal.474 4.981 6. Table 1 Consumer Segmentation: 2006-2010 '000 Babies/Infants (0-2 years) Kids (3-8 years) Tweenagers (9-12 years) Teens (13-19 years) People in their twenties People in their thirties Middle-aged Adults (4064 years) Older Population (65+ years) Source: National statistics.187 1.732 4.719 4.248 3.6 Source: National statistics.0 9.836 3.876 3.928 6.5 -1.euromonitor.
there have been some shifting patterns. https://www. Indeed.6 million in 2010. the ageing trend is projected to accelerate over the forecast period as the median age hits 26. Malaysians are marrying later on average as young adults continue to delay marriage in order to pursue education and careers.8% of the total population and the Indians accounted for 7%. This reflected a continuous increase since the first census was conducted in 1970.com/Portal/Pages/Search/SearchResultsList. an indicator that marriage remains a respected social institution in the country. going from 30. The rapidly rising number of older consumers is expected to continue to drive demand for consumer products and services with a health and wellness slant.0 years of age in 2006 to 29.8 per 1.7 million Malays in the country.4 years in 2006 to 25.6 years for females. However.000 (the lowest) and Timor-Leste’s 41 births per 1. where it is still common practice to marry at a younger age. the fertility rate for Malays has been significantly higher than that of other major ethnic groups in Malaysia.1 years for females in 2000. There have also been significant improvements in the quality of medical care in the country. the number of Malays increased by just more than 8%.euromonitor. there were 14. it has been reported that Chinese account for as much as 70% of the market capitalization in the country.7% of the total population in 2010. Furthermore. together with the country’s average birth rate.Analysis According to the Malaysian government. Historically. Marital Status The number of married people in Malaysia grew by 8. older Malaysians are enjoying better accessibility to more affordable healthcare. This trend continues to persist. respectively. In 2010. accounting for more than one-half of the total population. the financial strength of the Chinese community cannot be judged by their numbers alone.6%. the country ranked fifth regionally in terms of birth rate with a crude birth rate of 18. a malaise that Malaysia shares with developed countries worldwide. in turn. This effect is more prevalent among urban Malaysians living in major cities than it is among those living in rural communities and smaller towns.000 inhabitants. These shifts are seen among Malaysians of all ethnicities. 6. spurred on by falling birth rates. This compared with neighbouring Singapore’s 10 births per 1. Furthermore. This reflects the aging of Malaysia’s population. the Chinese accounted for 22. This has led to the government introducing policies that offer significant economic assistance to Malays under the New Economic Plan guidelines. This means that. despite their relatively low numbers.5% and 5.5 years in 2015 and 27. In 2010. Married Malaysians accounted for 40. The economic dominance of the Chinese minority is expected to continue over the forecast period. As a result. The median age in Malaysia has been steadily creeping upwards. Malaysia enjoys one of the lowest infant mortality rates. as well. According to the most recently published Census by the Malaysian government. However. Regardless. Chinese consumers also tend to be more connected and internet-savvy than their counterparts from other ethnic groups and this is expected to make them better positioned to influence consumer markets. such as the Chinese and Indians. reaching 11.3 years in 2010. spur increased demand for health and wellness products amongst those consumer segments. which experienced growth of 4. This will be a marked shift away from the conservatism which previously defined consumer expenditure patterns in Malaysia. when the ages were 25. the mean age at first marriage in Malaysia was 28.5% during the review period.6 years for males and 25. seen by the significantly lower growth rates in the number of Chinese and Indian Malaysians.8 years in 2020 Malaysia has historically remained a Malay-dominant country. This. This new awareness of health is expected to trickle down to younger consumers and.11/18/11 Euromonitor International . and this has not changed over the past decade.aspx 11/68 .portal. consumer spending patterns in Malaysia are expected to evolve.000. has been a major factor contributing to Malaysia’s relatively healthy population growth over the review period. The mean age of women at their first live birth in Malaysia has changed little. Chinese consumers will continue to be the trend-setters in the Malaysian market.7 years of age in 2010. from 24. Demand for consumer products and services which promise to improve the quality of life are expected to surge as both younger and older consumers seek to indulge themselves. Rising disposable income levels have also spurred some young Malaysians to postpone marriage and pursue socialising and personal objectives. During the review period.6 years for males and 21.000 live births in the region. Impact As birth rates continue to fall and as the population ages at an accelerating pace over the forecast period.3 deaths per 1.
aspx 12/68 . representing 64. divorce is still a taboo and not undertaken lightly. with the divorcee population increasing by 1. This is expected to generate a new breed of Malaysian consumers. economically prosperous and densely populated than the east coast states. resulting in inhabitants from rural communities and smaller towns migrating to major cities in search of better job and education opportunities. The second factor is the continuing development of rural regions and smaller towns/cities in Malaysia which has spread the urban concept across a greater portion of the country. 11. At the same time.6%. urban Malaysians are largely responsible for the rise of consumerism in Malaysian society. has been increasingly become more liberal.11/18/11 Euromonitor International . And most importantly. The first factor is intra-country economic migration. A more liberal approach is.4 million in 2010. This more liberal attitude is more prevalent among the bettereducated and well-heeled Malays residing in major cities. food service and entertainment.6 million in 2020 and representing 41. drive increased demand for products in such sectors as household goods and services and child-related product sectors.com/Portal/Pages/Search/SearchResultsList. Among these. travel and tourism and luxury goods. Kuala Lumpur.000 in 2006. up from 129.4%. they are expected to be eager to spend and have voracious appetites for conspicuous consumption. These include leisure and recreation products and services. The state houses Malaysia’s largest port and airport and the majority of the country’s institutions of higher learning. Urban Malaysians are typically better-educated. enjoy improved standards of living and are more digitally connected than their rural counterparts. with the urban population reaching 18. the state of Selangor is the largest in terms of population (Sarawak is the largest in land area terms) and the most prosperous. Among the Chinese and Indians. Kuala Lumpur is the most densely populated and developed city in Malaysia as befits its capital status.4% of the total population. their tastes and preferences are more sophisticated and higher up the value chain. Certainly. and intra-country migration has moved naturally from the eastern to the western corridor.4 million residents in 2010. Unsurprisingly.3%. Johor Baharu and Ipoh. there will be no significant wholesale shift in Malaysian attitudes towards marriage over the forecast period.4% of the population. it is expected that a growing number of young people will delay their marriages in order to pursue higher education or careers. This difference was largely due to the congested nature of Kuala Lumpur and the city’s limited as well as prohibitively expensive housing options.portal. which significantly constrained population growth. The majority of Malaysia has been urbanised. Town or Country Malaysia comprises 13 states (negeri) and three federal territories (Wilayah Persekutuan).euromonitor. The lack of such luxury or lifestyle retailers and service providers in rural regions means that rural Malaysians have fewer opportunities to consume products and that they are less exposed and influenced by retailers and brand owners. Among the less-educated and rural Malay communities. placing the area directly under federal control. On the other hand. reaching 13. Hence. Unsurprisingly. not surprisingly. there will a number of key markets benefiting from the rising number of those choosing to postpone marriage and family. respectively. attitudes towards marriage and divorce are relatively more casual and in line with the regional norms. Kelang. also making itself felt among the Malay ethnic group. https://www. while still largely conservative. better-educated and earning higher incomes and shouldering significantly fewer financial burdens and commitments than their married counterparts. surprisingly. Impact Over the forecast period.1% and 7. with the capital being Kuala Lumpur in the Federal Territory of Kuala Lumpur. The western corridor of Peninsular Malaysia is still significantly more developed. Infrastructure and communication facilities in Selangor are among the most advanced in Malaysia. Kuala Lumpur’s population grew by a 5% during the review period. which grew at 14. a significantly lower rate than the growth rates enjoyed by the next three largest cities in Malaysia. The large number of young Malaysians who get married and establish households will. a community which is strictly governed by conservative Islamic law or the Muslim Shariah law (the vast majority of Malays in Malaysia are of the Muslim religion). It is also the most developed state in the nation. The capital of Malaysia. earn higher disposable incomes. This reflected healthy growth of 12. was previously located in Selangor before it was carved out to form the Federal Territory of Kuala Lumpur. the number of married people in Malaysia is projected to increase by a robust 14. Two main factors have been behind the rapid urbanisation of the Malaysian population.3% over the review period. with 1.8% over the review period to reach 132.Analysis Attitudes towards marriage in Malaysia.000 in 2010.
999 25. For the most part.971 1. the number of urban dwellers in Malaysia is expected to continue to grow significantly. As a result. In particular.Analysis The rapidly improving IT and telecommunication infrastructure in rural regions and the falling costs of services is playing a pivotal role in bridging the gulf between urban and rural Malaysians.632 16. That figure will represent 72. Euromonitor International https://www.632 1.283 1. the number of rural dwellers is expected to decline by 10.com/Portal/Pages/Search/SearchResultsList.443 2. mobile phones and mobile data plans have helped rural Malaysians get connected to the digital world and.993 18.9 TOTAL Median age of population (years) 26.6 TOTAL Median age of population (years) 28.054 21. urban dwellers seek out products that promise convenience and time savings and any item that fits that bill will be welcomed by consumers in Malaysian cities over the forecast period.aspx 13/68 . Over the forecast period. reaching just over nine million in 2020. reaching 23. Impact Over the forecast period. reaching 1.654 2020 9.5 32.932 1.895 17.2 million in 2020 while Johor Baharu is expected to see growth of 20%.0 28.3 7. UN. as is the rapidly improving transport infrastructure linking rural regions directly to major cities.e.640 24. broadband internet access.228 2009 8. Keland is projected to see growth of 23.248 % growth 0.859 1.3 years Source: National statistics. rural consumers are increasingly developing a consumerist culture without having to physically move to urban areas.582 1. Internet shopping and the increasing modernization of rural areas are all factors pushing rural consumers to spend more.098 25.374 2015 9.4 14.6 27. in turn.103 19.5 30.173 24. These range from packaged foods and ready meals to spending on public transport to compact appliances and durables built to fit in smaller apartments and condominiums. Rising number of urban dwellers is expected to drive increased demand for products and services associated with fast-paced city living.749 17. to gain exposure to the same marketing campaigns and consumer information readily available to urban dwellers.7 15.6% reaching 1.8 12. Growth is expected to be driven by many of the same factors observed during the review period. Euromonitor International Note: As of 1st January Table 4 Population by Age: 2011-2020 '000/as stated 0-14 yrs 15-64 yrs 65+ yrs 2011 8.6%.11/18/11 Euromonitor International .745 27.237 1.1 63. i.150 2007 8.7 8.272 2010 8.9 2.8%.828 17. Table 3 Population by Age: 2006-2010 '000/as stated 0-14 yrs 15-64 yrs 65+ yrs 2006 8. people in search of better education and job opportunities and an overall better standard of living.187 2008 8. Cheaper computers..321 % growth 3.euromonitor. UN.2 0.638 24.8 28.552 25.7 million in 2020.727 26. by 25.949 18.4% of the total population.03 million in 2020.9 years Source: National statistics.portal.4 27.
066 24.com/Portal/Pages/Search/SearchResultsList.0 TOTAL Median age of female population (years) 13.6 2.563 24. Euromonitor International Note: As of 1st January Table 7 Female Population by Age: 2006-2010 '000/as stated 0-14 15-64 65+ 2006 4. UN.9 7.1 13.11/18/11 Euromonitor International .307 8.5 14.3 15.616 9. UN.640 9.6 13.297 24.606 26.511 8.1 years Source: National statistics.3 12.065 % growth 1.332 8.0 years Source: National statistics.euromonitor.8 13.604 27. UN.341 24.aspx 14/68 .1 0.572 25.995 701 % growth 3.8 years Source: National statistics.802 25.553 8.120 782 2020 4.078 24.854 1. Euromonitor International Note: As of 1st January https://www.7 64.939 574 2009 4.Analysis Note: As of 1st January Table 5 Male Population by Age: 2006-2010 '000/as stated 0-14 15-64 65+ 2006 4.819 676 2010 4.2 15.643 654 2009 4.3 14.588 9.288 620 % growth 3.6 7.3 1.747 25.685 10.470 634 2008 4.768 554 2008 4.833 24.181 8.275 8.3 14.113 596 2010 4.portal.028 25.282 615 2007 4.0 14.7 14.461 646 2015 4.704 10.577 535 2007 4.524 24. Euromonitor International Note: As of 1st January Table 6 Male Population by Age: 2011-2020 '000/as stated 0-14 15-64 65+ 2011 4.6 8.9 TOTAL Median age of male population (years) 13.237 8.451 8.1 13.7 8.9 TOTAL Median age of male population (years) 14.1 16.6 14.
986 3.4 10.727 286 % growth 8.683 6.143 1.918 6.9 Source: National statistics. Euromonitor International Table 10 Population by Ethnic Groups: 2011-2020 '000 Malay Chinese Indian Other Bumiputera Non Malaysian Citizens Other 2011 14.560 316 2007 13.3 10.0 16. UN.288 1.606 307 2008 14.159 6.640 27.3 2.063 7.727 32. Euromonitor International Note: As of 1st January Table 9 Population by Ethnic Groups: 2006-2010 '000 Malay Chinese Indian Other Bumiputera Non Malaysian Citizens Other 2006 13.999 30.1 4.421 1.8 TOTAL 28.067 1.687 292 2010 14.383 1.685 1.aspx 15/68 .881 3.5 16.098 28.141 28.7 -8.412 6.458 1.2 Source: National statistics.3 13.552 7.075 256 % growth 14.851 871 2020 4.909 265 2020 17.portal.645 299 2009 14.937 3.4 15.934 6.399 9.3 8.Analysis Table 8 Female Population by Age: 2011-2020 '000/as stated 0-14 15-64 65+ 2011 4.5 5.369 10.4 TOTAL 26. UN.235 1.183 % growth 0.171 728 2015 4.euromonitor.991 2.582 6.013 3.5 TOTAL Median age of female population (years) 14.214 1.513 1.9 15.11/18/11 Euromonitor International .839 2. UN.962 3.353 9.763 281 2015 15.6 9.5 62.313 1.587 2.357 1.252 25.136 2. Euromonitor International Table 11 Population by Marital Status: 2006-2010 https://www.745 12.224 3.895 6.909 3.112 3.173 27.com/Portal/Pages/Search/SearchResultsList.7 17.5 years Source: National statistics.589 1.638 28.121 27.7 -9.
399 131 771 15.portal.715 9.386 10.269 81 2007 16.957 130 753 15.1 11.061 2007 10.333 2008 11.747 94 2020 23.7 10.289 83 2008 17.797 2010 11.021 % growth 8.029 100 % growth 25.384 10.214 86 2010 18.com/Portal/Pages/Search/SearchResultsList.8 12.371 10.620 132 780 16.9 Source: National statistics.882 10.7 Table 14 Population by Urban/Rural Location and Population Density: 2006-2010 As stated Urban ('000) Rural ('000) Population density (persons per sq km) Source: National statistics.252 84 2009 17. UN. Euromonitor International 2011 18.3 -1. UN.884 10.568 2009 11.2 Table 15 Population by Urban/Rural Location and Population Density: 2011-2020 As stated Urban ('000) Rural ('000) Population density (persons per sq km) Source: National statistics. Euromonitor International 2006 16.117 88 2015 20.4 Source: National statistics.132 2020 13. UN.885 10.176 % growth 14.709 129 741 15.8 5.561 138 869 18.829 132 789 16.980 9.8 2009 5.9 2007 5.8 2008 5.0 7. Euromonitor International Table 13 Marriage Rates 2006-2010 As stated Marriage rates (per '000 population) Source: National statistics.11/18/11 Euromonitor International .249 2015 12.euromonitor. UN.168 87 % growth 12. UN.Analysis '000 Married Divorced Widowed Single 2006 10.635 135 826 17.8 2010 5.9 https://www.6 -10.2 6.5 1. Euromonitor International Table 12 Population by Marital Status: 2011-2020 '000 Married Divorced Widowed Single 2011 11.6 4. Euromonitor International 2006 5.178 130 762 15.aspx 16/68 .
In 2010.4 11.6 20. and the number of those earning more than US$45. only 20% of households had annual disposable incomes of more than US$25. it is projected that Malaysian households will see significant rises (in real terms) in annual disposable income.5 16.0 15.euromonitor.000. particularly amongst those that might be considered middle-class households. https://www.4 23.419 909 822 672 519 2010 1.534 1. leisure and recreational products and services and communications.9 14.035 803 626 % growth 12.637 1.7%.386 850 780 648 500 2008 1. UN.000 is expected to grow by 89%.000 and only 7. the number of those earning more than US$25.6%. despite slight dips due to the impact of the economic downturn. Impact Over the forecast period.000 is expected to grow by 70.073 943 744 578 2020 1. This growth will be a reflection in part of the increasing number of young Malaysians who have received better educations and who. Regardless. Euromonitor International Table 17 Population by Major Cities: 2011-2020 '000 Kuala Lumpur Kelang Johor Baharu Ipoh Petaling Jaya 2011 1.000 is expected to grow by 38.3 7.Analysis Table 16 Population by Major Cities: 2006-2010 '000 Kuala Lumpur Kelang Johor Baharu Ipoh Petaling Jaya 2006 1. The continuing rise of the middle-class is expected to ensure the establishment of consumerism in Malaysia over the forecast period. including household goods and services.437 938 842 683 529 % growth 4. middle-class consumers will be seeking to move up the value chain.456 966 863 695 539 2015 1. In nearly every product category and service. there was growth in terms of the proportion of houses and higher disposable incomes over the review period. Euromonitor International HOUSE AND HOME Households by Annual Disposable Income Compared to many Western countries.com/Portal/Pages/Search/SearchResultsList. the continued rise of the middleclass is expected to drive increased demand for a wide range of products and services that many considered out of reach in previous years. in turn have higher paying jobs.1 Source: National statistics.370 820 758 637 491 2007 1.1 7. While there will still be a considerable proportion of the population in poverty.8 Source: National statistics.aspx 17/68 . Indeed. the highest among major South-East Asian economies. This is reflected in Malaysia’s relatively high GINI coefficient of 49.3% had annual disposable income of more than US$45.11/18/11 Euromonitor International . Malaysia is not considered particularly affluent.portal. UN. On the other hand.402 880 801 660 510 2009 1. the number of households earning more than US$10. poverty is considered an issue in the country and wealth distribution is significantly skewed.194 1.
000 households in 2010. implying that the strong emphasis on family ties in Malaysian society has been eroded only slightly despite rapid economic growth and societal transformation.1 million).2 million).4%. single-person households still only accounted for 7.11/18/11 Euromonitor International . Those who live alone by their own choice tend to be more financially stable than other households. the number of single-person households is projected to increase by a robust 22% to reach 619.3%. smaller pack sizes of toiletries.Analysis Households by Number of Occupants In Malaysia. As well. single-person households (particularly affluent single-person households) are expected to gain the attention of manufacturers and retailers over the forecast period.000 in 2010.9% for couples with children. by 12. the number of couples without children grew steadily.4% and households with six or more occupants which saw lower-than-average growth of 5. In spite of the small numbers.euromonitor. The number of single-person households increased by 12% during the review period to reach 495.7% of total households in 2020. unlike urban Malaysia where housing comes at a considerable premium. home appliances and white goods and furniture are also expected to be in greater demand over the forecast period to meet the needs of single-person households living in smaller spaces. Growth rates for households of all sizes were nearly similar over the review period. Couples without Children The number of households consisting of couples without children is relatively small compared to the number of households consisting of couples with children in Malaysia.5% of total households in 2010. Single-person Households Occupants of single-person households are often intra-country economic migrants who have moved from their rural home towns to major cities in search of better job and education opportunities. followed by households with four members (1. with the exception of threeperson households which saw higher-than-average growth of 14. This ranking has not changed over the review period. Impact Couples without children typically enjoy a significantly higher level of disposable income compared to couples with https://www. households with couples without children account for 11. In the same way that economy-sized packaging is designed to appeal to larger households.com/Portal/Pages/Search/SearchResultsList. The high growth experienced in the number of households with three members reflects the rising number of smaller nuclear families in Malaysia and the rising number of those with only one child. Some are expected to begin to customise products and package sizes for smaller households. the number of households consisting of couples without children is expected to increase as more newly-weds increasingly choose to delay having children (or not to have children at all). single-dose medication and OTC drugs. Indeed. etc are expected to be widely available in major retail outlets across the country.000 households in 2020.8 million households in 2010. Others are often highly paid professionals. compact versions of in-home consumer electronics. during the review period to reach 732.2 million) and households with three members (1.aspx 18/68 .portal. Over the forecast period. Despite this growth. however. with five members (1. whereas those who are forced to do so not by choice but due to circumstances tend to be less financially stable and have significantly less disposable income. Regardless of this relatively fast growth. Impact Over the forecast period. Single-serve pre-packaged meals. smaller packaging is expected to increasingly appear on retail shelves to meet demand from single-member households. although the classic nuclear family consisting of two parents and at least one child is a model also strongly represented.2% of total households compared to 54. However. the number of households with six or more occupants is the most numerous in Malaysia with 1. Cases of extended families living under a single roof is a model predominantly occurring in rural communities where housing is considerably cheaper. On the other hand. the lower-than-average growth rate of households with six or more occupants is a reflection of the increasing urbanization of Malaysia and its effect on families. extended families living together are the norm rather than the exception. as they focus on their careers and other pursuits instead. single-person households will still account for only 7. Indeed.
reaching 3. couples with children are typically more price-sensitive and less prone to impulse buying. The small number of single-parent households reflects the conservative attitudes of many Malays towards marriage and divorce.6 in 2009. the number of households consisting of couples with children is projected to increase by 3.1 births per 1.Analysis children. couples with children will account for 51.portal. Thus. Quality still matters to such consumers. Such consumers might not necessarily go for the cheapest product on the shelf (unless forced to by an extremely tight budget) but they rather gauge the attractiveness of a product based on the ratio of what it offers versus its price. single-parent families often prefer no-frills or private label products.951 4. in both urban cities and rural communities. Like many households consisting of couples with children.013 5. This is because couples without children face fewer financial commitments than those with children. by 0. Couples with Children The birth rate in Malaysia declined steadily over the review period. the difficulties that single-parent households now face in Malaysia will no doubt be much the same over the forecast period. glamour and status are all factors that have less influence.000 in 2015. couples in Malaysia still value having families with children.492 6.177 6. such attitudes are very slowly becoming more liberalized. Table 18 Annual Disposable Income per Household (Current Value): 2006-2010 '000 households Above US$500 Above US$1. especially those which are the cheapest option on the market. As a result. down from 55% of total households in 2010. reaching 3. Clearly. Couples with children tend to devote the greater part of their household budgets to household-related products and services and children-related products and services.000 2006 5. going from 18.3%.euromonitor. The price sensitivity and tighter budgets of households with children means that the most important factor influencing their purchasing decisions is value.11/18/11 Euromonitor International . the number of households consisting of couples with children grew by 8. On the other hand. Despite this. Impact The number of single-parent households is expected to grow slightly. but growth patterns are shifting slightly.393 2007 6.847 5.6% of total households in Malaysia. albeit at a slower rate than in the past.800 2008 6.3% over the review period. In particular. single-parent households tend to be very price-sensitive and value plays a very significant role in the decision regarding which products and services to buy. bearing children out of wedlock is frowned upon in Malaysia. Single-parent Families The number of single-parent families remained relatively stable during the review period. freeing up more of their income for discretionary spending. It is clear that most Malaysian couples are still establishing families and having children.8 million in 2020. In 2020. Acceptable quality often tends to be the level at the minimum required by industry standards.000 Above US$5. the Malay ethnic group accounts for more than one-half of the total population and is subject to Islamic law. but product packaging.com/Portal/Pages/Search/SearchResultsList.145 2010 6. As such.143 2009 6.332 6.000 households in 2010.aspx 19/68 .6 million households in 2010.416 https://www.270 5.000 inhabitants in 2006 to 17.125 5.769 4. growing by less than 1% to reach 255. Single-parent families tend to possess significantly lower levels of disposable income and hence most are on much tighter budgets.9%. Impact Between 2011 and 2015. especially among the more well-educated generation. The financial commitment associated with raising children is significant. Couples without children also tend to have more free time on their hands and this potent combination of higher disposable income together with increased leisure time makes them a very powerful spending force and their impact is expected to be felt over the forecast period. It is not anticipated that there will be significant changes in how most Malaysians look at single parents or at children born out of wedlock in the near term.437 5. between 2011 and 2015 to reach 262.
6 70.000 Above US$150.000 Above US$75.9 Source: National statistical offices.aspx 20/68 .000 Above US$25.com/Portal/Pages/Search/SearchResultsList.274 5.000 Above US$45.051 2010 495 759 1.084 % growth 12.1 91.659 1.0 20.3 38.0 12.017 2009 481 738 1.316 436 170 58 405 165 63 487 197 73 Source: National statistical offices.325 5.241 4.253 3.000 2011 6.487 1.162 5.167 414 163 60 2008 6.800 3.249 461 190 74 2009 6.279 5.151 949 332 134 52 Euromonitor International .515 2.11/18/11 Above US$5.329 5.388 1.107 3.648 6.000 Above US$150.406 529 217 81 2015 7.336 6. Euromonitor International Note: Constant value at 2010 prices Table 20 Annual Disposable Income per Household (Constant 2010 Value): 2011-2020 '000 households Above US$500 Above US$1.7 89.000 Above US$75.593 5.000 Above US$25.145 3.644 705 244 106 43 4.000 Above US$45.819 719 299 107 2020 7.223 445 178 65 2010 6.657 1.000 Above US$150.euromonitor.5 14.294 478 194 72 Source: National statistical offices.Analysis 5.000 415 131 % growth 20.000 Above US$10.334 6.606 1.000 Above US$10.214 6.823 1.609 1.979 7.759 1.325 3.241 3.031 363 150 60 2007 6.3 60.000 Above US$75.000 2006 6.383 6.931 7.576 3.4 https://www.000 Above US$45.205 6.portal.393 2.000 Above US$5.000 4.044 5.000 Above US$5.649 1.416 3.381 6.257 7.120 5.143 3.189 3.3 26.000 Above US$10.979 1. Euromonitor International Table 19 Annual Disposable Income per Household (Constant Value): 2006-2010 '000 households Above US$500 Above US$1. Euromonitor International Note: Constant value at 2010 prices Table 21 Households by Number of Persons: 2006-2010 '000 1 person 2 persons 3 persons 2006 442 674 948 2007 455 696 982 2008 468 717 1.212 5.000 Above US$25.401 1.
321 1.269 1.portal.0 Source: National statistical offices.127 1.8 Source: National statistics.282 1.467 1.7 3.885 2020 619 957 1.800 2015 559 861 1.164 1.355 1.431 1.091 1.879 6.690 982 1.713 Euromonitor International .163 1.9 Source: National statistics.779 14.7 25.118 1.399 1.100 1.579 8.6 10.017 1.454 18.051 1.199 6. Euromonitor International Table 23 Households by Type: 2006-2010 '000 Households by type [single-person] Households by type [couples without children] Households by type [couples with children] Households by type [single-parent family] Households by type [other] Number of households 5.515 10.euromonitor. UN.358 6.5 5.1 9.568 1.434 3.4 13.376 3.407 1.757 1. Euromonitor International Table 22 Households by Number of Persons: 2011-2020 '000 1 person 2 persons 3 persons 4 persons 5 persons 6+ persons 2011 508 780 1. Euromonitor International Table 24 Households by Type: 2011-2015 '000 Households by type [single-person] Households by type [couples without children] 2011 508 757 2015 559 830 % growth 10.0 22.035 1.4 2006 442 2007 455 2008 468 2009 481 2010 495 % growth 12.040 6.229 1. UN.735 1.11/18/11 3 persons 4 persons 5 persons 6+ persons 948 1.196 1.8 1.6 TOTAL HOUSEHOLDS 6.483 3.234 1.067 1.991 % growth 22.304 3.com/Portal/Pages/Search/SearchResultsList.5 22.358 6.879 6.1 23.199 6.132 1.3 TOTAL HOUSEHOLDS 5.671 7.2 12.6 https://www.084 1.Analysis 1.515 10.3 253 253 255 256 255 0.aspx 21/68 .247 1.000 19.280 8.040 6.199 1.3 652 673 688 706 732 12.
luxurious imported design materials and high-end in-home consumer electronics. the number of home owners with mortgages is projected to increase by 59%. semi-detached and terraced houses tend to be the norm. where residential housing prices are significantly steeper. reaching 1. https://www. the situation is more skewed towards apartments.9 24.5%.000 as of 2010. Lower down the value chain.portal. The overall number of home owners (with or without mortgages) numbered 5. the concept will be the same: comfort along with the latest in technology with the objective of improving the quality of home life. mass-market counterparts of household goods and services are also expected to be in great demand. Occupants of many of these newly established households will be more sophisticated and refined in their tastes and this will be reflected in the products and services they use to design.2 million in 2010. detached.6 million home owners in 2010 (89% of total home owners) who owned their homes without mortgages. reaching 6. Affluent home owners will drive demand for designer furnishings and interior fittings. detached. The sharp increase in home renters is largely the result of the rising urbanisation in Malaysia.835 7. well-educated and affluent Malaysians is expected to continue to emerge over the forecast period. Despite this strong growth.280 3. Apartments are fastest-growing housing type. This growth was facilitated by liberal financial regulations under which banks and financial institutions have been able to easily disburse mortgage loans to consumers. increasingly breaking off from their extended families to set up their own households.674 260 1. Euromonitor International Home Ownership Housing in land-abundant Malaysia is generally affordable.aspx 22/68 .11/18/11 Euromonitor International .2 million in 2010.com/Portal/Pages/Search/SearchResultsList. However.Analysis Households by type [couples with children] Households by type [single-parent family] Households by type [other] Number of households 3.3% of total households in 2020 (but nearly 16% of total home owners).3 0. In cities. semi-detached and terraced houses are also common in urban cities. especially in Kuala Lumpur where high-rise apartments and condominiums are common.671 3. houses grew by 10. often two parents and one child – projected over the forecast period. Home owners with mortgages numbered only 553. with a wide range of options available to prospective home owners in nearly all income-brackets.euromonitor. While being considerably less luxurious and expensive. These households will also drive demand for high-end furniture. In contrast. reaching 980. In rural regions and smaller towns. or 79% of all households in Malaysia.5 million in 2010. Impact Over the forecast period. especially in the outlying areas outside of the central business districts where such houses remain affordable to most middleincome households. with condominiums and high-rise apartments a rarity.795 262 1. This is reflected by the 4. On the other hand. The country has seen an exodus of teenagers and young adults from rural communities to the major cities in search of work and in many cases these intra-country migrants live in rented accommodations as they are unable afford purchasing their own places in these major cities. accounting for 8. a rapidly growing segment within the luxury goods market. the overall number of households increased by 10. Over the same period. This is reflected in the strong increase of small nuclear family units – in particular households with three members.5% of total households in Malaysia.8%. the number of rented households increased by 17. increasing by 13.8%. renovate and furnish their households. The new generation of young.8%.2 million in 2020. reaching 6. the number of home owners with mortgages increased by 85% during the review period. During the review period. Growth in the number of apartments is also a reflection of the accelerating urbanisation in Malaysia. where land is significantly cheaper. the number of home owners is projected to increase by 17. Over the same period. home owners with mortgages will still account for only 12.7% during the review period.5 Source: National statistical offices.474 6.000 in 2020.
Impact As household running costs continue to rise in Malaysia over the forecast period. Colour TV sets were the most commonly owned household durable in 2010 with 96. resulting in multiple hikes in energy tariffs and fuel prices during the review period. insulating consumers in the country from the extreme fluctuations in the global market for oil. but energy-saving refrigerators. Over the forecast period.Analysis Running Costs The price of energy and fuels increased considerably during the review period.3 million in 2006 to RM3.aspx 23/68 . consumer demand for energyefficient appliances and other household products is expected to grow. especially in rural communities.com/Portal/Pages/Search/SearchResultsList. which have come to be regarded as necessities rather than a luxury by many in the middle-income consumer segment in hot and humid Malaysia. Possession of Household Durables Household possession rates of nearly all types of household durables increased during the review period with the exception of telephones and tumble dryers. However. cookers and washing machines will also see greater interest amongst households seeking to reduce what they spend on energy costs. the consistently high price of oil during the review period and the country’s sizeable fiscal deficit forced the government to progressively reduce energy subsidies. Historically. The continued price hikes for electricity and gas in Malaysia during the review period were felt by all but the most affluent households. The ownership rate of telephones declined due to mobile phones increasingly replacing the need for landlines. There is little need for consumers to travel out of town to seek out low prices as prices are there are similar to those in urban hypermarkets and supermarkets. Malaysia is a net energy exporter and this has allowed the government to set the price of energy in Malaysia. Less energy-efficient products are beginning to lose market share.9% of households possessing at least one. refrigerators and televisions have become more popular as consumers increasingly scrutinise the energy consumption of such products. hypermarkets and supermarkets are expected to increase their distribution share in Malaysia.5 million in 2010 and consumer expenditure on gas increasing from RM2.euromonitor. This is expected to be the case within the fresh foods and other perishables segment as well as household goods segment as chains and other operators continue to extend their reach into the smaller towns and rural regions of Malaysia. natural gas and coal. such as energy-saving light bulbs. As a result. consumers use them most often to shop for fresh food and other perishables than for household goods. Not only are air-conditioners with inverter technology and other energy-saving technologies expected to be in greater demand. Inverter models which consume significantly less energy and other airconditioners with higher energy efficiency ratings are the most popular.3 million in 2010. However.11/18/11 Euromonitor International .portal. This was closely followed by washing machines with a https://www. Holding a good mix of natural energy resources such as oil. As well. electricity. Shopping for Household Goods Most Malaysian consumers tend to shop for household goods at the numerous hypermarkets and supermarkets that are present in almost every major Malaysian city as well as in the larger towns in rural regions. Consumers are increasingly replacing their old and energy-inefficient air-conditioners with more energy-efficient modern models. Local open markets and small independent retailers are still flourishing in Malaysia. gas and fuel are all heavily subsidised. most Malaysian consumers are now paying more attention to their energy consumption in an attempt to rein in spending on their rising utility bills.2 million in 2006 to RM8. Hypermarkets and supermarkets are now the dominant retail channel for household goods in Malaysia thanks to their ability to offer the widest choice of products under a single roof. Most prominent among these is air-conditioning units. In fact. some consumers from rural communities make the trip to their nearest urban hypermarkets in order to stock up on household goods due to the vast selection and reasonable prices on offer. This effect is most keenly felt amongst products which consume significant amount of energy to operate. One consequence of this is that energyefficient consumer electronics and white goods. This resulted in consumer expenditure on electricity increasing from RM6. their no-frills products and private label products are significantly cheaper and very popular among low-income consumers.
the increasingly hectic work schedules of many means that there is little time to devote to DIY and gardening. 17. A significant proportion of consumers have been steadily replacing their obsolete CRT television sets with LCD and plasma sets and. that rate is projected to rise to just more than 88%. more recently. Consumers have not embraced the usage of such durables and most continue to prefer to carry out the chores that these products perform themselves. but they are neither particularly common nor popular.6% of households in 2020) together with the overall impact of the digital revolution in Malaysia is expected to boost to the internet retailing distribution channel over the forecast period. with the more expensive but energy-efficient LED sets. This will be further assisted by continuing improvements in the country’s broadband infrastructure.com/Portal/Pages/Search/SearchResultsList. that rate is projected to rise to 47%. Similarly. For large-scale gardening projects.2% although this was still an increase from 14% in 2006. in 2011 75% of households possessed vacuum cleaners. businesses within this sector tend to offer skilled labour services rather than raw materials and tools directly to consumers. The majority of households in Malaysia prefer to wash their dishes by hand and using a dishwasher remains a foreign concept. Among the major types of household durables. Impact Over the forecast period. manual labour is frowned upon by most members of the upper.7%.euromonitor. possession rates of household durables are projected to increase in nearly every category. The highest growth in ownership during the review period was for personal computers. up from 32% in 2006. most consumers choose to seek professional services.) Growth is expected to be facilitated by rising disposable incomes. Such household durables are regarded as unnecessary luxuries by the average consumer. On the other hand. These two household durables. together with refrigerators. it is unlikely that DIY as it is known in the West will flourish. Overall. 44. Colour TV sets being considered a necessity among Malaysian households was an influential factor behind the strong sales of LCD and plasma sets during the review period. Retail outlets selling DIY materials and tools do exist in Malaysia. A large part of the growth during the review period was due to the increasing number of first-time computer buyers in rural regions. https://www. dishwashers had the lowest possession rate in 2010.and middle-income segments.aspx 24/68 . Even many low-income households stretch their budgets to purchase new LCD or plasma TV sets. The widespread availability of cheap labour to undertake home improvement and home repair projects as well as gardening work makes it easy to hire these tasks out to others. Impact It is not anticipated that consumer attitudes in Malaysia towards DIY and gardening will change significantly over the forecast period.5% of households possessed a personal computer. in 2020. in 2011 39. are considered by most Malaysian consumers to be essential. DIY and Gardening DIY and gardening are not popular activities among the majority of Malaysians. Growth was due to falling prices for products and services as well as to the much-improved broadband internet infrastructure in the country.6% of households possessed vacuum cleaners. it is expected that as aspects of the Western lifestyle expand in the country. the only durables expected to see declining rates are landline telephones and tumble dryers. particularly amongst the affluent and better-educated. (As during the review period. unless there is a genuine interest and love for such tasks and that is not common. even among the lower-income consumers. With the low popularity of DIY and gardening activities among Malaysian consumers. a robust financial system where credit online card transactions are secure and reliable and the continuing prominence of the younger generation of internet-savvy consumers. The rising possession rate of personal computers (projected to be in 64. despite the increasingly hectic lifestyle of urban Malaysians. As well. possession rate of time-saving household durables such as microwave ovens and tumble dryers still remain low. For example. In 2010.11/18/11 Euromonitor International . Similarly. But as long as there is cheap labour available to undertake home improvement and home repair tasks.Analysis possession rate of 92. Nurseries and similar outlets selling plants and gardening materials are relatively more common but they are mostly limited to selling potted plants and small ornamental decorations.portal. in 2020. particularly with the running costs of these machines adding to the household running costs. an increasing number of Malaysians will adopt gardening as a hobby. the continuing launch of new and improved model and the capacity in some segments to absorb additional sales.
their numbers remain lower than those seen in Chinese-majority countries such as Singapore. reaching 311.646 617 2015 5. this sector has enjoyed significant growth as the population of pet fish grew by 9.8 12.188 173 85.937 4.11/18/11 Euromonitor International . there is very little tolerance for dogs in the public places in Malaysia and public facilities such as dog runs or dog parks are virtually non-existent.602 % growth 9. express a greater interest in keeping dogs as pets.470 2008 4. Related service providers such as dog trainers and grooming studios are also seeing growth.000 in 2010. The majority of fish hobbyists belong to the Chinese ethnic group which holds a cultural belief that rearing pet fish works as a lucky charm and wards off bad luck from their household. Consequently. without mortgage Home owner.263 4.880 809 2020 6. An increasing number of professionals offering to design and install elaborate aquariums or even indoor ponds to affluent consumers has also seen increased demand for their services. Euromonitor International Table 26 Households by Tenure: 2011-2020 '000 Home owner Home owner. The large numbers of fish hobbyists in Malaysia has spawned a significant niche industry catering to the needs of such consumers.euromonitor. Of these. catering to the demand from a younger and newly affluent consumer segment.879 6. including pet food.5%.8 2006 4.055 157 421 1. without mortgage Home owner. Many have their own private aquariums or ponds installed in their houses or apartments. The growing popularity of dogs in Malaysia has sparked an increase in the number of pet shops selling the usual range of pet food.515 10. medication and related accessories. primarily non-Malay.154 4.2 4. Regardless.com/Portal/Pages/Search/SearchResultsList.221 980 % growth 17. 2. fish are expected to remain the most popular pet amongst Malaysian households and demand for fish and fish-related products and services is expected to continue to grow.690 4. Impact Over the forecast period.aspx 25/68 . Table 25 Households by Tenure: 2006-2010 '000 Home owner Home owner.5% during the review period. the pet population in Malaysia grew by 9% during the review period. Consequently.4 58.7 million pets in 2010.199 6. Dog breeders are also becoming more common and accessible.4 million were pet fish. training and kennel services and veterinary services. The growing (but albeit relatively small) demand for dogs as pets over the forecast period is expected to spur growth in a wide range of pet-related products and services.145 167 553 1. as an increasing number of affluent households. leashes. however.8 Source: National statistical offices.201 5.420 2007 4.559 2010 5.8 13.Analysis Pet Ownership Overall. reaching 3. The relatively low number of dogs kept as pets in Malaysia is largely due to the attitudes of the majority Malay ethnic group whose religious beliefs forbid them from having any interaction or contact with dogs. with mortgage Rented Other 299 1.0 17.719 4. Attitudes are beginning to relax.516 2009 5.046 4. toys. such as koi and arowana. fish hobbyists are sometimes willing to fork out thousands of dollars for premium breeds of popular pet fish.portal. Dogs were the fastest-growing pet category during the review period with growth of 12.040 6. From fish rearers who painstakingly breed premium fish species to shops selling aquarium accessories and plants.358 6.009 152 358 1. pet accessories.1 TOTAL HOUSEHOLDS 5. with mortgage 2011 5. cages.100 162 487 1.828 4.9 https://www.
453 2.8 Source: National statistical offices.466 2.868 3.portal.193 2.7 12.7 12.736 3.515 10.199 6. Euromonitor International Table 29 Running Costs: 2006-2010 RM million Consumer expenditure on electricity Consumer expenditure on gas Consumer expenditure on liquid fuels Consumer expenditure on solid fuels 59 64 72 71 75 29 28 28 25 24 2.487 https://www.471 2009 5.384 3.198 2.671 7.231 178 809 1.064 2.280 8.579 219 58.8 8.euromonitor.564 2.3 23.865 2010 8.261 2006 6.282 2.859 2008 7.11/18/11 Euromonitor International .5 9.404 2008 5.817 2009 7.5 TOTAL HOUSEHOLDS 5.aspx 26/68 .6 11.671 587 216 2015 6.8 2006 5.995 2.040 6.com/Portal/Pages/Search/SearchResultsList. Euromonitor International Table 27 Households by Type of Dwelling: 2006-2010 '000 House Detached house Semi-detached and terraced house Apartment Other 500 186 517 192 534 198 552 204 569 210 13.538 2010 5.131 2.394 197 980 1.9 Source: National statistical offices.602 3.Analysis Home owner.9 28.358 6.8 TOTAL HOUSEHOLDS 6.280 Source: National statistical offices.926 2.168 2007 6.879 6.605 % growth 10.337 2007 5.000 19.671 7. with mortgage Rented Other 617 1.947 2.856 2.0 10.931 657 240 % growth 8.0 9.330 2. Euromonitor International Table 28 Households by Type of Dwelling: 2011-2015 '000 House Detached house Semi-detached and terraced house Apartment Other 2011 5.980 3.6 TOTAL HOUSEHOLDS 6.
Analysis on solid fuels TOTAL 8.6 20.4 66.9 17.9 39.2 23.8 2010 96.6 35.6 37.com/Portal/Pages/Search/SearchResultsList.4 43.8 2008 96.5 16.0 39.2 86.4 2015 98.226 2007 3.1 68.8 38.9 12. Euromonitor International Table 31 Possession of Household Durables: 2011-2020 % of households Colour TV set Dishwasher Freezer Microwave oven Personal computer Refrigerator Telephone Tumble dryer Vacuum cleaner Washing machine 2011 97.2 21.7 84.864 10.2 32.euromonitor.3 56.0 25.341 2009 3.4 48.0 2020 98.8 14.639 306 527 202 2.5 85.0 34.1 22.8 21.aspx 27/68 .5 23.9 35.0 83.9 74.7 84.4 34. Euromonitor International Table 30 Possession of Household Durables: 2006-2010 % of households Colour TV set Dishwasher Freezer Microwave oven Personal computer Refrigerator Telephone Tumble dryer Vacuum cleaner Washing machine 2006 94.5 https://www.281 2008 3.8 64.portal.1 33.8 19.437 % growth 8.4 44.2 43.3 81.2 — 88.846 Source: National statistical offices.8 36.8 24.1 26.8 89.0 18.2 23.402 2010 3.11/18/11 Euromonitor International .9 19.5 14.549 295 517 205 2. Euromonitor International Table 32 Pet Population: 2006-2010 '000s of animals Pet Dog Cat Bird Fish 2006 3.2 72.3 32.7 86.8 92.6 -9.6 2009 96.7 Source: National statistical offices.9 90.1 19.461 286 506 207 2.7 70.0 82.539 9.9 93.2 96.0 21.6 22.9 64.2 17.515 10.378 276 496 209 2.6 92.0 15.1 9.5 19.2 41.1 23.8 88.5 7.7 91.678 311 534 190 2.1 Source: National statistical offices.6 47.7 2007 95.3 95.940 11.5 20.6 46.3 38.
815.2% (in real terms).936 12. However. as the group aged 35 to 39 years-old tended to be at the peak of their careers and earning power.511 Source: National statistical offices.Analysis 2. Those aged 30 to 34 years-old were the most affluent with average annual gross income of RM31.368 in 2010. This trend is expected to continue over the forecast period as average annual per capita disposable income increases by 42.149 13. respectively.437 9.com/Portal/Pages/Search/SearchResultsList.924 14.euromonitor.958 2015 22.402 2.273 https://www.226 127 44 2. UN.185 2008 17.924 14.972 2007 15. Euromonitor International Table 34 Annual Gross and Disposable Income (Constant 2010 Value): 2006-2010 RM per capita Annual gross income Disposable income 2006 15. an increase of 20% (in real terms) from 2006. Euromonitor International Note: Constant value at 2010 prices Table 35 Annual Gross and Disposable Income (Constant 2010 Value): 2011-2020 RM per capita Annual gross income Disposable income 2011 19.718 21.890 2010 18.273 in 2020.464 2020 27.656 2010 18.324 10. with the biggest gains seen in the younger age segments.329 14. In further years.527 14. Euromonitor International INCOME Average Income In 2010.5 147 46 156 46 160 46 25. Table 33 Annual Gross and Disposable Income (Current Value): 2006-2010 RM per capita Annual gross income Disposable income 2006 14.341 Euromonitor International .190 13.8 4. the average annual per capita disposable income in Malaysia was RM14.portal.027 2009 18.764 12.075 2007 17.11/18/11 Fish Small Mammal Reptile 2. with those aged 65 years-old and older recording average annual gross income of RM20.511 Source: National statistical offices.844 13. This group was followed closely by those aged 25 to 29 years-old and those aged 35 to 39 years-old. These rankings remained unchanged during the review period. Average Income by Age All age segments enjoyed significant increases in their average annual gross incomes during the review period. disposable income (as well as the economy) rebounded in 2010.511.754 17.9%. with average annual gross incomes of RM30. the result of the global financial crisis.916 13. reaching RM21.5 Source: National statistics. Growth was recorded in all years of the review period with the exception of 2009 when there was a small dip.143 2008 18.712 2009 17.134 in 2010.aspx 28/68 .495 and RM30. a decline of 00. gains in average annual gross incomes began to decline. This is also the age segment where the largest concentration of professionals and executives is situated.281 137 45 2.
11/18/11 Euromonitor International .440 23.4 18.299 21.244 23.961 23.926 29.359 18.004 20.8 19. Euromonitor International Note: Constant value at 2010 prices Table 36 Average Annual Gross Income by Age (Current Value): 2006-2010 RM 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65+ 2006 19.9 billion in 2010.385 26.269 16.033 24.368 % growth 17.320 27.460 28. Euromonitor International Table 37 Average Annual Gross Income by Age (Constant 2010 Value): 2006-2010 RM 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65+ 2006 21.357 29.797 28.421 24.134 30.752 25.977 20.610 21.054 26.161 28.4% during the review period to reach RM78. overall consumer expenditure increased by 29% (in real terms).133 19.797 26.298 29.123 2008 24.898 27.660 28.642 27.119 19.752 25.089 29.8 18.584 23.0 18.aspx 29/68 .781 2009 24.1 19.372 19. increasing by 37.399 23.556 21.495 31.368 Source: National statistical offices.371 28.247 26.563 2010 25.880 27.8%)) of consumer expenditure in 2010.6 18.888 2007 23.891 19.234 2010 25.306 17.047 28.460 28.606 30.461 28.635 22.171 25.Transport accounted for the largest share (21.606 30.680 21.245 22. reaching RM361.470 29.170 19.986 24.257 24.717 21.230 27.600 15.691 29.134 30.399 23.706 24.353 21.portal.245 22.5 billion in 2010. Following closely behind was consumer https://www.085 17.248 25.028 21.533 29.336 2009 24.974 29.894 23.702 20.590 16. Euromonitor International Note: Constant value at 2010 prices CONSUMER EXPENDITURE Living Costs During the review period.815 29.6 Source: National statistical offices.115 27.815 29.108 25.4 20.528 27.1 20.euromonitor.778 19.425 24.004 20.com/Portal/Pages/Search/SearchResultsList.107 26.032 23.495 31.533 26.838 20.101 20.375 30.Analysis Source: National statistical offices.769 26.2 18.728 2008 24.759 30.5 20.723 22.642 27.609 24.345 2007 21.612 22.864 29.005 27.247 19.230 25.166 22.297 25.439 22.587 19.071 28.
) Once the growing number of new home owners had settled in the cities. For the most part.portal. Thais began increasingly purchasing automobiles in order to escape from the overcrowded and inadequate public transport infrastructure in Malaysia.aspx 30/68 . the ageing population is expected to drive increased demand for OTC drugs and remedies. spent more on products and services that satisfied their personal needs and enhanced their leisure time.572 8. With rising disposable incomes. In 2010. Spending on health goods and medical services is projected to continue to rise over the forecast period at the very robust rate of 82. For example. most found that they needed public transport to commute to and from their workplaces as well as just to get around. reaching RM75.195 3. there was a surge of investment in the property sector once the 2009 recession blew over and as low interest rates made investment property more affordable among middle-income consumers. An increasing number of workers are moving to cities and generating demand for new homes. As during the review period.082 2006 38.euromonitor. During the review period. Table 38 Consumer Expenditure by Broad Category (Current Value): 2006-2010 RM million Food and non-alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing 7. Both expenditure trends are related to rising urbanisation in Malaysia.519 3. dietary supplements and medical devices such as ambulatory aids.941 9.211 69.862 4. Another sector which saw significant growth in spending during the review period was communications.162 70.750 75.022 2008 46.938 3. respectively.5 billion in 2020.5 million in 2010.273 in 2020.213 61.2 billion in 2010. with growth particularly evident in rural communities.5 million.2% and 48. Much of this growth can be attributed to the rising health consciousness among the more educated and savvy Malaysian consumer base together with the factors related to the ageing of the population. spending on communications is projected to increase by 83% to reach RM50.2% (in real terms). reaching RM11. reaching RM594.2% from 2006 through 2010 and this contributed strongly to consumer expenditure on transport during the review period. spending on transport and housing are projected to increase by 67. spending on housing increased by 27. the sectors that experienced robust growth during the review period will continue to see growth over the forecast period. Spending will grow in line with growth in disposable income.7%. increasing urbanisation will play a key role in driving this growth. including rising health awareness and an increased focus by Malaysians on preventive health care. 62.11/18/11 Euromonitor International . broadband internet services and mobile data services is expected to soar over the forecast period as Malaysian consumers increasingly become more digitally connected. reaching RM21.Analysis expenditure on housing. spending on leisure and recreation increased by 30.159 https://www. Consumer expenditure on communication equipment and services such as mobile phones. Over the forecast period. In 2010. (As well. A number of factors are expected to drive this growth.3%. annual per capita disposable income is projected to rise by 42% (in real terms). particularly younger consumers.942 2009 46. many Malaysian consumers. which grew by 45. Over the forecast period.6% to reach RM17. New registrations of passenger cars grew by a staggering 48.401 53.com/Portal/Pages/Search/SearchResultsList.130 9.5% (in real terms).175 3. overall consumer expenditure is projected to increase by 57. At the same time. spending on housing accounted for just more than 20% of total spending.402 9. As well. Spending on health goods and medical services experienced the highest growth (59% in real terms) during the review period.737 2010 50.2% of Malaysian households possessed passenger vehicles.3 billion in 2020. Impact Over the forecast period.2% to reach RM26 million.154 2007 42. Growth was due in large part to increasing household penetration rates for mobile phones and the uptake of broadband and mobile data services. Over the same period.
409 19.443 337.959 13.267 8. Euromonitor International Note: Constant value at 2010 prices Table 40 Consumer Expenditure by Broad Category (Constant 2010 Value): 2011-2020 RM million Food and non-alcoholic beverages 2011 52.433 17.portal.253 9.276 13.537 52.390 9.864 25.638 28.458 TOTAL 254.486 23.539 288.016 2015 61.7 27.534 11.145 58.885 25.3 7.159 % growth 19.932 8.929 78.458 37.258 12.5 TOTAL 280.318 10.com/Portal/Pages/Search/SearchResultsList.318 71.082 16.536 2010 50.897 16.073 10.750 75.559 70.266 21.6 % CAGR 4.796 4.204 16.aspx 31/68 .328 16.522 5.211 9.354 37.9 3.537 59.126 31.725 329.297 59.659 6.379 5. Eurostat.530 33.234 15.244 % growth 46.8 2006 41.1 8.648 72.719 19.6 24.547 19.399 339.134 311.977 5.011 5.4 45.186 16.841 69.516 Source: National statistical offices.5 18.809 34.5 25.495 16.354 37.040 27.649 361. OECD.3 https://www.040 27.805 25.990 2007 45.237 64.942 361.892 13.979 35.551 16.329 2008 48.533 6.597 9. Euromonitor International Table 39 Consumer Expenditure by Broad Category (Constant 2010 Value): 2006-2010 RM million Food and non-alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Misc goods and services 57.460 23.029 3.793 14.681 23.195 17.125 10.516 29.806 333.879 34.667 25.071 71.11/18/11 Euromonitor International .357 17.euromonitor.417 20.1 Source: National statistical offices.547 11.043 21.494 78.823 23.928 4.494 3.977 17.427 5.533 6.244 5.2 30.023 2009 47. Eurostat.860 66.885 25.400 25. OECD.584 9.229 22.200 4.896 16.942 35.104 31.433 2020 76.682 16.411 16.423 71.977 17.5 29.Analysis Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Misc goods and services 12.590 14.885 5.
m. Recently.223 56.4 46. It lays out the Regulation of Employment and minimum standards in the market which are applicable nationwide and which cover all employers and employees.2 5. or 1 p.11/18/11 Euromonitor International .9 5. or 9 a.629 34. five consecutive hours of work without a period of rest of not less than 30 minutes and 48 hours in a week.m. an additional/optional 9 a. The principal legislation governing employment and the labour market in Malaysia is the Employment Act.Analysis beverages Alcoholic beverages and tobacco Clothing and footwear Housing Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Misc goods and services 84.953 35.7 6.3 5. Commuting Only Kuala Lumpur.024 29.3 4.m.3 5.987 106.7 4.091 461.4 4. Chinese and Indians.958 22.008 67.0 57.m. The industry norm in the private sector is 14 days to 21 days per calendar year. Civil servants are able to choose between a five-day and six-day work week. with an additional 14 days of medical leave (subject to approved medical certificates).m.334 16. to 5 p.3 60.4 5. as well as events of national significance.8 6. Euromonitor International Note: Constant value at 2010 prices WORK Working Conditions Malaysians are well-known for their industrious work ethic. enjoys a comprehensive and well-maintained light rail transit https://www.665 115.522 57.m. to 12 p. Monday through Friday with.com/Portal/Pages/Search/SearchResultsList.582 18.215 27.585 22. Malays.292 7. Forty-hour work weeks spread over five days is the industry norm for the private sector.224 6.622 38. Eurostat.642 140. there has been a fierce debate within the government and among public interest groups about the establishment of a national minimum wage.847 50.521 14.1 4.180 28.041 22.1 Source: National statistical offices.772 91.012 45.portal.465 18. on Saturdays.euromonitor.2 83.7 55.266 28. Only plantation workers in Malaysia are protected with a minimum wage of RM 350 monthly which can rise to RM 700 monthly through productivity incentives and bonuses.7 3.645 5.180 4.9 10. the capital city of Malaysia.532 82. Official working hours under the Employment Act are not to exceed eight hours a day excluding a period of rest. OECD.968 45.0 48.aspx 32/68 .043 77.8 54. Holiday entitlement is set at a minimum of eight days a year.243 11.3 TOTAL 378. especially those among the economically dominant Chinese ethnic group.749 10.323 46.m. Malaysia’s official public holiday calendar is based on religious and cultural events from the three major ethnic groups.0 12. There is currently no national minimum wage for Malaysian workers.315 34. Civil servants are entitled to as much as 30 days of annual leave per calendar year.127 594. a number that increases with the numbers of years worked to reach 16 days a year for employees with five or more years of service. or 6 p. Standard working hours for whitecollar workers are from 8 a. in some cases..9 4.
Analysis service. This indicates that a significant wage gap exists between male and female workers doing the same work or in similar jobs in Malaysia. https://www. with most employers demanding full-time work within a stipulated time frame. Together with a comprehensive bus transport service with 1.euromonitor.092 buses. The number of freelance and self-employed workers in Malaysia grew during the review period in large part thanks to the internet. According to the World Economic Forum. Thus. the increasing number of cars on the road has resulted in increasingly frequent traffic snarls in the city centre. Indeed. Working Women During the review period. jobs that previously could only be performed in an out-of-home office environment.2% of the total employed population) in 2010. Although their number increased by 8. Under Malaysian labour law.7% during the review period. Alternative Work Options Part-time employment is still relatively rare in the Malaysian workplace. This is particularly true among professionals such as lawyers. pregnant women who have been employed for at least 90 days in the preceding four months are entitled to a Statutory Maternity Leave period of at least 60 consecutive days during which their full salary is paid. This is largely due to females in Malaysia typically having to juggle dual roles as homemaker/mother and wage earner in Malaysian households.11/18/11 Euromonitor International . Despite such a comprehensive infrastructure. but as of yet no changes have been made. etc) and give them the tools they need to perform the work but internet technology allows workers to perform traditional jobs at home. On the other hand. Commuting by car. Part-time work gives these women the flexibility to devote time to both. commuting by car is a popular option among the wellheeled working population in Kuala Lumpur. However. the employed female population grew by 8% to reach 3. This is not a big surprise given the prevalent parochial attitude toward women and career advancement among many in the majority Malay ethnic group. this system is the most common way for residents in Kuala Lumpur and the outlying residential areas to commute to work.aspx 33/68 . Not only does this new technology provide freelances and self-employed workers with new types of jobs (web designing. is more common for workers outside of Kuala Lumpur.com/Portal/Pages/Search/SearchResultsList. Walking and cycling are not common forms of commuting as the distances commuter need to travel tend to be long and cycling is perceived to be dangerous on the roads during peak driving hours. the public transport in Kuala Lumpur is nevertheless perceived to be overcrowded and unable to meet current demand.9 million (or 36.2% of the entire working population in 2010. changing the look of the employment landscape in the country. part-time workers nevertheless accounted for only 2. the public transport infrastructure is limited to bus transport services. There are no light rail transit or monorail systems in other major cities in Malaysia and. most of which have frequently been criticized as being inefficient and inadequate. There have been discussions to extend that period to 90 days of fully paid leave to bring Malaysia more in line with the international standards laid down by the International Labour Organisation Convention. Both of these situations are beginning to make commuting by car a less attractive option. This trend is expected to continue to grow over the forecast period. there have been significant improvements made in this area recently but apparently not enough to date to boost Malaysia’s world ranking. Females are more likely to be part-time employees and they accounted for 73.portal. Malaysia ranks 98th in the world (out of 134 countries) in the Global Gender Gap Index. architects and engineers. online retailing. parking options are limited. web programming. trains are typically filled to uncomfortable levels during morning and evening peak travel periods. therefore.6% of the total part-time employee population in 2010. a measure in which wage equality between male and female workers and labour force participation are key variables. It comprises 60 rail stations across three separate lines as well as an intra-city public transit system consisting of a monorail running across 11 stations through the central business district of Kuala Lumpur. doctors. for the most part. Attitudes towards flexible employment or part-time employment are still relatively conservative in Malaysia. This growth was largely due to women in Malaysia increasingly raising their education levels as well as an increasingly more liberal and accepting attitude towards women working in both the private and public sectors. As well.
213 4. Unemployment In 2010.952 % growth 6. Laos. Table 41 Employed Population: 2006-2010 '000 Employed male population Employed female population Total employed population Male part-time employees Female part-time employees Total part-time employees 223 228 235 238 242 8. a result of the economic downturn.796 70 168 10. although a significant number of private sector employers retire their female employees at 50 years-old.931 69 173 7. the retirement age for Malaysians is 58 years-old for public sector employees and 55 years-old for private sector employees. while the purchasing power of many retirees is making them an increasingly influential consumer demographic in Malaysia.9 https://www.852 3.4 6. Indeed. resulted in unemployment being reduced to 376.978 3.com/Portal/Pages/Search/SearchResultsList. up from 368.8%. The vast majority of retired Malaysians do not enjoy pension schemes but instead benefit from a compulsory retirement fund called the Employment Provident Fund.207 76 % growth 17.euromonitor.000 Malaysians unemployed in 2009.097 73 2020 8.661 2007 6. Retirees are more financially able than ever before. a service gratuity payment and medical benefits. however. well within the average for the region as well as globally. That reflected 418.500 unemployed in 2008. The collective sum is then used to provide retirement benefits to Malaysians after their retirement. Philippines. many retirees are not only living longer but also living more productive and active lives in their retirement years. to which Malaysian workers and their employers both contribute a fraction of workers’ monthly wages. this means that the average spending power of the average retiree in Malaysia is deteriorated in real income terms during the review period and this limited their spending and consumption. assisted in many cases by their children and grandchildren who enjoy rising disposable incomes and better work opportunities in the current employment market.0 18. Thailand and even Brunei have official retirement ages ranging from 60 to 67 years-old. On the other hand.Analysis Retirement Officially. the labour force participation rate in Malaysia was 62.550 3.5 8.437 4.0 12.211 69 154 10.037 11. among other benefits. even as the labour force participation rate increased to 63% due to persistent structural unemployment.741 4.2 17. neighbouring countries such as Singapore.portal.250 71 2015 7.659 70 165 10.6% in 2009.869 2010 6.540 70 158 10.400 or 3. This is one of the lowest retirement ages among Asian countries.2% in 2010.7 10.356 12.2 2006 6. Unemployment increased to a review period high of 3.807 2009 6. there are still large numbers of older people who cannot afford to buy anything except the essentials. Able to afford high-quality medical care and health supplements. Coupled with one of the highest life expectancies in the world.748 3.770 13. Eligible civil servants are covered under a government pension scheme which provides them with a monthly income. Euromonitor International Table 42 Employed Population: 2011-2020 '000 Employed male population Employed female population Total employed population Male part-time employees 2011 7.927 3. The strong economic recovery coupled with the government’s assistance plan.1 1.aspx 34/68 .793 2008 6.0 Source: ILO.11/18/11 Euromonitor International .
Primary school education is compulsory for all Malaysian children six years-old and older. Typically.Analysis Female part-time employees Total part-time employees 178 248 193 266 212 288 19.9 2020 235 153 388 2. The number of https://www.9 3. In 2010.2 3.9 Source: ILO.2 3.11/18/11 Euromonitor International . Euromonitor International Table 44 Unemployed Population: 2011-2020 '000 Unemployed male population Unemployed female population Total unemployed population Male unemployment rate Female unemployment rate Unemployment rate 2011 219 141 360 2.3 7. Bahasa Malaysia.com/Portal/Pages/Search/SearchResultsList.9 3.4 3.2 2.8 3. except for English.7 3.9 Source: ILO.000 children attended kindergartens and pre-primary schools. a concession to the Chinese and Indian minority ethnic groups where the language of instruction is either Chinese or Tamil as per the students’ ethnic affiliation. only affluent or some middle-income households can afford kindergarten educations for their children and this has accounted for the relatively stagnant numbers of children enrolled in kindergartens or other forms of pre-primary schools in Malaysia.7 Source: ILO.2 3. reflecting growth of only 0.1 2015 220 142 362 2.3% during the review period.4 3. where the language of instruction is the official language of Malaysia.7 3. Euromonitor International LEARNING School Life Kindergarten or nursery school education is not compulsory for Malaysian children. and vernacular primary schools.1 3. although a significant number of households choose to send their children as young as three years-old to private kindergartens or nursery schools.4 3.3 8.3 3.3 3.euromonitor.3 3. Primary schools in Malaysia are divided into two types: national primary schools. It normally lasts for a period of six years. science and mathematics.7 3.aspx 35/68 . Euromonitor International Table 43 Unemployed Population: 2006-2010 '000 Unemployed male population Unemployed female population Total unemployed population Male unemployment rate Female unemployment rate Unemployment rate 3.6 3. 614.portal.0 129 133 146 159 152 17.5 15.4 3.8 2006 224 2007 216 2008 223 2009 246 2010 232 % growth 3.9 % growth 7.4 352 349 369 405 384 9.1 2.
with school shoes largely restricted to white canvas shoes. graduates from these two categories accounted for 60% of all graduates in 2010. Rising affluence and an increasing number of educational grants. This is largely negligible as Malaysia has never been an attractive option for higher education to international students. especially private schools. mid-year holidays that last for two weeks in June and the final year holidays which last for six weeks starting in November. There are three major holiday periods on the Malaysian school calendar: mid-terms holidays that last for one week in March. they sit for the Malaysian Certificate of Education examination (SPM). Secondary school education is not compulsory for Malaysian children. Matriculation replaces the previous race-based quota system for admissions which was abolished in 2004. As a result. Among other factors.com/Portal/Pages/Search/SearchResultsList. such as the British A Levels programme. this led to a decline of 15. by nearly 16%.4% in the number of successful graduates from public universities in Malaysia over the review period. only 10% of available spots in the matriculation programme are given to non-Malay applicants.aspx 36/68 . The number of foreign students pursuing higher education in Malaysia remained relatively stable over the review period. At the tertiary level. combined.Analysis children in Malaysia enrolled in primary schools grew by 2. subsidies and scholarships given by both the government and the private sector made higher education more accessible to Malaysian students in general and extended higher education opportunities to many low-income households. 4% of total student. into tertiary education in national universities and similar institutions across Malaysia. This examination is equivalent to the British Ordinary Levels examinations and they determine students’ entry into the matriculation system and. There were 2. At the end of those five years. primary school graduates must sit for the Primary School Achievement Test at the end of their primary school education.portal. Malaysia continues to face a “brain drain” as increasing numbers of top Malaysian students pursue their studies overseas. Only 0.euromonitor.1% during the review period to reach 3. Malaysian students in primary and secondary schools are required to wear uniforms as designated by their respective schools.5 million students enrolled in secondary school in Malaysia in 2010. The matriculation programme is significantly easier than other country’s admission routes into public universities. To attend secondary school.000 in 2010. reflecting growth of only 0. This is a product of the long-running racial affirmation policy implemented by the Malaysian government. by extension. top students from the minority Chinese ethnic group are increasingly pursuing their higher education overseas. certain schools. the matriculation programme is viewed negatively by members of minority ethnic groups who see it as a “back door” into university for poorly qualified Malay students. https://www. are less strict when it comes to school shoes and let students wear other styles as long as they are not ostentatious or conspicuous.8% over the review period. a pre-university programme which allows students entry into public universities in Malaysia upon completion. In many cases.4% of graduates specialised in agriculture 2010. Thus. Students share the same public holiday calendar as the labour force. University Life The number of students enrolled in universities or other tertiary educational institutes grew significantly. business and law are the most numerous amongst Malaysian students. However. These include Monash University Malaysia Campus. Swinburne University of Technology Sarawak Campus and University of Nottingham Malaysia Campus. Successful candidates then go on to secondary education for five years. Most foreign students in Malaysia are enrolled in private universities which are in fact branch campuses of reputable foreign universities. top students are unable to gain admittance into Malaysian universities despite their sterling grades due to the use of an indirect race-based quota in the admissions process for matriculation. during the review period to reach 854. with the remaining 90% reserved for Malay students. Curtin University of Technology Sarawak Campus. especially in Chinese-dominant Singapore. Engineering.11/18/11 Euromonitor International . manufacturing and construction graduates are the next numerous and. Further.2 million in 2010. Graduates in the social sciences.
499 6 2009 605 3.397 7.com/Portal/Pages/Search/SearchResultsList.307 3.382 50.9 -83.417 51. However.535 6 % growth 0. OECD and UNESCO.617 785 17.706 4.775 1. a number of corporations sponsor their employees as they pursue higher education or grant them partial subsidies to defray at least a part of the cost of such degree programmes.250 2010 176.167 31.303 4.565 1. Euromonitor International 11 11 11 11 11 — 2006 612 3.244 51.467 -7.517 6 2010 614 3. as there is a growing demand for both graduate and non-graduate working adults to gain qualifications in a new discipline or to simply pursue a degree.1 -1.133 2. Euromonitor International Note: Graduates are those who have successfully completed an educational programme Table 47 Higher Education Students: 2006-2010 As stated Higher education 2006 737 2007 805 2008 819 2009 838 2010 854 % growth 15.862 1.868 1.998 2007 181.7 37.Analysis Adult Learning Part-time degrees tailored for working adults seeking to pursue higher education while working full-time are increasingly being offered by private institutions in Malaysia.298 1.651 30.516 6 2007 601 3.306 55.404 2008 178.9 https://www. Table 45 School Students: 2006-2010 As stated Pre-Primary School ('000) Primary School ('000) Secondary School ('000) Compulsory Education Commencement Age (years) School Leaving Age (years) Source: International Bureau of Education. UNESCO.499 6 2008 608 3.335 17.aspx 37/68 .3 2.211 51. business and law In science In engineering.797 17.1 0. World Data on Education.110 17.852 55.2 -77.319 867 16.4 Source: EUROSTAT.763 % growth -15.570 7.192 2.454 21.092 30.789 1.11/18/11 Euromonitor International .7 131.072 8. Such programmes are not subsidised by the government nor are government grants provided for adults who choose to take up such courses. manufacturing and construction In agriculture In health and welfare In services In unspecified programmes 6.euromonitor.661 834 16.615 55.199 2.9 2006 208.8 7.637 -20.089 29.008 55.8 — Table 46 Graduates: 2006-2010 Number Graduates in all programmes In education In humanities and arts In social sciences.723 50.3 -87.717 2009 179.164 2.0 18.501 1.357 -87.200 2.113 2.195 51.907 1.portal.391 17.699 817 17.
com/Portal/Pages/Search/SearchResultsList. very significantly.6% (in real terms) during the review period. Hypermarkets are common in major Malaysian cities as well as in certain rural regions and smaller towns. This growth was largely due to concerns on the part of local consumers about the quality and hygiene of the national tap water supply. Again.5% during the review period to reach RM8.11/18/11 Euromonitor International . hypermarkets are increasingly taking over the role once held by supermarkets in Malaysia. Tesco. growing by 18. Of this. They are the favoured retail channel for food and drink among Malaysian consumers due to the vast selection of products on offer. two types of fresh food which are typically more expensive in Malaysia than others. universities ('000) Male ('000) Female ('000) Foreign students as % in higher education Source: UNESCO.4 — EATING (INCLUDING SOFT DRINKS) Shopping for Food and Drinks Consumer expenditure on food grew by a significant 17.2 million. increasing by 18. this growth in spending was a reflection of the increased ability of Malaysian consumers to afford to buy better food.Analysis students inc.8% in 2010. hypermarkets accounted for 42. Carrefour. It is anticipated the hypermarkets and large supermarket chains will continue to dominate in https://www. The wide reach and popularity of hypermarkets has helped popularize retailing concepts such as loyalty cards and no-frills and private label brands.6% of all value sales in the grocery retail market in the country.aspx 38/68 . both Tesco and Carrefour have their own point-based loyalty card program that gives consumers the incentive to return to their stores. As well. For example. particularly for low-income consumers. although price is increasingly becoming a more important factor. during the review period to reach RM5 billion in 2010. This reflected their importance in servicing consumers in residing or working in their immediate vicinity. Rising disposable incomes and increasing affluence has increased the appetite of Malaysian consumers for fish and seafood.6% of total expenditure on food. consumer expenditure on fish and seafood accounted for 27. independent small grocers are usually the most important source of food and beverages for the local populace. Consumer expenditure on bottled water (mineral or distilled) as well as on soft drinks.5% during the review period and reaching RM12. rising affluence has enabled many consumers to switch to the cleaner and more hygienic bottled water without significantly eroding their disposable incomes. In rural communities and smaller towns. reaching RM44. Impact The distribution landscape for food and beverages in Malaysia is not expected to change dramatically over the forecast period. Major hypermarket and larger supermarket chains also offer their own no-frills and private label brands which offer substantial savings over similar branded products.7% of total expenditure on food. Euromonitor International 333 404 3 356 449 4 361 457 4 370 468 4 376 479 4 12. their low prices. by 40%.2 billion in 2010.8 18. Mydin and Giant are the hypermarket chains that dominate the distribution channel.portal. This was followed by consumer expenditure on meat which accounted for 18. Quality and freshness are among the key factors influencing Malaysian food buyers. fruit juices and vegetable juices grew significantly.1 billion in 2010. Independent small grocers were the next most popular retail channel for food and drinks in Malaysia with a value share of 31. the convenience and comfort of shopping in their clean and modern environments and.euromonitor. Thanks to the growing number of outlets and their proximity to major residential hubs. In 2010. Country of origin is also an issue to which Malaysian consumers are paying more attention as many have been made wary by the spate of food safety scandals involving processed and packaged foods from China and Taiwan.
various herbs and freshly ground pepper. capturing distribution share from smaller independents. This new tier of in-house brands is expected to offer quality similar to the major branded products. roti canai and nasi lemak. international cuisines such as French. However. On the other hand.euromonitor.1%) followed by spending at cafes/bars which reached RM5 billion (a share of 21.4 billion (a share of 23. growing by 11.com/Portal/Pages/Search/SearchResultsList. seafood or vegetables used in their cooking.2% (in real terms) during the review period. laksa. Expenditure at full-service restaurants continued to account for the largest proportion of spending on consumer foodservice (nearly 40%). Malay or Indian.aspx 39/68 . During the review period. mamak stalls are as ubiquitous as McDonalds and Starbucks are in Western countries. Hypermarkets are expected to introduce more up-market private label products over the forecast period to meet the needs of consumers looking for the perception of quality at lower prices.2% to reach RM9.portal. It is best described as melting pot. street stalls dishing up cheap food and beverages around the clock and found along almost every street in Malaysia.Analysis urban areas and outlying areas and that small independent retailers will continue to serve rural areas. it is expected that the large chains will steadily expand over the forecast period. including freshly prepared spices such as cumin powder. It is expected that hypermarkets will continue displacing supermarkets and independent grocery retailers from the market over the forecast period as they continue to expand into rural regions and become the retail channel of choice for all Malaysian consumers. Indeed. the term “Malaysian cuisine” evokes images of popular dishes from these ethnic cuisines including chicken rice. has plans to invest an additional RM1. Italian. for instance. In particular. These will be priced strategically between the no-frills brands and branded products. The Mydin chain of hypermarkets. meals at home are a favourite family activity. Dining in The national cuisine of Malaysia is a reflection of its multi-cultural society.4 billion to open 14 new hypermarkets across Malaysia over the forecast period. Regardless. Café Culture https://www. although most consumers refuse to compromise on the freshness of the meat. Fast food held a relatively low 13% value share with consumer expenditure reaching RM3 billion in 2009.3%). When cooking at home. Malaysians tend to emphasise fresh ingredients. drawing strong influences from Chinese. are social hubs where Malaysians of all social classes and status congregate over hot meals and drink. Fast food. utilize imported or high-quality ingredients. these dishes are all grouped under the collective umbrella of “Malaysia cuisine”. particularly amongst the more affluent and sophisticated (and often younger) consumer base. the time and effort saved by using pre-packaged spices means that the majority of consumers are willing to make this compromise.3 billion in 2009. At the same time. However. Increasingly hectic schedules have prompted a growing number of working-class Malaysians to choose to dine out instead of cooking at home.4 billion in 2009. This has been made easier by the abundance of cheap and readily available hot meals sold at roadside stalls and markets in most places. Dining Out Expenditure on consumer foodservice grew by 21. This is perhaps the area where cultural integration has been the most successful. however. Traditionalists and purists refuse to use pre-packaged spices and herbs as they insist that doing so would compromise the taste and quality of their cooking.11/18/11 Euromonitor International . This followed only the home delivery/take-away category which achieved spending growth of nearly 60%. Indeed. reaching RM23. experienced expenditure growth of nearly 44% during the review period. mee goreng. “mamak” stalls. when time allows Malaysians still enjoy preparing meals and dining at home with family or with friends. American and Middle Eastern cuisines strongly grew in popularity. curry powder. Tesco plans to open six more hypermarkets in 2011 alone at the cost of RM480 million. the use of pre-packaged spices and herbs has been on the rise as these products considerably simplify and speed up the preparation process. Malay and Indian cuisine. Street stalls/kiosks were the nextlargest recipient of consumer expenditure with RM5. A much-loved national icon. This segment has begun to show increased interest in more exotic cuisines as well as in fine dining. Despite being traditionally Chinese. anise seeds. This is expected to be displayed prominently on their packaging to reaffirm the high standards of quality.
cheese and eggs Consumer expenditure on oils and fats 1.082 TOTAL 34. while affluent and middle-income consumers can easily afford the price of Starbucks coffee.758 1.161 1.799 8. many of them nevertheless question the value of buying such coffee.861 4.935 1.965 3.030 5. Coffee Bean and Olio Dome can cost as much as ten to fifteen times the price of a standard coffee at the popular mamak roadside cafes.791 11. cheese and eggs Consumer expenditure on oils and fats Consumer expenditure on fruit Consumer expenditure on vegetables Consumer expenditure on sugar and confectionery Consumer expenditure on other food 1.181 21.5 6.876 3.5 2006 4.062 2008 5.192 18.453 1.6 3.696 3.318 11.378 1.421 1.641 41.525 11.aspx 40/68 . Eurostat.834 2007 5.541 3.122 Source: National statistical offices.374 1.541 20.228 6.037 5.172 2009 4.912 7.094 1.899 7. OECD.5 10.693 2008 5.278 1.1 https://www.473 4. although it is starting to gain in popularity with some of the more well-heeled consumers.642 12.917 7.375 10.228 18.420 1.192 2006 4. As a result.11/18/11 Euromonitor International .668 8.266 44.927 4.082 % growth 5.181 9.128 3.euromonitor.392 2007 4.444 1.022 4.463 3.055 2009 4.442 3.137 11.721 7.016 1.325 11.portal.312 3.612 1. the café culture is still in its early days in Malaysia.016 3.226 1.Analysis The café culture has started to gain traction in Malaysia but it has yet to gain mainstream status as the cost of coffee at popular and trendy cafes such as Starbucks.366 1.867 2010 5. Hence. Table 48 Consumer Expenditure on Food (Current Value): 2006-2010 RM million Consumer expenditure on bread and cereals Consumer expenditure on meat Consumer expenditure on fish and seafood Consumer expenditure on milk.281 6.709 4.446 12.736 3.374 3.950 2010 5.278 1.900 2.com/Portal/Pages/Search/SearchResultsList.034 1.456 5. Euromonitor International Table 49 Consumer Expenditure on Food (Constant 2010 Value): 2006-2010 RM million Consumer expenditure on bread and cereals Consumer expenditure on meat Consumer expenditure on fish and seafood Consumer expenditure on milk.082 37.427 41.461 7.
portal.980 1.398 5.572 3.626 6.8 8.com/Portal/Pages/Search/SearchResultsList.8 % CAGR 3.435 9.204 1.592 14.389 1.371 42.2 4.8 5.772 4.8 4.0 4.4 1. Eurostat.634 53.806 5. cheese and eggs Consumer expenditure on oils and fats Consumer expenditure on fruit Consumer expenditure on vegetables Consumer expenditure on sugar and confectionery Consumer expenditure on other food 2.509 40.9 3.11/18/11 Euromonitor International .798 34.179 4.122 17.896 1.473 22.3 1.7 12.4 3.775 1.016 13.800 39.270 % growth 40.6 Source: National statistical offices.3 1.5 4.082 2.176 2020 7.6 TOTAL 37. Euromonitor International Note: Constant value at 2010 prices https://www.812 8.744 11.323 1.8 2011 5.856 2.2 4.405 1.5 4.614 39.933 2.aspx 41/68 . Euromonitor International Note: Constant value at 2010 prices Table 50 Consumer Expenditure on Food (Constant 2010 Value): 2011-2020 RM million Consumer expenditure on bread and cereals Consumer expenditure on meat Consumer expenditure on fish and seafood Consumer expenditure on milk.164 2015 6.1 4.374 21.0 5.034 21. Eurostat.899 2.564 66.2 Source: National statistical offices.6 1.euromonitor.Analysis Consumer expenditure on fruit Consumer expenditure on vegetables Consumer expenditure on sugar and confectionery Consumer expenditure on other food 3.153 5.820 56.116 5.971 44. OECD.908 6.561 1.599 41.078 44.545 17.259 6.433 55.382 49.268 50.319 3.8 5.367 2.9 3.596 1.8 TOTAL 45.426 4. OECD.782 3.693 52.
Eurostat.037 Source: National statistical offices.265 6.307 4.117 2015 1.aspx 42/68 .8 % CAGR 3.11/18/11 Euromonitor International . Eurostat. Euromonitor International Table 52 Consumer Expenditure on Non-Alcoholic Beverages (Constant 2010 Value): 2006-2010 RM million Consumer expenditure on coffee. fruit and vegetable juices 5.3 5.com/Portal/Pages/Search/SearchResultsList. fruit and vegetable juices 3.226 3.066 TOTAL 4. soft drinks.595 5. Eurostat. OECD.484 4.957 5.0 2006 932 2007 973 2008 1.561 4.482 4.869 10.648 64.424 5.166 59.984 4. OECD.Analysis Table 51 Consumer Expenditure on Non-Alcoholic Beverages (Current Value): 2006-2010 RM million Consumer expenditure on coffee. Euromonitor International Note: Constant value at 2010 prices Table 53 Consumer Expenditure on Non-Alcoholic Beverages (Constant 2010 Value): 2011-2020 RM million Consumer expenditure on coffee.382 7.971 40.250 2020 1. fruit and vegetable juices 3.302 5.518 % growth 35.3 5.693 4. soft drinks.550 3.971 2006 846 2007 902 2008 995 2009 987 2010 1.406 4.7 Source: National statistical offices.565 6.portal.euromonitor.066 % growth 14.037 34.004 2010 1. Euromonitor International Note: Constant value at 2010 prices https://www. OECD.4 TOTAL 6.018 2009 1.072 4.471 6.3 Source: National statistical offices. tea and cocoa Consumer expenditure on mineral waters. tea and cocoa Consumer expenditure on mineral waters.4 TOTAL 4. soft drinks.6 2011 1.619 8. tea and cocoa Consumer expenditure on mineral waters.
138 2.Analysis Table 54 Consumer Foodservice by Type (Current Value): 2005-2009 RM million Chained/independent 100% Home Delivery/ Takeaway Cafés/Bars Full-Service Restaurants Fast Food Self-Service Cafeterias Street Stalls/Kiosks Pizza Consumer Foodservice Source: National statistical offices.746 2. At the same time.858 451 4.669 82 2007 22.458 7.8 DRINKING Drinking Habits Consumer expenditure on alcoholic drinks increased by a significant 38.331 539 4.871 9. This increase was recorded despite the growth of the majority Malay ethnic group in the country whose members are strictly prohibited by Islamic law from consuming alcohol of any sort.413 573 29.344 65 2006 19.312 73 2006 20.414 411 4.798 85 2008 22.860 514 5.387 2.000 98 2009 23. members of the other major ethnic groups in Malaysia (primarily Chinese and Indians) consume alcoholic drinks freely while their population shares shrank.000.3 2005 19.258 8.415 116 % growth 21.6 billion in 2010.532 1.621 8.4 11. Alcoholic consumption by Malays is punishable by fines.082 454 4.644 81 2008 23. a female Malay model was tried for alcohol consumption in the state of Pahang and sentenced to six lashes in addition to a fine of RM5.426 486 5. i.9 12. jail terms (up to three years) and even corporal punishment (caning).962 8.977 98 2009 23.308 2.325 539 4.2 59.e.041 535 5. reaching RM2. that significant numbers of Malay consumers drink alcoholic beverages out of public sight.334 2.portal. In fact. Euromonitor International Note: Constant value at 2009 prices 3.875 9.041 535 5.964 369 3.413 573 2005 17.863 515 5..984 9.euromonitor.325 3.861 2.851 8. in recent years an increasing number of affluent and well-to-do Malay consumers have https://www.com/Portal/Pages/Search/SearchResultsList.232 77 2007 21.237 488 4.868 9.6 39.984 9.415 116 Table 55 Consumer Foodservice by Type (Constant 2009 Value): 2005-2009 RM million Chained/independent 100% Home Delivery/ Takeaway Cafés/Bars Full-Service Restaurants Fast Food Self-Service Cafeterias Street Stalls/Kiosks Pizza Consumer Foodservice Source: National statistical offices.898 426 3.169 467 4. This case stirred up significant controversy nationwide.555 512 5. Euromonitor International 3.520 419 4.325 3.444 492 4.317 2.2 43.113 475 4. This seems to corroborate what most Malaysians quietly acknowledge.11/18/11 Euromonitor International .7% during the review period.7 22.aspx 43/68 . In 2009.
aspx 44/68 . As well. accounting for 65% of all consumer expenditure on alcoholic drinks in 2010. alcoholic drinks are most commonly bought at hypermarkets and supermarkets. This will be facilitated by rising disposable incomes and greater exposure to Western lifestyles. a conservative Islamic political party. as well. The majority of Malay consumers who do consume alcohol tend to do so in the privacy (and the safety!) of their own homes. it appears that this particular consumer segment is significant indeed. retail sales of non-alcoholic beer continued unabated in Malaysia and to date there is no prohibition or restrictions on its sale.euromonitor. having purchased alcoholic beverages from retail outlets. Alcohol is served freely to all non-Malay consumers in licensed outlets. thanks primarily to impulse purchases by consumers.3%. accounting for 16. The rapidly growing younger consumer segment. Small independent retailers such as corner shops as well as speciality outlets are favoured by under-aged consumers (as well as by Malay consumers) as these retailers are known to be less stringent on checking ages and identities. any attempts to https://www. However. Convenience stores and forecourt stores also account for a significant proportion of alcoholic beverage sales. Clearly. night clubs and related establishments have also benefited from the increasing popularity of consuming alcohol.11/18/11 Euromonitor International . Alcoholic beverages are taxed heavily in Malaysia and this keeps prices relatively high.8% and 18% of total spending. although this tends to take place in cities such as Kuala Lumpur and Penang where Islamic law is not as strictly enforced as in the opposition-controlled states of Kelantan and Kedah. consumer spending on alcoholic drinks is projected to rise by 63. Beer remains the most popular alcoholic beverage among local consumers. especially full-service restaurants and fine dining restaurants where consumers are more willing to spend on more expensive alcoholic beverages. Regardless. Both foodservice outlets and entertainment outlets have expanded their menus to include a wider range of premium spirits and wine. Entertainment outlets such as pubs. especially beer which is often sold in discounted bulk quantities in cartons or crates. enjoying more affluence. although it is not specific to a particular ethnic group. wine showed the greatest growth during the review period.5 billion in 2020. respectively. Impact Over the forecast period. with spending increasing by 43%.com/Portal/Pages/Search/SearchResultsList. is fuelling growth in alcohol consumption. pubs and night clubs. Malaysian society seems poised to accept or at least tolerate greater alcohol consumption over the forecast period. Shopping for Alcoholic Beverages Outside of foodservice and entertainment outlets. Alcohol abuse is a well-known problem in the rural communities in Malaysia.8 billion in 2020.Analysis openly consumed alcohol in defiance of Islamic law. in order to meet the increasingly sophisticated tastes and preferences of their clients. such as restaurants. spending on beer is expected to increase by 59% to reach RM2. It is served discretely to Malay consumers in certain other establishments. This product proved to be so popular that the government and Islamic religious leaders were forced to declare in the national press that non-alcoholic beer was not permissible under Islamic law and warned Malays about consuming it. The higher price points of such alcoholic beverages have not deterred this new breed of well-heeled consumer and the rising numbers of specialized wine bars and wine cellars in downtown Kuala Lumpur and other major Malaysian cities attest to that. access to cheap alcohol (often illegally smuggled alcohol with duties unpaid) is commonplace and rarely regulated by the authorities. Pent-up demand for alcoholic beverages among Malay consumers is a well-known fact to industry players in Malaysia and there have been recent efforts to exploit this through the marketing and sale of so-called “nonalcoholic” beer which is openly sold to Malay consumers under the claim that it is permissible to be consumed under Islamic law. as well as champagne. reaching RM4. Alcohol abuse appears to be less significant amongst urban Malaysians although problems still exist. Thus. In rural communities. rising disposable incomes allowed wine lovers to indulge in their relatively pricier alcoholic drinks. The drinking culture in Malaysia is largely restricted to the night-time entertainment scene. Rising consumption of alcohol by Malaysians has benefited foodservice outlets. It has been less beneficial to cafés and food courts where the dining mentality is less indulgent. which are under the control of the PAS. Consumer spending on spirits and wine is much lower.portal. This was due largely to younger consumers developing a greater appreciation for fine wines. Going by the significant increase in the consumption of alcohol during the review period. In particular.
for premium spirits. Table 56 Consumer Expenditure on Alcoholic Beverages and Tobacco (Current Value): 2006-2010 RM million Consumer expenditure on alcoholic drinks Consumer expenditure on spirits Consumer expenditure on wine Consumer expenditure on beer Consumer expenditure on tobacco 1.466 1.796 4. Eurostat.458 1.519 3.455 1.347 1. with brand prestige.euromonitor. these efforts are typically unsustainable over the long run.494 3.082 16.029 3. OECD.053 2008 2.461 1.175 3.11/18/11 Euromonitor International .717 2007 2.407 2010 2. particularly among price-conscious consumers.4 330 391 432 439 473 43.928 4. Euromonitor International Table 57 Consumer Expenditure on Alcoholic Beverages and Tobacco (Constant 2010 Value): 2006-2010 RM million Consumer expenditure on alcoholic drinks Consumer expenditure on spirits Consumer expenditure on wine Consumer expenditure on beer Consumer expenditure on tobacco 1.862 4.582 1.aspx 45/68 .605 1.1 317 370 407 411 441 39.563 1. they are more than willing to pay higher prices for the quality which they demand.461 -8. price tends to take a backseat.portal.242 1.707 37. For the most part.591 1.707 300 362 422 431 473 288 343 398 404 441 2006 1. heritage and reputation taking centre stage.8 Source: National statistical offices.9 1. Eurostat.621 TOTAL 3.082 Source: National statistical offices.375 2009 2. These alcoholic beverages are purchased mostly by affluent and discerning consumers who often possess higher-than-average levels of knowledge regarding beverages and brands. OECD.621 % growth 38.7 TOTAL 3.448 2010 2.889 2007 2. liquors and liqueurs.599 1.599 1.214 2008 2.129 1.2 2006 1. However.Analysis discount alcoholic drinks by manufacturers or retailers are welcome.572 1. Regardless.479 1. Euromonitor International Note: Constant value at 2010 prices https://www. Consumers seeking less expensive alcoholic drinks usually rely on locally brewed beers as well as lower-quality distilled spirits.com/Portal/Pages/Search/SearchResultsList.555 1.938 3.453 1.429 2009 2. as well as for fine wines and champagne.
In addition. volume sales of cigarettes decreased from 16. Dunhill. OECD. with independent small grocers and convenience stores accounting for bulk of volume sales.491 % growth 63. thanks in part to the aggressive and sustained anti-smoking campaigns implemented by the Ministry of Health as well as the general growing awareness among many Malaysians of the dangers and health implications related to smoking.6% during the review period. 21% of the adult population in Malaysia were smokers in 2010 compared to 21.com/Portal/Pages/Search/SearchResultsList.842 59. Eurostat. illegal smuggled cigarettes are popular among many Malaysian smokers.138 -20.187 2.aspx 46/68 . cigarette manufacturers are required to depict pictorial health warnings on their cigarette packets in order to further deter the purchase of cigarettes. there is little need for consumers to stock up on cigarettes at any one time.407 2020 4.8 5. As cigarettes are readily available and widely sold in Malaysia. Marlboro and Winston are the most popular cigarette brands in Malaysia.2 6.787 2.645 5. Cigarette manufacturers are lobbying the Malaysian government to reduce the excise duty on their cigarettes in order to bring down the official retail price of cigarettes so they can compete more effectively with the less expensive contraband cigarettes in the market.5 TOTAL 4.2 499 637 869 74.5% in 2006. These retailers are often the only outlets selling cigarettes and tobacco products in rural regions and smaller towns. Advertising tobacco products is banned in Malaysia under the Control of Tobacco Products Regulation. Forecourt retailers are another major retail channel for cigarettes.429 1.1 billion sticks in 2010.3 Source: National statistical offices.euromonitor.9 billion sticks in 2006 to 14. consumers tend to purchase cigarettes a single pack at a time. As a result.180 4.750 2015 3.1 5.7 3.629 34.Analysis Table 58 Consumer Expenditure on Alcoholic Beverages and Tobacco (Constant 2010 Value): 2011-2020 RM million Consumer expenditure on alcoholic drinks Consumer expenditure on spirits Consumer expenditure on wine Consumer expenditure on beer Consumer expenditure on tobacco 1. Overall. Similarly. Shopping for Cigarettes and Tobacco Smokers in Malaysia typically purchase their cigarettes and other tobacco products from store-based retailers.238 1.3 465 583 779 67. This included bans on advertising at retail point of sale. Impact https://www.4 -2. Most smokers are brand loyal and stick to their favourite brands.9 2011 2. hence their overall strength in the tobacco market.portal. a decline of 16. the sponsorship of sporting/music events by tobacco companies and the distribution of tobacco-related gifts.11/18/11 Euromonitor International . Euromonitor International Note: Constant value at 2010 prices SMOKING Smoking Habits The number of smokers in Malaysia is slowly but steadily declining. On the other hand. as many Malaysian consumers have the habit of purchasing their cigarettes at the same time that they refuel their vehicles.5 1.3 % CAGR 5.
reaching RM1.0 1. at least going by the increasing consumer expenditure on all sorts of cosmetics and toiletries during the review period. manufacturers are expected to rely on the launch of new and innovative products. Attitudes towards Hair and Beauty The attitude amongst Malaysians towards the concept of beauty has changed in a society increasingly exposed to global influences and fashion trends.3 2008 40.Analysis With the smoking population already declining and expected to continue declining over the forecast period. with supermarkets/hypermarkets and department stores dominating distribution.8 1.3 21. Department stores have always been the distribution mainstay of the cosmetics segment thanks to the wide range of international brands sold and displayed at their sprawling premium cosmetic counters. They are gaining a reputation among Malaysian consumers for being an affordable and viable alternative to larger retailers for the purchase of toiletries and cosmetics.1 20.4% (in real terms).5 21.11/18/11 Euromonitor International . hair care products were the next most common purchase with spending reaching RM806 million in 2010. accounting for RM1. OECD. However. Euromonitor International PERSONAL APPEARANCE Shopping for Toiletries and Cosmetics Malaysians are increasingly becoming a well-scented. supermarkets and hypermarkets are increasingly setting up their own premium cosmetic counters featuring such international brands as Estee Lauder and SKII and this has helped them capture value share at the expense of other channels.8 TOTAL (% of total adult population) 21. This was reflected in the less-than-robust 7. The amount of floor space devoted to cosmetics in these pharmacy chain outlets increased during the review period as did the number and variety of brands on offer.5 2007 40. Unsurprisingly. The maturity and saturation of this particular product segment means there is not much room for further growth without a significant breakthrough or product innovation. Regardless. Carings and Watson’s are also increasing their profiles in toiletries and cosmetics sector. well-coiffed and cleanly shaven bunch.2 21.euromonitor.1 billion in 2020. manufacturers of cigarettes are expected to redouble their efforts to maintain and expand their consumer base by portraying smoking as an attractive hobby.aspx 47/68 . For example. Smaller chain retailers such as pharmacy chains Guardian.2 2009 40. Table 59 Smoking Prevalence: 2006-2010 2006 Male (% of male adult population) Female (% of female adult population) 2. A growing number of Malaysian consumers now favour smaller chains due to their convenience and the fact that their product offerings are so similar to those offered by larger retailers. Marlboro Black was recently introduced.3 billion in 2010 and representing spending growth of 22% over the review period. However.7 1.9 1. The majority of toiletries and cosmetics are sold through traditional store-based retailers in Malaysia. are starting to pay more https://www. Skin care products continued to dominate spending in this segment.1 2010 39.1% growth during the review period. particularly young Malaysians.portal. Malaysians. Innovations such as this are expected to multiply over the forecast period. with advertising of tobacco completely banned in Malaysia. over the forecast period consumer expenditure on tobacco products is projected to decline by 20.9 Source: WHO.com/Portal/Pages/Search/SearchResultsList. the lowest growth rate amongst toiletries and cosmetics. This cigarette has a small ball containing mint extract in its filter which the user crushes to release a minty taste with each puff.6 40.
305 2010 435 314 806 318 1. New men’s products are expected to be developed both by established manufacturers and start-ups. Malaysian males are starting to catch up with their peers in other developed countries and they are doing so with a vengeance. Euromonitor International https://www.com/Portal/Pages/Search/SearchResultsList. Going up the value chain.Analysis attention to their appearances and personal grooming and this was reflected in the rising consumer expenditure on beauty-related products and services during the review period. Table 60 Expenditure on Cosmetics and Toiletries (Current Value): 2006-2010 RM million Colour Cosmetics Fragrances Hair Care Men's Grooming Skin Care 2006 342 244 677 239 992 2007 366 264 703 260 1.euromonitor.104 2007 399 288 767 283 1. In particular.089 2008 390 287 737 279 1. skin care products such facial cleansers.aspx 48/68 . Over the same period.3 15. anti-aging creams and facial masks are also growing in popularity.346 % growth 14. toners and moisturizes and fragrance-related products such as deodorants and antiperspirants are all regarded as essentials by Malaysian consumers of both genders. demand for skin whitening creams and related products is booming in Malaysia. scrubs.184 2009 405 298 773 298 1. Euromonitor International Table 61 Expenditure on Cosmetics and Toiletries (Constant 2010 Value): 2006-2010 RM million Colour Cosmetics Fragrances Hair Care Men's Grooming Skin Care 2006 380 271 753 266 1. Impact An even wider range of beauty and grooming products specially formulated for men is expected to appear on retail shelves over the forecast period. hair care and other beauty-related products. This harks back to Malaysia’s colonial past when dark-skinned residents were primarily manual labourers and low-wage workers. even in the premium and super-premium product segments. particularly among well-to-do professionals and executives with significant social mobility. it is expected that there will continue to be increased demand for more affordable cosmetics and toiletries by low-income and middle-income consumers. In doing so. often regarded as a mark of social status.346 Source: National statistical offices. niche products such as skin-tightening and firming creams. During the review period. high-quality shampoo.7 21.8 7. this demand was met by smaller retailers bringing in less well-known beauty products and brands from Asian countries such as Korea and Japan. One reflection of this change is the younger generation of males in Malaysia now increasingly willing to splurge on personal beauty products. Liquid-based soap products such as shower creams and gels. a country where there is a social fetish for fairer skin.portal.1 19.273 2010 435 314 806 318 1. These smaller and less well-known brands tended to be of good quality despite their lower prices and they proved to be popular with beauty-conscious consumers on shoe-string budgets.11/18/11 Euromonitor International .225 2009 416 306 792 306 1. It is now not only socially acceptable but in some cases even required for trendy Malaysian males to be knowledgeable about skin care.187 2008 403 297 762 289 1. Rising education levels and higher levels of disposable income have also contributed to this trend as consumers have become more aware of and have attached more importance to global fashion and culture. a sign that the men’s beauty and grooming segment has much potential for future growth.9 Source: National statistical offices.
Malaysian consumers are an increasingly fashionable bunch as seen by the increasing numbers of international fashion houses and luxury brands that have opened shop in Malaysia.portal. down slightly from 3% in 2006. However. both for cultural and religious reasons. This drop in share was largely due to a sharp jump in consumer expenditure on transport. with T-shirts.Analysis Note: Constant value at 2010 prices FASHION Fashion Trends Consumers who are members of the majority Malay ethnic group tend to dress in modern contemporary clothing as well as in traditional Malay garments such as the baju kurung.11/18/11 Euromonitor International . reaching RM9. In the workplace.7% of total consumer expenditure in Malaysia in 2010. jeans. however. As Malaysian consumers become more fashion-conscious and more attentive to their personal appearances. Rising disposable incomes during the review period fuelled their ability to do so. Clothing and footwear are commonly sold through store-based retailers in Malaysia. reducing value sales. they are increasingly shopping for the latest fashions. the number of Malay consumers who chose to dress in their traditional clothing declined dramatically as most younger consumers. unit prices on a great deal of clothing and footwear declined as less expensive imported products became more widely available. light summer dresses. For the Chinese and Indian ethnic groups. This is unlike older Malays who tend to favour traditional Malay garments. When choosing casual wear. Bermuda shorts and cotton shirts perennial favourites for men and tank tops. consumers are noticeably less brand-conscious (although they not necessarily less fashionable) than their counterparts in the major cities. Consumers typically purchase high-end clothing at specialist retailers such as boutiques and fashion houses situated in major shopping malls or along the high streets in their own branded stores. even in the case of business attire. T-shirts. consumers also tend to favour summer attire the year round. Department stores tend to sell clothing and footwear across the value spectrum. During the review period. including members of the older generation. fashion-conscious consumers are. traditional clothing has long since been relegated to the role of being worn only during festive occasions or cultural events. The hot and humid climate tends to push consumers towards a more casual style of dress.8 billion in 2010.com/Portal/Pages/Search/SearchResultsList. reducing the expenditure share of other expenses accordingly. Shoes and Luxury Goods Consumer expenditure on clothing and footwear grew by 19. jeans and shorts favoured by females.7% (in real terms) during the review period. for the most part. travel goods and other personal goods.euromonitor. As well. spending on clothing and footwear accounted for 2. Executives tend to favour long-sleeved shirts but they typically roll up their sleeves as a concession to the tropical climate. Most members of these ethnic groups dress in modern contemporary clothing. In smaller or more insular cities. watches. perfumes. These broad offerings meet the https://www. spaghetti tops. concentrated in Kuala Lumpur and in a select few major cities in Malaysia. jewellery. baju kebaya and batik. Traditional clothing is available off the shelf or made-to-measure at traditional tailors. preferred to dress in modern contemporary clothing. with supermarkets/hypermarkets. although most are increasing their focus on fashion labels and luxury brands. where the culture is significantly more cosmopolitan in nature. Shopping for Clothes. such as Penang and Johor Baharu. Department stores are also favoured by consumers looking to purchase accessories. housing and other sub-sectors.aspx 49/68 . short-sleeved collared shirts are considered acceptable and suits are the exception rather than the norm. especially working professionals who felt the need to project what they believed was a professional and non-ethnic image in a multi-cultural working environment. department stores and independent specialist retailers being the main distribution channels. Despite overall spending on clothing and footwear increasing at a healthy rate over the review period. Clothing and footwear sold at supermarkets and hypermarkets tends to be cheaper and of lower quality. as department stores offer a wider range of these products at a variety of different price points.
750 Source: National statistical offices.940 2009 7.211 9. repair and hire of clothing Consumer expenditure on footwear 1. Luxury goods in Malaysia are typically found in high-end department stores such as Isetan and Robinsons or brand-specific specialist retailers.484 1.458 1.6 33 36 38 38 40 18.euromonitor.518 18.5 224 242 255 250 257 14.791 7.511 20. super-luxury goods are almost always sold only in specialist retailers such as boutiques and fashion houses in order to retain their sense of exclusivity and prestige.044 7.401 8.164 1. repair and hire of clothing Consumer expenditure on 1.3 363 392 414 408 424 17.237 2007 6.213 9. OECD.518 204 224 249 246 257 30 34 37 37 40 5.461 2008 7.864 2007 7.232 % growth 19. Table 62 Consumer Expenditure on Clothing and Footwear (Current Value): 2006-2010 RM million Consumer expenditure on clothing Consumer expenditure on clothing materials Consumer expenditure on garments Consumer expenditure on other articles of clothing and clothing accessories Consumer expenditure on cleaning. Euromonitor International Table 63 Consumer Expenditure on Clothing and Footwear (Constant 2010 Value): 2006-2010 RM million Consumer expenditure on clothing Consumer expenditure on clothing materials Consumer expenditure on garments Consumer expenditure on other articles of clothing and clothing accessories Consumer expenditure on cleaning.434 1.728 2010 8. They are rarely if ever found in mass-market retail outlets.164 7.296 7.244 6. Eurostat.Analysis needs and budgets of a wide spectrum of consumers. However.069 7.com/Portal/Pages/Search/SearchResultsList.232 7.232 TOTAL 7.aspx 50/68 .11/18/11 Euromonitor International .450 1.860 2010 8.673 6.9 https://www.297 1.761 2009 7.portal.162 9.916 2008 7.399 1.281 1.3 6.511 330 363 405 401 424 2006 6.0 2006 6.
860 9.1 434 492 587 35. Government spending on healthcare has been increasing. on the other hand.563 1.1 3.8 4.7 Source: National statistical offices.4 % CAGR 4. Citizens are provided with medical treatment at minimal cost according to the class of treatment given (first to third class) at public healthcare facilities. total expenditure on healthcare in Malaysia is low by international standards.9 7.665 46. Eurostat. OECD. approximately 4.3% of GDP in 2009.Analysis footwear TOTAL 8. Euromonitor International Note: Constant value at 2010 prices HEALTH AND WELLNESS Healthcare Healthcare in Malaysia is modern.0 4.com/Portal/Pages/Search/SearchResultsList. International metrics used to gauge the overall efficiency of healthcare such as infant mortality rates compare favourably with the United States and Western Europe.318 9. Eurostat. comprehensive and reasonably efficient.portal. Just more than 81% of the Malaysian population lives within a three kilometre radius from a static healthcare facility. It is organised into a two-tier system with a government-run universal healthcare system and a co-existing private healthcare system. However.3 3. even as the current policy stance is to let private healthcare operators take on a greater role in the overall provision of healthcare in the country. Private healthcare.aspx 51/68 .3 Source: National statistical offices. repair and hire of clothing Consumer expenditure on footwear 1. operates on a fee-for- https://www.6 4.11/18/11 Euromonitor International .772 14.5 41 47 57 41.859 2020 12.3 5.121 43.145 8.481 2015 9.160 % growth 43.043 11.0 TOTAL 10.euromonitor.913 2.743 9.750 19. OECD.007 11. The healthcare budget as determined by the government has steadily increased every year during the review period even as private healthcare expenditure also increased.423 9.505 60. Euromonitor International Note: Constant value at 2010 prices Table 64 Consumer Expenditure on Clothing and Footwear (Constant 2010 Value): 2011-2020 RM million Consumer expenditure on clothing Consumer expenditure on clothing materials Consumer expenditure on garments Consumer expenditure on other articles of clothing and clothing accessories Consumer expenditure on cleaning.3 264 313 395 49.4 2011 8.
hypermarkets and pharmacy chains. no concrete details have been announced. although the number of beds increased to 33. up from 23. septicaemia or sepsis (6%) and road accidents (5.aspx 52/68 . Over the forecast period. reflecting a rising awareness and comfort among Malaysian consumers of self-medication and preventive medication. 5. powders or even syrup. bringing the number of beds available at private healthcare facilities to 12. This is especially true as the cost of healthcare continues to increase. up from 229 hospitals in 2006. accounting for nearly 13% of all medically certified deaths. especially among the younger generation.9%). Manufacturers and retailers are expected to introduce a wider range of vitamins and dietary supplements to capitalise on the rising interest among Malaysian consumers in preventive health care plan. Next are pneumonia (7%).083 due to the upgrading and expansion of current facilities.916 in 2007.6%) and heart disease (5. there has been the rapidly growing popularity of sedentary activities such as playing video games and surfing the internet. The number of obese Malaysians steadily increased during the review period. cold and allergy remedies and 17. Over-the-counter (OTC) drugs such as analgesics. The number of doctors increased to 30. old age accounts for 59.euromonitor. A new national health insurance scheme is in the works for Malaysia but. vitamins and dietary and health supplements are expected to increase. with a significant amount of medication and drugs being sold directly by doctors in private clinics.738 in 2007. Recent statistics detailing primary causes of death in Malaysia indicate that ischaemic heart disease is the principal cause of death. giving Malaysian consumers a greater incentive to undertake preventive healthcare and to maintain their good health in order to avoid debilitating hospital stays. Health supplements are increasingly being offered in a variety of more appealing formats. For nonmedically certified deaths. rising by 12.2% for analgesics. Overall.com/Portal/Pages/Search/SearchResultsList.6%). This was partially due to rising education levels among Malaysian consumers.5% of the total population in 2006 to 7% in 2010.6%). There has also been a substantial jump in the number of healthcare personnel thanks to significant investment by the government in educating and training new front-line staff. Health and Well-being Consumer expenditure on selected health and wellness products grew in real terms over the review period. to date. As well. The prescribing and dispensing of drugs is not separate in Malaysia and this has resulted in an over-prescribed culture among certain medical practitioners. Over the same period.619. to combat the negative image of “pill popping” among local Malaysians. the number of private hospitals increased to 245 in 2010.375 in 2010. the number of nurses increased to 59.7% for vitamins and dietary supplements. the Ministry of Health estimated the percentage of Malaysians who actively exercise and participate in https://www. This growth was a reflection of the sedentary lifestyles adopted by many Malaysians. Sport and Fitness In 2009. cerebrovascular disease or stroke (6. A series of local and global healthcare crises such as the H1N1 pandemic also shocked Malaysians into a higher level of awareness regarding their healthcare and generated significantly higher interest among consumers in preventive healthcare products. among others.portal. The growing availability of cheap and unhealthy fast food and processed foods has helped to exacerbate this problem. the result in some instances of more hectic work and/or education schedules. cold and allergy remedies and vitamins and dietary supplements are readily available in Malaysia and they are sold through various store-based retailers such as convenience stores. asthma (6. The number of public hospitals in Malaysia remained static at 130 during the review period. such as lozenges.Analysis service policy but growing medical insurance coverage means that an increasing number of patients do not have to take money out of their own pockets for pay for treatment at private medical facilities.8% during the review period. On the other hand. cough. up from 48.9% for cough. Better-educated consumers are typically more health-conscious and knowledgeable regarding self-medication and preventive health care.536 in 2010. followed by cancer (6.11/18/11 Euromonitor International . Impact As Malaysian consumers become increasingly health-conscious over the forecast period. retail sales of health and wellness products such as OTC drugs.8%). consumer health products experienced growth of 18.4% of such deaths. supermarkets. the number of obese Malaysians is projected to grow even higher. going from 7.
Further. basketball and golf. The most famous among them is national icon Lee Chong Wei. this was to be expected as the number of whitecollar employees working in professional environments continued to increase. The growing emphasis on nutrition and its impact on food choices will be facilitated by the growing number of older Malaysians who will look at their diets in an attempt to prevent illnesses and disease over the forecast period. natural fibre and various vitamins. This is similar to the situation for other popular sports in Malaysia. requires intelligence and dexterity. This helped boost the consumption of fresh fruit and vegetables during the review period. Hence. As well. Over the review period. It viewed as a gentlemen’s sport which does not require significant physical exertion but. On the other hand. with a growing emphasis on eating green and eating fresh while reducing their intake of processed foods and animal fats. readily available and fresher than imported produce. Malaysian consumers are improving their awareness and understanding of the health benefits of food. it is expected that there will be increased demand for wide range of healthier food and drink options.euromonitor. These passive participants far outnumber active participants in football. who successfully defended his All-England Open Men’s singles title against Lin Dan. Home Medication and Vitamins Self-medication through the use of Western drugs and medicines increased significantly during the review period. and Malaysian shuttlers have been winning international titles and championships for over a decade. be it through participation or through attendance at local soccer matches or supporting their favourite overseas soccer clubs.11/18/11 Euromonitor International . in particular the role of such things as anti-oxidants. they are starting to gravitate towards organic vegetables and fruits.com/Portal/Pages/Search/SearchResultsList. aggressive educational efforts on the part of the Ministry of Health and other government agencies to promote healthier diets and lifestyles are starting to pay dividends. with a large proportion of Malaysians showing significant interest in the sport. Malaysian business executives now often hold business discussions and negotiations over a session of golf. the Chinese shuttler and Olympic Champion in 2010. Impact The strong level of interest in football in Malaysia has helped to fuel strong sales of football-related merchandise such as jerseys of popular football clubs (English. the majority of locally grown and organically farmed fresh produce was mostly exported to neighbouring countries such as Singapore. Small independent retailers specializing in golf equipment and apparel are becoming a common sight in major Malaysian cities such as Kuala Lumpur and Penang. This is especially true among affluent and middle-class consumers who are able to afford the higher prices that organic produce commands. Golf is a sport which is fast gaining popularity among Malaysians. Such employees’ typically work long hours and live sedentary lifestyles. locally grown fresh vegetables and fruits account for a significant proportion of the Asian-centric diet of the average Malaysian. The effect has so far not been successfully replicated by other popular sports such as badminton. https://www. Badminton is another popular sport which is widely followed in Malaysia. Nutrition Malaysia grows a significant amount of its own fresh vegetables and fruits and locally grown produce is relatively affordable. Impact As Malaysians continue to increase their knowledge of the benefits of good nutrition over the forecast period. among others) as well as other football-related merchandise and sports apparel. Malaysian consumers are becoming better educated regarding how the way food is grown can affect health. Organic food will certainly be in greater demand as will fortified foods and beverages. among other attributes. Thus. Malaysian consumers are becoming increasingly health-conscious and they are starting to pay more attention to their diet. Italian and Dutch. rather.Analysis sports was 19%. there is much potential for growth and the popularity of golf is expected to grow further over the forecast period. Football (or soccer) remains the most popular sport in Malaysia. as well. As a relatively new sport in Malaysia.portal.aspx 53/68 . This represented a decline. Spanish.
Euromonitor International - Analysis
On the other hand, actual consumption volumes remained relatively low, as modern medical care is affordable and readily available to all but the poorest of Malaysians. This prompts them to seek medical attention for even minor ailments such as coughs and colds. Traditional remedies, involving the use of various herbs and plants, are also a popular method of treating ailments among Malaysians, especially those belonging to the Malay and Chinese ethnic groups. This has reduced the propensity of these consumers to utilize Western drugs and medicines. Consumption of vitamins and dietary supplements, on the other hand, exhibited strong and steady grow, with retail sales growing by 17.7% over the review period, reaching RM1.3 billion in 2010. Consumers’ positive attitudes towards vitamins and dietary supplements are aided by the strong direct sales marketing efforts within this market segment, where purchases are strongly influenced by friends, relatives and peers who testify that they have experienced positive effects through the use of such products. Vitamins and dietary supplements are increasingly being viewed by many consumers as a critical component of preventive healthcare. This is especially true among younger, better-educated and more affluent consumers, many of whom have a better understanding of the benefits of these products and who possess sufficient disposable income to afford them without overextending their budget. Impact Over the forecast period, Malaysian consumers’ attitudes toward using drugs and medication to treat minor ailments are not expected to change significantly, particularly while national healthcare remains affordable and becomes even more accessible. Traditional medicine is expected to remain as popular as it has always been, with the younger generation of Malaysian consumers accepting the benefits and positive effects of traditional medicine and practices. On the other hand, retail sales of vitamins and dietary supplements are expected to grow significantly over the review period as a wider variety of products, catering to a diverse range of consumer needs and budgets, floods the market. More affordable generic vitamins and dietary supplements targeted at budget-constrained consumers, for example, are expected to appear more frequently on retail shelves just as premium and superpremium versions boasting rare and exotic ingredients are offered for the more affluent consumers.
Table 65 Health Expenditure: 2006-2010 % of total health expenditure Public health expenditure Private health expenditure Source: National statistics, Euromonitor International 2006 44.6 55.4 2007 44.4 55.6 2008 44.1 55.9 2009 42.8 57.2 2010 42.3 57.7
Table 66 Healthy Life Expectancy at Birth: 2006-2010 Years Healthy life expectancy at birth Males Females 62.1 65.8 62.0 66.0 62.0 66.1 62.0 66.1 61.9 66.1 -0.2 years 0.3 years 2006 63.9 2007 64.0 2008 64.0 2009 64.0 2010 64.0 Growth 0.1 years
Source: National statistics, Euromonitor International Note: Healthy life expectancy at birth is the average number of years that a person at birth can expect to live in “full health” by taking into account years lived in less than full health due to disease and/or injury
Euromonitor International - Analysis
Table 67 Obese and Overweight Population: 2006-2010 % of population aged 15+ 2006 Obese population (BMI 30kg/sq m or more) Overweight population (BMI 25-30kg/sq m) Source: OECD, International obesity taskforce, Euromonitor International 25.5 26.0 26.5 26.9 27.3 7.5 2007 7.8 2008 8.1 2009 8.4 2010 8.7
Table 68 Consumer Expenditure on Health and Wellness (Current Value): 2006-2010 RM million Analgesics Calming and sleeping Cough, cold and allergy (hay fever) remedies Vitamins and dietary supplements Source: National statistics, Euromonitor International 1,013 1,079 1,164 1,237 1,316 226 235 246 254 264 2006 151 2007 158 2008 167 2009 176 2010 187
Table 69 Consumer Expenditure on Health and Wellness (Constant 2010 Value): 2006-2010 RM million Analgesics Calming and sleeping Cough, cold and allergy (hay fever) remedies Vitamins and dietary supplements Source: National statistics, Euromonitor International Note: Constant value at 2010 prices 1,118 1,167 1,195 1,262 1,316 17.7 249 255 252 259 264 5.9 2006 166 2007 171 2008 171 2009 179 2010 187 % growth 12.2
LEISURE AND RECREATION
Staying in Options for in-home entertainment in Malaysia evolved significantly during the review period thanks to the numerous digital products developed and made available and the rising use of the internet. Large-screen televisions, home theatre systems, video game consoles, cable television, movie-on-demand through high-speed internet connections and Blu-ray media players are devices with the ability to transform any home into a digital entertainment hub. Traditional leisure activities such as reading, listening to music, cooking and gardening are still widely practiced, particularly by the older generation of consumers. However, for younger consumers, interests are expected to
Euromonitor International - Analysis
continue to focus on digital media, be it multi-player online games, social networking websites, static video game consoles or movies on Blu-Ray discs. As well, the percentage of households in Malaysia with cable TV or satellite TV services reached 12% and 53.3% respectively, in 2010. For the most part, traditional leisure activities will be far less attractive to younger Malaysians. Impact As Malaysian consumers increasingly choose to spend their leisure time at home using digital media over the forecast period, demand for a wide range of devices is expected to grow. For those that can afford them, wireless versions of popular consumer electronics products, such as wireless home theatre systems and media players, are expected to become more popular, as are devices designed to share digital media content within households, such as media streaming routers and hubs. Services such as movies-on-demand and cable TV on demand are also expected to see significant growth in demand over the forecast period as Malaysian consumers, with rising disposable incomes, become increasingly comfortable with digital content on demand, in real time, as they like it, rather than being provided with content following a fixed schedule.
Going Out Dining out is a favoured leisure activity among Malaysian consumers and restaurants and cafes are packed to the rafters during weekends (as well as on many weekday nights), particularly in urban areas. Road-side cafes or stalls, affectionately known as mamak stalls among local consumers, are open 24 hours a day. They are also a popular gathering spot for Malaysian consumers of all ages and races. Nightlife in major Malaysian cities is vibrant and throbbing with energy and nowhere is this vibe stronger than in downtown Kuala Lumpur where both local Malaysians and foreign expatriates party the night away in a wide variety of pubs, bars and nightclubs. International entertainment brands are prominent in Kuala Lumpur, including Planet Hollywood, Hard Rock Café and Carnegies. As well, there are numerous local night spots that are popular with the chic crowd in Malaysia, including Nouvo, Zouk and Absolute Chemistry. Many Malaysians throng to the country’s major shopping malls on weekends. On their day out, they can shop at a wide range of retail outlets as well as hypermarkets and supermarkets. They can catch the latest movie at a modern movie theatre and dine at a variety of retail food service outlets, all in air-conditioned comfort and at a relatively affordable price. Because of the variety and low prices, going to shopping malls is an especially attractive option for tweenagers and teenagers. Impact As disposable incomes rise over the forecast period, consumer expenditure on entertainment and lifestyle-related products and services are expected to rise in line. As well, demand is expected to rise as Malaysian consumers increasingly develop a modern consumerist culture where they will be quicker to indulge themselves, at times fuelled by easy credit.
Public Holidays, Celebrations and Gift-giving Occasions Public holidays in Malaysia revolve around events of national significance, such as Independence Day, as well as cultural and religious events based on the three major ethnic groups in Malaysia; the Malays, Chinese and Indians. Public holidays in Malaysia can be separated into those celebrated at a national level and those celebrated at a district level. National holidays are normally observed by most government and private organizations. District holidays are normally observed only in certain states in Malaysia or when it is relevant to the district itself. For members of the Malay ethnic group, Hari Raya Aidilfitri (Eid) is one of the most important holidays. It is a joyous Muslim holiday that is celebrated throughout the Islamic world after a month of fasting. During this period, each day starts with children asking their parents before prayers for forgiveness for past transgressions. Hari Raya is also marked by visits from friends and relatives and participation in communal feasts. For members of the Chinese ethnic group, the Chinese New Year is undoubtedly the most important festival. It is observed on the first day of the first moon on the Chinese calendar, so the date varies from year to year. The entire festival lasts for 15 days, although only the first three days are set aside as public holidays. Most Chineserun businesses and retailers tend to close shop for the Chinese New Year period. It is celebrated with a traditional
It is also influenced by various indigenous tribes that mainly reside in East Malaysia.portal. Christmas is a major public holiday in Malaysia and one that is not tied to any ethnic group.Analysis dinner on New Year's Eve and continues with visits to and from relatives and friends. This is especially true for the younger generation of Malaysians who are often less dogmatic regarding their religious beliefs and who view Christmas simply as an opportunity to make merry with their friends and colleagues.com/Portal/Pages/Search/SearchResultsList. it is a Christian religious festival. even Malaysian consumers on a shoestring budget were able to afford domestic holidays. such as the victory of their religious deities over demon kings. Malaysia is best characterized as a cross between a melting pot and multi-cultural society. reaching RM1. Malaysia’s largest low-cost carrier. In addition. During these visits. https://www. weddings and other private occasions. Malaysians of all races and ages tend to celebrate Christmas in one way or another. The Chinese accounted for 22. convenient and affordable holidays without travelling overseas.5 billion). Despite Bahasa Malaysia being the country’s official language. Malaysians nevertheless give gifts and cards to each other during a wide range of other public holidays and festivals. The significant increase in domestic tourism in Malaysia has made travel and tourism industry players sit up and take notice of this burgeoning sector. New advertising and marketing campaigns specifically targeted at domestic tourists made the rounds in the mainstream media as well as on the internet as sector players such as hoteliers. in many respects. Culture Malaysian culture is dominated by influences from its three main ethnic groups. Christmas tends to be the festival most infused with consumerism. In particular. Gift cards are usually purchased at department stores or speciality gift stores or in bulk at hypermarkets and supermarkets. Deepavali is the most significant religious festival. This growth reflected the increase in intra-country tourism as Malaysian consumers sought quick. In 2010. Chinese and Indians. Each major ethnic group has successfully preserved its way of life. Malaysians often take their holidays during the annual school holidays in November and December when children do not have to attend classes and are thus free to go on holiday together with their parents as a family unit. For the Indian ethnic group.euromonitor. As a result. Air Asia. The relatively recent introduction of lowcost carriers in Malaysia and the rapid growth in the number of low-fare domestic flights was a further boost to intra-country tourism over the review period. Long weekends where public holidays fall just before or right after a weekend are also popular periods for tourism. baby showers. progressively increased the number of destinations to which it flew. Malaysia is currently ranked ninth in terms of “most travelled to” tourist destinations in the world.6% and it reflected Malaysia’s economic reliance on the travel and tourism sector. with its traditional practices. Consumer expenditure on packaged holidays increased by an impressive 36% during the review period. This proportion was significantly above the world’s average of 5. Holidays The direct contribution of the travel and tourism sector to Malaysia’s total GDP was 7.7 million Malays in Malaysia accounting for more than one-half of the total population. followed by visits to friends and relatives where Indian delicacies are served. Malaysians also engage in gift giving and card giving during such special occasions as birthdays. There is also a sizeable Sikh community in Malaysia as well as a strong Eurasian community. there were 14. Rather. festivals and beliefs largely intact. It symbolises the triumph of good over evil. However. Lanterns are lit en masse when dusk falls. the Malays. when members of different religious and ethnic communities talk to each other they generally speak in English. red packets containing cash are given by married couples and the elderly to younger. Malaysia has always been a Malay-dominated country and that has not changed over the past decade.8% of the population in 2010 while the Indians accounted for 7%. often combining never-seen-before low prices. such as the Orang Asli. which was recently reinstated as the language of instruction in tertiary education. The mainstream media are usually flooded with advertisements urging consumers to purchase festival gifts for their family and friends weeks before the actual date.8 billion in 2010. Tourism is the second-largest generator of foreign currency in Malaysia. unmarried Chinese.aspx 57/68 . the different ethnic groups have successfully integrated and enjoy a common ground where cultural differences thrive and mix peacefully and prosperously. It is observed with prayers in the morning. With Christmas topping the chart in terms of gift giving and card giving.7% in 2010 (RM56.11/18/11 Euromonitor International .
784 % growth 36.784 Source: National statistical offices.Analysis tourist attractions and transport providers competed for a slice of the rapidly expanding domestic tourism pie.627 2009 1. Neighbouring Singapore sent 13 million visitors to Malaysia in 2010.4 billion in tourist receipts.0 53. As well.3 54.0 57. A significant number of Singaporean consumers make repeated trips to Malaysia during the year for holidays and day-trips. OECD.311 2007 1.6 2015 13. Related sectors. such as during the period of the H1N1 pandemic when travel and tourism activities in Malaysia ground to a halt.8 billion in 2020. including hotels and catering. Table 70 Household Possession of Cable TV and Satellite TV: 2006-2010 % of households Cable TV Satellite TV system 2006 10. Eurostat.629 2010 1. drawing consumers looking for interesting short-term holidays at a low price. Euromonitor International Table 71 Household Possession of Cable TV and Satellite TV: 2011-2020 % of households Cable TV Satellite TV system 2011 12.5 58.5 40. generating RM28.3% (in real terms) to reach RM2.1 2007 11.4 2010 12.9 2008 11.portal.4 48.11/18/11 Euromonitor International . particularly in urban areas. This will be reflected in the dynamic growth projected for consumer expenditure on package holidays. transport and. Euromonitor International https://www.191 2007 1. Eurostat.euromonitor. foodservice and entertainment are expected to see increased sales over the forecast period.4 Source: National statistics. Euromonitor International Table 73 Consumer Expenditure on Package Holidays (Constant 2010 Value): 2006-2010 RM million Package holidays 2006 1.3 Source: National statistics. which is expected to rise by 52. enticing many consumers to travel to foreign destinations. the travel and tourism sector in Malaysia is expected to continue to experience significant growth.0 43.657 2010 1.370 2008 1.3 2020 13.aspx 58/68 . the country’s domestic tourism sector is expected to continue to grow.5 2009 11. OECD.com/Portal/Pages/Search/SearchResultsList. Euromonitor International Table 72 Consumer Expenditure on Package Holidays (Current Value): 2006-2010 RM million Package holidays 2006 1. Malaysians’ penchant for travel will be supported by rising disposable incomes and increased exposure to global media and trends.1 Source: National statistical offices. Impact Over the forecast period.478 2008 1.590 2009 1. Affordable packages customized to meet the needs and preferences of local Malaysian tourists are increasingly being offered by tour operators who are eager to diversify their consumer base to guard against a dip in foreign tourism.7 51. taking advantage of their stronger currency and the lower prices for goods and services in Malaysia in order to enjoy an affordable holiday.
a huge increase from the 79% of households that owned a mobile phone in 2006. Demand patterns are expected to differ significantly between rural communities and urban areas. only 40% of households possessed a DVD player/recorder in 2010 and only 20% possessed video game consoles.8% of all households in 2010. For example. In-home consumer electronics products such as video game consoles. residential land line subscriptions steadily declined over the review period as an increasing number of Malaysian households found their landlines redundant as their usage patterns shifted over to their mobile phones. up from 11.5% of households in Malaysia owned a mobile phone. Maxis Communications has had a monopoly on the Apple iPhone since its launch in 2009 in Malaysia and this was only broken in mid-2010 by DiGi.portal. Eurostat. household penetration rates for many standard in-home consumer electronics products are relatively low in Malaysia. it must be noted that. https://www.857 2015 2. This particular segment is viewed as the area with the most potential for growth and industry players are slugging it out to gain value share for their mobile broadband data services. Impact Over the forecast period. Regardless.6% of households in 2020. particularly in times of rising disposable incomes and falling unit prices. traditional mobile phone sales and subscription plans have not been neglected and industry players are turning their efforts towards acquiring exclusive distributor rights for popular mobile phones. in-home consumer electronics products are restricted to the affluent and upper-middle-income households. Euromonitor International Note: Constant value at 2010 prices CONSUMER TECHNOLOGY In-home Technology The household penetration rate of broadband internet in Malaysia increased significantly during the review period.11/18/11 Euromonitor International . For the most part.828 % growth 52.224 2020 2. Malaysian households are increasingly relying on in-home consumer electronics products to improve their inhome entertainment options. On the other hand. in order to gain market share.Analysis Note: Constant value at 2010 prices Table 74 Consumer Expenditure on Package Holidays (Constant 2010 Value): 2011-2020 RM million Package holidays 2011 1. DVD players/recorders and home theatre systems are experiencing increased demand.3 % CAGR 4.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx 59/68 . The saturation seen in the mobile phone market in Malaysia (as well as the changing landscape of mobile phone usage) has forced industry players to increasingly chase mobile broadband and data services as the more significant source of revenue. OECD. it is expected to increase the strategic importance of online marketing for the major retail brands as well as improve the frequency of e-commerce transactions. such as the Apple iPhone. 3G subscriptions also increased rapidly. As well. 94. household possession of broadband internet-enabled computers is expected to rise significantly. reaching 10 million in 2010. The declining prices of mobile phone services accelerated this trend as there was less of an incentive for households to continue to use their landlines. reaching 60. Growth was also helped by the rapidly improving telecommunications infrastructure which improved the reach and reliability of broadband internet services in Malaysia. reaching 26.7% in 2006. This is expected to have many implications for consumers.7 Source: National statistical offices. Much of this growth had to do with the declining unit prices of computer hardware as well as declining prices for broadband internet services. Regardless. compared to many other countries. For example. Since then. Portable Technology In 2010.
with its internet-only sales model.euromonitor. in Malaysia exceeded 55% in 2010.5% of households in 2010.7 2007 14. aggregators and websites in Malaysia include the popular discount coupon aggregator Groupon. i. The rising number of 3G mobile phone subscribers (7. cosmetics and toiletries.11/18/11 Euromonitor International . toys and games and pet care products are amongst the most popular goods purchased online by Malaysian consumers.2 17.. An increasing number of retailers.5% during the review period.7 2006 11.aspx 60/68 . both established retailers with brick-and-mortar outlets and enterprising online-only start-ups. household broadband penetration.0 2009 22.1 29. Table 75 Household Possession of Broadband Internet-Enabled Computers. Continuing growth is expected to facilitate increased m-commerce.1 18. Clothing and footwear. Impact In 2020. new features and enhancements in technology and services.8 19. are now offering a growing range of products and services to Malaysian consumers via online sites. according to the Ministry of Information Communication and Culture. Popular e-commerce merchants. consumer electronics. the increasing household penetration rates of broadband internetenabled computers and smartphones over the forecast period will ensure growth of e-commerce and mcommerce. just more than 97% of households are projected to possess mobile phones.com.4 billion in 2010.com.4 16. Impact Together with rising disposable incomes. Air Asia gave consumers a sense of familiarity with e-commerce and provided a great number of consumers with the comfort and assurance to undertake other e-commerce transactions. this has driven demand for e-commerce activity among Malaysian consumers.2 39. as well as well-known international e-commerce merchants such as eBay and Amazon. up only slightly from 94. health and wellness products.Analysis competition between these and other industry players has revolved around other exclusive mobile phone offerings. is often credited by industry experts as the retailer which converted many Malaysian consumers into online shoppers. Euromonitor International https://www. Adding 3G mobile phone broadband access into the overall internet access mix.6 23. Rising household possession rates of broadband internet-enabled computers as well as rising possession rates of smartphones means that Malaysians are “connected” as never before.8 Source: National statistics.3 million in 2009) was a major factor in increasing the overall broadband penetration rates. In an obviously saturated market.1 33.5 16.2 19. Lelong. E-commerce and M-commerce Values sales of internet retailers grew by 43.4 19.portal.my. This growth was a reflection of both rapid digitalisation in Malaysia as well as increasing consumer confidence in the security of online transactions.9 19.8 19. as well as the standard competition involving price discounts and freebies.my and Mudah. DVD Players and Video Game Consoles: 2006-2010 % of households Broadband internet enabled computer CD player DVD player/recorder Video game console 18.com/Portal/Pages/Search/SearchResultsList.e.my. it is clear that revenue growth over the forecast period will come from the continuing launch of innovative devices. not restricted to PCs.5 37. Low-cost air carrier Air Asia.0 2010 26. especially in the rural regions and smaller towns where conventional broadband internet infrastructure was less developed and unreliable. Obviously. reaching RM4. although it is not expected to necessarily grow at the same pace as e-commerce.9 2008 18.
DVD Players and Video Game Consoles: 2011-2020 % of households Broadband internet enabled computer CD player DVD player/recorder Video game console 2011 31.4 2009 92.0 19.0 20.804 2007 3.1 48.8 2015 49.6 2010 94.4 42.0 13.1 2007 84.228 2010 4.5 Table 78 Household Possession of Mobile Telephones: 2011-2020 As stated Mobile telephone (% of households) 2011 95. Euromonitor International Note: Constant value at 2010 prices TRANSPORT Getting Around https://www.8 2020 97.1 Source: National statistics.portal.440 Source: National statistics.1 — Source: National statistics.806 2008 4.047 2009 4.euromonitor.6 — 52.6 2008 89. Euromonitor International Table 80 Internet Retailing (Constant 2010 Value): 2006-2010 RM million Internet retailing 2006 3. Euromonitor International 2006 79.095 2007 3.152 2009 4.aspx 61/68 .Analysis Table 76 Household Possession of Broadband Internet-Enabled Computers.313 2010 4.11/18/11 Euromonitor International .9 15.4 2020 60. Euromonitor International Table 77 Household Possession of Mobile Telephones: 2006-2010 As stated Mobile telephone (% of households) Source: National statistics.440 % growth 43.4 2015 96.5 Source: National statistics. Euromonitor International Table 79 Internet Retailing (Current Value): 2006-2010 RM million Internet retailing 2006 2.518 2008 4.com/Portal/Pages/Search/SearchResultsList.
In large part. Insurance is also mandatory for all vehicles in Malaysia. There are no dedicated cycling lanes on Malaysian roads and Malaysian motorists are notorious for their disregard of cyclists’ rights and safety. light rail and monorail lines are planned over the forecast period. especially in rural regions and smaller towns where the only form of public transport is via the public bus system.com/Portal/Pages/Search/SearchResultsList.5 billion in 2010. A toll system is in place along the expressway network. Cycling and walking to work are not common ways of getting around in Malaysia.Analysis Consumer expenditure on transport increased significantly in all categories during the review period. following only networks in China and Japan. Ipoh.6% in 2020. with the percentage of households possessing cars reaching 64. Passenger cars will continue to be popular over the forecast period. dirty and inefficient. As long as passenger cars remain at their current affordable levels and fuel subsidies remain in place. with a different tax structure for private and commercial vehicles. Cars are relatively cheap to buy in Malaysia and petrol remains heavily subsidized by the government. including Penang. the NorthSouth Expressway passes through all major cities and conurbations in West Malaysia. Impact Both intra-city and intra-country rail travel is popular among Malaysians due to its efficiency and speed. with no plans to introduce such public transport systems in other Malaysian cities. However. But most trains are filled to capacity during peak travel hours despite significant upgrades and expansion to the system over the review period.5%. with owners of higher engine capacity cars paying a higher road tax. growth was due to new low-cost air carriers introducing fares that a wide range of Malaysian consumers could afford. Electronic toll collection systems such as Touch ’n Go and Smart TAG have been available at all toll collection points since 2004. As well. there was an increase in intra-country travel as Malaysians seeking short and affordable holidays chose destinations within the country rather than travelling overseas. this makes cycling to work an extremely dangerous undertaking. 62.2% of Malaysian households possessed passenger cars. expanded rapidly and increased the number of holiday destinations during the forecast period. other than by those who happen to live conveniently close to their places of work. with Kuala Lumpur being the only major city to enjoy its own light rail and monorail inter-city transit system. Malaysian consumers who can afford it prefer to get around by car instead of by public transport. reaching nearly RM15 billion in 2020. reaching RM1. https://www. This growth is expected despite the heavy traffic congestion in Kuala Lumpur. In 2010. coaches and taxis is also expected to remain popular. for the time being the light rail and monorail systems look to be limited to Kuala Lumpur and outlying areas. Numbering 27 highways with a total length of 1.8%. there will be little incentive for car owners to switch to overstretched public transport systems and much incentive for households that don’t own cars to buy them. Road tax in Malaysia is paid annually. Malaysia maintains a national expressway network which is ranked among the best in Southeast Asia.630 kilometres. up from 58.aspx 62/68 . the popularity of travel by buses. Over the same period.8 billion in 2010. In particular. coaches and taxis accounted for bulk of transport spending (64.3% over the review period reach nearly RM8 billion in 2010. spending is projected to increase by 76. Between 2011 and 2020. In other Malaysian cities. public transport in Malaysia is relatively under-developed. Regardless.euromonitor.portal. This growth was largely due to the increasing population as well as the growing number of Malaysian workers transiting back and forth to work daily. consumer expenditure on air travel increased by 47. reaching RM4. Spending on rail travel exhibited the greatest increase (55% in real terms) to reach RM2. Consumer expenditure on buses. Air Asia. consumer expenditure on rail transport is projected to increase by 74% (in real terms) over the forecast period. many of which are old. the Klang Valley and Johor Baharu. This was not surprising due to the strong demand for light rail and monorail transport services in Kuala Lumpur alone. Malaysian car owners must pay a multi-tier road tax based on the engine capacity of their cars. making travel via passenger car an affordable and cost-effective option for many consumers.11/18/11 Euromonitor International . and significant upgrades to heavy rail. Malaysia’s largest low-cost carrier.7% in 2006. Generally.2% of the total) in 2010 with growth of 49. public transport consists solely of public buses. Air Travel During the review period. Thus.7 billion in 2020.
The 242 retail shops and 88 food and beverage outlets are expected to increase to 277 and 99.972 2006 1.222 2009 2. KLIA offers travellers a wide variety of duty-free shops and luxury brand boutiques as well as numerous restaurants. As well. Euromonitor International Table 82 Household Possession of Passenger Vehicles: 2011-2020 % of households Passenger car 2011 62. making it especially attractive for low-cost airlines such as Air Asia. KLIA also has a Low Cost Carrier Terminal (LCCT) specifically built to cater to the growing number of passengers flying low-cost airlines. it is ranked as the thirteenth busiest airport in the world in terms of international passenger traffic and ranked seventh in Asia alone. Senai International Airport.euromonitor.7 2007 59. it is expected that there will be increased launches of a wide range of stores and shops in popular tourist destinations as retailers try to capitalise on the rising number of visitors and attempt to capture their fair share of tourists’ money.537 https://www. growth will be based on the rising popularity of low-cost air carriers that offer consumers significantly cheaper flights to both local and overseas holiday destinations.portal.5 2010 62. respectively. Low-cost airlines are charged lower airport fees and travellers are offered only basic terminal amenities. Intra-country tourism is expected to continue to grow over the forecast period. over the forecast period.Analysis The Kuala Lumpur International Airport (KLIA) is Malaysia’s largest airport and serves as the country’s main international airport. Table 81 Household Possession of Passenger Vehicles: 2006-2010 % of households Passenger car 2006 58.com/Portal/Pages/Search/SearchResultsList.7 2009 61. coaches and taxis 4.487 2007 1. reaching RM3.977 7. it was built at a cost of RM8.291 2010 2. Impact Over the forecast period.881 2008 2.2 Source: National statistics.1 2020 64.aspx 63/68 . Euromonitor International Table 83 Consumer Expenditure on Transport Services (Current Value): 2006-2010 RM million Consumer expenditure on rail travel Consumer expenditure on buses.996 6.8 2008 60.7 2015 64.259 7. Langkawi International Airport.2 million tonnes of cargo a year. Capable of handling 35 million passengers and 1. As was the case during the review period.851 5.3 billion in 2020. Covering 143. consumer expenditure on air travel is expected to increase by 74% (in real terms). Landing fees and handling fees are also lower at the LCCT. Officially opened in 1998.5 billion. Penang International Airport. according to plans by the airport’s retail operator Eraman.404 square metres.6 Source: National statistics. Other international airports in Malaysia include the Malacca International Airport. Kota Kinabalu International Airport and Kuching International Airport.11/18/11 Euromonitor International . leading to growth in related sectors such as foodservice and hotels and catering. Growth in the number of Malaysian holiday seekers is expected to be supported by rising disposable incomes over the forecast period. cafes and other dining options.
467 2020 4.0 TOTAL 8.972 49.7 1.5 2011 2.11/18/11 Euromonitor International .8 6.467 7.com/Portal/Pages/Search/SearchResultsList.726 14.693 23.943 76.288 12.414 Source: National statistical offices.331 10.481 12.137 7.euromonitor. Eurostat.599 99 1.476 1. OECD.146 75.665 1.289 73.3 8. Eurostat. Eurostat.0 % CAGR 6.339 6.368 86 1.897 11.637 2007 2.aspx 64/68 .636 1.515 9.704 2015 3.Analysis Consumer expenditure on air travel Consumer expenditure on other travel 1.706 % growth 74. Euromonitor International Note: Constant value at 2010 prices https://www.537 % growth 55.0 1.352 3.3 TOTAL 13.383 7. coaches and taxis Consumer expenditure on air travel Consumer expenditure on other travel 116 148 209 80.029 2008 2.796 110 TOTAL 7.891 2.148 11.218 1. OECD.796 47.161 16.1 Source: National statistical offices.065 11.637 101 1.portal.414 50.9 6.4 Source: National statistical offices.274 2009 2.9 6. coaches and taxis Consumer expenditure on air travel Consumer expenditure on other travel 77 92 101 103 110 42. OECD.5 6.5 5.271 10.107 70 1.330 2010 2.450 10. Euromonitor International Table 84 Consumer Expenditure on Transport Services (Constant 2010 Value): 2006-2010 RM million Consumer expenditure on rail travel Consumer expenditure on buses.3 2006 1. Euromonitor International Note: Constant value at 2010 prices Table 85 Consumer Expenditure on Transport Services (Constant 2010 Value): 2011-2020 RM million Consumer expenditure on rail travel Consumer expenditure on buses.
In many cases. AmBank. Affin Bank and Alliance Bank.portal. A 2010 survey by MasterCard on saving patterns among different consumer groups in Malaysia yielded some surprising results. older consumers said they did not want to increase their saving levels. although it must be said that most anticipate that there will not be another dramatic economic downturn like that seen during the review period. down from a high of 12. Public Bank. many Malaysian consumers are not adverse to borrowing to fund the purchase of products and services they believe they need immediately rather than waiting until they had saved enough to cover the entire cost. hence. many households took out loans to fund their children’s education. The reason most cited by these young consumers was the recent economic crisis which left many Malaysian consumers feeling shell-shocked in its aftermath. Apart from this. In contrast. investors believe they can realise higher gains on their savings than they can in simple bank saving accounts. Bank of Nova Scotia. For example. consumers are expected to resume spending and. In Malaysia. it is not expected that there will be a considerable shift. namely Citibank.836 in 2010. Loans and Mortgages There are eight major banks operating in Malaysia. This list does not include the wide range of foreign banks that offer consumers investment and advisory services. Regardless of the reason.7% of total owned homes. Despite this. during the review period the number of home owners with mortgages reached 553. run by the government.8% (in real terms) during the review period. becoming less inclined to save as they got progressively older. As expected.9% in 2006.11/18/11 Euromonitor International . it can be said that in genera. This can be attributed to many older consumers having already built up a considerable saving nest egg and.Analysis MONEY Savings The savings ratio in Malaysia dipped slightly during the review period to reach 12. there are seven foreign banks with full banking licenses operating in Malaysia.7% in 2010. looking to enjoy the benefits of greater financial security.euromonitor.416 in 2006 to RM1. The other side of the coin is that many older consumers have significantly lower disposable income levels than their more affluent peers and they find they must adhere to relatively strict budgets and savings regimens.aspx 65/68 . RHB Bank. again. In addition to these domestic banks. save less of their disposable income although. Impact Trends and attitudes towards savings in Malaysia are not expected to change significantly over the forecast period. CIMB. This gives them more confidence to spend in both good and bad times. The value of consumer credit increased by 17.com/Portal/Pages/Search/SearchResultsList. consumers tend to increase their savings when bad times and uncertainty come around. Hong Leong Bank. in descending order of total assets and market capitalization. they are Maybank. many consumers are preparing to ramp up their savings in order to cope with the next economic crisis or other unforeseen emergencies. For example. HSBC. reaching RM182. there is a growing trend of Malaysians saving in order to fund investments in financial instruments and/or property as they seek to capitalise on Malaysia’s growing finance and property markets. On the other hand. most home owners in Malaysia are not saddled mortgages. bank savings accounts and fixed deposit accounts are the most popular methods of saving by Malaysian consumers. As a result. where houses are cheap and plentiful (apart from those located in the heart of major https://www. Malaysian workers participate in a mandatory savings program under the Employment Provident Fund. The high proportion of home owners without mortgages is largely due to the affordability of housing in Malaysia. This reflected the significant increases in average per capita disposable income during the review period. younger consumers (between the ages of 18 and 29 years-old) expressed the greatest inclination to save greater portions of their disposable incomes. OCBC. in turn.000 in 2010 but that number represented only 10. annual savings in per capita terms grew strongly. Royal Bank of Scotland and United Overseas Bank. going from RM1. Standard Chartered. Indeed. However.6 billion in 2010. which is meant to provide retirement income for retired Malaysians. As the economy recovers and as disposable incomes rise. the savings ratio increased in 2009 when Malaysians were faced with the economic downturn. It became increasingly common for Malaysian consumers to seek personal loans during the review period.
a deluge of consumers including students. credit cards today are ubiquitous. Financial service providers are expected to compete fiercely to capture new customers and renew existing ones in efforts to increase their market value shares.9 million cards in 2010.com/Portal/Pages/Search/SearchResultsList. Indeed. Previously viewed only as status symbols. The strong growth and widespread popularity of debit cards lies in the fact that debit cards offer a range of functions and benefits comparable to most mass-market credit cards while not requiring the spotless credit history or minimum annual income for qualification. up from 8. Impact Consumer lending looks set to continue to grow over the forecast period as Malaysian consumers become bettereducated about using credit as a financial tool. For example.9 million cards in 2006. It is debit cards which saw the largest growth during the review period so that by 2010 the number of debit cards in circulation outnumbered credit cards by a ratio of nearly four to one. Hence. housewives and low-income workers have rushed to apply for debit cards.portal. cheaper prices for homes means than there is not much value locked into the average Malaysian home. reaching 980. At the same time. During the review period. A growing culture of consumerism is expected to help fuel this growth and more and more Malaysians are expected to turn to credit and personal loans to fund their purchases they want now. through improved education levels and job opportunities. financial cards are less frequently accepted by retailers. Some are focusing on rural regions where residents. particularly in urban areas where most retailers accepting them as a form of payment. card providers are expected to increasingly forge attractive tie-ins with retail partners. the number of credit cards in circulation in Malaysia grew by 20. As a result. Credit cards (as well as debit cards) are frequently used at consumer foodservice outlets and entertainment outlets. https://www. reaching 10. in the rural regions and smaller towns. Only the larger chain retailers such as supermarkets and hypermarkets as well as department stores accept credit cards as a form of payment. it becomes far less attractive for home owners to get mortgages to release whatever residual value is left in their homes.000 or nearly 16% of total owned homes in 2020. the number of debit cards in circulation grew by a staggering 101% to reach 37. Attractive discounts and rebates are also alternatives that industry players will exploit to ensure their financial cards get into the hands of more Malaysian consumers. among other retail venues. Credit industry players are expected to step up their efforts to woo more customers (particularly young consumers) in order to increase their value share in what is proving to be an extremely saturated and competitive market. A range of discounts or rebates as well as reward points are all strong incentives for consumers to use their financial cards over cash when possible. they will have no choice but to incur the associated fees for card services or risk losing their customers.aspx 66/68 . the number of home owners with mortgages is projected to increase by 59% (in real terms). Credit Credit cards have been used in Malaysia since the 1990s and their popularity has grown by leaps and bounds since their introduction. In many cases.4% during the review period.euromonitor.Analysis Malaysian cities). Impact As credit and debit cards become more commonplace in Malaysia and as Malaysian consumers increasingly use them while making purchases. smaller independent retailers in both urban and rural Malaysia will come under pressure from their customers to offer such payment options. Smaller independent retailers in rural regions and towns do not accept credit cards at all and often only transact in cash. Regardless. In particular. up from 18.7 million cards in 2010.11/18/11 Euromonitor International . Further. Consumer’s comfort with using credit cards (both in-store and online) improved significantly during the review period. However. the value of the mortgage sector did grow by a significant 85% (in real terms) during the review period.9 million cards in 2006. sporting groups and local attractions in attempts to target specific consumer groups. are expected to have considerable rises in disposable income. These up-and-coming rural consumers represent a new and untapped market for financial services providers and some will be expanding into rural regions soon to gain advantages over their counterparts. Standard Chartered recently offered holders of its credit and debit cards the opportunity to participate in a pre-sale of tickets to the Asian Tour of the popular Liverpool Football Club.
947 2007 353.com/Portal/Pages/Search/SearchResultsList.1 2008 1.878 18.999 176.812 175.798 161.117 156.057 199.521 194.949 21.552 206.Analysis Table 86 Savings and Savings Ratio: 2006-2010 As stated Annual savings (RM per capita) Savings ratio (% of disposable income) Source: National statistics.262 182.729 174. Euromonitor International 12.192 2008 362.11/18/11 Euromonitor International .556.763.889 171.262 182.7 2006 1.709 Source: National statistics.757 191.709 % growth 17. Euromonitor International Table 88 Consumer Loans.4 101.8 2007 1.772.208 2009 377.921 % growth 20.285 178.aspx 67/68 .2 2010 1.887 2008 10.1 Source: National statistics.861 2007 9.554 2008 368. Euromonitor International © 2011 Euromonitor International https://www.337 2010 10.552 206.9 12.euromonitor. Mortgages and Credit (Constant 2010 Value): 2006-2010 RM million Consumer Lending Consumer Credit Mortgages/Housing 2006 331.437 2009 10.8 16.680 168.946 196.877 2007 330.925 173.9 12.132 2009 372.8 Source: National statistics.835.946 154.874 30.415. Euromonitor International Note: Constant value at 2010 prices Table 89 Financial Cards in Circulation: 2006-2010 '000 cards Credit Function Debit Function 2006 8.9 Table 87 Consumer Loans.8 12.867 24.688 37.674 141.portal.228 2010 389.9 12.126 185.866 2010 389.3 17.7 2009 1. Mortgages and Credit (Current Value): 2006-2010 RM million Consumer Lending Consumer Credit Mortgages/Housing 2006 303.
euromonitor.Analysis https://www.aspx 68/68 .com/Portal/Pages/Search/SearchResultsList.11/18/11 Euromonitor International .portal.
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