UOB’s ASEAN Consumer Sentiment Study (ACSS) 2023 revealed that many Malaysians are now more concerned about their finances and wellbeing as compared to 2022, with the looming threat of recession that may affect their ability to afford daily essentials and save money. This is despite their optimism about the situation, with two out of three respondents expecting their finances to improve by June 2024.

According to the study, three out of four respondents believe that Malaysia will likely face an economic downturn within the next six to twelve months, and 34% are concerned about their ability to save. Meanwhile, 30% said that they worry about their ability to afford daily essentials given the higher living costs, while 26% are anxious about being able to maintain their lifestyles.

Given this situation, a majority of the respondents said that they have taken steps to spend less on non-essential expenses like dining out (34%), vacations (35%), and jewelleries (36%). Instead, they have increased spending on essentials like groceries (37%) and utilities (35%).

Aside from that, it was also noted that about 30% of Malaysian consumers plan to increase their allocation for savings, investment, and insurance. “While spending on insurance tops Baby Boomers’ list, Gen Z and Y are more focused on increasing their savings. Gen X, on the other hand, prioritises their investments,” UOB shared.

The report further highlighted that 87% of respondents said that there is a need for more sustainable investing solutions in the market. Mass consumers, in particular, are interested in more sustainable investing options as compared to other segments. “Following the trend in ASEAN, Malaysian consumers have a strong interest in sustainable investing. A total of 29% of consumers have already included sustainable investments in their wealth building portfolio, and another 58% are interested in exploring sustainable investments,” UOB said.

Another notable detail that UOB’s study also revealed include Malaysians’ willingness to adopt digital banking solutions – whether it’s for security, convenience, or better rewards. For instance, 44% and 34% of Malaysian respondents have increased their use of mobile banking apps and internet banking services, respectively. This comes as 54% consider mobile banking app to be the most trusted banking channel, while 43% placed more trust in internet banking via web browser.

One in three respondents also said that they prefer to apply for simple products online, such as purchasing insurance (32%) and investment products (36%). For transactions that are more complex, however, most still prefer to use offline channels. These include bank loans or refinancing of loans (37%), high-value transactions (38%), and opening new bank accounts (43%).

On top of that, 56% of Malaysian respondents indicated that they are more interested in finding financial products that offer deals and rewards on online banking platforms. In comparison, they spend less time tracking their spending while using these platforms.

UOB’s ASEAN Consumer Sentiment Study is the bank’s regional flagship study that analyses consumer trends and sentiments in Singapore, Malaysia, Thailand, Indonesia, and Vietnam. The latest fourth edition was conducted from 1 to 26 June 2023, and surveyed 3,400 respondents online, including 600 Malaysian respondents.

(Sources: UOB, The Edge Malaysia)

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• Investments
• Savings
• Sustainable Investment
• UOB
• UOB ASEAN Consumer Sentiment Study (ACSS)
• UOB Bank