Business

Friday November 7, 2008

Survey finds marked decline in consumer sentiment

By M. HAFIDZ MAHPAR and RACHAEL KAM


Malaysians bearish on economy

KUALA LUMPUR: There has been a marked deterioration in domestic consumer sentiment in the past few months, according to research findings.

The Nielsen Co Malaysia, in a survey conducted over a two-week period ending Oct 6, found that a whopping 68% of Malaysians perceived the country was in a recession.

When the company did a similar survey in May, the figure was slightly less than half (49%).

Malaysians have been found to be also bearish about where the economy is headed.

A Synovate Research poll three months ago had found that only 45% of Malaysians expected the economy to improve soon.

The Nielsen study last month found that only 20% of those who felt the economy was in recession thought the country would be out of it within 12 months.

This finding seemed to anticipate Deputy Prime Minister Datuk Seri Najib Tun Razak’s statement on Wednesday that Malaysians should prepare for a tougher year ahead.

While the Nielsen and Synovate polls predated Najib’s announcement of the RM7bil economic stimulus package, StarBiz found that the package might not have changed the gloomy outlook of the man-in-the-street.

Razali Baharom, a 50-year-old assistant store manager, said he doubted that the economy would improve soon.

“It all depends on the effectiveness of the measures taken by the Government,” he said. “I am worried about the economy and food prices. Due to the inflation, it will be tough for me financially over the next 12 months to cover the expenses of my three children who are studying in university.”

To save for his children’s education, Razali is putting any spare cash into his Tabung Haji account.

The Nielsen survey also found that 67% of Malaysians planned to put spare cash into savings, up from 63% in May.

Of the respondents, 46% said they would pay down their credit card debts and loans.

Compared to six months earlier, fewer people planned to use their spare cash to invest in stocks/unit trusts or buy items like clothes and technology products, the report said.


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