KUALA LUMPUR, Jan. 24 (Xinhua) -- The BMI Country Risk and Industry Research, a research unit under Fitch Solutions, has maintained its view that Malaysia will experience further strong growth in consumer spending in 2025, underpinned by a low inflationary environment and a stable labor market.

The research house said in a note on Thursday that it forecasts Malaysia's real household spending growth reaching 5.2 percent year-on-year in 2025, in real terms, to a value of 954.5 billion ringgit (217.06 billion U.S. dollars), up from 907.2 billion ringgit in 2024.

According to the note, Malaysia's inflation is forecast to average 2.4 percent in 2025, which while up from an average 1.8 percent in 2024, remains lower enough to support household purchasing power.

"We maintain our broadly positive outlook for consumer spending in Malaysia over 2025, with the country's healthy macroeconomic outlook driving real term growth in household incomes," BMI said.

However, it noted that downside risks remain, as high debt levels leave Malaysian households vulnerable to elevated interest rates. (1 ringgit equals 0.23 U.S. dollars) Enditem

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