Author : Mohd Zaky Zainuddin - Julai 30, 2021

Source : BH Online

 

KUALA LUMPUR: The unfavorable environment due to COVID-19 has seen more and more consumers experiencing a level of financial decline as job opportunities have become increasingly limited lately, according to the Malaysian Institute of Economic Research (MIER).

MIER in its Consumer Sentiment Survey Report for the second quarter of 2021 revealed, respondents in the second quarter of 2021 generally experienced a financial downturn compared to the previous quarter and the second quarter of 2020.

“A total of 42 per cent of respondents experienced financial deterioration for the period under review, an increase of four and three per cent respectively compared to the first quarter of 2021 and the second quarter of 2020.

"Only eight per cent reported higher income in the second quarter of this year, the second lowest level ever recorded at seven per cent in the fourth quarter of 2004," he said.

The report revealed that of the respondents who experienced declining incomes, 63 per cent were the low -income group most severely affected during the quarter.

“High -income respondents accounted for nine per cent in the quarter, down more than half from the 20 per cent recorded in the previous quarter,” he said.

Commenting on the outlook for the labor market, MIER said the outlook for the better employment sector over the next few months was also lower.

“14 per cent of respondents strongly agree that the job market is less promising, while 57 per cent expect vacancies in the employment sector to increase slightly over the next few months.

“Lack of job confidence was detected in all income groups, locations and regions in the second quarter of 2021, thus indicating negative expectations increased more than doubling in all categories except the Eastern region,” he said.

MIER added that despite weak employment and income growth, prices of goods are expected to increase in the coming months.

“Consumers plan to slow down (spending) and be cautious with major durable goods shopping activities throughout the year due to income earnings and the labor market continuing to put pressure on their pockets.

“Demand for all these items is expected to decline in the next few months.

"For example, homes, which became the most popular item searched, lost appeal in the second quarter of 2021. Only seven percent of respondents planned to find new homes, the lowest rate since the third quarter of 2009," he said.

MIER explained the level of consumer confidence affected amid the COVID-19 epidemic is not expected to end in the near future.

"This is because, they need cash and this can affect the momentum of consumer spending," he said.

 

Article search by : Mrs Marziati Md Din | Senior Finance Officer Internal Audit Division | Universiti Putra Malaysia

Date of Input: 07/09/2021 | Updated: 13/09/2021 | faiz_suparman