Domestic demand upbeat momentum to continue in 2024 – MIDF Research

KUALA LUMPUR – Domestic demand is predicted to remain strong in 2024, thanks to a robust labour market, stable income growth, a rise in tourism activities, and favourable economic policies, according to MIDF Research.

The research house also said Malaysia’s retail industry is expected to grow by 7.5 per cent in 2024.

“In 2023, Malaysia’s distributive trade sales increased by 7.7 per cent with all components particularly sales of motor vehicles and retail trade improving by 12.3 per cent and 9.0 per cent, respectively, while wholesale trade inched up by 5.2 per cent.

“Consumer demand remained firm and resilient as reflected in the distributive trade sales performance,” it said in a note today.

Meanwhile, MIDF Research said international passengers contributed 47.0 per cent of total passenger movements in 2023.

“In 2019, 50.7 per cent of Malaysia’s airports’ passenger traffic was contributed by international travels, 25.0 per cent by Asean and 25.7 per cent by non-Asean destinations.

“For 2023, domestic travellers accounted for 53.0 per cent (2019: 49.4 per cent) vis-a-vis international destinations at 47.0 per cent whereby 21.7 per cent were non-Asean and 25.3 per cent Asean,” it said.

MIDF Research said that, however, upward inflation pressures may affect consumer demand depending on the potential effects of targeted subsidy approaches and fluctuations in global commodity prices. – BERNAMA / pic TMR FILE

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