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Households: Malaysia

May 2021

A weakened economy is creating some household consumption bottlenecks in Malaysia, characterised by a slowing property market and weak uptake of appliances. However, the state is placing an onus on public infrastructure projects to improve household accessibility and on affordable housing for the mass market. Urban centres remain points of expansive opportunities, though challenges remain as the market continues to evolve.

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Overview:

The Country Briefings series examine market potential, economic and consumer trends impacting each country and how they are set to change.

Each Country Briefing covers one of these topics:

Economy, Finance and Trade: Understanding the structure, health and potential risks of an economy are important for decision-making within an existing operating environment as well as for expansion strategies. Real GDP growth, inflation and exchange rate fluctuations will directly impact consumer market potential. Import and export trade profiles help gauge how open an economy is to trade and investment, while analysis of government finances can be used to explore macroeconomic stability and susceptibility to economic shocks.

Income and Expenditure: Insights into income, wealth and expenditure of consumers are vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

Households: Global shifts in gender, ageing, migration and housing are transforming the size, location,  general make-up as well as income and expenditure of households around the globe, with diverse implications for governments and companies. Households insights can help identify the decision-making processes and consumption tastes of different household groups and types within a country, and assess household appliance and digital readiness that is key for formulating market technology and internet strategies.

Business Dynamics: A stable and competitive business environment is vital to operate efficiently and attract inward investment. Businesses can assess these factors alongside challenges such as corruption, political instability and terrorism, also gain insight into business operating environment and make strategic investment decisions. Transport infrastructure, ICT readiness and labour force dynamics will also identify potential issues with a supply chain and the level of workforce skills.

Sustainability: Insights on key sectors directly related to the environmental sustainability of a country such as energy, water, pollution, environmental resilience, forest and biodiversity and food and agriculture help businesses to make strategic decisions in relation to environmental and sustainability trends, improve brand reputation and ensure long-term operations while ultimately growing the bottom line.

The briefings cover 103 countries and identify topics of crucial interest to planners, marketers and researchers.

Households: Malaysia

HEADLINES

PROSPECTS

Single person households and childless couples to grow at the fastest pace
Kuala Lumpur will remain the largest urban centre in Malaysia by 2040
Household disposable income is forecast to double by 2040
The government aims to boost rural electrification through renewable energy sources
The residential property market faces a slowdown over 2020

HOUSEHOLD PROFILE IN 2020

Chart 1 Household Profile: 2040 Chart 2 Households by Number of Persons: 2040 Chart 3 % of Households by Number of Children: 2040 Chart 4 Households by Type of Household: 2040 Chart 5 Consumer Expenditure by Household Type in Malaysia: 2015/2020/2040 Chart 6 Household Heads Sex and Employment in Malaysia: 2040 Chart 7 Households by Education of Head of Household: 2040 Chart 8 Households by Economic Status of Head of Household in Malaysia: 2040 Chart 9 Households by Age of Head: 2040 Chart 10 Household Penetration by Facilities: 2040 Chart 11 Household Possession of Kitchen Durables in 2040: % of Households Chart 12 Household Possession of Other Durables in 2040: % of Households Chart 13 Household Digital Penetration in Malaysia Compared to Global Average: 2040 Chart 14 Possession of Entertainment Electronics in 2040: % of Households Chart 15 Possession of Other Electronics in 2040: % of Households Chart 16 Key Metrics of Households Property Market: 2040 Chart 17 Housing Stock by Construction Year: 1979-2020 Chart 18 Households by Number of Rooms: 2040 Chart 19 Households by Size of Dwelling in Malaysia: 2040 Chart 20 Housing Completions and House Price Index in Malaysia: 2015-2021
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