KUALA LUMPUR (Oct 22): The Malaysian Institute of Economic Research's (MIER) Consumer Sentiments Index's (CSI) reading had in the third quarter of 2021 (3Q21) rose to its highest level since 3Q13 at 101.7, which is also the first time since 3Q18 that the CSI’s reading had surged past the 100-point optimism threshold in a sign that Malaysian consumer sentiments are looking up once again due to the easing of Covid-19 pandemic-driven movement restrictions.

MIER said in its latest consumer sentiments survey report that labour market expectations have never been this optimistic since 2Q18, while household financial expectations are the best in three years.

"Consumers are increasingly buoyant about the economy lately,” said MIER, whose CSI reading rose in 3Q21 from below 80 in 2Q21.

MIER, however, did not specify when its consumer sentiments survey for 3Q21 was done and how many respondents were involved.

According to MIER, with consumers looking forward to better incomes and employment opportunities in the coming months, spending plans for major consumer durables are expected to pick up momentum as well. 

The easing of Covid-19 restrictions by the Malaysian government from Aug 10, 2021 for those who are fully vaccinated has likely brought about much respite to consumers and boosted their sentiments henceforth, according to MIER.

"Income expectations are riding on a wave of job confidence which is prompting a flurry of spending plans for major consumer durables in the coming months. Notwithstanding the still high inflationary outlook, the increase in consumers’ appetite to shop is also likely a much-awaited reprieve for consumers who have had experienced pandemic fatigue over a period of time. 

"The soon-to-be-announced Budget 2022 is likely another positive anticipation of consumers and, thus, their ambitious shopping plans. 

"Much still depends on whether such plans will materialise or not. Until, and unless, they do, consumers may not be able to provide the economy with a stronger mandate for growth, at least for now,” MIER said.