[Press Release] Malaysia's Cost of Living Monitor

The findings from the study reveal:

• Malaysian confidence in the country’s direction has improved
• Malaysia is the most optimistic nation in the SEA on economy
• Concerns about corruption, poverty and unemployment are easing
• Malaysia shows greater optimism on household spending outlook
• Malaysians hope for a higher standard of living in 2026

Arun Menon, Managing Director, Ipsos Malaysia mentions:  

“National confidence in the country’s direction is strengthening, reflecting growing positive sentiment towards recent policy measures. Malaysia now stands as the most economically optimistic nation in the region, in contrast to declining confidence across several Southeast Asian countries. Supporting this trend, public concerns regarding poverty, unemployment and corruption have eased, signaling greater trust in the country’s stability. The optimism is translating into higher household spending intentions, above the global average.

Malaysia’s economy grew 5.2 per cent year-on-year in Q3 2025, supported by strong household spending, resilient exports and steady investment. This marks the fastest quarterly pace in a year and brings full-year targets within reach. Net FDI rose to RM8.5 billion, reflecting sustained investor confidence, while inflation remained low at around 1.3 per cent, helping to preserve consumers’ purchasing power.

Targeted government support, including SARA, BUDI MADANI RON95 and electricity tariff adjustments, continues to ease daily financial pressures and reinforce positive sentiment. With improving economic confidence, Malaysians expect higher disposable incomes and a better standard of living in 2026.

Looking ahead, RMK13’s emphasis on income growth, social protection and cost-of-living management is expected to consolidate these gains and strengthen their long-term impact.”