In 2025, Malaysian consumers are navigating a complex landscape shaped by rising living costs, stagnant incomes, and evolving retail habits. The Malaysia Consumer Trend Report 2025 by Central Force International reveals critical insights into how citizens are adapting, balancing caution with cultural spending, and embracing digital commerce while demanding better service, trust, and value.
The Financial Reality: Income Stagnation and Budgeting Pressure
The report finds that over half of Malaysian consumers experienced no income growth in the past year. Amid escalating living expenses, many households are forced to make hard financial decisions, including pausing major purchases, delaying travel, or turning to credit and government support schemes.
Yet, there remains a degree of resilience and hope. Nearly 40% of respondents still plan major purchases in the near term, reflecting a cautiously optimistic outlook despite the pressure on personal finances.
This balancing act between frugality and aspiration defines much of the consumer mindset in Malaysia today.
Online Shopping Dominates, But Trust and Speed Still Matter
According to the report, 87.8% of respondents shop online, while only 12.2% identify as offline shoppers. Among the latter group, 45.9% are open to shifting to online shopping, signalling further potential for digital retail expansion.
Top e-commerce platforms in Malaysia
- Shopee – 37.3%
- TikTok Shop – 28.4% (rising rapidly)
- Lazada – 9.5%
- Others (including PG Mall, Amazon, Shein) – 24.8%
While Shopee retains the lead, TikTok Shop’s surge is notable, suggesting the rise of content-driven commerce that blends entertainment with transactions.
What influences purchase decisions?
Consumers cite price (39.4%), service (16.4%), and product quality (12.9%) as the top three factors influencing their e-commerce choices. Brand trust and payment convenience also play strong supporting roles.
Popular payment methods reflect this need for convenience and flexibility:
- FPX (Financial Process Exchange) – 29.8%
- Bank Transfer – 28.6%
- Cash on Delivery (COD) – 17.8%
This mix shows that even in a highly digital market, Malaysians still value traditional options like COD particularly in rural or less digitally fluent regions.
Despite the widespread adoption of online shopping, several pain points remain. When asked what improvements they want most, consumers highlighted:
- Faster delivery times (19.4%)
- Lower product costs (17.5%)
- Improved product quality
- Better seller transparency and trust
- More flexible payment options
- Easier product returns and exchanges
This feedback suggests that logistics, affordability, and post-sale support remain critical areas where e-commerce platforms must improve to retain loyalty.
Offline Shopping Still Relevant, But Fading
Among the 12.2% who still prefer offline shopping, reasons include:
- The need to physically touch and evaluate products (27.9%)
- Limited digital literacy or access (26.2%)
These shoppers tend to favour traditional retail locations like malls, local shops, night markets, and bazaar-style stores indicating that experience and accessibility are core offline drivers.
However, the report notes that even many of these offline shoppers are beginning to interact with brands digitally, suggesting future shifts toward hybrid buying.
The Hybrid Shopping Trend
One of the most striking findings is the rise of hybrid retail behaviour where consumers browse in one channel (e.g., in-store) but purchase in another (e.g., online). This trend is especially prominent across different Malaysian regions:
- East Coast (Kelantan, Terengganu, Pahang):
51.85% browse in-store but buy online. - Northern Region (Kedah, Perlis, Penang):
47.66% still prefer buying in-store. - Central Region (Kuala Lumpur, Selangor):
49.08% of consumers shop fully online.
This shows that region-specific strategies are essential for brands, especially those expanding across urban and rural divides.
Even with financial pressures, Malaysians continue to prioritise festive and cultural spending. The emotional and social value attached to celebrations like Hari Raya, Chinese New Year, and Deepavali drives continued expenditure during holiday seasons.
Brands that align their campaigns with emotional storytelling and cultural values are likely to connect deeply with consumers, especially during these meaningful periods.
The report also highlights that Malaysians care about sustainability and brand authenticity, but only when these values are delivered alongside fair pricing.
This emerging “value + values” equation means that consumers appreciate eco-friendly or ethically made products. However, they won’t pay significant premiums unless the value is clear. This is particularly important for brands marketing green products, organic goods, or social enterprise items in Malaysia.
Drawing on these insights, Central Force International suggests several strategic moves for businesses to embrace hybrid commerce to serve both digitally fluent and traditional shoppers. The second one is to prioritise affordability and convenience, especially for lower and middle-income segments. Third, localise engagement efforts, especially in regions where hybrid behaviour dominates.
These recommendations underscore that Malaysian consumers are highly adaptive but cautious, with strong expectations around value and experience.
What Can We Learn From This?
The 2025 Malaysia Consumer Trend Report offers more than just statistics, it reveals the emotional and economic pulse of the nation. Here’s what businesses, marketers, and policymakers can take away:
- Price remains king, but value matters more.
Malaysians are highly price-conscious, yet they also value trustworthy brands, quality products, and good service. Businesses must strike a balance between affordability and value delivery. - Digital commerce is mature—but not perfect.
With nearly 90% of consumers shopping online, e-commerce is the norm. But expectations are rising: faster delivery, better product quality, and seamless return policies are no longer optional. - Hybrid shopping is the future—especially outside urban centres.
Regional behaviours vary widely. While Klang Valley leads in online-first habits, rural and East Coast consumers still browse in-store or favour COD. This underscores the need for flexible, region-sensitive strategies. - Festive spending is emotionally anchored.
Despite financial strain, Malaysians continue to spend during festive seasons. Emotional resonance, cultural relevance, and storytelling in marketing are vital, especially during key holidays. - Sustainability has traction—but must be practical.
Ethical and eco-friendly products are gaining interest, but not at a significant price premium. Brands must integrate sustainability without alienating cost-sensitive consumers. - The human connection still matters.
Trust, seller reputation, and service reliability influence buying decisions especially in a digital environment where product touchpoints are limited.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
