Consumer Sector To Benefit From SSPA Pay Rises, SARA 2.0 Support – HLIB
KUALA LUMPUR, Jan 8 (Bernama) -- Malaysia’s consumer sector is poised to gain from higher disposable income following phase 2 of the Public Service Remuneration System (SSPA) salary adjustments and the ongoing implementation of Sumbangan Asas Rahmah (SARA), Hong Leong Investment Bank (HLIB) said.
In a note today, HLIB stated that consumers remain value-conscious, but spending on essentials and mass-market retail is expected to remain resilient.
The investment bank also pointed to strong tourism momentum, driven by Visit Malaysia 2026 (VM2026), as an additional factor supporting consumer spending.
“The outlook for Malaysia’s consumer sector in the first half of 2026 remains constructive, underpinned by supportive macroeconomic conditions, targeted fiscal assistance and sustained tourism-related spending,” it said.
HLIB added that upcoming festive spending during Chinese New Year in February and Hari Raya in March is likely to boost first-quarter performance, supporting near-term retail and food and beverage activity.
The bank maintained an “overweight” stance on the consumer sector, citing improving income dynamics, continued fiscal support and resilient demand for essential goods.
“While margin pressures and selective weakness in discretionary spending remain risks, we believe demand-side catalysts will continue to underpin earnings visibility for mass-market, essentials-focused, and tourism-leveraged consumer names in the first half of 2026,” it said.
HLIB named AEON Co (M) Bhd and Focus Point Holdings Bhd as its top picks, with ‘buy’ calls and target prices of RM1.72 and RM0.83, respectively.
--BERNAMA