Euro Monitor International - Consumre Lifestyle - Msia - Analysis

11/18/11
Euromonitor International - Analysis
Consumer Lifestyles in Malaysia

Consumer Lifestyles | 06 Jul 2011
STRUCTURE OF THE REPORT

This report forms part of the report series that complements the Euromonitor International Countries and Consumer Database. Each country profile is structured under the following primary headings: Consumer Trends Consumer Segmentation People House and Home Income Consumer Expenditure Work Learning Eating (including Soft Drinks) Drinking Smoking Personal Appearance Fashion Health and Wellness Leisure and Recreation Consumer Technology Transport Money The information in this report was gathered from a wide range of sources, starting with national statistics offices. This information was cross-checked for consistency, probability and mathematical accuracy. As well, the report seeks to fill the gaps in the official national statistics by using private-sector surveys and official pan-regional and global sources. Furthermore, Euromonitor International has undertaken an extensive amount of modelling in order to generate unique datasets that complement the available national standards. The wide range of sources used in the compilation of this report means that there are occasional discrepancies in the data, which were not reconcilable in every instance. Even when data are produced on specific parameters by the same national statistical office, such as total population in a particular year, discrepancies can occur depending on whether the data was derived from a survey, a national census or a projection and whether the data were based on mid-year or January figures. To identify recent past trends, data are presented for 2006, 2007, 2008, 2009 and 2010. For projections, data are presented for 2011, 2015 and 2020.
CONSUMER TRENDS
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Accelerating urbanisation in Malaysia influencing consumer expenditure Malaysia has achieved much success since gaining independence from the British and this has been reflected by a wave of urbanisation, among other successes. Between 1970 and 2010, the number of urban dwellers had grown from three million to 18.4 million. In 2010, 64.4% of the population lived in urban areas. The most important contributing factor towards this growth in Malaysia has been rural-urban migration. Intra-country migration is usually for economic reasons as rural dwellers, desperate to leave the poverty and unemployment in rural regions, seek out better opportunities in cities. This is especially true in the Klang Valley region where nations capital, Kuala Lumpur, is located. Many of these migrants are well-educated or college students unable to find well-paying jobs in their home towns. Indeed, many of the new jobs created by Malaysias growing knowledge economy are currently available only in Kuala Lumpur. Outlook Over the forecast period, urbanisation in Malaysia is expected to accelerate, with the newly emerging urban centres surrounding Kuala Lumpur becoming increasingly developed and generating job opportunities similar to those now available in Kuala Lumpur itself. In particular, the expansion of the light rail transit and mass-rail transit systems meant to connect Kuala Lumpur to these new urban centres will create significant high-level job opportunities as they link residents in these adjacent urban centres to facilities and retail malls in Kuala Lumpur. As well, other major cities in Malaysia such as Penang and Johor Baharu are expected to increasingly attract a higher proportion of intra-country economic migrants as their local economies continue to grow by leaps and bounds. International companies, international financial institutions and professional service providers are expected to continue increasing their presence in these secondary cities and states, creating more high-value jobs and improving the standard of living of their residents. Such cities and states will increasingly evolve into hubs away from Kuala Lumpur and generate significant economic growth. Impact During the review period, the growth of the number of intra-country migrants seeking new jobs with higher salaries resulted in many more consumers with higher disposable incomes. These consumers have more opportunities to consider a wider array of products and services than they had in rural areas and expenditure patterns reflect that greater choice. Furthermore, living in cities has exposed more Malaysian consumers to popular retail trends and marketing campaigns, influencing what they purchase and how often they purchase products. There is clearly significantly less exposure to advertising and marketing campaigns in rural areas. Urbanisation and its ability to create new consumers is expected to continue to influence the Malaysian economic landscape over the forecast period. It is expected that there will be increasing demand from urban consumers in low- and middle-income brackets for affordable indulgences, such as dining out and going to the cinema. Consumer expenditure on necessities such as groceries, telecommunication services and transportation also soared due to the rising demand from the growing number of urban Malaysians. In many cases, urban consumers will be more prone to indulge in the purchase of luxury goods and premium services in order to project images of wealth.
Digitalisation reshaping the retail landscape in Malaysia In 2008, the household broadband penetration rate in Malaysia stood at only 22%. Broadband users were largely concentrated in urban centres and major cities such as Kuala Lumpur and Johor Baharu. Rural regions and smaller towns in Malaysia were not well-served by the conventional broadband internet infrastructure and service providers were reluctant to reach out to such communities due to the small number of consumers and low profit margins there. Fast-forwarding to 2010, the broadband penetration rate has soared above 55% (when including 3G mobile internet access). It is the rise of 3G mobile phones and mobile broadband data services which has powered this phenomenal growth and made broadband available in rural regions and smaller towns in Malaysia, where there is still a significant lack of conventional broadband infrastructure such as fibre-optic lines and telecommunication exchanges. Telco-subsidized 3G mobile phones are now very affordable for many consumers and they are able to access the internet at broadband speeds through well-developed cellular networks and infrastructure countrywide. They delivered broadband internet access to remote consumers at reasonable price points, significantly accelerating the broadband penetration rate during the review period.
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Outlook As the price of mobile broadband services and data plans continue to fall and become more affordable over the forecast period, a greater proportion of Malaysian consumers will become connected and become part of the digital revolution sweeping the country. On-going works to improve the national broadband infrastructure and to deliver high-speed broadband access seamlessly to rural regions, as well as the introduction of new community internet centres in rural communities providing free broadband access to residents, will also contribute significantly to the increase in the broadband penetration rate. Malaysia is also on schedule to introduce 4G technology and to support nationwide cellular networks thanks to huge investments from South Korean and Russian investors. Already, the telecommunication industry regulator in Malaysia has allocated sufficient bandwidth and radio spectrum for the introduction of 4G technology and networks. This will vastly improve the speed and quality of data being delivered to consumers through mobile broadband networks to their mobile devices. Impact Expansion of mobile broadband is expected to not only drive increased demand for smartphones but to also facilitate growth of e-commerce and m-commerce. More importantly, the rapid digitalization of Malaysian society has resulted in local consumers in both urban and rural regions increasingly consuming digital media content. This, in turn, has exposed a growing proportion of rural Malaysian consumers to a wider range of consumer products and brands, many of which were previously only familiar to urban dwellers. In particular, fashion and luxury brands have become better-known and more common in rural areas and this is expected to grow over the forecast period. This increasing connectivity among Malaysian consumers has increased the strategic importance of retailers and brands communicating with their customer base through social networks such as Facebook and other platforms such as Twitter and weblogs, among others. Marketing and advertising campaigns are expected to continue to shift from mainstream media to digital media as digital media becomes more effective both in cost and reach in targeting specific consumer segments.
Tourism strongly influences consumption trends in Malaysia Travel and tourism has always been one of the most important contributors to the Malaysian economy, accounting for 7.7% of total GDP in 2010, representing RM56.5 billion. This percentage is significantly above the world average of 5.6%. The sector generates the second-highest level of foreign earnings for the Malaysian economy. Malaysia relies heavy on its travel and tourism sector and works hard to maintain the countrys attractiveness as a tourist destination regionally as well as internationally. Malaysia is the ninth-most visited travel destination in the world. Travel and tourism has been earmarked by the Malaysian government as one of the main routes towards climbing up the value chain and moving the country towards a services-oriented economy. Of the 24.6 million visitors to Malaysia in 2010, 13 million were from Singapore alone, contributing RM28.4 billion out of the total of RM56 billion in tourism receipts. This was despite Singapores relatively miniscule population of only 5.4 million. Regardless, Singapores proximity to Malaysia and the ease of access Singaporeans enjoy to Malaysia via two major land crossings ensure a high number of visits. On average, it takes a maximum of 30 minutes by car from the furthest point in Singapore to reach either of the border crossings to Malaysia and another 10 minutes to clear immigration and customs (barring any traffic snarls). This convenience, together with the strong Singapore dollar and the relatively low prices of goods and services in Malaysia (on average a good 30% to 40% cheaper compared to equivalent goods/services in Singapore, if not more), encouraged a significant number of Singaporean consumers make regular trips to Malaysia for shopping as well as entertainment. The frequency of visits and the amount spent by visiting Singaporean consumers makes them the most economically significant group of foreign consumers in Malaysia, accounting for more than one-half of total tourist receipts per annum regularly over the review period. Outlook As noted, Singapore and Malaysia are connected through two major border crossings. As well, there is a vast network of daily flights from Singapore to almost all of Malaysias main cities as well as a heavy railway system between Singapore and all of Malaysias major cities. This network is expected to improve further over the forecast period with the launch of a mass-rail and light rail transit system between the countries. This is expected
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to facilitate even more convenient transportation for Singaporeans travelling to Malaysia (and vice versa). Over, the new transport systems will drive even more significant increases in the number of Singaporeans travelling frequently to Malaysia for shopping and entertainment. There is an increasing trend of Singaporeans choosing to reside in Malaysia due to the significantly lower prices for residential properties (as well as for the lower cost of living). Such consumers are most often retirees who still retain strong links with Singapore and who keep their Singaporean citizenship. Others include Singaporean professionals working in Singapore but who choose to live in Malaysia to cut costs. The number of well-guarded and luxurious residential estates and condominiums specifically targeted to such Singaporean consumers is expected to increase over the forecast period, increasing the number of cross-country residents earning Singapore dollars but spending them in Malaysia. Impact With Singaporean consumers regularly accounting for more than one-half of total tourist receipts in Malaysia every year, their influence on consumption trends in Malaysia is stronger than one would expect from a simple tourist segment. This is especially true considering that the majority of their spending is for consumer goods and services. Singaporean consumers come to Malaysia with a pre-set mentality that, thanks to their stronger currency and, in turn, their stronger purchasing power, buying products and services in Malaysia provides high value for money. This, combined with the high frequency of visits and the persistent holiday mentality has made Singaporeans and will continue to make Singaporeans an especially important consumer group in Malaysia. Retailers in Malaysia especially those located in Johor Baharu, the closest city to Singapore and where most visiting Singaporean consumers tend to spend their money have increasingly customised their products and services to cater to the lucrative Singaporean consumer segment. Indeed, the preferences of Singaporean consumers are influencing domestic consumer trends. As well, consumer trends originating in Singapore are increasingly spilling over into Malaysia, with retailers adopting popular trends and successful practices previously found only in Singapore. The similar ethnic make-up and shared history of the two countries means that domestic trends are not affected by cultural barriers and are easily transplanted.
New generation of young, well-educated and affluent Malaysian consumers makes its mark Over the review period, a new breed of Malaysian consumers emerged and grew in numbers, especially in Kuala Lumpur and other major Malaysian cities. Members of this new generation of consumers are relatively young (30 years-old and younger), educated at levels higher than the national average (typically they hold at least a Bachelors degree), earn higher incomes and are more sophisticated in their tastes and preferences. They are also technologically savvy and are typically connected to the internet, often utilizing social networking websites such as Facebook and platforms such as Twitter to communicate and interact with their peers. A significant number of these new Malaysian consumers are young professionals returning from the Malaysian Diaspora, taking advantage of the better job opportunities and the modernisation of the Malaysian economy as well as the greater degree of political freedom. These returnees have brought back with them various cultural influences and trends from the countries where they used to reside, study and work and these trends, in turn, are starting to appear and take root in Malaysias consumer culture, contributing to the cosmopolitan feel of Kuala Lumpur. Outlook Over the forecast period, the number of young, sophisticated and affluent Malaysian consumers is expected to rise significantly as education and job opportunities in the country continue to increase. There is also an effort on the part of the Malaysian government to reverse the historical brain drain from Malaysia by attracting welleducated Malaysian professionals working and living abroad to return home. It is hoped that this will help contribute to the countrys goal of becoming a knowledge-driven economy. Efforts are expected to pay dividends as the government begins to roll back previous race-based affirmative action policies and move towards filling jobs using a needs-based policy. This was a key reason why significant numbers of well-educated Malaysians originally sought education and work opportunities abroad. Impact The disposable income and spending power of this new breed of affluent and sophisticated Malaysian consumer is substantial, with those aged 20 years to 39 years earning the most in terms of average annual gross income.
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Those between 30 and 34 years-old earn the most followed by those 35 to 39 years-old and then by those 25 to 29 years-old. Significantly, these consumers are not afraid to spend their money on more expensive branded products and luxury goods as well as on dining and entertainment services. This trend is expected to continue over the forecast period. The easy availability of consumer credit means that big-ticket purchases are now more common. The increasing sophistication of young and affluent Malaysian consumers also means that they are moving up the value chain for nearly all of the products and services they consume. They are demanding higher quality and impeccable service everywhere they go. Retailers are listening and in response are offering high-end or premium alternatives to traditional products. The increasing number of artisan bakeries, gourmet supermarkets, premium coffee cafes and retail chains and fine dining restaurants as well as designer household appliances and consumer electronics is an example of how the consumer culture is becoming dominant in Malaysia.
Aging population driving demand for special goods and services The Malaysian population is aging at an accelerating pace. The median age in Malaysia increased during the review period, going from 24.4 years in 2006 to 25.3 years in 2010. Falling birth rates have been largely responsible for the persistent aging of the Malaysian population, together with Malaysians living longer on average thanks to significant improvements in the quality and accessibility of healthcare. Currently, the older population is the fastest-growing demographic segment in Malaysia, with their numbers growing by nearly 15% during the review period to reach 1.3 million in 2010. The purchasing power of this silver generation is also significant, with spending funded by both their own retirement funds as well as contributions by their children and grandchildren, many of whom have benefited from improved educational and working opportunities and who now earn higher average incomes. Improved financial literacy among this consumer segment also means that more consumers are protected by healthcare insurance and annuity plans, granting them the peace of mind to spend their remaining disposable income on consumer products and services. Outlook Over the forecast period, the Malaysian population will continue to age as birth rates continue to fall and as people live longer. The median population age is expected to increase to 26.5 years in 2015 and to 27.8 years in 2020. Older Malaysians are expected to live longer due to continuing advances in medical technology as well as a continued improvement in the quality and provision of healthcare to elderly patients. Rising health consciousness and increased consumption of health and wellness products by older consumers over the forecast period are also expected to prolong their lives and contribute to the aging phenomenon. Impact The increased numbers and growing purchasing power of many older Malaysians has created new opportunities in the countrys consumer markets. Older consumers are increasingly changing their formerly conservative attitudes regarding consumption and becoming more liberal and many are now more willing to splurge on indulgences and extravagances. Such a change in attitude has also spurred by their children and grandchildren, who themselves are adopting a more consumerist culture and mentality. These trends are expected to continue over the forecast period and to affect spending patterns throughout. A rising number of mass-market and luxury retailers are introducing wider ranges of customized goods and services designed around the preferences, needs and limitations of older consumers. Specialist retailers solely targeting older consumers are now also a more common sight in major Malaysian cities. In addition, there has been a significant increase in the range of consumer products and services with a health and wellness slant, designed to appeal to older consumers who are increasingly more aware of their mortality and the importance of good health.
CONSUMER SEGMENTATION
Babies and Infants In 2010, the population of babies and infants reached 1.8 in Malaysia, putting the country squarely among the top 25 percentile worldwide in terms of the actual population of babies and infants. Despite this, the number of babies and infants in Malaysia has been declining marginally, by 1.7%, during the review period. This reflects a relatively
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recent but nonetheless continuing trend of declining birth rates in the country. The crude birth rate in 2009 was 17.9 per 1,000 inhabitants, down from 18.5 in 2005, according to the Malaysian Department of Statistics. The infant mortality rate (the ratio of the number of deaths in the first year of life to the number of live births occurring in the same population during the same period of time), which had been steadily decreasing over the review period thanks to improving healthcare, spiked suddenly in 2009, reaching 7, up from 6.2 in 2006. This phenomenon has been attributed to the global economic crisis in 2009 which, among other things, led to a significant increase in infant dumping by impoverished parents. As well, many households found themselves unable to afford adequate healthcare for their newborns. As a result, the babies and infants population in Malaysia has been significantly reduced by 2010. The infant mortality rate returned to a more stable figure of 6.3 in 2010 once the economic crisis passed and Malaysia returned to positive economic growth. Impact Over the forecast period, the number of babies and infants is projected to increase only slightly, by less than one percent, to reach 1.8 million in 2020. As average household incomes in Malaysia continue to rise over the forecast period although more so in the urban areas such as cities and townships than in rural communities more affluent and better-educated parents are expected to spend more of there disposable income on products for their newborns in efforts to improve their standards of living. Malaysian parents are expected to spend more frequently and in larger amounts on their babies and infants. It is expected that there will be increased demand for such items as designer baby/infant clothing, educational toys meant to enhance growth and development in babies and infants, more sophisticated nutritional products and vitamins to enhance health and stimulate development, activity classes designed for babies and infants and even consumer electronics to record the growing up experience and eventful memories of their babies and infants.
Kids During the review period, the number of kids increased by 4.4%, reaching 3.7 million in 2010. Growth was the legacy of Malaysia's high birth rates as far back as a decade ago as well as a testament to the countrys improving infant mortality rates. Accounting for 13% of the total population in Malaysia, kids are one of the major drivers of consumer demand and expenditure in Malaysia. The kids consumer segment is increasingly growing in significance, particularly as rising affluence trickles down to children in the form of increased allowances from parents. As well, some busy parents tend to compensate for their increasing absences by purchasing goods to their children. As a result, there has been an increasing shift in purchasing decisions from parents to kids over the review period. Manufacturers and retailers are taking notice and starting to step up their efforts to target this increasingly lucrative consumer segment. Consumer products are being modified and customized to appeal specifically to kids and to meet their different needs in the Malaysian market, setting them distinctly apart from products meant for adults. Marketing campaigns are also being tweaked and delivered to kids through new media such as Facebook, Twitter and online games which are popular among kids in Malaysia. Impact Over the forecast period, the number of kids is expected to decline by 1.5%, reaching 3.6 million in 2020. In that year, kids will account for just more than 11% of the total Malaysian population. Despite their declining numbers kids are expected to continue wielding considerable consumer power over the forecast period as household incomes rise and as kids themselves participate more in the purchasing decisions for kids-related products through pester power. In many cases, fewer kids and higher disposable incomes will result in parents buying better-quality and more expensive products for their children, continuing to support value sales while volume sales slowly decline.
Tweenagers The number of tweenagers in Malaysia grew by 6.5% over the review period, reaching 2.3 million in 2010. This made tweenagers the third-smallest segment among overall Malaysian consumers after babies/infants and the older population. Despite the relatively small size of the segment, tweenagers occupy a strategically important position in the consumer landscape in Malaysia, straddling the formative years between kids and teenagers when the concepts of brand recognition and loyalty begin to take root.
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Tweenagers contribution to household purchasing decisions grew during the review period. Many Malaysian parents, faced with a more hectic and demanding work lives, are increasingly delegating purchasing decisions directly to their children. Rising affluence contributes to this trend as it empowers parents with the financial means to delegate such powers to tweenagers in the first place. Tweenagers in Malaysia are becoming increasingly connected to the digital world as household internet penetration rates in the country continue to improve, especially in rural communities away from the major Malaysian cities. Improving IT and telecommunications infrastructure and increasingly affordable mobile data plans in Malaysia have helped to connect and empower tweenagers, an age segment which is starting to fully exploit the opportunities and advantages provided by the internet. Impact How tweenagers approach and consume various products and services will set the tone for brands and manufacturers over the forecast period, as this consumer segment will be the trend-setters for the all-important teenager and twenty-something consumer segments. An increasing emphasis on making consumer products and services more accessible through mobile devices and engaging tweenagers through digital media platforms such as Facebook and Twitter will be a more prominent trend over the forecast period.
Teens During the review period, the number of teenagers in Malaysia increased by 4.2%, reaching 3.8 million in 2010. Among the young consumer segments, teenagers are the largest and also the most significant in terms of spending power and purchase decision-making. In Malaysia, most teenagers start working in part-time jobs and/or start receiving significantly higher allowances from their parents. In the process, many achieve a level of partial financial independence. Teens, more so than tweens, are at their most impressionable as consumers and brands have the opportunity to build lasting relationships with teenage consumers in order to lay foundations of brand loyalty which, in many cases will extend well into adulthood. This is especially true in brand-conscious Malaysia, where designer apparel, accessories and consumer electronics are status symbols among teenagers. A myriad of brands are competing to achieve the cool status in the eyes of teenagers. Impact Over the forecast period, the number of teens in Malaysia is projected to increase by a significant 11%, reaching 4.2 million in 2020. Growth will be a reflection of relatively high birth rates between 2001 and 2007, a result of the improving economic climate during those years. Teenagers in Malaysia are expected to remain the most important trend-setting consumer segment over the forecast period. The influence of teenagers on consumer demand in Malaysia will be significant in a wide range of sectors, ranging from clothing and footwear to packaged food and beverages. As one of the most visible consumer segments and as amongst the most voracious spenders, teens and their acceptance or rejection of various products is critically important for many manufacturers and retailers. It can be the equivalent of a resounding success or a death knell. Teenagers in Malaysia are increasingly becoming more connected to the digital world with their mobile devices, more so than other consumer segments. As in the case of tweenagers, more-affordable mobile devices and mobile data plans have empowered Malaysian teenagers. More significantly, this trend has helped to expose teenagers in rural communities to a myriad of consumer products and brands that were previously only accessible to urban teenagers. This has helped to significantly increase the opportunities for brands owners and manufacturers.
Twenty-somethings During the review period, the number of Malaysians in their twenties increased by 7.6%, reaching 4.9 million in 2020. In 2010, twenty-somethings were the second-largest consumer demographic in Malaysia (after middleaged adults). As one of the most educated, socially mobile and affluent groups of people in the country, twentysomethings are in the eyes of many the most significant consumer segment in Malaysia. Where teenagers provide the catalyst to kick-start trends, it is the twenty-somethings which fuel the growth and determine whether
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something new is a short-term fad or the start of a significant trend. The most recent census revealed that in 2000 mean age at first marriage in Malaysia was 28.6 years for males and 25.1 years for females. Traditionally, it is while they are in their twenties that young Malaysians begin to think about establishing their own households and having children. On the other hand, due to more women entering the workforce and more young Malaysians pursuing education and careers, many are postponing marriage and childbearing. Twenty-somethings drive much of the demand for food service and other entertainment products and services, such as spa treatments. People in their twenties dine out much more frequently in restaurants, a step up from the roadside stalls which have traditionally been the mainstay of Malaysian dining culture. The rising affluence of young consumers and, more importantly, their increased willingness to spend has been a major reason behind the growth seen in many retail markets during the review period. A higher propensity for discretionary spending has made it possible for mass-market retailers across a number of sectors to climb up the value chain, offering better-quality products and services to Malaysian consumers who are more than happy to pay the higher prices. Such upscale retailers, such as artisanal bakeries, health spas and massage therapists and gourmet supermarkets are all seeing an increased number of local Malaysians (rather than just Singaporeans) among their regular clientele, as are luxury goods retailers in the clothing and footwear and jewellery and watches sectors. Impact Over the forecast period, the number of people in their twenties is projected to increase by nearly 10%, reaching 5.5 million in 2020. Twenty-somethings are expected to account for 16.7% of the total population in 2020, down slightly from the 17.2% of the total recorded in 2006. Over the forecast period, increasing disposable incomes together with an increasing number of people waiting b before committing to marriage is expected to drive the appetite for some of the finer things in life among members of this group. It is likely that more mass-market retailers will overhaul their images in order to climb up the value scale and attract more of this new breed of spending consumers
Thirty-somethings During the review period, the number of people in their thirties grew slowly but steadily, by 4.6%, reaching nearly four million in 2010. The steady growth was a result of the less-than-robust growth in birth rates seen in the 1970s. It is while they are in their thirties that Malaysians typically begin to establish their own families and households. People in this group drive demand for a wide range of household goods, including furniture, household durables and in-home consumer electronics. As well, for those couples who begin to have children, household budgets are typically devoted to keeping their needs satisfied. Thus, there is typically high demand for childrens food and beverages, clothing and footwear and toys and games. The thirty-something and twenty-something consumer groups share many attributes in parallels in Malaysia. These include increasing social mobility, rising disposable incomes and higher levels of education. What differentiates the thirty-something consumer from the twenty-something consumer is that people in their thirties tend to be more cautious consumers. In 2010, a survey by MasterCard indicated that thirty-somethings expressed a significantly lower level of consumer confidence compared to twenty-somethings. This was largely due to increased family commitments and a lower penchant for discretionary spending on non-essential items. Impact Over the forecast period, the number of thirty-somethings is projected to increase by 18.6%, reaching 4.8 million in 2020. It is expected that this group will continue to drive demand for higher quality goods over the forecast period, whether is be for better personal products or better products for their children. People in their thirties establishing new households will also continue to drive demand for household-related items. Indeed, over the forecast period consumer expenditure on household goods and services is projected to increase by 60.7% (in real terms), reaching RM29.3 billion in 2020. In large part, it will be consumers from this age group driving that growth.
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Middle-aged Adults The number of middle-aged adults in Malaysia grew strongly, by 13.5%, during the review period, reaching 6.7 million in 2010. As a result, middle-aged consumers were the second-fastest growing consumer group (after the older population). Accounting for 23.6% of the total population, middle-aged consumers are the largest single consumer demographic in Malaysia. Middle-aged consumers in Malaysia are generally conservative in their spending. On average, they are significantly less socially mobile and educated than their twenty-something and thirty-something counterparts. Disposable income growth for this consumer segment tends to remain steady and doesnt rise quickly as it tends to do so for younger consumer groups. Hence, spending and consumption patterns are more stable. At the same time, middle-aged adults are increasingly delegating purchasing decisions and spending power to their children, reducing a sphere of influence they used to dominate. Impact Over the forecast period, the number of middle-aged adults is projected to increase by 18%, reaching 8.2 million in 2020. As they did in past years, middle-aged adults will account for the largest proportion of the total population, 25%, up from 23.6% in 2010 and 22% in 2006. As middle-aged consumers increasingly focus on their own needs instead of their childrens over the forecast period, manufacturers and brands owners are expected to take note and tailor products and services to better meet the needs of this consumer segment. Examples include evoking nostalgia based on Malaysias rich and multi-cultural history to package products and services that would appeal to such consumers. This is a highly effective marketing tool within this consumer demographic. As middle-aged adults get older, they are increasingly interested in their health, driving rising demand for healthoriented products and services. Packaged food and beverage products fortified with vitamins or other supplements, anti-aging beauty and cosmetic products and spa/therapeutic services which claim to revitalize or preserve youthfulness, are all examples of products and services that see increased sales over the forecast period based on the needs of middle-aged consumers.
Older Population The older population was the fastest-growing age group in Malaysia during the review period, increasing by 15% to 1.3 million in 2010. This rapid growth within the older population is testament to Malaysias rapidly aging population, improving medical standards, more affordable and accessible health care, and an improved health awareness among older folks in general. As a result, the average lifespan of the Malaysian population has been extended significantly and this has significantly increased the number of consumers above 65 years of age. The vast majority of retired Malaysians do not enjoy the benefits of a pension scheme. Instead, benefit from a compulsory retirement fund called the Employment Provident Fund, under which Malaysian workers and their employers both contribute a fraction of monthly wages, the collective sum of which is then used to provide retirement benefits to Malaysians after their retirement. Eligible civil servants are covered under a government pension scheme under which they enjoy a monthly income, a service gratuity payment and medical benefits, among others benefits. Officially, the retirement age for Malaysians is 58 years-old for public sector employees and 55 years-old for private sector employees, although a significant number of private sector employers retire their female employees at 50 years-old. This is one of the lowest retirement ages among Asian countries, with countries such as Singapore, the Philippines, Laos, Thailand and even Brunei having official retirement ages ranging from 60 to 67 years-old. With Malaysians having one of the highest life expectancies in the world, the average spending power of the average retiree in Malaysia spread out across his remaining years is deteriorating in real terms and this has limited their consumption during the review period. On the other hand, older Malaysians are often given assistance by their children. Impact Over the forecast period, the number of older Malaysians is projected to increase by 63.6%, reaching 2.2 million in 2020. As their numbers increase and as their real incomes continue to deteriorate over the forecast period, older Malaysians are not expected to be a robust consumer group. Regardless, improved financial literacy has
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resulted in more older consumers protected by healthcare insurance and annuity plans. As a result, a number of retailers are expected to increasingly pay more attention to this small but rapidly growing consumer demographic over the forecast period. As their life expectancy increases and the quality of their lives continues to improve, product and services with a health and wellness elements will continue to be in great demand by this group. In addition to increased demand for OTC drugs and vitamins and dietary supplements, it is expected that there will increased demand for herbal/traditional health products. This trend is set to intensify over the forecast period as the older population grows.
Table 1 Consumer Segmentation: 2006-2010 '000 Babies/Infants (0-2 years) Kids (3-8 years) Tweenagers (9-12 years) Teens (13-19 years) People in their twenties People in their thirties Middle-aged Adults (4064 years) Older Population (65+ years) Source: National statistics, Euromonitor International 1,150 1,187 1,228 1,272 1,321 14.9 3,517 2,179 3,609 4,569 3,805 5,929 3,566 2,214 3,645 4,669 3,847 6,141 3,607 2,248 3,681 4,755 3,885 6,339 3,638 2,286 3,719 4,839 3,928 6,537 3,669 2,320 3,761 4,916 3,981 6,732 4.3 6.5 4.2 7.6 4.6 13.5 2006 1,884 2007 1,903 2008 1,896 2009 1,879 2010 1,852 % growth -1.7
Table 2 Consumer Segmentation: 2011-2020 '000 Babies/Infants (0-2 years) Kids (3-8 years) Tweenagers (9-12 years) Teens (13-19 years) People in their twenties People in their thirties Middle-aged Adults (40-64 years) Older Population (65+ years) 2011 1,836 3,679 2,352 3,808 4,985 4,044 6,922 1,374 2015 1,876 3,608 2,429 4,024 5,196 4,377 7,564 1,654 2020 1,845 3,623 2,355 4,228 5,474 4,795 8,177 2,248 % growth 0.5 -1.5 0.1 11.0 9.8 18.6 18.1 63.6
Source: National statistics, Euromonitor International
PEOPLE
Population During the review period, the population of Malaysia increased by 7.2%, reaching 28.6 million in 2010. Within the South-East Asian region, Malaysia ranked as the sixth most populous nation, behind regional leader Indonesia. By 2020, the Malaysian population is projected to reach 32.7 million, representing growth of nearly 13% over the forecast period.
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According to the Malaysian government, the country ranked fifth regionally in terms of birth rate with a crude birth rate of 18.8 per 1,000 inhabitants. This compared with neighbouring Singapores 10 births per 1,000 (the lowest) and Timor-Lestes 41 births per 1,000. However, Malaysia enjoys one of the lowest infant mortality rates, 6.3 deaths per 1,000 live births in the region. This, together with the countrys average birth rate, has been a major factor contributing to Malaysias relatively healthy population growth over the review period. The median age in Malaysia has been steadily creeping upwards, from 24.4 years in 2006 to 25.3 years in 2010. This reflects the aging of Malaysias population, spurred on by falling birth rates, a malaise that Malaysia shares with developed countries worldwide. Furthermore, older Malaysians are enjoying better accessibility to more affordable healthcare. There have also been significant improvements in the quality of medical care in the country. As a result, the ageing trend is projected to accelerate over the forecast period as the median age hits 26.5 years in 2015 and 27.8 years in 2020 Malaysia has historically remained a Malay-dominant country, and this has not changed over the past decade. In 2010, there were 14.7 million Malays in the country, accounting for more than one-half of the total population. During the review period, the number of Malays increased by just more than 8%. Historically, the fertility rate for Malays has been significantly higher than that of other major ethnic groups in Malaysia, such as the Chinese and Indians. This trend continues to persist, seen by the significantly lower growth rates in the number of Chinese and Indian Malaysians, which experienced growth of 4.5% and 5.6%, respectively. In 2010, the Chinese accounted for 22.8% of the total population and the Indians accounted for 7%. However, the financial strength of the Chinese community cannot be judged by their numbers alone. Indeed, it has been reported that Chinese account for as much as 70% of the market capitalization in the country. This has led to the government introducing policies that offer significant economic assistance to Malays under the New Economic Plan guidelines. Impact As birth rates continue to fall and as the population ages at an accelerating pace over the forecast period, consumer spending patterns in Malaysia are expected to evolve. Demand for consumer products and services which promise to improve the quality of life are expected to surge as both younger and older consumers seek to indulge themselves. This will be a marked shift away from the conservatism which previously defined consumer expenditure patterns in Malaysia. The rapidly rising number of older consumers is expected to continue to drive demand for consumer products and services with a health and wellness slant. This new awareness of health is expected to trickle down to younger consumers and, in turn, spur increased demand for health and wellness products amongst those consumer segments, as well. The economic dominance of the Chinese minority is expected to continue over the forecast period. This means that, despite their relatively low numbers, Chinese consumers will continue to be the trend-setters in the Malaysian market. Furthermore, Chinese consumers also tend to be more connected and internet-savvy than their counterparts from other ethnic groups and this is expected to make them better positioned to influence consumer markets.
Marital Status The number of married people in Malaysia grew by 8.5% during the review period, reaching 11.6 million in 2010. Married Malaysians accounted for 40.7% of the total population in 2010, an indicator that marriage remains a respected social institution in the country. Regardless, there have been some shifting patterns. Malaysians are marrying later on average as young adults continue to delay marriage in order to pursue education and careers. Rising disposable income levels have also spurred some young Malaysians to postpone marriage and pursue socialising and personal objectives. These shifts are seen among Malaysians of all ethnicities. This effect is more prevalent among urban Malaysians living in major cities than it is among those living in rural communities and smaller towns, where it is still common practice to marry at a younger age. According to the most recently published Census by the Malaysian government, the mean age at first marriage in Malaysia was 28.6 years for males and 25.1 years for females in 2000. This reflected a continuous increase since the first census was conducted in 1970, when the ages were 25.6 years for males and 21.6 years for females. The mean age of women at their first live birth in Malaysia has changed little, going from 30.0 years of age in 2006 to 29.7 years of age in 2010.
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Attitudes towards marriage in Malaysia, while still largely conservative, has been increasingly become more liberal, with the divorcee population increasing by 1.8% over the review period to reach 132,000 in 2010, up from 129,000 in 2006. A more liberal approach is, surprisingly, also making itself felt among the Malay ethnic group, a community which is strictly governed by conservative Islamic law or the Muslim Shariah law (the vast majority of Malays in Malaysia are of the Muslim religion). This more liberal attitude is more prevalent among the bettereducated and well-heeled Malays residing in major cities. Among the less-educated and rural Malay communities, divorce is still a taboo and not undertaken lightly. Among the Chinese and Indians, attitudes towards marriage and divorce are relatively more casual and in line with the regional norms. Impact Over the forecast period, the number of married people in Malaysia is projected to increase by a robust 14.6%, reaching 13.6 million in 2020 and representing 41.4% of the population. Certainly, there will be no significant wholesale shift in Malaysian attitudes towards marriage over the forecast period. On the other hand, it is expected that a growing number of young people will delay their marriages in order to pursue higher education or careers. This is expected to generate a new breed of Malaysian consumers, better-educated and earning higher incomes and shouldering significantly fewer financial burdens and commitments than their married counterparts. And most importantly, they are expected to be eager to spend and have voracious appetites for conspicuous consumption. The large number of young Malaysians who get married and establish households will, not surprisingly, drive increased demand for products in such sectors as household goods and services and child-related product sectors. At the same time, there will a number of key markets benefiting from the rising number of those choosing to postpone marriage and family. These include leisure and recreation products and services, food service and entertainment, travel and tourism and luxury goods.
Town or Country Malaysia comprises 13 states (negeri) and three federal territories (Wilayah Persekutuan), with the capital being Kuala Lumpur in the Federal Territory of Kuala Lumpur. Among these, the state of Selangor is the largest in terms of population (Sarawak is the largest in land area terms) and the most prosperous. It is also the most developed state in the nation. Infrastructure and communication facilities in Selangor are among the most advanced in Malaysia. The state houses Malaysias largest port and airport and the majority of the countrys institutions of higher learning. The capital of Malaysia, Kuala Lumpur, was previously located in Selangor before it was carved out to form the Federal Territory of Kuala Lumpur, placing the area directly under federal control. Unsurprisingly, Kuala Lumpur is the most densely populated and developed city in Malaysia as befits its capital status, with 1.4 million residents in 2010. Kuala Lumpurs population grew by a 5% during the review period, a significantly lower rate than the growth rates enjoyed by the next three largest cities in Malaysia, Kelang, Johor Baharu and Ipoh, which grew at 14.4%, 11.1% and 7.3%, respectively. This difference was largely due to the congested nature of Kuala Lumpur and the citys limited as well as prohibitively expensive housing options, which significantly constrained population growth. The majority of Malaysia has been urbanised, with the urban population reaching 18.4 million in 2010, representing 64.4% of the total population. This reflected healthy growth of 12.3% over the review period. Two main factors have been behind the rapid urbanisation of the Malaysian population. The first factor is intra-country economic migration, resulting in inhabitants from rural communities and smaller towns migrating to major cities in search of better job and education opportunities. The second factor is the continuing development of rural regions and smaller towns/cities in Malaysia which has spread the urban concept across a greater portion of the country. The western corridor of Peninsular Malaysia is still significantly more developed, economically prosperous and densely populated than the east coast states, and intra-country migration has moved naturally from the eastern to the western corridor. Urban Malaysians are typically better-educated, earn higher disposable incomes, enjoy improved standards of living and are more digitally connected than their rural counterparts. Unsurprisingly, their tastes and preferences are more sophisticated and higher up the value chain. Hence, urban Malaysians are largely responsible for the rise of consumerism in Malaysian society. The lack of such luxury or lifestyle retailers and service providers in rural regions means that rural Malaysians have fewer opportunities to consume products and that they are less exposed and influenced by retailers and brand owners.
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The rapidly improving IT and telecommunication infrastructure in rural regions and the falling costs of services is playing a pivotal role in bridging the gulf between urban and rural Malaysians. Cheaper computers, broadband internet access, mobile phones and mobile data plans have helped rural Malaysians get connected to the digital world and, in turn, to gain exposure to the same marketing campaigns and consumer information readily available to urban dwellers. As a result, rural consumers are increasingly developing a consumerist culture without having to physically move to urban areas. Internet shopping and the increasing modernization of rural areas are all factors pushing rural consumers to spend more, as is the rapidly improving transport infrastructure linking rural regions directly to major cities. Impact Over the forecast period, the number of urban dwellers in Malaysia is expected to continue to grow significantly, by 25.6%, reaching 23.7 million in 2020. That figure will represent 72.4% of the total population. Growth is expected to be driven by many of the same factors observed during the review period, i.e., people in search of better education and job opportunities and an overall better standard of living. In particular, Keland is projected to see growth of 23.6% reaching 1.2 million in 2020 while Johor Baharu is expected to see growth of 20%, reaching 1.03 million in 2020. Over the forecast period, the number of rural dwellers is expected to decline by 10.8%, reaching just over nine million in 2020. Rising number of urban dwellers is expected to drive increased demand for products and services associated with fast-paced city living. These range from packaged foods and ready meals to spending on public transport to compact appliances and durables built to fit in smaller apartments and condominiums. For the most part, urban dwellers seek out products that promise convenience and time savings and any item that fits that bill will be welcomed by consumers in Malaysian cities over the forecast period.
Table 3 Population by Age: 2006-2010 '000/as stated 0-14 yrs 15-64 yrs 65+ yrs 2006 8,632 16,859 1,150 2007 8,749 17,237 1,187 2008 8,828 17,582 1,228 2009 8,895 17,932 1,272 2010 8,949 18,283 1,321 % growth 3.7 8.4 14.9
TOTAL Median age of population (years)
26,640 24.4
27,173 24.6
27,638 24.8
28,098 25.0
28,552 25.3
7.2 0.9 years
Source: National statistics, UN, Euromonitor International Note: As of 1st January
Table 4 Population by Age: 2011-2020 '000/as stated 0-14 yrs 15-64 yrs 65+ yrs 2011 8,993 18,632 1,374 2015 9,103 19,971 1,654 2020 9,054 21,443 2,248 % growth 0.7 15.1 63.6
TOTAL Median age of population (years)
28,999 25.5
30,727 26.5
32,745 27.8
12.9 2.3 years
Source: National statistics, UN, Euromonitor International
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Note: As of 1st January
Table 5 Male Population by Age: 2006-2010 '000/as stated 0-14 15-64 65+ 2006 4,451 8,577 535 2007 4,511 8,768 554 2008 4,553 8,939 574 2009 4,588 9,113 596 2010 4,616 9,288 620 % growth 3.7 8.3 15.9
TOTAL Median age of male population (years)
13,563 24.1
13,833 24.3
14,066 24.5
14,297 24.7
14,524 24.9
7.1 0.8 years
Table 6 Male Population by Age: 2011-2020 '000/as stated 0-14 15-64 65+ 2011 4,640 9,461 646 2015 4,704 10,120 782 2020 4,685 10,854 1,065 % growth 1.0 14.7 64.9
TOTAL Median age of male population (years)
14,747 25.2
15,606 26.1
16,604 27.3
12.6 2.1 years
Table 7 Female Population by Age: 2006-2010 '000/as stated 0-14 15-64 65+ 2006 4,181 8,282 615 2007 4,237 8,470 634 2008 4,275 8,643 654 2009 4,307 8,819 676 2010 4,332 8,995 701 % growth 3.6 8.6 14.0
TOTAL Median age of female population (years)
13,078 24.6
13,341 24.8
13,572 25.1
13,802 25.3
14,028 25.6
7.3 1.0 years
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Table 8 Female Population by Age: 2011-2020 '000/as stated 0-14 15-64 65+ 2011 4,353 9,171 728 2015 4,399 9,851 871 2020 4,369 10,589 1,183 % growth 0.4 15.5 62.5
TOTAL Median age of female population (years)
14,252 25.9
15,121 27.0
16,141 28.3
13.3 2.5 years
Table 9 Population by Ethnic Groups: 2006-2010 '000 Malay Chinese Indian Other Bumiputera Non Malaysian Citizens Other 2006 13,582 6,235 1,881 3,067 1,560 316 2007 13,895 6,313 1,909 3,143 1,606 307 2008 14,159 6,383 1,937 3,214 1,645 299 2009 14,412 6,458 1,962 3,288 1,687 292 2010 14,683 6,513 1,986 3,357 1,727 286 % growth 8.1 4.5 5.6 9.4 10.7 -9.4
TOTAL
26,640
27,173
27,638
28,098
28,552
7.2
Table 10 Population by Ethnic Groups: 2011-2020 '000 Malay Chinese Indian Other Bumiputera Non Malaysian Citizens Other 2011 14,934 6,587 2,013 3,421 1,763 281 2015 15,918 6,839 2,112 3,685 1,909 265 2020 17,063 7,136 2,224 3,991 2,075 256 % growth 14.3 8.3 10.5 16.7 17.7 -8.8
TOTAL
28,999
30,727
32,745
12.9
Table 11 Population by Marital Status: 2006-2010
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'000 Married Divorced Widowed Single
2006 10,709 129 741 15,061
2007 10,957 130 753 15,333
2008 11,178 130 762 15,568
2009 11,399 131 771 15,797
2010 11,620 132 780 16,021
% growth 8.5 1.8 5.2 6.4
Table 12 Population by Marital Status: 2011-2020 '000 Married Divorced Widowed Single 2011 11,829 132 789 16,249 2015 12,635 135 826 17,132 2020 13,561 138 869 18,176 % growth 14.6 4.7 10.1 11.9
Table 13 Marriage Rates 2006-2010 As stated Marriage rates (per '000 population) Source: National statistics, UN, Euromonitor International 2006 5.9 2007 5.8 2008 5.8 2009 5.8 2010 5.7
Table 14 Population by Urban/Rural Location and Population Density: 2006-2010 As stated Urban ('000) Rural ('000) Population density (persons per sq km) Source: National statistics, UN, Euromonitor International 2006 16,371 10,269 81 2007 16,885 10,289 83 2008 17,386 10,252 84 2009 17,884 10,214 86 2010 18,384 10,168 87 % growth 12.3 -1.0 7.2
Table 15 Population by Urban/Rural Location and Population Density: 2011-2020 As stated Urban ('000) Rural ('000) Population density (persons per sq km) Source: National statistics, UN, Euromonitor International 2011 18,882 10,117 88 2015 20,980 9,747 94 2020 23,715 9,029 100 % growth 25.6 -10.8 12.9
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Table 16 Population by Major Cities: 2006-2010 '000 Kuala Lumpur Kelang Johor Baharu Ipoh Petaling Jaya 2006 1,370 820 758 637 491 2007 1,386 850 780 648 500 2008 1,402 880 801 660 510 2009 1,419 909 822 672 519 2010 1,437 938 842 683 529 % growth 4.9 14.4 11.1 7.3 7.8
Table 17 Population by Major Cities: 2011-2020 '000 Kuala Lumpur Kelang Johor Baharu Ipoh Petaling Jaya 2011 1,456 966 863 695 539 2015 1,534 1,073 943 744 578 2020 1,637 1,194 1,035 803 626 % growth 12.4 23.6 20.0 15.5 16.1
HOUSE AND HOME

Households by Annual Disposable Income Compared to many Western countries, Malaysia is not considered particularly affluent. In 2010, only 20% of households had annual disposable incomes of more than US$25,000 and only 7.3% had annual disposable income of more than US$45,000. On the other hand, there was growth in terms of the proportion of houses and higher disposable incomes over the review period, despite slight dips due to the impact of the economic downturn. Regardless, poverty is considered an issue in the country and wealth distribution is significantly skewed. This is reflected in Malaysias relatively high GINI coefficient of 49, the highest among major South-East Asian economies. Impact Over the forecast period, it is projected that Malaysian households will see significant rises (in real terms) in annual disposable income, particularly amongst those that might be considered middle-class households. Indeed, the number of households earning more than US$10,000 is expected to grow by 38.6%; the number of those earning more than US$25,000 is expected to grow by 70.7%; and the number of those earning more than US$45,000 is expected to grow by 89%. This growth will be a reflection in part of the increasing number of young Malaysians who have received better educations and who, in turn have higher paying jobs. While there will still be a considerable proportion of the population in poverty, the continued rise of the middleclass is expected to drive increased demand for a wide range of products and services that many considered out of reach in previous years, including household goods and services, leisure and recreational products and services and communications. In nearly every product category and service, middle-class consumers will be seeking to move up the value chain. The continuing rise of the middle-class is expected to ensure the establishment of consumerism in Malaysia over the forecast period.
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Households by Number of Occupants In Malaysia, extended families living together are the norm rather than the exception, although the classic nuclear family consisting of two parents and at least one child is a model also strongly represented. Indeed, the number of households with six or more occupants is the most numerous in Malaysia with 1.8 million households in 2010, followed by households with four members (1.2 million), with five members (1.2 million) and households with three members (1.1 million). This ranking has not changed over the review period, implying that the strong emphasis on family ties in Malaysian society has been eroded only slightly despite rapid economic growth and societal transformation. Growth rates for households of all sizes were nearly similar over the review period, with the exception of threeperson households which saw higher-than-average growth of 14.4% and households with six or more occupants which saw lower-than-average growth of 5.3%. The high growth experienced in the number of households with three members reflects the rising number of smaller nuclear families in Malaysia and the rising number of those with only one child. On the other hand, the lower-than-average growth rate of households with six or more occupants is a reflection of the increasing urbanization of Malaysia and its effect on families. Cases of extended families living under a single roof is a model predominantly occurring in rural communities where housing is considerably cheaper, unlike urban Malaysia where housing comes at a considerable premium.
Single-person Households Occupants of single-person households are often intra-country economic migrants who have moved from their rural home towns to major cities in search of better job and education opportunities. Others are often highly paid professionals. Those who live alone by their own choice tend to be more financially stable than other households, whereas those who are forced to do so not by choice but due to circumstances tend to be less financially stable and have significantly less disposable income. The number of single-person households increased by 12% during the review period to reach 495,000 in 2010. Regardless of this relatively fast growth, single-person households still only accounted for 7.5% of total households in 2010. Impact Over the forecast period, the number of single-person households is projected to increase by a robust 22% to reach 619,000 households in 2020. Despite this growth, however, single-person households will still account for only 7.7% of total households in 2020. In spite of the small numbers, single-person households (particularly affluent single-person households) are expected to gain the attention of manufacturers and retailers over the forecast period. Some are expected to begin to customise products and package sizes for smaller households. In the same way that economy-sized packaging is designed to appeal to larger households, smaller packaging is expected to increasingly appear on retail shelves to meet demand from single-member households. Single-serve pre-packaged meals, single-dose medication and OTC drugs, smaller pack sizes of toiletries, etc are expected to be widely available in major retail outlets across the country. As well, compact versions of in-home consumer electronics, home appliances and white goods and furniture are also expected to be in greater demand over the forecast period to meet the needs of single-person households living in smaller spaces.
Couples without Children The number of households consisting of couples without children is relatively small compared to the number of households consisting of couples with children in Malaysia. Indeed, households with couples without children account for 11.2% of total households compared to 54.9% for couples with children. However, the number of couples without children grew steadily, by 12.4%, during the review period to reach 732,000 households in 2010. Over the forecast period, the number of households consisting of couples without children is expected to increase as more newly-weds increasingly choose to delay having children (or not to have children at all), as they focus on their careers and other pursuits instead. Impact Couples without children typically enjoy a significantly higher level of disposable income compared to couples with
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children. This is because couples without children face fewer financial commitments than those with children, freeing up more of their income for discretionary spending. Couples without children also tend to have more free time on their hands and this potent combination of higher disposable income together with increased leisure time makes them a very powerful spending force and their impact is expected to be felt over the forecast period.
Couples with Children The birth rate in Malaysia declined steadily over the review period, going from 18.1 births per 1,000 inhabitants in 2006 to 17.6 in 2009. Despite this, the number of households consisting of couples with children grew by 8.3% over the review period, reaching 3.6 million households in 2010. It is clear that most Malaysian couples are still establishing families and having children, albeit at a slower rate than in the past. Couples with children tend to devote the greater part of their household budgets to household-related products and services and children-related products and services. The financial commitment associated with raising children is significant. As a result, couples with children are typically more price-sensitive and less prone to impulse buying. Impact Between 2011 and 2015, the number of households consisting of couples with children is projected to increase by 3.3%, reaching 3.8 million in 2020. In 2020, couples with children will account for 51.6% of total households in Malaysia, down from 55% of total households in 2010. Clearly, couples in Malaysia still value having families with children, but growth patterns are shifting slightly. The price sensitivity and tighter budgets of households with children means that the most important factor influencing their purchasing decisions is value. Such consumers might not necessarily go for the cheapest product on the shelf (unless forced to by an extremely tight budget) but they rather gauge the attractiveness of a product based on the ratio of what it offers versus its price. Quality still matters to such consumers, but product packaging, glamour and status are all factors that have less influence.
Single-parent Families The number of single-parent families remained relatively stable during the review period, growing by less than 1% to reach 255,000 households in 2010. The small number of single-parent households reflects the conservative attitudes of many Malays towards marriage and divorce; the Malay ethnic group accounts for more than one-half of the total population and is subject to Islamic law. In particular, bearing children out of wedlock is frowned upon in Malaysia, in both urban cities and rural communities. On the other hand, such attitudes are very slowly becoming more liberalized, especially among the more well-educated generation. Single-parent families tend to possess significantly lower levels of disposable income and hence most are on much tighter budgets. As such, single-parent households tend to be very price-sensitive and value plays a very significant role in the decision regarding which products and services to buy. Like many households consisting of couples with children, single-parent families often prefer no-frills or private label products, especially those which are the cheapest option on the market. Acceptable quality often tends to be the level at the minimum required by industry standards. Impact The number of single-parent households is expected to grow slightly, by 0.9%, between 2011 and 2015 to reach 262,000 in 2015. It is not anticipated that there will be significant changes in how most Malaysians look at single parents or at children born out of wedlock in the near term. Thus, the difficulties that single-parent households now face in Malaysia will no doubt be much the same over the forecast period.
Table 18 Annual Disposable Income per Household (Current Value): 2006-2010 '000 households Above US$500 Above US$1,000 Above US$5,000 2006 5,847 5,769 4,393 2007 6,013 5,951 4,800 2008 6,177 6,125 5,143 2009 6,332 6,270 5,145 2010 6,492 6,437 5,416
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Above US$5,000 Above US$10,000 Above US$25,000 Above US$45,000 Above US$75,000 Above US$150,000
4,393 2,644 705 244 106 43
4,800 3,151 949 332 134 52
5,143 3,606 1,212
5,145 3,487 1,120
5,416 3,823 1,316
436 170 58
405 165 63
487 197 73
Source: National statistical offices, Euromonitor International
Table 19 Annual Disposable Income per Household (Constant Value): 2006-2010 '000 households Above US$500 Above US$1,000 Above US$5,000 Above US$10,000 Above US$25,000 Above US$45,000 Above US$75,000 Above US$150,000 2006 6,336 6,274 5,107 3,388 1,031 363 150 60 2007 6,381 6,325 5,253 3,609 1,167 414 163 60 2008 6,214 6,162 5,189 3,657 1,249 461 190 74 2009 6,334 6,279 5,241 3,649 1,223 445 178 65 2010 6,383 6,329 5,325 3,759 1,294 478 194 72
Source: National statistical offices, Euromonitor International Note: Constant value at 2010 prices
Table 20 Annual Disposable Income per Household (Constant 2010 Value): 2011-2020 '000 households Above US$500 Above US$1,000 Above US$5,000 Above US$10,000 Above US$25,000 Above US$45,000 Above US$75,000 Above US$150,000 2011 6,648 6,593 5,576 3,979 1,406 529 217 81 2015 7,257 7,205 6,241 4,659 1,819 719 299 107 2020 7,979 7,931 7,044 5,515 2,401 1,000 415 131 % growth 20.0 20.3 26.3 38.6 70.7 89.1 91.3 60.9
Table 21 Households by Number of Persons: 2006-2010 '000 1 person 2 persons 3 persons 2006 442 674 948 2007 455 696 982 2008 468 717 1,017 2009 481 738 1,051 2010 495 759 1,084 % growth 12.0 12.5 14.4
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3 persons 4 persons 5 persons 6+ persons
948 1,091 1,035 1,690
982 1,127 1,067 1,713
1,017 1,163 1,100 1,735
1,051 1,199 1,132 1,757
1,084 1,234 1,164 1,779
14.4 13.2 12.5 5.3
TOTAL HOUSEHOLDS
5,879
6,040
6,199
6,358
6,515
10.8
Table 22 Households by Number of Persons: 2011-2020 '000 1 person 2 persons 3 persons 4 persons 5 persons 6+ persons 2011 508 780 1,118 1,269 1,196 1,800 2015 559 861 1,247 1,407 1,321 1,885 2020 619 957 1,399 1,568 1,467 1,991 % growth 22.0 22.7 25.1 23.5 22.6 10.6
TOTAL HOUSEHOLDS
6,671
7,280
8,000
19.9
Table 23 Households by Type: 2006-2010 '000 Households by type [single-person] Households by type [couples without children] Households by type [couples with children] Households by type [single-parent family] Households by type [other] Number of households 5,879 6,040 6,199 6,358 6,515 10.8 1,229 1,282 1,355 1,431 1,454 18.3 253 253 255 256 255 0.7 3,304 3,376 3,434 3,483 3,579 8.3 652 673 688 706 732 12.4 2006 442 2007 455 2008 468 2009 481 2010 495 % growth 12.0
Table 24 Households by Type: 2011-2015 '000 Households by type [single-person] Households by type [couples without children] 2011 508 757 2015 559 830 % growth 10.1 9.6
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Households by type [couples with children] Households by type [single-parent family] Households by type [other] Number of households
3,674 260 1,474 6,671
3,795 262 1,835 7,280
3.3 0.9 24.5
Home Ownership Housing in land-abundant Malaysia is generally affordable, with a wide range of options available to prospective home owners in nearly all income-brackets. This is reflected by the 4.6 million home owners in 2010 (89% of total home owners) who owned their homes without mortgages. On the other hand, the number of home owners with mortgages increased by 85% during the review period. Home owners with mortgages numbered only 553,000 as of 2010, accounting for 8.5% of total households in Malaysia. This growth was facilitated by liberal financial regulations under which banks and financial institutions have been able to easily disburse mortgage loans to consumers. The overall number of home owners (with or without mortgages) numbered 5.2 million in 2010, or 79% of all households in Malaysia. During the review period, the overall number of households increased by 10.8%, reaching 6.5 million in 2010. Over the same period, the number of rented households increased by 17.8%, reaching 1.2 million in 2010. The sharp increase in home renters is largely the result of the rising urbanisation in Malaysia. The country has seen an exodus of teenagers and young adults from rural communities to the major cities in search of work and in many cases these intra-country migrants live in rented accommodations as they are unable afford purchasing their own places in these major cities, where residential housing prices are significantly steeper. Apartments are fastest-growing housing type, increasing by 13.7% during the review period. In contrast, houses grew by 10.5%. Growth in the number of apartments is also a reflection of the accelerating urbanisation in Malaysia. In rural regions and smaller towns, where land is significantly cheaper, detached, semi-detached and terraced houses tend to be the norm, with condominiums and high-rise apartments a rarity. In cities, the situation is more skewed towards apartments, especially in Kuala Lumpur where high-rise apartments and condominiums are common. However, detached, semi-detached and terraced houses are also common in urban cities, especially in the outlying areas outside of the central business districts where such houses remain affordable to most middleincome households. Impact Over the forecast period, the number of home owners is projected to increase by 17.8%, reaching 6.2 million in 2020. Over the same period, the number of home owners with mortgages is projected to increase by 59%, reaching 980,000 in 2020. Despite this strong growth, home owners with mortgages will still account for only 12.3% of total households in 2020 (but nearly 16% of total home owners). The new generation of young, well-educated and affluent Malaysians is expected to continue to emerge over the forecast period, increasingly breaking off from their extended families to set up their own households. This is reflected in the strong increase of small nuclear family units in particular households with three members, often two parents and one child projected over the forecast period. Occupants of many of these newly established households will be more sophisticated and refined in their tastes and this will be reflected in the products and services they use to design, renovate and furnish their households. Affluent home owners will drive demand for designer furnishings and interior fittings, luxurious imported design materials and high-end in-home consumer electronics. These households will also drive demand for high-end furniture, a rapidly growing segment within the luxury goods market. Lower down the value chain, mass-market counterparts of household goods and services are also expected to be in great demand. While being considerably less luxurious and expensive, the concept will be the same: comfort along with the latest in technology with the objective of improving the quality of home life.
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Running Costs The price of energy and fuels increased considerably during the review period. Holding a good mix of natural energy resources such as oil, natural gas and coal, Malaysia is a net energy exporter and this has allowed the government to set the price of energy in Malaysia. Historically, electricity, gas and fuel are all heavily subsidised, insulating consumers in the country from the extreme fluctuations in the global market for oil. However, the consistently high price of oil during the review period and the countrys sizeable fiscal deficit forced the government to progressively reduce energy subsidies, resulting in multiple hikes in energy tariffs and fuel prices during the review period. This resulted in consumer expenditure on electricity increasing from RM6.2 million in 2006 to RM8.5 million in 2010 and consumer expenditure on gas increasing from RM2.3 million in 2006 to RM3.3 million in 2010. The continued price hikes for electricity and gas in Malaysia during the review period were felt by all but the most affluent households. As a result, most Malaysian consumers are now paying more attention to their energy consumption in an attempt to rein in spending on their rising utility bills. One consequence of this is that energyefficient consumer electronics and white goods, such as energy-saving light bulbs, refrigerators and televisions have become more popular as consumers increasingly scrutinise the energy consumption of such products. Less energy-efficient products are beginning to lose market share. This effect is most keenly felt amongst products which consume significant amount of energy to operate. Most prominent among these is air-conditioning units, which have come to be regarded as necessities rather than a luxury by many in the middle-income consumer segment in hot and humid Malaysia. Inverter models which consume significantly less energy and other airconditioners with higher energy efficiency ratings are the most popular. Consumers are increasingly replacing their old and energy-inefficient air-conditioners with more energy-efficient modern models. Impact As household running costs continue to rise in Malaysia over the forecast period, consumer demand for energyefficient appliances and other household products is expected to grow. Not only are air-conditioners with inverter technology and other energy-saving technologies expected to be in greater demand, but energy-saving refrigerators, cookers and washing machines will also see greater interest amongst households seeking to reduce what they spend on energy costs.
Shopping for Household Goods Most Malaysian consumers tend to shop for household goods at the numerous hypermarkets and supermarkets that are present in almost every major Malaysian city as well as in the larger towns in rural regions. There is little need for consumers to travel out of town to seek out low prices as prices are there are similar to those in urban hypermarkets and supermarkets. In fact, some consumers from rural communities make the trip to their nearest urban hypermarkets in order to stock up on household goods due to the vast selection and reasonable prices on offer. Local open markets and small independent retailers are still flourishing in Malaysia, especially in rural communities. However, consumers use them most often to shop for fresh food and other perishables than for household goods. Hypermarkets and supermarkets are now the dominant retail channel for household goods in Malaysia thanks to their ability to offer the widest choice of products under a single roof. As well, their no-frills products and private label products are significantly cheaper and very popular among low-income consumers. Over the forecast period, hypermarkets and supermarkets are expected to increase their distribution share in Malaysia. This is expected to be the case within the fresh foods and other perishables segment as well as household goods segment as chains and other operators continue to extend their reach into the smaller towns and rural regions of Malaysia.
Possession of Household Durables Household possession rates of nearly all types of household durables increased during the review period with the exception of telephones and tumble dryers. The ownership rate of telephones declined due to mobile phones increasingly replacing the need for landlines. Colour TV sets were the most commonly owned household durable in 2010 with 96.9% of households possessing at least one. This was closely followed by washing machines with a
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possession rate of 92.7%. These two household durables, together with refrigerators, are considered by most Malaysian consumers to be essential. Among the major types of household durables, dishwashers had the lowest possession rate in 2010, 17.2% although this was still an increase from 14% in 2006. The majority of households in Malaysia prefer to wash their dishes by hand and using a dishwasher remains a foreign concept. Colour TV sets being considered a necessity among Malaysian households was an influential factor behind the strong sales of LCD and plasma sets during the review period, even among the lower-income consumers. A significant proportion of consumers have been steadily replacing their obsolete CRT television sets with LCD and plasma sets and, more recently, with the more expensive but energy-efficient LED sets. Even many low-income households stretch their budgets to purchase new LCD or plasma TV sets. The highest growth in ownership during the review period was for personal computers. In 2010, 44.5% of households possessed a personal computer, up from 32% in 2006. Growth was due to falling prices for products and services as well as to the much-improved broadband internet infrastructure in the country. A large part of the growth during the review period was due to the increasing number of first-time computer buyers in rural regions. Similarly, despite the increasingly hectic lifestyle of urban Malaysians, possession rate of time-saving household durables such as microwave ovens and tumble dryers still remain low. Consumers have not embraced the usage of such durables and most continue to prefer to carry out the chores that these products perform themselves. Such household durables are regarded as unnecessary luxuries by the average consumer, particularly with the running costs of these machines adding to the household running costs. Impact Over the forecast period, possession rates of household durables are projected to increase in nearly every category. (As during the review period, the only durables expected to see declining rates are landline telephones and tumble dryers.) Growth is expected to be facilitated by rising disposable incomes, the continuing launch of new and improved model and the capacity in some segments to absorb additional sales. For example, in 2011 39.6% of households possessed vacuum cleaners; in 2020, that rate is projected to rise to 47%. Similarly, in 2011 75% of households possessed vacuum cleaners; in 2020, that rate is projected to rise to just more than 88%. The rising possession rate of personal computers (projected to be in 64.6% of households in 2020) together with the overall impact of the digital revolution in Malaysia is expected to boost to the internet retailing distribution channel over the forecast period. This will be further assisted by continuing improvements in the countrys broadband infrastructure, a robust financial system where credit online card transactions are secure and reliable and the continuing prominence of the younger generation of internet-savvy consumers.
DIY and Gardening DIY and gardening are not popular activities among the majority of Malaysians. The widespread availability of cheap labour to undertake home improvement and home repair projects as well as gardening work makes it easy to hire these tasks out to others. As well, the increasingly hectic work schedules of many means that there is little time to devote to DIY and gardening, unless there is a genuine interest and love for such tasks and that is not common. Overall, manual labour is frowned upon by most members of the upper- and middle-income segments. With the low popularity of DIY and gardening activities among Malaysian consumers, businesses within this sector tend to offer skilled labour services rather than raw materials and tools directly to consumers. Retail outlets selling DIY materials and tools do exist in Malaysia, but they are neither particularly common nor popular. Nurseries and similar outlets selling plants and gardening materials are relatively more common but they are mostly limited to selling potted plants and small ornamental decorations. For large-scale gardening projects, most consumers choose to seek professional services. Impact It is not anticipated that consumer attitudes in Malaysia towards DIY and gardening will change significantly over the forecast period. On the other hand, it is expected that as aspects of the Western lifestyle expand in the country, particularly amongst the affluent and better-educated, an increasing number of Malaysians will adopt gardening as a hobby. But as long as there is cheap labour available to undertake home improvement and home repair tasks, it is unlikely that DIY as it is known in the West will flourish.
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Pet Ownership Overall, the pet population in Malaysia grew by 9% during the review period, reaching 3.7 million pets in 2010. Of these, 2.4 million were pet fish. The majority of fish hobbyists belong to the Chinese ethnic group which holds a cultural belief that rearing pet fish works as a lucky charm and wards off bad luck from their household. Consequently, fish hobbyists are sometimes willing to fork out thousands of dollars for premium breeds of popular pet fish, such as koi and arowana. Many have their own private aquariums or ponds installed in their houses or apartments. The large numbers of fish hobbyists in Malaysia has spawned a significant niche industry catering to the needs of such consumers. From fish rearers who painstakingly breed premium fish species to shops selling aquarium accessories and plants, this sector has enjoyed significant growth as the population of pet fish grew by 9.5% during the review period. An increasing number of professionals offering to design and install elaborate aquariums or even indoor ponds to affluent consumers has also seen increased demand for their services. Dogs were the fastest-growing pet category during the review period with growth of 12.5%, reaching 311,000 in 2010. The relatively low number of dogs kept as pets in Malaysia is largely due to the attitudes of the majority Malay ethnic group whose religious beliefs forbid them from having any interaction or contact with dogs. Consequently, there is very little tolerance for dogs in the public places in Malaysia and public facilities such as dog runs or dog parks are virtually non-existent. Attitudes are beginning to relax, however, as an increasing number of affluent households, primarily non-Malay, express a greater interest in keeping dogs as pets. Regardless, their numbers remain lower than those seen in Chinese-majority countries such as Singapore. The growing popularity of dogs in Malaysia has sparked an increase in the number of pet shops selling the usual range of pet food, cages, leashes, toys, medication and related accessories. Dog breeders are also becoming more common and accessible, catering to the demand from a younger and newly affluent consumer segment. Related service providers such as dog trainers and grooming studios are also seeing growth. Impact Over the forecast period, fish are expected to remain the most popular pet amongst Malaysian households and demand for fish and fish-related products and services is expected to continue to grow. The growing (but albeit relatively small) demand for dogs as pets over the forecast period is expected to spur growth in a wide range of pet-related products and services, including pet food, pet accessories, training and kennel services and veterinary services.
Table 25 Households by Tenure: 2006-2010 '000 Home owner Home owner, without mortgage Home owner, with mortgage Rented Other 299 1,009 152 358 1,055 157 421 1,100 162 487 1,145 167 553 1,188 173 85.0 17.8 13.8 2006 4,719 4,420 2007 4,828 4,470 2008 4,937 4,516 2009 5,046 4,559 2010 5,154 4,602 % growth 9.2 4.1
TOTAL HOUSEHOLDS
5,879
6,040
6,199
6,358
6,515
10.8
Table 26 Households by Tenure: 2011-2020 '000 Home owner Home owner, without mortgage Home owner, with mortgage 2011 5,263 4,646 617 2015 5,690 4,880 809 2020 6,201 5,221 980 % growth 17.8 12.4 58.9
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Home owner, with mortgage Rented Other
617 1,231 178
809 1,394 197
980 1,579 219
58.9 28.3 23.6
TOTAL HOUSEHOLDS
6,671
7,280
8,000
19.9
Table 27 Households by Type of Dwelling: 2006-2010 '000 House Detached house Semi-detached and terraced house Apartment Other 500 186 517 192 534 198 552 204 569 210 13.7 12.8 2006 5,193 2,856 2,337 2007 5,330 2,926 2,404 2008 5,466 2,995 2,471 2009 5,602 3,064 2,538 2010 5,736 3,131 2,605 % growth 10.5 9.6 11.5
TOTAL HOUSEHOLDS
5,879
6,040
6,199
6,358
6,515
10.8
Table 28 Households by Type of Dwelling: 2011-2015 '000 House Detached house Semi-detached and terraced house Apartment Other 2011 5,868 3,198 2,671 587 216 2015 6,384 3,453 2,931 657 240 % growth 8.8 8.0 9.7 12.0 10.8
TOTAL HOUSEHOLDS
6,671
7,280
Table 29 Running Costs: 2006-2010 RM million Consumer expenditure on electricity Consumer expenditure on gas Consumer expenditure on liquid fuels Consumer expenditure on solid fuels 59 64 72 71 75 29 28 28 25 24 2,282 2,564 2,947 2,980 3,261 2006 6,168 2007 6,859 2008 7,817 2009 7,865 2010 8,487
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on solid fuels
TOTAL
8,539
9,515
10,864
10,940
11,846
Table 30 Possession of Household Durables: 2006-2010 % of households Colour TV set Dishwasher Freezer Microwave oven Personal computer Refrigerator Telephone Tumble dryer Vacuum cleaner Washing machine 2006 94.8 14.0 18.1 33.2 32.0 82.4 48.1 23.8 64.7 86.7 2007 95.5 14.9 19.0 34.6 35.0 83.2 43.2 23.4 66.8 88.8 2008 96.0 15.8 19.9 35.8 38.7 84.0 39.5 23.1 68.9 90.6 2009 96.5 16.6 20.6 37.2 41.7 84.8 36.6 22.7 70.7 91.8 2010 96.9 17.2 21.3 38.4 44.5 85.4 34.1 22.2 72.8 92.7
Table 31 Possession of Household Durables: 2011-2020 % of households Colour TV set Dishwasher Freezer Microwave oven Personal computer Refrigerator Telephone Tumble dryer Vacuum cleaner Washing machine 2011 97.2 17.8 21.9 39.6 47.2 86.3 32.0 21.9 74.9 93.4 2015 98.1 19.2 23.4 43.3 56.8 89.1 26.5 20.3 81.3 95.0 2020 98.5 19.8 24.6 46.9 64.6 92.0 25.2 88.2 96.1
Table 32 Pet Population: 2006-2010 '000s of animals Pet Dog Cat Bird Fish 2006 3,378 276 496 209 2,226 2007 3,461 286 506 207 2,281 2008 3,549 295 517 205 2,341 2009 3,639 306 527 202 2,402 2010 3,678 311 534 190 2,437 % growth 8.9 12.5 7.6 -9.1 9.5
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Fish Small Mammal Reptile
2,226 127 44
2,281 137 45
2,341
2,402
2,437
9.5
147 46
156 46
160 46
25.8 4.5
INCOME
Average Income In 2010, the average annual per capita disposable income in Malaysia was RM14,511, an increase of 20% (in real terms) from 2006. Growth was recorded in all years of the review period with the exception of 2009 when there was a small dip, a decline of 00.9%, the result of the global financial crisis. However, disposable income (as well as the economy) rebounded in 2010. This trend is expected to continue over the forecast period as average annual per capita disposable income increases by 42.2% (in real terms), reaching RM21,273 in 2020.
Average Income by Age All age segments enjoyed significant increases in their average annual gross incomes during the review period, with the biggest gains seen in the younger age segments. Those aged 30 to 34 years-old were the most affluent with average annual gross income of RM31,134 in 2010. This group was followed closely by those aged 25 to 29 years-old and those aged 35 to 39 years-old, with average annual gross incomes of RM30,495 and RM30,815, respectively. These rankings remained unchanged during the review period, as the group aged 35 to 39 years-old tended to be at the peak of their careers and earning power. This is also the age segment where the largest concentration of professionals and executives is situated. In further years, gains in average annual gross incomes began to decline, with those aged 65 years-old and older recording average annual gross income of RM20,368 in 2010.
Table 33 Annual Gross and Disposable Income (Current Value): 2006-2010 RM per capita Annual gross income Disposable income 2006 14,324 10,972 2007 15,936 12,185 2008 17,916 13,712 2009 17,844 13,656 2010 18,924 14,511
Table 34 Annual Gross and Disposable Income (Constant 2010 Value): 2006-2010 RM per capita Annual gross income Disposable income 2006 15,764 12,075 2007 17,190 13,143 2008 18,329 14,027 2009 18,149 13,890 2010 18,924 14,511
Table 35 Annual Gross and Disposable Income (Constant 2010 Value): 2011-2020 RM per capita Annual gross income Disposable income 2011 19,527 14,958 2015 22,754 17,464 2020 27,718 21,273
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Table 36 Average Annual Gross Income by Age (Current Value): 2006-2010 RM 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65+ 2006 19,635 22,032 23,440 23,894 23,612 22,680 21,170 19,306 17,590 16,600 15,345 2007 21,421 24,108 25,769 26,385 26,171 25,244 23,717 21,838 20,119 19,085 17,728 2008 24,320 27,298 29,089 29,691 29,371 28,247 26,425 24,166 22,101 20,891 19,336 2009 24,115 27,071 28,864 29,470 29,161 28,054 26,257 24,028 21,977 20,778 19,234 2010 25,460 28,606 30,495 31,134 30,815 29,642 27,752 25,399 23,245 22,004 20,368
Table 37 Average Annual Gross Income by Age (Constant 2010 Value): 2006-2010 RM 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65+ 2006 21,609 24,248 25,797 26,297 25,986 24,961 23,299 21,247 19,359 18,269 16,888 2007 23,107 26,005 27,797 28,461 28,230 27,230 25,584 23,556 21,702 20,587 19,123 2008 24,880 27,926 29,759 30,375 30,047 28,898 27,033 24,723 22,610 21,372 19,781 2009 24,528 27,533 29,357 29,974 29,660 28,533 26,706 24,439 22,353 21,133 19,563 2010 25,460 28,606 30,495 31,134 30,815 29,642 27,752 25,399 23,245 22,004 20,368 % growth 17.8 18.0 18.2 18.4 18.6 18.8 19.1 19.5 20.1 20.4 20.6
CONSUMER EXPENDITURE
Living Costs During the review period, overall consumer expenditure increased by 29% (in real terms), reaching RM361.5 billion in 2010.Transport accounted for the largest share (21.8%)) of consumer expenditure in 2010, increasing by 37.4% during the review period to reach RM78.9 billion in 2010. Following closely behind was consumer
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expenditure on housing. In 2010, spending on housing accounted for just more than 20% of total spending. During the review period, spending on housing increased by 27.5% (in real terms), reaching RM75.2 billion in 2010. Both expenditure trends are related to rising urbanisation in Malaysia. An increasing number of workers are moving to cities and generating demand for new homes. (As well, there was a surge of investment in the property sector once the 2009 recession blew over and as low interest rates made investment property more affordable among middle-income consumers.) Once the growing number of new home owners had settled in the cities, most found that they needed public transport to commute to and from their workplaces as well as just to get around. At the same time, Thais began increasingly purchasing automobiles in order to escape from the overcrowded and inadequate public transport infrastructure in Malaysia. New registrations of passenger cars grew by a staggering 48.2% from 2006 through 2010 and this contributed strongly to consumer expenditure on transport during the review period. In 2010, 62.2% of Malaysian households possessed passenger vehicles. Spending on health goods and medical services experienced the highest growth (59% in real terms) during the review period, reaching RM11.5 million in 2010. Much of this growth can be attributed to the rising health consciousness among the more educated and savvy Malaysian consumer base together with the factors related to the ageing of the population. Another sector which saw significant growth in spending during the review period was communications, which grew by 45.2% to reach RM26 million. Growth was due in large part to increasing household penetration rates for mobile phones and the uptake of broadband and mobile data services. Over the same period, spending on leisure and recreation increased by 30.6% to reach RM17.5 million. With rising disposable incomes, many Malaysian consumers, particularly younger consumers, spent more on products and services that satisfied their personal needs and enhanced their leisure time. Impact Over the forecast period, overall consumer expenditure is projected to increase by 57.2% (in real terms), reaching RM594.5 billion in 2020. Spending will grow in line with growth in disposable income. Over the forecast period, annual per capita disposable income is projected to rise by 42% (in real terms), reaching RM21,273 in 2020. For the most part, the sectors that experienced robust growth during the review period will continue to see growth over the forecast period. For example, spending on transport and housing are projected to increase by 67.2% and 48.3%, respectively. As during the review period, increasing urbanisation will play a key role in driving this growth. Spending on health goods and medical services is projected to continue to rise over the forecast period at the very robust rate of 82.7%. A number of factors are expected to drive this growth, including rising health awareness and an increased focus by Malaysians on preventive health care. As well, the ageing population is expected to drive increased demand for OTC drugs and remedies, dietary supplements and medical devices such as ambulatory aids. Consumer expenditure on communication equipment and services such as mobile phones, broadband internet services and mobile data services is expected to soar over the forecast period as Malaysian consumers increasingly become more digitally connected, with growth particularly evident in rural communities. Over the forecast period, spending on communications is projected to increase by 83% to reach RM50.3 billion in 2020.
Table 38 Consumer Expenditure by Broad Category (Current Value): 2006-2010 RM million Food and non-alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing 7,401 53,572 8,213 61,402 9,211 69,941 9,162 70,130 9,750 75,195 3,175 3,519 3,938 3,862 4,082 2006 38,154 2007 42,022 2008 46,942 2009 46,737 2010 50,159
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Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Misc goods and services
12,659 6,590
14,267 8,411
16,211 9,897
16,318 10,357
17,547 11,537
52,186 16,258 12,200 4,638 28,409 19,297
59,719 19,276 13,885 5,126 31,043 21,841
69,229 22,682 16,011 5,809 34,864 25,071
71,460 23,495 16,244 5,879 34,805 25,494
78,885 25,977 17,533 6,354 37,040 27,458
TOTAL
254,539
288,725
329,806
333,942
361,516
Source: National statistical offices, OECD, Eurostat, Euromonitor International
Table 39 Consumer Expenditure by Broad Category (Constant 2010 Value): 2006-2010 RM million Food and non-alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Misc goods and services 57,433 17,892 13,427 5,104 31,266 21,237 64,417 20,793 14,977 5,530 33,486 23,559 70,823 23,204 16,379 5,942 35,667 25,648 72,681 23,896 16,522 5,979 35,400 25,929 78,885 25,977 17,533 6,354 37,040 27,458 37.4 45.2 30.6 24.5 18.5 29.3 7,253 9,073 10,125 10,534 11,537 59.1 8,145 58,959 13,932 8,860 66,234 15,390 9,423 71,551 16,584 9,318 71,328 16,597 9,750 75,195 17,547 19.7 27.5 25.9 3,494 3,796 4,029 3,928 4,082 16.8 2006 41,990 2007 45,329 2008 48,023 2009 47,536 2010 50,159 % growth 19.5
TOTAL
280,134
311,443
337,399
339,649
361,516
29.1
Source: National statistical offices, OECD, Eurostat, Euromonitor International Note: Constant value at 2010 prices
Table 40 Consumer Expenditure by Broad Category (Constant 2010 Value): 2011-2020 RM million Food and non-alcoholic beverages 2011 52,016 2015 61,433 2020 76,244 % growth 46.6 % CAGR 4.3
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beverages Alcoholic beverages and tobacco Clothing and footwear Housing Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Misc goods and services 84,215 27,465 18,224 6,622 38,180 28,987 106,953 35,958 22,292 7,968 45,315 34,642 140,847 50,266 28,749 10,223 56,012 45,008 67.2 83.0 57.8 54.4 46.7 55.3 5.8 6.9 5.1 4.9 4.3 5.0 12,334 16,041 22,532 82.7 6.9 10,043 77,582 18,243 11,772 91,585 22,521 14,665 115,024 29,323 46.0 48.3 60.7 4.3 4.4 5.4 4,180 4,645 5,629 34.7 3.3
TOTAL
378,091
461,127
594,522
57.2
5.1
WORK
Working Conditions Malaysians are well-known for their industrious work ethic, especially those among the economically dominant Chinese ethnic group. The principal legislation governing employment and the labour market in Malaysia is the Employment Act. It lays out the Regulation of Employment and minimum standards in the market which are applicable nationwide and which cover all employers and employees. Official working hours under the Employment Act are not to exceed eight hours a day excluding a period of rest, five consecutive hours of work without a period of rest of not less than 30 minutes and 48 hours in a week. Standard working hours for whitecollar workers are from 8 a.m. or 9 a.m. to 5 p.m. or 6 p.m., Monday through Friday with, in some cases, an additional/optional 9 a.m. to 12 p.m. or 1 p.m. on Saturdays. Forty-hour work weeks spread over five days is the industry norm for the private sector. Civil servants are able to choose between a five-day and six-day work week. Malaysias official public holiday calendar is based on religious and cultural events from the three major ethnic groups, Malays, Chinese and Indians, as well as events of national significance. Holiday entitlement is set at a minimum of eight days a year, a number that increases with the numbers of years worked to reach 16 days a year for employees with five or more years of service. The industry norm in the private sector is 14 days to 21 days per calendar year, with an additional 14 days of medical leave (subject to approved medical certificates). Civil servants are entitled to as much as 30 days of annual leave per calendar year. There is currently no national minimum wage for Malaysian workers. Recently, there has been a fierce debate within the government and among public interest groups about the establishment of a national minimum wage. Only plantation workers in Malaysia are protected with a minimum wage of RM 350 monthly which can rise to RM 700 monthly through productivity incentives and bonuses.
Commuting Only Kuala Lumpur, the capital city of Malaysia, enjoys a comprehensive and well-maintained light rail transit
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service. It comprises 60 rail stations across three separate lines as well as an intra-city public transit system consisting of a monorail running across 11 stations through the central business district of Kuala Lumpur. Together with a comprehensive bus transport service with 1,092 buses, this system is the most common way for residents in Kuala Lumpur and the outlying residential areas to commute to work. Despite such a comprehensive infrastructure, the public transport in Kuala Lumpur is nevertheless perceived to be overcrowded and unable to meet current demand. Indeed, trains are typically filled to uncomfortable levels during morning and evening peak travel periods. Thus, commuting by car is a popular option among the wellheeled working population in Kuala Lumpur. However, the increasing number of cars on the road has resulted in increasingly frequent traffic snarls in the city centre. As well, parking options are limited. Both of these situations are beginning to make commuting by car a less attractive option. There are no light rail transit or monorail systems in other major cities in Malaysia and, for the most part, the public transport infrastructure is limited to bus transport services, most of which have frequently been criticized as being inefficient and inadequate. Commuting by car, therefore, is more common for workers outside of Kuala Lumpur. Walking and cycling are not common forms of commuting as the distances commuter need to travel tend to be long and cycling is perceived to be dangerous on the roads during peak driving hours.
Working Women During the review period, the employed female population grew by 8% to reach 3.9 million (or 36.2% of the total employed population) in 2010. This growth was largely due to women in Malaysia increasingly raising their education levels as well as an increasingly more liberal and accepting attitude towards women working in both the private and public sectors. This is particularly true among professionals such as lawyers, doctors, architects and engineers. Under Malaysian labour law, pregnant women who have been employed for at least 90 days in the preceding four months are entitled to a Statutory Maternity Leave period of at least 60 consecutive days during which their full salary is paid. There have been discussions to extend that period to 90 days of fully paid leave to bring Malaysia more in line with the international standards laid down by the International Labour Organisation Convention, but as of yet no changes have been made. According to the World Economic Forum, Malaysia ranks 98th in the world (out of 134 countries) in the Global Gender Gap Index, a measure in which wage equality between male and female workers and labour force participation are key variables. This indicates that a significant wage gap exists between male and female workers doing the same work or in similar jobs in Malaysia. This is not a big surprise given the prevalent parochial attitude toward women and career advancement among many in the majority Malay ethnic group. On the other hand, there have been significant improvements made in this area recently but apparently not enough to date to boost Malaysias world ranking.
Alternative Work Options Part-time employment is still relatively rare in the Malaysian workplace. Although their number increased by 8.7% during the review period, part-time workers nevertheless accounted for only 2.2% of the entire working population in 2010. Attitudes towards flexible employment or part-time employment are still relatively conservative in Malaysia, with most employers demanding full-time work within a stipulated time frame. Females are more likely to be part-time employees and they accounted for 73.6% of the total part-time employee population in 2010. This is largely due to females in Malaysia typically having to juggle dual roles as homemaker/mother and wage earner in Malaysian households. Part-time work gives these women the flexibility to devote time to both. The number of freelance and self-employed workers in Malaysia grew during the review period in large part thanks to the internet. Not only does this new technology provide freelances and self-employed workers with new types of jobs (web designing, web programming, online retailing, etc) and give them the tools they need to perform the work but internet technology allows workers to perform traditional jobs at home, jobs that previously could only be performed in an out-of-home office environment. This trend is expected to continue to grow over the forecast period, changing the look of the employment landscape in the country.
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Retirement Officially, the retirement age for Malaysians is 58 years-old for public sector employees and 55 years-old for private sector employees, although a significant number of private sector employers retire their female employees at 50 years-old. This is one of the lowest retirement ages among Asian countries. Indeed, neighbouring countries such as Singapore, Philippines, Laos, Thailand and even Brunei have official retirement ages ranging from 60 to 67 years-old. Coupled with one of the highest life expectancies in the world, this means that the average spending power of the average retiree in Malaysia is deteriorated in real income terms during the review period and this limited their spending and consumption. The vast majority of retired Malaysians do not enjoy pension schemes but instead benefit from a compulsory retirement fund called the Employment Provident Fund, to which Malaysian workers and their employers both contribute a fraction of workers monthly wages. The collective sum is then used to provide retirement benefits to Malaysians after their retirement. Eligible civil servants are covered under a government pension scheme which provides them with a monthly income, a service gratuity payment and medical benefits, among other benefits. Retirees are more financially able than ever before, assisted in many cases by their children and grandchildren who enjoy rising disposable incomes and better work opportunities in the current employment market. Able to afford high-quality medical care and health supplements, many retirees are not only living longer but also living more productive and active lives in their retirement years. On the other hand, while the purchasing power of many retirees is making them an increasingly influential consumer demographic in Malaysia, there are still large numbers of older people who cannot afford to buy anything except the essentials.
Unemployment In 2010, the labour force participation rate in Malaysia was 62.8%, well within the average for the region as well as globally. Unemployment increased to a review period high of 3.6% in 2009, a result of the economic downturn. That reflected 418,000 Malaysians unemployed in 2009, up from 368,500 unemployed in 2008, even as the labour force participation rate increased to 63% due to persistent structural unemployment. The strong economic recovery coupled with the governments assistance plan, however, resulted in unemployment being reduced to 376,400 or 3.2% in 2010.
Table 41 Employed Population: 2006-2010 '000 Employed male population Employed female population Total employed population Male part-time employees Female part-time employees Total part-time employees 223 228 235 238 242 8.7 10,211 69 154 10,540 70 158 10,659 70 165 10,796 70 168 10,931 69 173 7.1 1.0 12.2 2006 6,550 3,661 2007 6,748 3,793 2008 6,852 3,807 2009 6,927 3,869 2010 6,978 3,952 % growth 6.5 8.0
Source: ILO, Euromonitor International
Table 42 Employed Population: 2011-2020 '000 Employed male population Employed female population Total employed population Male part-time employees 2011 7,213 4,037 11,250 71 2015 7,741 4,356 12,097 73 2020 8,437 4,770 13,207 76 % growth 17.0 18.2 17.4 6.9
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Female part-time employees Total part-time employees
178 248
193 266
212 288
19.5 15.9
Table 43 Unemployed Population: 2006-2010 '000 Unemployed male population Unemployed female population Total unemployed population Male unemployment rate Female unemployment rate Unemployment rate 3.3 3.4 3.3 3.1 3.4 3.2 3.2 3.7 3.3 3.4 3.9 3.6 3.2 3.7 3.4 352 349 369 405 384 9.0 129 133 146 159 152 17.8 2006 224 2007 216 2008 223 2009 246 2010 232 % growth 3.9
Table 44 Unemployed Population: 2011-2020 '000 Unemployed male population Unemployed female population Total unemployed population Male unemployment rate Female unemployment rate Unemployment rate 2011 219 141 360 2.9 3.4 3.1 2015 220 142 362 2.8 3.2 2.9 2020 235 153 388 2.7 3.1 2.9 % growth 7.3 8.3 7.7
LEARNING
School Life Kindergarten or nursery school education is not compulsory for Malaysian children, although a significant number of households choose to send their children as young as three years-old to private kindergartens or nursery schools. Typically, only affluent or some middle-income households can afford kindergarten educations for their children and this has accounted for the relatively stagnant numbers of children enrolled in kindergartens or other forms of pre-primary schools in Malaysia. In 2010, 614,000 children attended kindergartens and pre-primary schools, reflecting growth of only 0.3% during the review period. Primary school education is compulsory for all Malaysian children six years-old and older. It normally lasts for a period of six years. Primary schools in Malaysia are divided into two types: national primary schools, where the language of instruction is the official language of Malaysia, Bahasa Malaysia, except for English, science and mathematics, and vernacular primary schools, a concession to the Chinese and Indian minority ethnic groups where the language of instruction is either Chinese or Tamil as per the students ethnic affiliation. The number of
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children in Malaysia enrolled in primary schools grew by 2.1% during the review period to reach 3.2 million in 2010. Secondary school education is not compulsory for Malaysian children. To attend secondary school, primary school graduates must sit for the Primary School Achievement Test at the end of their primary school education. Successful candidates then go on to secondary education for five years. At the end of those five years, they sit for the Malaysian Certificate of Education examination (SPM). This examination is equivalent to the British Ordinary Levels examinations and they determine students entry into the matriculation system and, by extension, into tertiary education in national universities and similar institutions across Malaysia. There were 2.5 million students enrolled in secondary school in Malaysia in 2010, reflecting growth of only 0.8% over the review period. Malaysian students in primary and secondary schools are required to wear uniforms as designated by their respective schools, with school shoes largely restricted to white canvas shoes. However, certain schools, especially private schools, are less strict when it comes to school shoes and let students wear other styles as long as they are not ostentatious or conspicuous. There are three major holiday periods on the Malaysian school calendar: mid-terms holidays that last for one week in March, mid-year holidays that last for two weeks in June and the final year holidays which last for six weeks starting in November. Students share the same public holiday calendar as the labour force.
University Life The number of students enrolled in universities or other tertiary educational institutes grew significantly, by nearly 16%, during the review period to reach 854,000 in 2010. Rising affluence and an increasing number of educational grants, subsidies and scholarships given by both the government and the private sector made higher education more accessible to Malaysian students in general and extended higher education opportunities to many low-income households. At the tertiary level, Malaysia continues to face a brain drain as increasing numbers of top Malaysian students pursue their studies overseas. In many cases, top students are unable to gain admittance into Malaysian universities despite their sterling grades due to the use of an indirect race-based quota in the admissions process for matriculation, a pre-university programme which allows students entry into public universities in Malaysia upon completion. Matriculation replaces the previous race-based quota system for admissions which was abolished in 2004. The matriculation programme is significantly easier than other countrys admission routes into public universities, such as the British A Levels programme. Further, only 10% of available spots in the matriculation programme are given to non-Malay applicants, with the remaining 90% reserved for Malay students. This is a product of the long-running racial affirmation policy implemented by the Malaysian government. As a result, the matriculation programme is viewed negatively by members of minority ethnic groups who see it as a back door into university for poorly qualified Malay students. Thus, top students from the minority Chinese ethnic group are increasingly pursuing their higher education overseas, especially in Chinese-dominant Singapore. Among other factors, this led to a decline of 15.4% in the number of successful graduates from public universities in Malaysia over the review period. The number of foreign students pursuing higher education in Malaysia remained relatively stable over the review period, 4% of total student. This is largely negligible as Malaysia has never been an attractive option for higher education to international students. Most foreign students in Malaysia are enrolled in private universities which are in fact branch campuses of reputable foreign universities. These include Monash University Malaysia Campus, Curtin University of Technology Sarawak Campus, Swinburne University of Technology Sarawak Campus and University of Nottingham Malaysia Campus. Graduates in the social sciences, business and law are the most numerous amongst Malaysian students. Engineering, manufacturing and construction graduates are the next numerous and, combined, graduates from these two categories accounted for 60% of all graduates in 2010. Only 0.4% of graduates specialised in agriculture 2010.
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Adult Learning Part-time degrees tailored for working adults seeking to pursue higher education while working full-time are increasingly being offered by private institutions in Malaysia, as there is a growing demand for both graduate and non-graduate working adults to gain qualifications in a new discipline or to simply pursue a degree. Such programmes are not subsidised by the government nor are government grants provided for adults who choose to take up such courses. However, a number of corporations sponsor their employees as they pursue higher education or grant them partial subsidies to defray at least a part of the cost of such degree programmes.
Table 45 School Students: 2006-2010 As stated Pre-Primary School ('000) Primary School ('000) Secondary School ('000) Compulsory Education Commencement Age (years) School Leaving Age (years) Source: International Bureau of Education, World Data on Education, UNESCO, Euromonitor International 11 11 11 11 11 2006 612 3,133 2,516 6 2007 601 3,164 2,499 6 2008 608 3,192 2,499 6 2009 605 3,200 2,517 6 2010 614 3,199 2,535 6 % growth 0.3 2.1 0.8
Table 46 Graduates: 2006-2010 Number Graduates in all programmes In education In humanities and arts In social sciences, business and law In science In engineering, manufacturing and construction In agriculture In health and welfare In services In unspecified programmes 6,397 7,570 7,072 8,319 867 16,789 1,907 1,661 834 16,862 1,868 1,699 817 17,298 1,775 1,617 785 17,501 1,565 1,357 -87.7 131.2 -77.9 -83.7 37,211 51,167 31,195 51,092 30,382 50,651 30,244 51,089 29,723 50,637 -20.1 -1.0 18,454 21,417 51,391 17,706 4,852 55,335 17,303 4,008 55,110 17,307 3,306 55,797 17,113 2,615 55,467 -7.3 -87.8 7.9 2006 208,998 2007 181,404 2008 178,717 2009 179,250 2010 176,763 % growth -15.4
Source: EUROSTAT, OECD and UNESCO, Euromonitor International Note: Graduates are those who have successfully completed an educational programme
Table 47 Higher Education Students: 2006-2010 As stated Higher education 2006 737 2007 805 2008 819 2009 838 2010 854 % growth 15.9
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students inc. universities ('000) Male ('000) Female ('000) Foreign students as % in higher education Source: UNESCO, Euromonitor International 333 404 3 356 449 4 361 457 4 370 468 4 376 479 4 12.8 18.4
EATING (INCLUDING SOFT DRINKS)

Shopping for Food and Drinks Consumer expenditure on food grew by a significant 17.6% (in real terms) during the review period, reaching RM44.1 billion in 2010. Of this, consumer expenditure on fish and seafood accounted for 27.7% of total expenditure on food, increasing by 18.5% during the review period and reaching RM12.2 billion in 2010. Rising disposable incomes and increasing affluence has increased the appetite of Malaysian consumers for fish and seafood, two types of fresh food which are typically more expensive in Malaysia than others. This was followed by consumer expenditure on meat which accounted for 18.6% of total expenditure on food, growing by 18.5% during the review period to reach RM8.2 million. Again, this growth in spending was a reflection of the increased ability of Malaysian consumers to afford to buy better food. Hypermarkets are common in major Malaysian cities as well as in certain rural regions and smaller towns. They are the favoured retail channel for food and drink among Malaysian consumers due to the vast selection of products on offer, the convenience and comfort of shopping in their clean and modern environments and, very significantly, their low prices. Thanks to the growing number of outlets and their proximity to major residential hubs, hypermarkets are increasingly taking over the role once held by supermarkets in Malaysia. In 2010, hypermarkets accounted for 42.6% of all value sales in the grocery retail market in the country. Tesco, Carrefour, Mydin and Giant are the hypermarket chains that dominate the distribution channel. The wide reach and popularity of hypermarkets has helped popularize retailing concepts such as loyalty cards and no-frills and private label brands. For example, both Tesco and Carrefour have their own point-based loyalty card program that gives consumers the incentive to return to their stores. Major hypermarket and larger supermarket chains also offer their own no-frills and private label brands which offer substantial savings over similar branded products. Independent small grocers were the next most popular retail channel for food and drinks in Malaysia with a value share of 31.8% in 2010. This reflected their importance in servicing consumers in residing or working in their immediate vicinity. In rural communities and smaller towns, independent small grocers are usually the most important source of food and beverages for the local populace. Quality and freshness are among the key factors influencing Malaysian food buyers, although price is increasingly becoming a more important factor, particularly for low-income consumers. Country of origin is also an issue to which Malaysian consumers are paying more attention as many have been made wary by the spate of food safety scandals involving processed and packaged foods from China and Taiwan. Consumer expenditure on bottled water (mineral or distilled) as well as on soft drinks, fruit juices and vegetable juices grew significantly, by 40%, during the review period to reach RM5 billion in 2010. This growth was largely due to concerns on the part of local consumers about the quality and hygiene of the national tap water supply. As well, rising affluence has enabled many consumers to switch to the cleaner and more hygienic bottled water without significantly eroding their disposable incomes. Impact The distribution landscape for food and beverages in Malaysia is not expected to change dramatically over the forecast period. It is anticipated the hypermarkets and large supermarket chains will continue to dominate in
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urban areas and outlying areas and that small independent retailers will continue to serve rural areas. On the other hand, it is expected that the large chains will steadily expand over the forecast period, capturing distribution share from smaller independents. The Mydin chain of hypermarkets, for instance, has plans to invest an additional RM1.4 billion to open 14 new hypermarkets across Malaysia over the forecast period. At the same time, Tesco plans to open six more hypermarkets in 2011 alone at the cost of RM480 million. It is expected that hypermarkets will continue displacing supermarkets and independent grocery retailers from the market over the forecast period as they continue to expand into rural regions and become the retail channel of choice for all Malaysian consumers. Hypermarkets are expected to introduce more up-market private label products over the forecast period to meet the needs of consumers looking for the perception of quality at lower prices. This new tier of in-house brands is expected to offer quality similar to the major branded products, utilize imported or high-quality ingredients. This is expected to be displayed prominently on their packaging to reaffirm the high standards of quality. These will be priced strategically between the no-frills brands and branded products.
Dining in The national cuisine of Malaysia is a reflection of its multi-cultural society. It is best described as melting pot, drawing strong influences from Chinese, Malay and Indian cuisine. Indeed, the term Malaysian cuisine evokes images of popular dishes from these ethnic cuisines including chicken rice, mee goreng, laksa, roti canai and nasi lemak. Despite being traditionally Chinese, Malay or Indian, these dishes are all grouped under the collective umbrella of Malaysia cuisine. This is perhaps the area where cultural integration has been the most successful. Increasingly hectic schedules have prompted a growing number of working-class Malaysians to choose to dine out instead of cooking at home. This has been made easier by the abundance of cheap and readily available hot meals sold at roadside stalls and markets in most places. However, when time allows Malaysians still enjoy preparing meals and dining at home with family or with friends. Indeed, meals at home are a favourite family activity. When cooking at home, Malaysians tend to emphasise fresh ingredients, including freshly prepared spices such as cumin powder, anise seeds, curry powder, various herbs and freshly ground pepper. However, the use of pre-packaged spices and herbs has been on the rise as these products considerably simplify and speed up the preparation process, although most consumers refuse to compromise on the freshness of the meat, seafood or vegetables used in their cooking. Traditionalists and purists refuse to use pre-packaged spices and herbs as they insist that doing so would compromise the taste and quality of their cooking. Regardless, the time and effort saved by using pre-packaged spices means that the majority of consumers are willing to make this compromise.
Dining Out Expenditure on consumer foodservice grew by 21.2% (in real terms) during the review period, reaching RM23.4 billion in 2009. In particular, mamak stalls, street stalls dishing up cheap food and beverages around the clock and found along almost every street in Malaysia, are social hubs where Malaysians of all social classes and status congregate over hot meals and drink. A much-loved national icon, mamak stalls are as ubiquitous as McDonalds and Starbucks are in Western countries. Expenditure at full-service restaurants continued to account for the largest proportion of spending on consumer foodservice (nearly 40%), growing by 11.2% to reach RM9.3 billion in 2009. Street stalls/kiosks were the nextlargest recipient of consumer expenditure with RM5.4 billion (a share of 23.1%) followed by spending at cafes/bars which reached RM5 billion (a share of 21.3%). Fast food held a relatively low 13% value share with consumer expenditure reaching RM3 billion in 2009. Fast food, however, experienced expenditure growth of nearly 44% during the review period. This followed only the home delivery/take-away category which achieved spending growth of nearly 60%. During the review period, international cuisines such as French, Italian, American and Middle Eastern cuisines strongly grew in popularity, particularly amongst the more affluent and sophisticated (and often younger) consumer base. This segment has begun to show increased interest in more exotic cuisines as well as in fine dining.
Caf Culture
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The caf culture has started to gain traction in Malaysia but it has yet to gain mainstream status as the cost of coffee at popular and trendy cafes such as Starbucks, Coffee Bean and Olio Dome can cost as much as ten to fifteen times the price of a standard coffee at the popular mamak roadside cafes. As a result, while affluent and middle-income consumers can easily afford the price of Starbucks coffee, many of them nevertheless question the value of buying such coffee. Hence, the caf culture is still in its early days in Malaysia, although it is starting to gain in popularity with some of the more well-heeled consumers.
Table 48 Consumer Expenditure on Food (Current Value): 2006-2010 RM million Consumer expenditure on bread and cereals Consumer expenditure on meat Consumer expenditure on fish and seafood Consumer expenditure on milk, cheese and eggs Consumer expenditure on oils and fats Consumer expenditure on fruit Consumer expenditure on vegetables Consumer expenditure on sugar and confectionery Consumer expenditure on other food 1,612 1,758 1,935 1,900 2,016 1,094 1,226 1,374 1,366 1,473 4,022 4,456 5,037 5,030 5,374 3,016 3,312 3,696 3,709 4,034 1,161 1,278 1,421 1,420 1,541 3,128 3,463 3,876 3,861 4,181 9,375 10,325 11,525 11,446 12,228 6,281 6,917 7,721 7,668 8,192 2006 4,392 2007 4,693 2008 5,055 2009 4,867 2010 5,082
TOTAL
34,082
37,427
41,641
41,266
44,122
Table 49 Consumer Expenditure on Food (Constant 2010 Value): 2006-2010 RM million Consumer expenditure on bread and cereals Consumer expenditure on meat Consumer expenditure on fish and seafood Consumer expenditure on milk, cheese and eggs Consumer expenditure on oils and fats 1,278 1,378 1,453 1,444 1,541 20.6 3,442 3,736 3,965 3,927 4,181 21.5 10,318 11,137 11,791 11,642 12,228 18.5 6,912 7,461 7,899 7,799 8,192 18.5 2006 4,834 2007 5,062 2008 5,172 2009 4,950 2010 5,082 % growth 5.1
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Consumer expenditure on fruit Consumer expenditure on vegetables Consumer expenditure on sugar and confectionery Consumer expenditure on other food
3,319
3,572
3,782
3,772
4,034
21.5
4,426
4,806
5,153
5,116
5,374
21.4
1,204
1,323
1,405
1,389
1,473
22.3
1,775
1,896
1,980
1,933
2,016
13.6
TOTAL
37,509
40,371
42,599
41,971
44,122
17.6
Table 50 Consumer Expenditure on Food (Constant 2010 Value): 2011-2020 RM million Consumer expenditure on bread and cereals Consumer expenditure on meat Consumer expenditure on fish and seafood Consumer expenditure on milk, cheese and eggs Consumer expenditure on oils and fats Consumer expenditure on fruit Consumer expenditure on vegetables Consumer expenditure on sugar and confectionery Consumer expenditure on other food 2,082 2,367 2,798 34.4 3.3 1,561 1,856 2,433 55.8 5.0 5,626 6,812 8,820 56.8 5.1 4,179 4,908 6,268 50.0 4.6 1,596 1,899 2,382 49.2 4.5 4,398 5,259 6,693 52.2 4.7 12,592 14,545 17,614 39.9 3.8 8,435 9,744 11,800 39.9 3.8 2011 5,164 2015 6,176 2020 7,270 % growth 40.8 % CAGR 3.8
TOTAL
45,634
53,564
66,078
44.8
4.2
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Table 51 Consumer Expenditure on Non-Alcoholic Beverages (Current Value): 2006-2010 RM million Consumer expenditure on coffee, tea and cocoa Consumer expenditure on mineral waters, soft drinks, fruit and vegetable juices 3,226 3,693 4,307 4,484 4,971 2006 846 2007 902 2008 995 2009 987 2010 1,066
TOTAL
4,072
4,595
5,302
5,471
6,037
Table 52 Consumer Expenditure on Non-Alcoholic Beverages (Constant 2010 Value): 2006-2010 RM million Consumer expenditure on coffee, tea and cocoa Consumer expenditure on mineral waters, soft drinks, fruit and vegetable juices 3,550 3,984 4,406 4,561 4,971 40.0 2006 932 2007 973 2008 1,018 2009 1,004 2010 1,066 % growth 14.4
TOTAL
4,482
4,957
5,424
5,565
6,037
34.7
Table 53 Consumer Expenditure on Non-Alcoholic Beverages (Constant 2010 Value): 2011-2020 RM million Consumer expenditure on coffee, tea and cocoa Consumer expenditure on mineral waters, soft drinks, fruit and vegetable juices 5,265 6,619 8,648 64.3 5.6 2011 1,117 2015 1,250 2020 1,518 % growth 35.8 % CAGR 3.4
TOTAL
6,382
7,869
10,166
59.3
5.3
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Table 54 Consumer Foodservice by Type (Current Value): 2005-2009 RM million Chained/independent 100% Home Delivery/ Takeaway Cafs/Bars Full-Service Restaurants Fast Food Self-Service Cafeterias Street Stalls/Kiosks Pizza Consumer Foodservice Source: National statistical offices, Euromonitor International 3,458 7,532 1,898 426 3,964 369 3,962 8,138 2,082 454 4,520 419 4,621 8,861 2,426 486 5,169 467 4,875 9,317 2,863 515 5,331 539 4,984 9,325 3,041 535 5,413 573 2005 17,344 65 2006 19,232 77 2007 21,644 81 2008 23,000 98 2009 23,415 116
Table 55 Consumer Foodservice by Type (Constant 2009 Value): 2005-2009 RM million Chained/independent 100% Home Delivery/ Takeaway Cafs/Bars Full-Service Restaurants Fast Food Self-Service Cafeterias Street Stalls/Kiosks Pizza Consumer Foodservice Source: National statistical offices, Euromonitor International Note: Constant value at 2009 prices 3,851 8,387 2,113 475 4,414 411 4,258 8,746 2,237 488 4,858 451 4,868 9,334 2,555 512 5,444 492 4,871 9,308 2,860 514 5,325 539 4,984 9,325 3,041 535 5,413 573 29.4 11.2 43.9 12.7 22.6 39.3 2005 19,312 73 2006 20,669 82 2007 22,798 85 2008 22,977 98 2009 23,415 116 % growth 21.2 59.8
DRINKING
Drinking Habits Consumer expenditure on alcoholic drinks increased by a significant 38.7% during the review period, reaching RM2.6 billion in 2010. This increase was recorded despite the growth of the majority Malay ethnic group in the country whose members are strictly prohibited by Islamic law from consuming alcohol of any sort. Alcoholic consumption by Malays is punishable by fines, jail terms (up to three years) and even corporal punishment (caning). In 2009, a female Malay model was tried for alcohol consumption in the state of Pahang and sentenced to six lashes in addition to a fine of RM5,000. This case stirred up significant controversy nationwide. At the same time, members of the other major ethnic groups in Malaysia (primarily Chinese and Indians) consume alcoholic drinks freely while their population shares shrank. This seems to corroborate what most Malaysians quietly acknowledge, i.e., that significant numbers of Malay consumers drink alcoholic beverages out of public sight. In fact, in recent years an increasing number of affluent and well-to-do Malay consumers have
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openly consumed alcohol in defiance of Islamic law, although this tends to take place in cities such as Kuala Lumpur and Penang where Islamic law is not as strictly enforced as in the opposition-controlled states of Kelantan and Kedah, which are under the control of the PAS, a conservative Islamic political party. Alcohol is served freely to all non-Malay consumers in licensed outlets, such as restaurants, pubs and night clubs. It is served discretely to Malay consumers in certain other establishments, as well. The drinking culture in Malaysia is largely restricted to the night-time entertainment scene. The rapidly growing younger consumer segment, enjoying more affluence, is fuelling growth in alcohol consumption. The majority of Malay consumers who do consume alcohol tend to do so in the privacy (and the safety!) of their own homes, having purchased alcoholic beverages from retail outlets. Going by the significant increase in the consumption of alcohol during the review period, it appears that this particular consumer segment is significant indeed. Pent-up demand for alcoholic beverages among Malay consumers is a well-known fact to industry players in Malaysia and there have been recent efforts to exploit this through the marketing and sale of so-called nonalcoholic beer which is openly sold to Malay consumers under the claim that it is permissible to be consumed under Islamic law. This product proved to be so popular that the government and Islamic religious leaders were forced to declare in the national press that non-alcoholic beer was not permissible under Islamic law and warned Malays about consuming it. Regardless, retail sales of non-alcoholic beer continued unabated in Malaysia and to date there is no prohibition or restrictions on its sale. Rising consumption of alcohol by Malaysians has benefited foodservice outlets, especially full-service restaurants and fine dining restaurants where consumers are more willing to spend on more expensive alcoholic beverages. It has been less beneficial to cafs and food courts where the dining mentality is less indulgent. Entertainment outlets such as pubs, night clubs and related establishments have also benefited from the increasing popularity of consuming alcohol. Both foodservice outlets and entertainment outlets have expanded their menus to include a wider range of premium spirits and wine, as well as champagne, in order to meet the increasingly sophisticated tastes and preferences of their clients. The higher price points of such alcoholic beverages have not deterred this new breed of well-heeled consumer and the rising numbers of specialized wine bars and wine cellars in downtown Kuala Lumpur and other major Malaysian cities attest to that. Beer remains the most popular alcoholic beverage among local consumers, accounting for 65% of all consumer expenditure on alcoholic drinks in 2010. Consumer spending on spirits and wine is much lower, accounting for 16.8% and 18% of total spending, respectively. However, wine showed the greatest growth during the review period, with spending increasing by 43%. This was due largely to younger consumers developing a greater appreciation for fine wines. As well, rising disposable incomes allowed wine lovers to indulge in their relatively pricier alcoholic drinks. Alcohol abuse is a well-known problem in the rural communities in Malaysia, although it is not specific to a particular ethnic group. In rural communities, access to cheap alcohol (often illegally smuggled alcohol with duties unpaid) is commonplace and rarely regulated by the authorities. Alcohol abuse appears to be less significant amongst urban Malaysians although problems still exist. Impact Over the forecast period, consumer spending on alcoholic drinks is projected to rise by 63.3%, reaching RM4.5 billion in 2020. In particular, spending on beer is expected to increase by 59% to reach RM2.8 billion in 2020. Clearly, Malaysian society seems poised to accept or at least tolerate greater alcohol consumption over the forecast period. This will be facilitated by rising disposable incomes and greater exposure to Western lifestyles.
Shopping for Alcoholic Beverages Outside of foodservice and entertainment outlets, alcoholic drinks are most commonly bought at hypermarkets and supermarkets, especially beer which is often sold in discounted bulk quantities in cartons or crates. Convenience stores and forecourt stores also account for a significant proportion of alcoholic beverage sales, thanks primarily to impulse purchases by consumers. Small independent retailers such as corner shops as well as speciality outlets are favoured by under-aged consumers (as well as by Malay consumers) as these retailers are known to be less stringent on checking ages and identities. Alcoholic beverages are taxed heavily in Malaysia and this keeps prices relatively high. Thus, any attempts to
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discount alcoholic drinks by manufacturers or retailers are welcome, particularly among price-conscious consumers. Regardless, these efforts are typically unsustainable over the long run. Consumers seeking less expensive alcoholic drinks usually rely on locally brewed beers as well as lower-quality distilled spirits. However, for premium spirits, liquors and liqueurs, as well as for fine wines and champagne, price tends to take a backseat, with brand prestige, heritage and reputation taking centre stage. These alcoholic beverages are purchased mostly by affluent and discerning consumers who often possess higher-than-average levels of knowledge regarding beverages and brands. For the most part, they are more than willing to pay higher prices for the quality which they demand.
Table 56 Consumer Expenditure on Alcoholic Beverages and Tobacco (Current Value): 2006-2010 RM million Consumer expenditure on alcoholic drinks Consumer expenditure on spirits Consumer expenditure on wine Consumer expenditure on beer Consumer expenditure on tobacco 1,458 1,466 1,563 1,455 1,461 1,129 1,347 1,555 1,572 1,707 300 362 422 431 473 288 343 398 404 441 2006 1,717 2007 2,053 2008 2,375 2009 2,407 2010 2,621
TOTAL
3,175
3,519
3,938
3,862
4,082
Table 57 Consumer Expenditure on Alcoholic Beverages and Tobacco (Constant 2010 Value): 2006-2010 RM million Consumer expenditure on alcoholic drinks Consumer expenditure on spirits Consumer expenditure on wine Consumer expenditure on beer Consumer expenditure on tobacco 1,605 1,582 1,599 1,479 1,461 -8.9 1,242 1,453 1,591 1,599 1,707 37.4 330 391 432 439 473 43.1 317 370 407 411 441 39.2 2006 1,889 2007 2,214 2008 2,429 2009 2,448 2010 2,621 % growth 38.7
TOTAL
3,494
3,796
4,029
3,928
4,082
16.8
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Table 58 Consumer Expenditure on Alcoholic Beverages and Tobacco (Constant 2010 Value): 2011-2020 RM million Consumer expenditure on alcoholic drinks Consumer expenditure on spirits Consumer expenditure on wine Consumer expenditure on beer Consumer expenditure on tobacco 1,429 1,238 1,138 -20.4 -2.5 1,787 2,187 2,842 59.1 5.2 499 637 869 74.2 6.3 465 583 779 67.8 5.9 2011 2,750 2015 3,407 2020 4,491 % growth 63.3 % CAGR 5.5
TOTAL
4,180
4,645
5,629
34.7
3.3
SMOKING
Smoking Habits The number of smokers in Malaysia is slowly but steadily declining, thanks in part to the aggressive and sustained anti-smoking campaigns implemented by the Ministry of Health as well as the general growing awareness among many Malaysians of the dangers and health implications related to smoking. As a result, 21% of the adult population in Malaysia were smokers in 2010 compared to 21.5% in 2006. Similarly, volume sales of cigarettes decreased from 16.9 billion sticks in 2006 to 14.1 billion sticks in 2010, a decline of 16.6% during the review period.
Shopping for Cigarettes and Tobacco Smokers in Malaysia typically purchase their cigarettes and other tobacco products from store-based retailers, with independent small grocers and convenience stores accounting for bulk of volume sales. These retailers are often the only outlets selling cigarettes and tobacco products in rural regions and smaller towns, hence their overall strength in the tobacco market. Forecourt retailers are another major retail channel for cigarettes, as many Malaysian consumers have the habit of purchasing their cigarettes at the same time that they refuel their vehicles. Overall, consumers tend to purchase cigarettes a single pack at a time. As cigarettes are readily available and widely sold in Malaysia, there is little need for consumers to stock up on cigarettes at any one time. Dunhill, Marlboro and Winston are the most popular cigarette brands in Malaysia. Most smokers are brand loyal and stick to their favourite brands. On the other hand, illegal smuggled cigarettes are popular among many Malaysian smokers. Cigarette manufacturers are lobbying the Malaysian government to reduce the excise duty on their cigarettes in order to bring down the official retail price of cigarettes so they can compete more effectively with the less expensive contraband cigarettes in the market. Advertising tobacco products is banned in Malaysia under the Control of Tobacco Products Regulation. This included bans on advertising at retail point of sale, the sponsorship of sporting/music events by tobacco companies and the distribution of tobacco-related gifts. In addition, cigarette manufacturers are required to depict pictorial health warnings on their cigarette packets in order to further deter the purchase of cigarettes. Impact
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With the smoking population already declining and expected to continue declining over the forecast period, manufacturers of cigarettes are expected to redouble their efforts to maintain and expand their consumer base by portraying smoking as an attractive hobby. However, with advertising of tobacco completely banned in Malaysia, manufacturers are expected to rely on the launch of new and innovative products. For example, Marlboro Black was recently introduced. This cigarette has a small ball containing mint extract in its filter which the user crushes to release a minty taste with each puff. Innovations such as this are expected to multiply over the forecast period. Regardless, over the forecast period consumer expenditure on tobacco products is projected to decline by 20.4% (in real terms), reaching RM1.1 billion in 2020.
Table 59 Smoking Prevalence: 2006-2010 2006 Male (% of male adult population) Female (% of female adult population) 2.0 1.9 1.8 1.7 1.6 40.5 2007 40.3 2008 40.2 2009 40.1 2010 39.8
TOTAL (% of total adult population)
21.5
21.3
21.2
21.1
20.9
Source: WHO, OECD, Euromonitor International
PERSONAL APPEARANCE
Shopping for Toiletries and Cosmetics Malaysians are increasingly becoming a well-scented, well-coiffed and cleanly shaven bunch, at least going by the increasing consumer expenditure on all sorts of cosmetics and toiletries during the review period. Skin care products continued to dominate spending in this segment, accounting for RM1.3 billion in 2010 and representing spending growth of 22% over the review period. Unsurprisingly, hair care products were the next most common purchase with spending reaching RM806 million in 2010. The maturity and saturation of this particular product segment means there is not much room for further growth without a significant breakthrough or product innovation. This was reflected in the less-than-robust 7.1% growth during the review period, the lowest growth rate amongst toiletries and cosmetics. The majority of toiletries and cosmetics are sold through traditional store-based retailers in Malaysia, with supermarkets/hypermarkets and department stores dominating distribution. Department stores have always been the distribution mainstay of the cosmetics segment thanks to the wide range of international brands sold and displayed at their sprawling premium cosmetic counters. However, supermarkets and hypermarkets are increasingly setting up their own premium cosmetic counters featuring such international brands as Estee Lauder and SKII and this has helped them capture value share at the expense of other channels. Smaller chain retailers such as pharmacy chains Guardian, Carings and Watsons are also increasing their profiles in toiletries and cosmetics sector. They are gaining a reputation among Malaysian consumers for being an affordable and viable alternative to larger retailers for the purchase of toiletries and cosmetics. The amount of floor space devoted to cosmetics in these pharmacy chain outlets increased during the review period as did the number and variety of brands on offer. A growing number of Malaysian consumers now favour smaller chains due to their convenience and the fact that their product offerings are so similar to those offered by larger retailers.
Attitudes towards Hair and Beauty The attitude amongst Malaysians towards the concept of beauty has changed in a society increasingly exposed to global influences and fashion trends. Malaysians, particularly young Malaysians, are starting to pay more
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attention to their appearances and personal grooming and this was reflected in the rising consumer expenditure on beauty-related products and services during the review period. Rising education levels and higher levels of disposable income have also contributed to this trend as consumers have become more aware of and have attached more importance to global fashion and culture. One reflection of this change is the younger generation of males in Malaysia now increasingly willing to splurge on personal beauty products. In doing so, Malaysian males are starting to catch up with their peers in other developed countries and they are doing so with a vengeance. It is now not only socially acceptable but in some cases even required for trendy Malaysian males to be knowledgeable about skin care, hair care and other beauty-related products. Liquid-based soap products such as shower creams and gels, high-quality shampoo, skin care products such facial cleansers, scrubs, toners and moisturizes and fragrance-related products such as deodorants and antiperspirants are all regarded as essentials by Malaysian consumers of both genders. Going up the value chain, niche products such as skin-tightening and firming creams, anti-aging creams and facial masks are also growing in popularity. In particular, demand for skin whitening creams and related products is booming in Malaysia, a country where there is a social fetish for fairer skin, often regarded as a mark of social status. This harks back to Malaysias colonial past when dark-skinned residents were primarily manual labourers and low-wage workers. Impact An even wider range of beauty and grooming products specially formulated for men is expected to appear on retail shelves over the forecast period, even in the premium and super-premium product segments. New mens products are expected to be developed both by established manufacturers and start-ups, a sign that the mens beauty and grooming segment has much potential for future growth, particularly among well-to-do professionals and executives with significant social mobility. Over the same period, it is expected that there will continue to be increased demand for more affordable cosmetics and toiletries by low-income and middle-income consumers. During the review period, this demand was met by smaller retailers bringing in less well-known beauty products and brands from Asian countries such as Korea and Japan. These smaller and less well-known brands tended to be of good quality despite their lower prices and they proved to be popular with beauty-conscious consumers on shoe-string budgets.
Table 60 Expenditure on Cosmetics and Toiletries (Current Value): 2006-2010 RM million Colour Cosmetics Fragrances Hair Care Men's Grooming Skin Care 2006 342 244 677 239 992 2007 366 264 703 260 1,089 2008 390 287 737 279 1,184 2009 405 298 773 298 1,273 2010 435 314 806 318 1,346
Table 61 Expenditure on Cosmetics and Toiletries (Constant 2010 Value): 2006-2010 RM million Colour Cosmetics Fragrances Hair Care Men's Grooming Skin Care 2006 380 271 753 266 1,104 2007 399 288 767 283 1,187 2008 403 297 762 289 1,225 2009 416 306 792 306 1,305 2010 435 314 806 318 1,346 % growth 14.3 15.8 7.1 19.7 21.9
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Note: Constant value at 2010 prices
FASHION
Fashion Trends Consumers who are members of the majority Malay ethnic group tend to dress in modern contemporary clothing as well as in traditional Malay garments such as the baju kurung, baju kebaya and batik. Traditional clothing is available off the shelf or made-to-measure at traditional tailors. During the review period, however, the number of Malay consumers who chose to dress in their traditional clothing declined dramatically as most younger consumers, especially working professionals who felt the need to project what they believed was a professional and non-ethnic image in a multi-cultural working environment, preferred to dress in modern contemporary clothing. For the Chinese and Indian ethnic groups, traditional clothing has long since been relegated to the role of being worn only during festive occasions or cultural events. Most members of these ethnic groups dress in modern contemporary clothing, including members of the older generation. This is unlike older Malays who tend to favour traditional Malay garments, both for cultural and religious reasons. The hot and humid climate tends to push consumers towards a more casual style of dress, even in the case of business attire. In the workplace, short-sleeved collared shirts are considered acceptable and suits are the exception rather than the norm. Executives tend to favour long-sleeved shirts but they typically roll up their sleeves as a concession to the tropical climate. When choosing casual wear, consumers also tend to favour summer attire the year round, with T-shirts, jeans, Bermuda shorts and cotton shirts perennial favourites for men and tank tops, spaghetti tops, T-shirts, light summer dresses, jeans and shorts favoured by females. Malaysian consumers are an increasingly fashionable bunch as seen by the increasing numbers of international fashion houses and luxury brands that have opened shop in Malaysia. However, fashion-conscious consumers are, for the most part, concentrated in Kuala Lumpur and in a select few major cities in Malaysia, such as Penang and Johor Baharu, where the culture is significantly more cosmopolitan in nature. In smaller or more insular cities, consumers are noticeably less brand-conscious (although they not necessarily less fashionable) than their counterparts in the major cities.
Shopping for Clothes, Shoes and Luxury Goods Consumer expenditure on clothing and footwear grew by 19.7% (in real terms) during the review period, reaching RM9.8 billion in 2010. As Malaysian consumers become more fashion-conscious and more attentive to their personal appearances, they are increasingly shopping for the latest fashions. Rising disposable incomes during the review period fuelled their ability to do so. Despite overall spending on clothing and footwear increasing at a healthy rate over the review period, spending on clothing and footwear accounted for 2.7% of total consumer expenditure in Malaysia in 2010, down slightly from 3% in 2006. This drop in share was largely due to a sharp jump in consumer expenditure on transport, housing and other sub-sectors, reducing the expenditure share of other expenses accordingly. As well, unit prices on a great deal of clothing and footwear declined as less expensive imported products became more widely available, reducing value sales. Clothing and footwear are commonly sold through store-based retailers in Malaysia, with supermarkets/hypermarkets, department stores and independent specialist retailers being the main distribution channels. Consumers typically purchase high-end clothing at specialist retailers such as boutiques and fashion houses situated in major shopping malls or along the high streets in their own branded stores. Clothing and footwear sold at supermarkets and hypermarkets tends to be cheaper and of lower quality. Department stores tend to sell clothing and footwear across the value spectrum, although most are increasing their focus on fashion labels and luxury brands. Department stores are also favoured by consumers looking to purchase accessories, jewellery, perfumes, watches, travel goods and other personal goods, as department stores offer a wider range of these products at a variety of different price points. These broad offerings meet the
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needs and budgets of a wide spectrum of consumers. Luxury goods in Malaysia are typically found in high-end department stores such as Isetan and Robinsons or brand-specific specialist retailers. However, super-luxury goods are almost always sold only in specialist retailers such as boutiques and fashion houses in order to retain their sense of exclusivity and prestige. They are rarely if ever found in mass-market retail outlets.
Table 62 Consumer Expenditure on Clothing and Footwear (Current Value): 2006-2010 RM million Consumer expenditure on clothing Consumer expenditure on clothing materials Consumer expenditure on garments Consumer expenditure on other articles of clothing and clothing accessories Consumer expenditure on cleaning, repair and hire of clothing Consumer expenditure on footwear 1,164 1,297 1,450 1,434 1,518 204 224 249 246 257 30 34 37 37 40 5,673 6,296 7,069 7,044 7,511 330 363 405 401 424 2006 6,237 2007 6,916 2008 7,761 2009 7,728 2010 8,232
TOTAL
7,401
8,213
9,211
9,162
9,750
Table 63 Consumer Expenditure on Clothing and Footwear (Constant 2010 Value): 2006-2010 RM million Consumer expenditure on clothing Consumer expenditure on clothing materials Consumer expenditure on garments Consumer expenditure on other articles of clothing and clothing accessories Consumer expenditure on cleaning, repair and hire of clothing Consumer expenditure on 1,281 1,399 1,484 1,458 1,518 18.5 224 242 255 250 257 14.6 33 36 38 38 40 18.3 6,244 6,791 7,232 7,164 7,511 20.3 363 392 414 408 424 17.0 2006 6,864 2007 7,461 2008 7,940 2009 7,860 2010 8,232 % growth 19.9
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footwear
TOTAL
8,145
8,860
9,423
9,318
9,750
19.7
Table 64 Consumer Expenditure on Clothing and Footwear (Constant 2010 Value): 2011-2020 RM million Consumer expenditure on clothing Consumer expenditure on clothing materials Consumer expenditure on garments Consumer expenditure on other articles of clothing and clothing accessories Consumer expenditure on cleaning, repair and hire of clothing Consumer expenditure on footwear 1,563 1,913 2,505 60.3 5.3 264 313 395 49.8 4.5 41 47 57 41.1 3.9 7,743 9,007 11,121 43.6 4.1 434 492 587 35.3 3.4 2011 8,481 2015 9,859 2020 12,160 % growth 43.4 % CAGR 4.0
TOTAL
10,043
11,772
14,665
46.0
4.3
HEALTH AND WELLNESS

Healthcare Healthcare in Malaysia is modern, comprehensive and reasonably efficient. It is organised into a two-tier system with a government-run universal healthcare system and a co-existing private healthcare system. International metrics used to gauge the overall efficiency of healthcare such as infant mortality rates compare favourably with the United States and Western Europe. Government spending on healthcare has been increasing, even as the current policy stance is to let private healthcare operators take on a greater role in the overall provision of healthcare in the country. The healthcare budget as determined by the government has steadily increased every year during the review period even as private healthcare expenditure also increased. However, total expenditure on healthcare in Malaysia is low by international standards, approximately 4.3% of GDP in 2009. Just more than 81% of the Malaysian population lives within a three kilometre radius from a static healthcare facility. Citizens are provided with medical treatment at minimal cost according to the class of treatment given (first to third class) at public healthcare facilities. Private healthcare, on the other hand, operates on a fee-for-
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service policy but growing medical insurance coverage means that an increasing number of patients do not have to take money out of their own pockets for pay for treatment at private medical facilities. A new national health insurance scheme is in the works for Malaysia but, to date, no concrete details have been announced. The number of public hospitals in Malaysia remained static at 130 during the review period, although the number of beds increased to 33,083 due to the upgrading and expansion of current facilities. On the other hand, the number of private hospitals increased to 245 in 2010, up from 229 hospitals in 2006, bringing the number of beds available at private healthcare facilities to 12,619. There has also been a substantial jump in the number of healthcare personnel thanks to significant investment by the government in educating and training new front-line staff. The number of doctors increased to 30,536 in 2010, up from 23,738 in 2007. Over the same period, the number of nurses increased to 59,375 in 2010, up from 48,916 in 2007.
Health and Well-being Consumer expenditure on selected health and wellness products grew in real terms over the review period, rising by 12.2% for analgesics, 5.9% for cough, cold and allergy remedies and 17.7% for vitamins and dietary supplements. Overall, consumer health products experienced growth of 18.8% during the review period, reflecting a rising awareness and comfort among Malaysian consumers of self-medication and preventive medication. This was partially due to rising education levels among Malaysian consumers, especially among the younger generation. Better-educated consumers are typically more health-conscious and knowledgeable regarding self-medication and preventive health care. A series of local and global healthcare crises such as the H1N1 pandemic also shocked Malaysians into a higher level of awareness regarding their healthcare and generated significantly higher interest among consumers in preventive healthcare products. Over-the-counter (OTC) drugs such as analgesics, cough, cold and allergy remedies and vitamins and dietary supplements are readily available in Malaysia and they are sold through various store-based retailers such as convenience stores, supermarkets, hypermarkets and pharmacy chains. The prescribing and dispensing of drugs is not separate in Malaysia and this has resulted in an over-prescribed culture among certain medical practitioners, with a significant amount of medication and drugs being sold directly by doctors in private clinics. The number of obese Malaysians steadily increased during the review period, going from 7.5% of the total population in 2006 to 7% in 2010. This growth was a reflection of the sedentary lifestyles adopted by many Malaysians, the result in some instances of more hectic work and/or education schedules. As well, there has been the rapidly growing popularity of sedentary activities such as playing video games and surfing the internet, among others. The growing availability of cheap and unhealthy fast food and processed foods has helped to exacerbate this problem. Over the forecast period, the number of obese Malaysians is projected to grow even higher. Recent statistics detailing primary causes of death in Malaysia indicate that ischaemic heart disease is the principal cause of death, accounting for nearly 13% of all medically certified deaths. Next are pneumonia (7%), cerebrovascular disease or stroke (6.6%), septicaemia or sepsis (6%) and road accidents (5.8%). For nonmedically certified deaths, old age accounts for 59.4% of such deaths, followed by cancer (6.9%), asthma (6.6%) and heart disease (5.6%). Impact As Malaysian consumers become increasingly health-conscious over the forecast period, retail sales of health and wellness products such as OTC drugs, vitamins and dietary and health supplements are expected to increase. This is especially true as the cost of healthcare continues to increase, giving Malaysian consumers a greater incentive to undertake preventive healthcare and to maintain their good health in order to avoid debilitating hospital stays. Manufacturers and retailers are expected to introduce a wider range of vitamins and dietary supplements to capitalise on the rising interest among Malaysian consumers in preventive health care plan. Health supplements are increasingly being offered in a variety of more appealing formats, such as lozenges, powders or even syrup, to combat the negative image of pill popping among local Malaysians.
Sport and Fitness In 2009, the Ministry of Health estimated the percentage of Malaysians who actively exercise and participate in
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sports was 19%. This represented a decline. On the other hand, this was to be expected as the number of whitecollar employees working in professional environments continued to increase. Such employees typically work long hours and live sedentary lifestyles. Football (or soccer) remains the most popular sport in Malaysia, with a large proportion of Malaysians showing significant interest in the sport, be it through participation or through attendance at local soccer matches or supporting their favourite overseas soccer clubs. These passive participants far outnumber active participants in football. This is similar to the situation for other popular sports in Malaysia, as well. Badminton is another popular sport which is widely followed in Malaysia, and Malaysian shuttlers have been winning international titles and championships for over a decade. The most famous among them is national icon Lee Chong Wei, who successfully defended his All-England Open Mens singles title against Lin Dan, the Chinese shuttler and Olympic Champion in 2010. Golf is a sport which is fast gaining popularity among Malaysians. It viewed as a gentlemens sport which does not require significant physical exertion but, rather, requires intelligence and dexterity, among other attributes. Malaysian business executives now often hold business discussions and negotiations over a session of golf. Impact The strong level of interest in football in Malaysia has helped to fuel strong sales of football-related merchandise such as jerseys of popular football clubs (English, Spanish, Italian and Dutch, among others) as well as other football-related merchandise and sports apparel. The effect has so far not been successfully replicated by other popular sports such as badminton, basketball and golf. Small independent retailers specializing in golf equipment and apparel are becoming a common sight in major Malaysian cities such as Kuala Lumpur and Penang. As a relatively new sport in Malaysia, there is much potential for growth and the popularity of golf is expected to grow further over the forecast period.
Nutrition Malaysia grows a significant amount of its own fresh vegetables and fruits and locally grown produce is relatively affordable, readily available and fresher than imported produce. Hence, locally grown fresh vegetables and fruits account for a significant proportion of the Asian-centric diet of the average Malaysian. Over the review period, the majority of locally grown and organically farmed fresh produce was mostly exported to neighbouring countries such as Singapore. Malaysian consumers are becoming increasingly health-conscious and they are starting to pay more attention to their diet, with a growing emphasis on eating green and eating fresh while reducing their intake of processed foods and animal fats. This helped boost the consumption of fresh fruit and vegetables during the review period. As well, aggressive educational efforts on the part of the Ministry of Health and other government agencies to promote healthier diets and lifestyles are starting to pay dividends. Malaysian consumers are improving their awareness and understanding of the health benefits of food, in particular the role of such things as anti-oxidants, natural fibre and various vitamins. Further, Malaysian consumers are becoming better educated regarding how the way food is grown can affect health. Thus, they are starting to gravitate towards organic vegetables and fruits. This is especially true among affluent and middle-class consumers who are able to afford the higher prices that organic produce commands. Impact As Malaysians continue to increase their knowledge of the benefits of good nutrition over the forecast period, it is expected that there will be increased demand for wide range of healthier food and drink options. Organic food will certainly be in greater demand as will fortified foods and beverages. The growing emphasis on nutrition and its impact on food choices will be facilitated by the growing number of older Malaysians who will look at their diets in an attempt to prevent illnesses and disease over the forecast period.
Home Medication and Vitamins Self-medication through the use of Western drugs and medicines increased significantly during the review period.
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On the other hand, actual consumption volumes remained relatively low, as modern medical care is affordable and readily available to all but the poorest of Malaysians. This prompts them to seek medical attention for even minor ailments such as coughs and colds. Traditional remedies, involving the use of various herbs and plants, are also a popular method of treating ailments among Malaysians, especially those belonging to the Malay and Chinese ethnic groups. This has reduced the propensity of these consumers to utilize Western drugs and medicines. Consumption of vitamins and dietary supplements, on the other hand, exhibited strong and steady grow, with retail sales growing by 17.7% over the review period, reaching RM1.3 billion in 2010. Consumers positive attitudes towards vitamins and dietary supplements are aided by the strong direct sales marketing efforts within this market segment, where purchases are strongly influenced by friends, relatives and peers who testify that they have experienced positive effects through the use of such products. Vitamins and dietary supplements are increasingly being viewed by many consumers as a critical component of preventive healthcare. This is especially true among younger, better-educated and more affluent consumers, many of whom have a better understanding of the benefits of these products and who possess sufficient disposable income to afford them without overextending their budget. Impact Over the forecast period, Malaysian consumers attitudes toward using drugs and medication to treat minor ailments are not expected to change significantly, particularly while national healthcare remains affordable and becomes even more accessible. Traditional medicine is expected to remain as popular as it has always been, with the younger generation of Malaysian consumers accepting the benefits and positive effects of traditional medicine and practices. On the other hand, retail sales of vitamins and dietary supplements are expected to grow significantly over the review period as a wider variety of products, catering to a diverse range of consumer needs and budgets, floods the market. More affordable generic vitamins and dietary supplements targeted at budget-constrained consumers, for example, are expected to appear more frequently on retail shelves just as premium and superpremium versions boasting rare and exotic ingredients are offered for the more affluent consumers.
Table 65 Health Expenditure: 2006-2010 % of total health expenditure Public health expenditure Private health expenditure Source: National statistics, Euromonitor International 2006 44.6 55.4 2007 44.4 55.6 2008 44.1 55.9 2009 42.8 57.2 2010 42.3 57.7
Table 66 Healthy Life Expectancy at Birth: 2006-2010 Years Healthy life expectancy at birth Males Females 62.1 65.8 62.0 66.0 62.0 66.1 62.0 66.1 61.9 66.1 -0.2 years 0.3 years 2006 63.9 2007 64.0 2008 64.0 2009 64.0 2010 64.0 Growth 0.1 years
Source: National statistics, Euromonitor International Note: Healthy life expectancy at birth is the average number of years that a person at birth can expect to live in full health by taking into account years lived in less than full health due to disease and/or injury
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Table 67 Obese and Overweight Population: 2006-2010 % of population aged 15+ 2006 Obese population (BMI 30kg/sq m or more) Overweight population (BMI 25-30kg/sq m) Source: OECD, International obesity taskforce, Euromonitor International 25.5 26.0 26.5 26.9 27.3 7.5 2007 7.8 2008 8.1 2009 8.4 2010 8.7
Table 68 Consumer Expenditure on Health and Wellness (Current Value): 2006-2010 RM million Analgesics Calming and sleeping Cough, cold and allergy (hay fever) remedies Vitamins and dietary supplements Source: National statistics, Euromonitor International 1,013 1,079 1,164 1,237 1,316 226 235 246 254 264 2006 151 2007 158 2008 167 2009 176 2010 187
Table 69 Consumer Expenditure on Health and Wellness (Constant 2010 Value): 2006-2010 RM million Analgesics Calming and sleeping Cough, cold and allergy (hay fever) remedies Vitamins and dietary supplements Source: National statistics, Euromonitor International Note: Constant value at 2010 prices 1,118 1,167 1,195 1,262 1,316 17.7 249 255 252 259 264 5.9 2006 166 2007 171 2008 171 2009 179 2010 187 % growth 12.2
LEISURE AND RECREATION

Staying in Options for in-home entertainment in Malaysia evolved significantly during the review period thanks to the numerous digital products developed and made available and the rising use of the internet. Large-screen televisions, home theatre systems, video game consoles, cable television, movie-on-demand through high-speed internet connections and Blu-ray media players are devices with the ability to transform any home into a digital entertainment hub. Traditional leisure activities such as reading, listening to music, cooking and gardening are still widely practiced, particularly by the older generation of consumers. However, for younger consumers, interests are expected to
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continue to focus on digital media, be it multi-player online games, social networking websites, static video game consoles or movies on Blu-Ray discs. As well, the percentage of households in Malaysia with cable TV or satellite TV services reached 12% and 53.3% respectively, in 2010. For the most part, traditional leisure activities will be far less attractive to younger Malaysians. Impact As Malaysian consumers increasingly choose to spend their leisure time at home using digital media over the forecast period, demand for a wide range of devices is expected to grow. For those that can afford them, wireless versions of popular consumer electronics products, such as wireless home theatre systems and media players, are expected to become more popular, as are devices designed to share digital media content within households, such as media streaming routers and hubs. Services such as movies-on-demand and cable TV on demand are also expected to see significant growth in demand over the forecast period as Malaysian consumers, with rising disposable incomes, become increasingly comfortable with digital content on demand, in real time, as they like it, rather than being provided with content following a fixed schedule.
Going Out Dining out is a favoured leisure activity among Malaysian consumers and restaurants and cafes are packed to the rafters during weekends (as well as on many weekday nights), particularly in urban areas. Road-side cafes or stalls, affectionately known as mamak stalls among local consumers, are open 24 hours a day. They are also a popular gathering spot for Malaysian consumers of all ages and races. Nightlife in major Malaysian cities is vibrant and throbbing with energy and nowhere is this vibe stronger than in downtown Kuala Lumpur where both local Malaysians and foreign expatriates party the night away in a wide variety of pubs, bars and nightclubs. International entertainment brands are prominent in Kuala Lumpur, including Planet Hollywood, Hard Rock Caf and Carnegies. As well, there are numerous local night spots that are popular with the chic crowd in Malaysia, including Nouvo, Zouk and Absolute Chemistry. Many Malaysians throng to the countrys major shopping malls on weekends. On their day out, they can shop at a wide range of retail outlets as well as hypermarkets and supermarkets. They can catch the latest movie at a modern movie theatre and dine at a variety of retail food service outlets, all in air-conditioned comfort and at a relatively affordable price. Because of the variety and low prices, going to shopping malls is an especially attractive option for tweenagers and teenagers. Impact As disposable incomes rise over the forecast period, consumer expenditure on entertainment and lifestyle-related products and services are expected to rise in line. As well, demand is expected to rise as Malaysian consumers increasingly develop a modern consumerist culture where they will be quicker to indulge themselves, at times fuelled by easy credit.
Public Holidays, Celebrations and Gift-giving Occasions Public holidays in Malaysia revolve around events of national significance, such as Independence Day, as well as cultural and religious events based on the three major ethnic groups in Malaysia; the Malays, Chinese and Indians. Public holidays in Malaysia can be separated into those celebrated at a national level and those celebrated at a district level. National holidays are normally observed by most government and private organizations. District holidays are normally observed only in certain states in Malaysia or when it is relevant to the district itself. For members of the Malay ethnic group, Hari Raya Aidilfitri (Eid) is one of the most important holidays. It is a joyous Muslim holiday that is celebrated throughout the Islamic world after a month of fasting. During this period, each day starts with children asking their parents before prayers for forgiveness for past transgressions. Hari Raya is also marked by visits from friends and relatives and participation in communal feasts. For members of the Chinese ethnic group, the Chinese New Year is undoubtedly the most important festival. It is observed on the first day of the first moon on the Chinese calendar, so the date varies from year to year. The entire festival lasts for 15 days, although only the first three days are set aside as public holidays. Most Chineserun businesses and retailers tend to close shop for the Chinese New Year period. It is celebrated with a traditional
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dinner on New Year's Eve and continues with visits to and from relatives and friends. During these visits, red packets containing cash are given by married couples and the elderly to younger, unmarried Chinese. For the Indian ethnic group, Deepavali is the most significant religious festival. It symbolises the triumph of good over evil, such as the victory of their religious deities over demon kings. It is observed with prayers in the morning, followed by visits to friends and relatives where Indian delicacies are served. Lanterns are lit en masse when dusk falls. Christmas is a major public holiday in Malaysia and one that is not tied to any ethnic group. Rather, it is a Christian religious festival. Malaysians of all races and ages tend to celebrate Christmas in one way or another. This is especially true for the younger generation of Malaysians who are often less dogmatic regarding their religious beliefs and who view Christmas simply as an opportunity to make merry with their friends and colleagues. Christmas tends to be the festival most infused with consumerism. The mainstream media are usually flooded with advertisements urging consumers to purchase festival gifts for their family and friends weeks before the actual date. With Christmas topping the chart in terms of gift giving and card giving, Malaysians nevertheless give gifts and cards to each other during a wide range of other public holidays and festivals. In addition, Malaysians also engage in gift giving and card giving during such special occasions as birthdays, baby showers, weddings and other private occasions. Gift cards are usually purchased at department stores or speciality gift stores or in bulk at hypermarkets and supermarkets.
Culture Malaysian culture is dominated by influences from its three main ethnic groups, the Malays, Chinese and Indians. It is also influenced by various indigenous tribes that mainly reside in East Malaysia, such as the Orang Asli. Malaysia is best characterized as a cross between a melting pot and multi-cultural society. Each major ethnic group has successfully preserved its way of life, with its traditional practices, festivals and beliefs largely intact. However, in many respects, the different ethnic groups have successfully integrated and enjoy a common ground where cultural differences thrive and mix peacefully and prosperously. Malaysia has always been a Malay-dominated country and that has not changed over the past decade. In 2010, there were 14.7 million Malays in Malaysia accounting for more than one-half of the total population. The Chinese accounted for 22.8% of the population in 2010 while the Indians accounted for 7%. There is also a sizeable Sikh community in Malaysia as well as a strong Eurasian community. Despite Bahasa Malaysia being the countrys official language, when members of different religious and ethnic communities talk to each other they generally speak in English, which was recently reinstated as the language of instruction in tertiary education.
Holidays The direct contribution of the travel and tourism sector to Malaysias total GDP was 7.7% in 2010 (RM56.5 billion). This proportion was significantly above the worlds average of 5.6% and it reflected Malaysias economic reliance on the travel and tourism sector. Malaysia is currently ranked ninth in terms of most travelled to tourist destinations in the world. Tourism is the second-largest generator of foreign currency in Malaysia. Malaysians often take their holidays during the annual school holidays in November and December when children do not have to attend classes and are thus free to go on holiday together with their parents as a family unit. Long weekends where public holidays fall just before or right after a weekend are also popular periods for tourism. Consumer expenditure on packaged holidays increased by an impressive 36% during the review period, reaching RM1.8 billion in 2010. This growth reflected the increase in intra-country tourism as Malaysian consumers sought quick, convenient and affordable holidays without travelling overseas. The relatively recent introduction of lowcost carriers in Malaysia and the rapid growth in the number of low-fare domestic flights was a further boost to intra-country tourism over the review period. In particular, Air Asia, Malaysias largest low-cost carrier, progressively increased the number of destinations to which it flew, often combining never-seen-before low prices. As a result, even Malaysian consumers on a shoestring budget were able to afford domestic holidays. The significant increase in domestic tourism in Malaysia has made travel and tourism industry players sit up and take notice of this burgeoning sector. New advertising and marketing campaigns specifically targeted at domestic tourists made the rounds in the mainstream media as well as on the internet as sector players such as hoteliers,
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tourist attractions and transport providers competed for a slice of the rapidly expanding domestic tourism pie. Affordable packages customized to meet the needs and preferences of local Malaysian tourists are increasingly being offered by tour operators who are eager to diversify their consumer base to guard against a dip in foreign tourism, such as during the period of the H1N1 pandemic when travel and tourism activities in Malaysia ground to a halt. Neighbouring Singapore sent 13 million visitors to Malaysia in 2010, generating RM28.4 billion in tourist receipts. A significant number of Singaporean consumers make repeated trips to Malaysia during the year for holidays and day-trips, taking advantage of their stronger currency and the lower prices for goods and services in Malaysia in order to enjoy an affordable holiday. Impact Over the forecast period, the travel and tourism sector in Malaysia is expected to continue to experience significant growth. This will be reflected in the dynamic growth projected for consumer expenditure on package holidays, which is expected to rise by 52.3% (in real terms) to reach RM2.8 billion in 2020. Malaysians penchant for travel will be supported by rising disposable incomes and increased exposure to global media and trends, enticing many consumers to travel to foreign destinations. As well, the countrys domestic tourism sector is expected to continue to grow, drawing consumers looking for interesting short-term holidays at a low price. Related sectors, including hotels and catering, transport and, particularly in urban areas, foodservice and entertainment are expected to see increased sales over the forecast period.
Table 70 Household Possession of Cable TV and Satellite TV: 2006-2010 % of households Cable TV Satellite TV system 2006 10.5 40.1 2007 11.0 43.9 2008 11.4 48.5 2009 11.7 51.4 2010 12.0 53.3
Table 71 Household Possession of Cable TV and Satellite TV: 2011-2020 % of households Cable TV Satellite TV system 2011 12.3 54.6 2015 13.0 57.3 2020 13.5 58.4
Table 72 Consumer Expenditure on Package Holidays (Current Value): 2006-2010 RM million Package holidays 2006 1,191 2007 1,370 2008 1,590 2009 1,629 2010 1,784
Table 73 Consumer Expenditure on Package Holidays (Constant 2010 Value): 2006-2010 RM million Package holidays 2006 1,311 2007 1,478 2008 1,627 2009 1,657 2010 1,784 % growth 36.1
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Note: Constant value at 2010 prices
Table 74 Consumer Expenditure on Package Holidays (Constant 2010 Value): 2011-2020 RM million Package holidays 2011 1,857 2015 2,224 2020 2,828 % growth 52.3 % CAGR 4.7
CONSUMER TECHNOLOGY
In-home Technology The household penetration rate of broadband internet in Malaysia increased significantly during the review period, reaching 26.8% of all households in 2010, up from 11.7% in 2006. Much of this growth had to do with the declining unit prices of computer hardware as well as declining prices for broadband internet services. Growth was also helped by the rapidly improving telecommunications infrastructure which improved the reach and reliability of broadband internet services in Malaysia. Malaysian households are increasingly relying on in-home consumer electronics products to improve their inhome entertainment options. In-home consumer electronics products such as video game consoles, DVD players/recorders and home theatre systems are experiencing increased demand, particularly in times of rising disposable incomes and falling unit prices. Regardless, it must be noted that, compared to many other countries, household penetration rates for many standard in-home consumer electronics products are relatively low in Malaysia. For example, only 40% of households possessed a DVD player/recorder in 2010 and only 20% possessed video game consoles. For the most part, in-home consumer electronics products are restricted to the affluent and upper-middle-income households. Impact Over the forecast period, household possession of broadband internet-enabled computers is expected to rise significantly, reaching 60.6% of households in 2020. This is expected to have many implications for consumers. As well, it is expected to increase the strategic importance of online marketing for the major retail brands as well as improve the frequency of e-commerce transactions. Demand patterns are expected to differ significantly between rural communities and urban areas.
Portable Technology In 2010, 94.5% of households in Malaysia owned a mobile phone, a huge increase from the 79% of households that owned a mobile phone in 2006. 3G subscriptions also increased rapidly, reaching 10 million in 2010. On the other hand, residential land line subscriptions steadily declined over the review period as an increasing number of Malaysian households found their landlines redundant as their usage patterns shifted over to their mobile phones. The declining prices of mobile phone services accelerated this trend as there was less of an incentive for households to continue to use their landlines. The saturation seen in the mobile phone market in Malaysia (as well as the changing landscape of mobile phone usage) has forced industry players to increasingly chase mobile broadband and data services as the more significant source of revenue. This particular segment is viewed as the area with the most potential for growth and industry players are slugging it out to gain value share for their mobile broadband data services. Regardless, traditional mobile phone sales and subscription plans have not been neglected and industry players are turning their efforts towards acquiring exclusive distributor rights for popular mobile phones, such as the Apple iPhone, in order to gain market share. For example, Maxis Communications has had a monopoly on the Apple iPhone since its launch in 2009 in Malaysia and this was only broken in mid-2010 by DiGi. Since then,
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competition between these and other industry players has revolved around other exclusive mobile phone offerings, as well as the standard competition involving price discounts and freebies. Impact In 2020, just more than 97% of households are projected to possess mobile phones, up only slightly from 94.5% of households in 2010. In an obviously saturated market, it is clear that revenue growth over the forecast period will come from the continuing launch of innovative devices, new features and enhancements in technology and services.
E-commerce and M-commerce Values sales of internet retailers grew by 43.5% during the review period, reaching RM4.4 billion in 2010. This growth was a reflection of both rapid digitalisation in Malaysia as well as increasing consumer confidence in the security of online transactions. Rising household possession rates of broadband internet-enabled computers as well as rising possession rates of smartphones means that Malaysians are connected as never before. Obviously, this has driven demand for e-commerce activity among Malaysian consumers. Popular e-commerce merchants, aggregators and websites in Malaysia include the popular discount coupon aggregator Groupon.com.my, Lelong.com.my and Mudah.my, as well as well-known international e-commerce merchants such as eBay and Amazon. Clothing and footwear, consumer electronics, cosmetics and toiletries, health and wellness products, toys and games and pet care products are amongst the most popular goods purchased online by Malaysian consumers. An increasing number of retailers, both established retailers with brick-and-mortar outlets and enterprising online-only start-ups, are now offering a growing range of products and services to Malaysian consumers via online sites. Low-cost air carrier Air Asia, with its internet-only sales model, is often credited by industry experts as the retailer which converted many Malaysian consumers into online shoppers. Air Asia gave consumers a sense of familiarity with e-commerce and provided a great number of consumers with the comfort and assurance to undertake other e-commerce transactions. Adding 3G mobile phone broadband access into the overall internet access mix, household broadband penetration, i.e., not restricted to PCs, in Malaysia exceeded 55% in 2010, according to the Ministry of Information Communication and Culture. The rising number of 3G mobile phone subscribers (7.3 million in 2009) was a major factor in increasing the overall broadband penetration rates, especially in the rural regions and smaller towns where conventional broadband internet infrastructure was less developed and unreliable. Continuing growth is expected to facilitate increased m-commerce, although it is not expected to necessarily grow at the same pace as e-commerce. Impact Together with rising disposable incomes, the increasing household penetration rates of broadband internetenabled computers and smartphones over the forecast period will ensure growth of e-commerce and mcommerce.
Table 75 Household Possession of Broadband Internet-Enabled Computers, DVD Players and Video Game Consoles: 2006-2010 % of households Broadband internet enabled computer CD player DVD player/recorder Video game console 18.6 23.8 19.1 18.1 29.4 19.2 17.1 33.8 19.4 16.5 37.2 19.5 16.2 39.9 19.7 2006 11.7 2007 14.9 2008 18.0 2009 22.0 2010 26.8
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Table 76 Household Possession of Broadband Internet-Enabled Computers, DVD Players and Video Game Consoles: 2011-2020 % of households Broadband internet enabled computer CD player DVD player/recorder Video game console 2011 31.9 15.4 42.0 19.8 2015 49.0 13.1 48.0 20.4 2020 60.6 52.1
Table 77 Household Possession of Mobile Telephones: 2006-2010 As stated Mobile telephone (% of households) Source: National statistics, Euromonitor International 2006 79.1 2007 84.6 2008 89.4 2009 92.6 2010 94.5
Table 78 Household Possession of Mobile Telephones: 2011-2020 As stated Mobile telephone (% of households) 2011 95.4 2015 96.8 2020 97.1
Table 79 Internet Retailing (Current Value): 2006-2010 RM million Internet retailing 2006 2,804 2007 3,518 2008 4,047 2009 4,228 2010 4,440
Table 80 Internet Retailing (Constant 2010 Value): 2006-2010 RM million Internet retailing 2006 3,095 2007 3,806 2008 4,152 2009 4,313 2010 4,440 % growth 43.5
Source: National statistics, Euromonitor International Note: Constant value at 2010 prices
TRANSPORT
Getting Around
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Consumer expenditure on transport increased significantly in all categories during the review period. Spending on rail travel exhibited the greatest increase (55% in real terms) to reach RM2.5 billion in 2010. This was not surprising due to the strong demand for light rail and monorail transport services in Kuala Lumpur alone. But most trains are filled to capacity during peak travel hours despite significant upgrades and expansion to the system over the review period. Consumer expenditure on buses, coaches and taxis accounted for bulk of transport spending (64.2% of the total) in 2010 with growth of 49.3% over the review period reach nearly RM8 billion in 2010. This growth was largely due to the increasing population as well as the growing number of Malaysian workers transiting back and forth to work daily, especially in rural regions and smaller towns where the only form of public transport is via the public bus system. Cycling and walking to work are not common ways of getting around in Malaysia, other than by those who happen to live conveniently close to their places of work. There are no dedicated cycling lanes on Malaysian roads and Malaysian motorists are notorious for their disregard of cyclists rights and safety. Generally, this makes cycling to work an extremely dangerous undertaking. In 2010, 62.2% of Malaysian households possessed passenger cars, up from 58.7% in 2006. Cars are relatively cheap to buy in Malaysia and petrol remains heavily subsidized by the government, making travel via passenger car an affordable and cost-effective option for many consumers. As well, public transport in Malaysia is relatively under-developed, with Kuala Lumpur being the only major city to enjoy its own light rail and monorail inter-city transit system. In other Malaysian cities, public transport consists solely of public buses, many of which are old, dirty and inefficient. Thus, Malaysian consumers who can afford it prefer to get around by car instead of by public transport. Malaysian car owners must pay a multi-tier road tax based on the engine capacity of their cars, with owners of higher engine capacity cars paying a higher road tax. Road tax in Malaysia is paid annually, with a different tax structure for private and commercial vehicles. Insurance is also mandatory for all vehicles in Malaysia. Malaysia maintains a national expressway network which is ranked among the best in Southeast Asia, following only networks in China and Japan. Numbering 27 highways with a total length of 1,630 kilometres, the NorthSouth Expressway passes through all major cities and conurbations in West Malaysia, including Penang, Ipoh, the Klang Valley and Johor Baharu. A toll system is in place along the expressway network. Electronic toll collection systems such as Touch n Go and Smart TAG have been available at all toll collection points since 2004. Impact Both intra-city and intra-country rail travel is popular among Malaysians due to its efficiency and speed, and significant upgrades to heavy rail, light rail and monorail lines are planned over the forecast period. However, for the time being the light rail and monorail systems look to be limited to Kuala Lumpur and outlying areas, with no plans to introduce such public transport systems in other Malaysian cities. Regardless, consumer expenditure on rail transport is projected to increase by 74% (in real terms) over the forecast period, reaching RM4.7 billion in 2020. Over the same period, the popularity of travel by buses, coaches and taxis is also expected to remain popular. Between 2011 and 2020, spending is projected to increase by 76.8%, reaching nearly RM15 billion in 2020. Passenger cars will continue to be popular over the forecast period, with the percentage of households possessing cars reaching 64.6% in 2020. This growth is expected despite the heavy traffic congestion in Kuala Lumpur. As long as passenger cars remain at their current affordable levels and fuel subsidies remain in place, there will be little incentive for car owners to switch to overstretched public transport systems and much incentive for households that dont own cars to buy them.
Air Travel During the review period, consumer expenditure on air travel increased by 47.5%, reaching RM1.8 billion in 2010. In large part, growth was due to new low-cost air carriers introducing fares that a wide range of Malaysian consumers could afford. In particular, there was an increase in intra-country travel as Malaysians seeking short and affordable holidays chose destinations within the country rather than travelling overseas. Air Asia, Malaysias largest low-cost carrier, expanded rapidly and increased the number of holiday destinations during the forecast period.
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The Kuala Lumpur International Airport (KLIA) is Malaysias largest airport and serves as the countrys main international airport. Capable of handling 35 million passengers and 1.2 million tonnes of cargo a year, it is ranked as the thirteenth busiest airport in the world in terms of international passenger traffic and ranked seventh in Asia alone. Officially opened in 1998, it was built at a cost of RM8.5 billion. Covering 143,404 square metres, KLIA offers travellers a wide variety of duty-free shops and luxury brand boutiques as well as numerous restaurants, cafes and other dining options. The 242 retail shops and 88 food and beverage outlets are expected to increase to 277 and 99, respectively, over the forecast period, according to plans by the airports retail operator Eraman. KLIA also has a Low Cost Carrier Terminal (LCCT) specifically built to cater to the growing number of passengers flying low-cost airlines. Low-cost airlines are charged lower airport fees and travellers are offered only basic terminal amenities. Landing fees and handling fees are also lower at the LCCT, making it especially attractive for low-cost airlines such as Air Asia. Other international airports in Malaysia include the Malacca International Airport, Langkawi International Airport, Senai International Airport, Penang International Airport, Kota Kinabalu International Airport and Kuching International Airport. Impact Over the forecast period, consumer expenditure on air travel is expected to increase by 74% (in real terms), reaching RM3.3 billion in 2020. As was the case during the review period, growth will be based on the rising popularity of low-cost air carriers that offer consumers significantly cheaper flights to both local and overseas holiday destinations. Growth in the number of Malaysian holiday seekers is expected to be supported by rising disposable incomes over the forecast period. Intra-country tourism is expected to continue to grow over the forecast period, leading to growth in related sectors such as foodservice and hotels and catering. As well, it is expected that there will be increased launches of a wide range of stores and shops in popular tourist destinations as retailers try to capitalise on the rising number of visitors and attempt to capture their fair share of tourists money.
Table 81 Household Possession of Passenger Vehicles: 2006-2010 % of households Passenger car 2006 58.7 2007 59.8 2008 60.7 2009 61.5 2010 62.2
Table 82 Household Possession of Passenger Vehicles: 2011-2020 % of households Passenger car 2011 62.7 2015 64.1 2020 64.6
Table 83 Consumer Expenditure on Transport Services (Current Value): 2006-2010 RM million Consumer expenditure on rail travel Consumer expenditure on buses, coaches and taxis 4,851 5,996 6,977 7,259 7,972 2006 1,487 2007 1,881 2008 2,222 2009 2,291 2010 2,537
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Consumer expenditure on air travel Consumer expenditure on other travel
1,107 70
1,368 86
1,599 99
1,637 101
1,796 110
TOTAL
7,515
9,331
10,897
11,288
12,414
Table 84 Consumer Expenditure on Transport Services (Constant 2010 Value): 2006-2010 RM million Consumer expenditure on rail travel Consumer expenditure on buses, coaches and taxis Consumer expenditure on air travel Consumer expenditure on other travel 77 92 101 103 110 42.0 1,218 1,476 1,636 1,665 1,796 47.5 5,339 6,467 7,137 7,383 7,972 49.3 2006 1,637 2007 2,029 2008 2,274 2009 2,330 2010 2,537 % growth 55.0
TOTAL
8,271
10,065
11,148
11,481
12,414
50.1
Table 85 Consumer Expenditure on Transport Services (Constant 2010 Value): 2011-2020 RM million Consumer expenditure on rail travel Consumer expenditure on buses, coaches and taxis Consumer expenditure on air travel Consumer expenditure on other travel 116 148 209 80.5 6.7 1,891 2,352 3,289 73.9 6.3 8,450 10,726 14,943 76.8 6.5 2011 2,704 2015 3,467 2020 4,706 % growth 74.0 % CAGR 6.3
TOTAL
13,161
16,693
23,146
75.9
6.4
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MONEY
Savings The savings ratio in Malaysia dipped slightly during the review period to reach 12.7% in 2010, down from a high of 12.9% in 2006. Despite this, annual savings in per capita terms grew strongly, going from RM1,416 in 2006 to RM1,836 in 2010. This reflected the significant increases in average per capita disposable income during the review period. As expected, the savings ratio increased in 2009 when Malaysians were faced with the economic downturn. In Malaysia, consumers tend to increase their savings when bad times and uncertainty come around. A 2010 survey by MasterCard on saving patterns among different consumer groups in Malaysia yielded some surprising results. For example, younger consumers (between the ages of 18 and 29 years-old) expressed the greatest inclination to save greater portions of their disposable incomes. The reason most cited by these young consumers was the recent economic crisis which left many Malaysian consumers feeling shell-shocked in its aftermath. As a result, many consumers are preparing to ramp up their savings in order to cope with the next economic crisis or other unforeseen emergencies. In contrast, older consumers said they did not want to increase their saving levels, becoming less inclined to save as they got progressively older. This can be attributed to many older consumers having already built up a considerable saving nest egg and, hence, looking to enjoy the benefits of greater financial security. This gives them more confidence to spend in both good and bad times. The other side of the coin is that many older consumers have significantly lower disposable income levels than their more affluent peers and they find they must adhere to relatively strict budgets and savings regimens. Malaysian workers participate in a mandatory savings program under the Employment Provident Fund, run by the government, which is meant to provide retirement income for retired Malaysians. Apart from this, bank savings accounts and fixed deposit accounts are the most popular methods of saving by Malaysian consumers. However, there is a growing trend of Malaysians saving in order to fund investments in financial instruments and/or property as they seek to capitalise on Malaysias growing finance and property markets. In many cases, investors believe they can realise higher gains on their savings than they can in simple bank saving accounts. Impact Trends and attitudes towards savings in Malaysia are not expected to change significantly over the forecast period, although it must be said that most anticipate that there will not be another dramatic economic downturn like that seen during the review period. As the economy recovers and as disposable incomes rise, consumers are expected to resume spending and, in turn, save less of their disposable income although, again, it is not expected that there will be a considerable shift.
Loans and Mortgages There are eight major banks operating in Malaysia; in descending order of total assets and market capitalization, they are Maybank, CIMB, Public Bank, Hong Leong Bank, RHB Bank, AmBank, Affin Bank and Alliance Bank, In addition to these domestic banks, there are seven foreign banks with full banking licenses operating in Malaysia, namely Citibank, HSBC, OCBC, Standard Chartered, Bank of Nova Scotia, Royal Bank of Scotland and United Overseas Bank. This list does not include the wide range of foreign banks that offer consumers investment and advisory services. The value of consumer credit increased by 17.8% (in real terms) during the review period, reaching RM182.6 billion in 2010. It became increasingly common for Malaysian consumers to seek personal loans during the review period. For example, many households took out loans to fund their childrens education. Regardless of the reason, it can be said that in genera, many Malaysian consumers are not adverse to borrowing to fund the purchase of products and services they believe they need immediately rather than waiting until they had saved enough to cover the entire cost. On the other hand, most home owners in Malaysia are not saddled mortgages. Indeed, during the review period the number of home owners with mortgages reached 553,000 in 2010 but that number represented only 10.7% of total owned homes. The high proportion of home owners without mortgages is largely due to the affordability of housing in Malaysia, where houses are cheap and plentiful (apart from those located in the heart of major
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Malaysian cities). Further, cheaper prices for homes means than there is not much value locked into the average Malaysian home. Hence, it becomes far less attractive for home owners to get mortgages to release whatever residual value is left in their homes. Regardless, the value of the mortgage sector did grow by a significant 85% (in real terms) during the review period. Impact Consumer lending looks set to continue to grow over the forecast period as Malaysian consumers become bettereducated about using credit as a financial tool. A growing culture of consumerism is expected to help fuel this growth and more and more Malaysians are expected to turn to credit and personal loans to fund their purchases they want now. At the same time, the number of home owners with mortgages is projected to increase by 59% (in real terms), reaching 980,000 or nearly 16% of total owned homes in 2020. Credit industry players are expected to step up their efforts to woo more customers (particularly young consumers) in order to increase their value share in what is proving to be an extremely saturated and competitive market. Some are focusing on rural regions where residents, through improved education levels and job opportunities, are expected to have considerable rises in disposable income. These up-and-coming rural consumers represent a new and untapped market for financial services providers and some will be expanding into rural regions soon to gain advantages over their counterparts.
Credit Credit cards have been used in Malaysia since the 1990s and their popularity has grown by leaps and bounds since their introduction. Previously viewed only as status symbols, credit cards today are ubiquitous, particularly in urban areas where most retailers accepting them as a form of payment. Consumers comfort with using credit cards (both in-store and online) improved significantly during the review period. Indeed, the number of credit cards in circulation in Malaysia grew by 20.4% during the review period, reaching 10.7 million cards in 2010, up from 8.9 million cards in 2006. Credit cards (as well as debit cards) are frequently used at consumer foodservice outlets and entertainment outlets, among other retail venues. A range of discounts or rebates as well as reward points are all strong incentives for consumers to use their financial cards over cash when possible. It is debit cards which saw the largest growth during the review period so that by 2010 the number of debit cards in circulation outnumbered credit cards by a ratio of nearly four to one. During the review period, the number of debit cards in circulation grew by a staggering 101% to reach 37.9 million cards in 2010, up from 18.9 million cards in 2006. The strong growth and widespread popularity of debit cards lies in the fact that debit cards offer a range of functions and benefits comparable to most mass-market credit cards while not requiring the spotless credit history or minimum annual income for qualification. As a result, a deluge of consumers including students, housewives and low-income workers have rushed to apply for debit cards. However, in the rural regions and smaller towns, financial cards are less frequently accepted by retailers. Only the larger chain retailers such as supermarkets and hypermarkets as well as department stores accept credit cards as a form of payment. Smaller independent retailers in rural regions and towns do not accept credit cards at all and often only transact in cash. Impact As credit and debit cards become more commonplace in Malaysia and as Malaysian consumers increasingly use them while making purchases, smaller independent retailers in both urban and rural Malaysia will come under pressure from their customers to offer such payment options. In many cases, they will have no choice but to incur the associated fees for card services or risk losing their customers. Financial service providers are expected to compete fiercely to capture new customers and renew existing ones in efforts to increase their market value shares. In particular, card providers are expected to increasingly forge attractive tie-ins with retail partners, sporting groups and local attractions in attempts to target specific consumer groups. For example, Standard Chartered recently offered holders of its credit and debit cards the opportunity to participate in a pre-sale of tickets to the Asian Tour of the popular Liverpool Football Club. Attractive discounts and rebates are also alternatives that industry players will exploit to ensure their financial cards get into the hands of more Malaysian consumers.
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Table 86 Savings and Savings Ratio: 2006-2010 As stated Annual savings (RM per capita) Savings ratio (% of disposable income) Source: National statistics, Euromonitor International 12.9 12.8 12.9 12.9 12.7 2006 1,415.8 2007 1,556.1 2008 1,772.7 2009 1,763.2 2010 1,835.9
Table 87 Consumer Loans, Mortgages and Credit (Current Value): 2006-2010 RM million Consumer Lending Consumer Credit Mortgages/Housing 2006 303,674 141,798 161,877 2007 330,117 156,925 173,192 2008 362,889 171,757 191,132 2009 372,812 175,946 196,866 2010 389,262 182,552 206,709
Table 88 Consumer Loans, Mortgages and Credit (Constant 2010 Value): 2006-2010 RM million Consumer Lending Consumer Credit Mortgages/Housing 2006 331,946 154,999 176,947 2007 353,680 168,126 185,554 2008 368,729 174,521 194,208 2009 377,285 178,057 199,228 2010 389,262 182,552 206,709 % growth 17.3 17.8 16.8
Source: National statistics, Euromonitor International Note: Constant value at 2010 prices
Table 89 Financial Cards in Circulation: 2006-2010 '000 cards Credit Function Debit Function 2006 8,878 18,861 2007 9,949 21,887 2008 10,867 24,437 2009 10,874 30,337 2010 10,688 37,921 % growth 20.4 101.1
2011 Euromonitor International
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Euro Monitor International - Consumre Lifestyle - Msia - Analysis

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Euromonitor International - Analysis

Consumer Lifestyles in Malaysia

STRUCTURE OF THE REPORT

Euromonitor International - Analysis

Euromonitor International - Analysis

Euromonitor International - Analysis

Euromonitor International - Analysis

Euromonitor International - Analysis

Euromonitor International - Analysis

Euromonitor International - Analysis

Euromonitor International - Analysis

Euromonitor International - Analysis

Source: National statistics, Euromonitor International

Euromonitor International - Analysis

Euromonitor International - Analysis

Euromonitor International - Analysis

TOTAL Median age of population (years)

7.2 0.9 years

Source: National statistics, UN, Euromonitor International Note: As of 1st January

TOTAL Median age of population (years)

12.9 2.3 years

Source: National statistics, UN, Euromonitor International

Euromonitor International - Analysis

Note: As of 1st January

TOTAL Median age of male population (years)

7.1 0.8 years

Source: National statistics, UN, Euromonitor International Note: As of 1st January

TOTAL Median age of male population (years)

12.6 2.1 years

Source: National statistics, UN, Euromonitor International Note: As of 1st January

TOTAL Median age of female population (years)

7.3 1.0 years

Source: National statistics, UN, Euromonitor International Note: As of 1st January

Euromonitor International - Analysis

TOTAL Median age of female population (years)

13.3 2.5 years

Source: National statistics, UN, Euromonitor International Note: As of 1st January

Source: National statistics, UN, Euromonitor International

Source: National statistics, UN, Euromonitor International

Table 11 Population by Marital Status: 2006-2010

Euromonitor International - Analysis

'000 Married Divorced Widowed Single

2006 10,709 129 741 15,061

2007 10,957 130 753 15,333

2008 11,178 130 762 15,568

2009 11,399 131 771 15,797

2010 11,620 132 780 16,021

% growth 8.5 1.8 5.2 6.4

Source: National statistics, UN, Euromonitor International

Source: National statistics, UN, Euromonitor International

Euromonitor International - Analysis

Source: National statistics, UN, Euromonitor International

Source: National statistics, UN, Euromonitor International

HOUSE AND HOME

Euromonitor International - Analysis

Euromonitor International - Analysis

4,393 2,644 705 244 106 43

4,800 3,151 949 332 134 52

Euromonitor International - Analysis

5,143 3,606 1,212

5,145 3,487 1,120