Malaysians optimistic about economic slump

Malaysia – Marketers will be rubbing their hands together as they learn that Malaysians are an optimistic bunch of people with little concern about the economic situation – at least as of August.

Synovate’s survey which was carried out among 1,000 Malaysians, largely from urban areas, revealed 17% of those who polled were “not worried at all” about the state of the economy.

“Most of these fall under the younger generation (those aged between 15 -24) and it may be due to many reasons but generally, Malaysians are quite optimistic and are of the opinion that things may be tight for a while but it will pick up again,” said Steve Murphy, managing director, Synovate Malaysia.

Malaysia was one of the nine countries surveyed in Synovate’s global ‘State of the Economy’ survey involving 6,500 respondents.

Forty-five percent of the Malaysians thought the current state is weak but will improve soon and while they have adopted more conservative lifestyles, 58% (polled highest in all nine countries) said they are worried but “just cannot stop spending altogether”.

“Malaysians seem to take the opinion that life will go on so they’re generally optimistic and philosophical in facing this,” Murphy said, while also citing that 31%, as of mid-2008, said they would consider buying a new car.

The countries most pessimistic with the economy situation were listed as Japan, the US and France while most bullish was Russia.

The travel industry may take the hardest hit in the conservative spending lifestyle as Malaysians put their holidaying habits as first on the list when tightening their belts.

“While in the US people are most concerned about not being able to afford their mortgage and rent payments, then about job loss, in Malaysia the society seem to take a more personal approach.

“They are more worried about losing their jobs or the household provider losing his or her job and not being able to afford sufficient food for the household and there are some who are not worried at all.

“The age group that are bullish about the economy is the young generation and those belonging to the affluent category (RM4,000 and above household income) but the older generation, perhaps after the 1997 crisis may be a little worried,” Murphy said.

On if this was blind optimism on the part of Malaysians, he said he did not think Malaysians were being naïve in adopting this mindset.

“I think because Malaysia has always had a fairly regulated market it is merited optimism and because of this, Malaysia’s economy may be resistant because of the way it is run,” Murphy said, not discounting the fact that the survey may be repeated following recent developments since September.