Welcome to Malaysians on Malaysia (MOM): Oppotus’ quarterly report that provides in-depth insights into the Malaysian Consumer Confidence Index (MYCI). It is an ongoing effort to offer insights into Malaysia’s evolving market landscape. This edition delves deeply into the latest consumer trends and key influencing factors, including financial outlook, economic confidence, digital payments, tech trends and more, offering a fresh perspective for strategic decision-making. Join us as we unravel the driving forces of this quarter and its potential implications.
The favourable third-quarter 2025 outlook has given consumers a confidence boost, which is reflected in the MYCI index. It saw a significant rebound from the previous quarter, resulting in stronger GDP growth for Malaysia. Such improvement was driven by various key factors, including sustained household spending, steady investments, and higher net exports — most notably supported by the finalised reciprocal tariff rate of 19%. Before we dive deeper into this chapter, readers are encouraged to revisit the Q2 2025 MOM report.
Positive MYCI Comeback
Malaysians are observing a positive recovery in consumer confidence in Q3 at 136 points compared to the downtrend seen in the past two quarters, where the index slipped slightly below 130 points. This major recovery was influenced by the confirmation of the 19% tariff rate, which provided clarity for exporters and affirmed confidence among investors. Another contributing factor is that the United States (U.S.) recorded a trade deficit of USD24.8 billion with Malaysia in 2024, positioning them as one of the country’s top foreign investors that year.
Gaining Traction in Economic Outlook
Positive sentiment is also reflected in Malaysia’s strong economic growth of 5.2% GDP in Q3, up from 4.4% in Q2. With resilient domestic demand, a stable labour market, and ongoing investment in high-growth, high-value sectors, the country is building a strong foundation to sustain the economic momentum throughout the rest of the year. Fortunately, the headline inflation rate remains stable at 1.3%, while core inflation has edged up to 2% (Q2 2025: 1.3% and 1.8%, respectively).
Stabilisation of E-Wallet Penetration
E-wallets are no longer a new payment alternative for most consumers and have now reached a mature and stabilising stage of adoption. Usage rate has averaged 80% in 2025, and Malaysian trust continues to grow. This increasing trust is reflected in the higher average spending per user, reaching RM540 in Q3, supported by the widespread availability of e-wallet payment options across hawker stalls, warung, retail, delivery platforms, and more.
If you are eager to dive deeper into these numbers and gain a more nuanced understanding of the forces shaping the future of business and finances, reach out to us at theteam@oppotus.com. You can also hop onto our alternative service, Oppotus DoubleDecker, an Omnibus solution to gain a first-hand preview of our next Malaysians on Malaysia (MOM) report.
After two concerning quarters, the Malaysian Consumer Confidence Index (MYCI) has finally grown stronger in Q3, reaching 136 points compared to 124 points in Q2 2025. This significant 9.7% increase marks the highest MYCI score recorded this year.
The key driver of this growth was the finalisation of the 19% tariff rate, which provided investors and exporters with renewed confidence and clarity. During the negotiation of the revised tariff rates imposed on Malaysia, the government held firm on the “red line” issues, particularly those involving national sovereign rights. Cracking down on the smuggling of advanced semiconductors through Malaysia, alongside helping to broker a ceasefire between Thailand and Cambodia, were among the strategic steps taken to win the favour of the U.S.
This development has also brought a more stable growth in the Malaysian currency. The ringgit’s nominal effective exchange rate (NEER) appreciated by 0.8% (year-to-date as of 12 November 2025: 5.3%) against the currencies of Malaysia’s major trading partners. The ringgit also remained largely stable against the US dollar, recording a marginal appreciation of 0.05%. Collectively, these positive outlooks are reflected in most of this study.
Zooming in on Malaysia’s financial well-being, sentiment has also turned positive, landing at 143 points compared to 132 points in the previous quarter. Although it has yet to reach the 2024 average of 164 points, consumers are hopeful that the remaining months of the year will conclude in a positive direction, given the encouraging start in the fourth quarter.
The financial uplift was also influenced by the government’s support for consumers, who received a one-off RM100 aid under the SARA programme, provided to all Malaysian citizens aged 18 years and above. This aid served as an immediate measure to ease the rising cost of living during that period. Following the announcement, the combined allocation for Sumbangan Tunai Rahmah (STR) and SARA rises from RM13 billion to RM15 billion this year, marking the first time in Malaysia’s history that cash aid has been extended universally to all Malaysian adults.
Therefore, Malaysians are increasingly optimistic about their financial well-being for the next 12 months, which climbed 4 points up (154 points) from the previous quarter (150 points). This improved outlook was anticipated by the Budget 2026 and the last meeting of the ASEAN Summit 2025, both scheduled for October. These two major events were expected to further strengthen consumer trust in the upcoming year.
Moreover, the final day of Q3 marked the launch of the Budi95 programme, which provided targeted subsidies on RON95 petrol for eligible Malaysians. During the first four days, the initiative recorded nearly three million users with sales exceeding RM91 million. The government was also in discussions with the Sabah and Sarawak state governments to enable boat owners to benefit from BUDI95. Such initiatives have boosted consumer confidence, especially in their cost-of-living stability.
Subsequently, we turn to consumer sentiment on making major purchases. Positive sentiments were also reflected, rising by 11 points from the previous quarter to 118 points in Q3. Consumers in the B40 and T20 income groups recorded equal increases, while the M40 income group remained neutral, despite the universal distribution of financial aid.
Q3 also marked the start of the e-commerce sales season, such as 8.8 and 9.9 sales campaigns. The 8.8 Shopee Live Fashion week was held to help energise Malaysia’s fashion scene, where many fashion brand was given a boost through a combination of Shopee Livestream, Shopee Video and affiliate marketing. Shopee reported 3x more viewers than usual, 2.9x sales growth via Shopee Live and more during the period. In the following month, Lazada launched its 9.9 Mega Brand Sale, where the average order value (AOV) on LazMall grew 10% year-on-year compared to 2024. This reflects the continued maturation of online shopping behaviour, with consumers showing a greater willingness to pay for the assurance of authenticity and reliability guaranteed by LazMall.
Sentiment regarding the current state of the economy also saw an escalation, reaching 129 points in Q3 2025 — a 13% improvement from the previous quarter. This positive sentiment provided relief to most consumers, businesses, and investors, following two months of concern surrounding economic conditions and inflation.
According to Bank Negara Malaysia (BNM), the economy’s GDP expanded to 5.2%, compared to 4.4% in the previous quarter. It was driven by sustained domestic demand and higher net exports, including supply growth led by the services and manufacturing sectors. The manufacturing sector’s performance was driven by stronger production in the electrical and electronics (E&E) and consumer-related goods, while household spending for private consumption moderated slightly to 5% from 5.3%.
Furthermore, positivity continues to extend into expectations for economic growth over the next 12 months, with a 17% growth, achieving 137 points. That said, all household income groups also remain optimistic. One of the key contributors to this outlook is likely the stable headline inflation rate of 1.3%, similar to Q2, while core inflation increased to 2% from 1.8%. Hence, most economists expect BNM to maintain the Overnight Policy Rate (OPR) at 2.75% until year-end.
Additionally, Ringgit has appreciated nearly 8% against the US dollar, trading around 4.1253 at the end of September — its strongest close in a year. Analysts attribute the rally to expectations of US Federal Reserve rate cuts in 2026, renewed portfolio inflows into Asian assets, and Malaysia’s steady macro fundamentals. The currency’s recovery underscores renewed investor confidence in Malaysia’s economic outlook.
Moving from macroeconomics to consumer behaviour, the last three months revealed a notable shift in purchasing habits. This is best exemplified by the upswing in shopping via livestreaming, which rose from 36% in Q2 2025 to 43%. This shift was partly stimulated by the start of Double-Day Sales, a major e-commerce promotional campaign that both Lazada and Shopee announced for the dates of 8.8 and 9.9. TikTok, on the other hand, introduced a 30-Day Free Returns programme for TikTok Shop Mall that officially kicked off in July, and had achieved an 80% increase in its conversion rate.
Another notable activity is the uptick in the purchasing of insurance, which reached an average of 27% in 2025 — the highest percentage of purchases since 2018. In Q3, insurance purchase intentions stood at 27%, slightly below the previous quarter by one percentage point. This positive trend is seen in Allianz Malaysia Berhad’s performance, with Q3 insurance revenue reaching RM1.58 billion, a 10% increase from the same quarter a year ago, driven by growth in both general and life insurance segments.
Buy Now, Pay Later (BNPL) usage mirrored the upward trend seen in insurance purchases, recording 38% in Q3 — its highest level within the year. In the first half of the year, BNPL schemes experienced a significant rise, with 102.6 million transactions valued at RM9.3 billion, representing a 31% increment compared to RM7.1 billion in the second half of 2024. This usage surge prompted the Dewan Rakyat to pass the Consumer Credit Bill 2025 to address related concerns. This new legislation aims to regulate non-bank credit and credit service providers through the establishment of a statutory body.
Generally, the activities in the past 3 months have seen either an increase or stagnation from the previous quarter. This is evident in the travel segment, where both domestic and international travel grew by just 1% and 2%, respectively. Food delivery through third-party apps remains stagnant at 66%, while direct orders through the merchant’s app rose by 7%. Lastly, wearables had a notable increase of 12%, reaching 42% in Q3.
Shifting to the e-wallet outlook, usage over the past three months saw a slight increase to 79%. This data suggests that Q4 is expected to score within the 75%-90% bracket, as many have established the commonality of usage and trust in it. Attitudes towards e-wallet usage have shifted to a more positive note, as reflected in the average spending via e-wallets. In 2025, spending consistently reached record highs, aside from Q3, which declined from RM553.40 to RM540 in average monthly e-wallet expenditure.
Since the start of this study, digital payments have been the preferred mode of physical transactions, and in the past three quarters, cash payments have fallen below the 30% mark. Q2 and Q3 2025 have shown a consistent ratio of usage share for physical transactions, with 19% cash payments and 81% digital payments.
This pattern is expected to continue. The reason is that in recent months, various approaches have encouraged consumers to opt for digital payments over cash payments. These include the RM100 MySara programme, which requires redemption through the MyKasih system and must be utilised by 31 December 2025. Meanwhile, the newly launched Ryt Bank also attracted consumers by offering up to 4% p.a on their savings, unlimited 1.2% overseas cashback through the Ryt Card, and up to RM5 cashback with Ryt AI.
The detailed breakdown of the usage share in physical transactions reflects the stable pattern from Q2 to Q3. There were no major changes in the digital payment breakdown; only minor fluctuations, such as a 1% increase in e-wallet usage (24% in Q2 to 25% in Q3 2025) and a 2% decrease in credit card usage (14% in Q2 to 12% in Q3 2025).
Looking into e-wallet usage by brands, the hierarchical sequence remains the same as Q2 2025, with Touch n’ Go continuing to lead at 90%, setting a benchmark that is increasingly difficult for competitors to match. They have also recently won two awards, “Best MSME E-Wallet” and “Best E-Wallet Provider” by PC.Com, for the third consecutive year, which reflects both the consistent effort of the TNG team and the trust Malaysians place in the platform.
The other notable brand is ShopeePay, which saw a boost from 29% to 37% in Q3. Several factors contributed to this rise, including its partnership with Allianz Malaysia, which introduced two personal accident insurance plans priced at RM50 and RM75 annually; the start of Double-Day sales on 7.7 onwards; and potentially the “Fikir Sekarang, Bayar Kemudian” (Think Now, Pay Later) campaign. This campaign combined financial education with real user experience to explore the actual motivations behind BNPL spending. It drew insights from a survey of around 40,000 SPayLater users, which paints a different picture from typical assumptions about BNPL behaviour.
Boost e-wallet also made a mark this quarter with a 24% uptick. They have recently secured 3 major recognitions from Digital CX Awards 2025, which include Outstanding Digital CX in Embedded Banking App/Platform, Best Digital Bank for CX – Malaysia and Outstanding Digital CX – Bank Cards. The brand continues to attract users through multiple campaigns, such as the Hello 2026 jar – an attractive 3.3% p.a. interest with minimum deposits as low as RM1.
The top 3 categories of e-wallet usage are moving into a plateaued pattern as Food & Beverages (F&B) remained as the leader (76%), followed by Groceries (73%), and Convenience Stores (CVS) (69%). The least used category continues to be Flight Tickets, which has frequently scored below 10% since the beginning of the study — unsurprising, given that flight tickets are not typically tied to e-wallet promotions and incentives.
A notable change in this category is Petrol, with a rise of 5% from the previous quarter, scoring 35% in Q3 2025. This is somewhat expected as BUDI95 started in late September — it is a targeted fuel subsidy specifically for Malaysian citizens. Setel app took this opportunity to encourage consumers to use the app by offering up to 3x Mesra Rewards points, while TNG eWallet also introduced a digital and cashless option to claim the fuel benefit.
Moving on to the Tech Trends topic, familiarity with Artificial Intelligence (AI) rose significantly in Q3 to 83%. This came as anticipated, as AI is an ever-changing and improving technology, whereby every month, there shall be some announcement of a new product launch or improvement to the technology in different parts of AI. In the month of July, Amazon Web Services (AWS) announced innovations for building AI agents during its AWS Summit New York 2025, followed by a partnership with Crescendo, a major leap in its mission to move customer service into the age of intelligent engagement. While in September, NVIDIA committed £2 billion to catalyse the UK’s AI startup ecosystem and accelerate the creation of new companies, jobs and a globally transformative system.
The sharp growth also extends to Virtual Reality (VR), where familiarity has risen to 12.5% from the previous quarter, bringing it to 64% from 56% in Q2. VR is also one of the categories that is ever-improving, as there is a handful of launches happening in Q3, such as the Meta Quest platform’s showcase of over ten new and enhanced VR titles.
Momentum on digital banks also continues to rise, recording 77% familiarity and 98% awareness. During this quarter, all 5 digital banks licensed by Bank Negara Malaysia (BNM) were officially launched. GX Bank was the first to launch, and its CEO, Kaushik Roy Chowdhury, noted that the real challenge lies not in launching but in continuously refining products post-launch to meet rapidly evolving consumer expectations. In other words, what users expected a year ago will not be the same today, nor will it be the same in the next 6 months.
For cryptocurrency ownership, Q3 2025 was a significant milestone as it marked the peak ownership at 66% throughout this study. The overall ownership for 2025 has been steady and consistently above 50%, showing continued consumer engagement.
During this period, the overall cryptocurrency market maintained an upward trend, increasing 16.4%. There were a few global factors that occurred due to the macroeconomic uncertainty and structural risks, including the slow pace of inflation decline and the longest US government shutdown. Moreover, the rate cut itself was not the critical variable in the global macroeconomy during this quarter, but rather the creation, trading and consumption of these expectations. After two months of volatility, it lowered the target range for the federal funds rate by 25 basis points to 4.00% from 4.25%.
Coming to the type of cryptocurrency owned, Bitcoin again leads the ownership at 54%, followed by Ethereum at 22%. Litecoin had a significant rise of 26% from the previous quarter, resulting in a 20% ownership and surpassing Bitcoin Cash, which previously held the third position. Ripple coin had a notable comeback in Q3, rising from its lowest point in 2025 at 9% ownership to 17% ownership.
Bitcoin’s ownership may have increased due to its performance in the last month of this quarter, during which its value declined below $111,000 by 2%, keeping its short-term bias in neutral territory. This behaviour is mainly driven by the speculation around the US employment data and the anticipation of the upcoming inflation figures. There was speculation of a possible bearish trend as it has posted progressively lower highs in September. The RSI hovered near the neutral 50 level, showing a constant balance between buying and selling pressures.
Oppotus stays committed to acquiring insights through continual analysis, offering a unique perspective on the country’s trends and consumer landscape.
Note that the opinions presented regarding Malaysia and its people reflect the views of Malaysian citizens aged 18 and above, from all income segments, residing in key cities of the Peninsular, and selected in a representative manner.
For a more granular analysis of the data above, contact us at theteam@oppotus.com. Our team of experts would be pleased to facilitate a comprehensive review and offer customised recommendations tailored to your needs. Alternatively, explore the omnibus solution to incorporate additional measures for your business through our MOM study.
