Malaysia's Consumer Confidence Index rose by 4% in January compared to the previous year, as per the findings from a survey by market research firm Ipsos.

In a statement on Tuesday Ipsos noted that the country's Consumer Confidence Index has outpaced both the global average and those of Japan and South Korea.

“This situation shows that Malaysian consumers are more optimistic about their economic prospects than those in other countries in the region,” according to the statement.

Ipsos also said that Malaysia's positive economic growth and stable inflation in 2024 helped boost consumer expectations, The Star reports.

The firm highlighted that the rise in the Consumer Confidence Index was fuelled by greater confidence in job security, future investments, and purchasing power.

“This suggests that consumers are more comfortable with their personal financial situation, which in turn contributes to increased consumer spending,” it stated.

Furthermore, Ipsos also shared statistics on the changes in the components of the Consumer Confidence Index from January 2024 to January 2025, highlighting several key factors.

“Confidence across key aspects has risen by 4-6%, indicating a healthy increase in spending willingness, which in turn stimulates the economy,” it said, going on to add that job security confidence edged up by 6% in January to 56%, compared to the same month last year at 50%.

In addition, confidence in future investments increased to 53% in January 2025, up from 49% in January 2024, marking a 4% rise over the year.

Ipsos noted that while this year presents new opportunities, it also brings challenges, including potential disruptions such as tariff wars, geopolitical instability, and subsidy rationalisation.

These factors, the firm added, could impact consumer confidence despite the expected positive economic growth.

“To address this, Malaysians must remain resilient to manage economic uncertainties in a changing landscape effectively,” it added.