KUALA LUMPUR: Malaysians are planning to spend nine per cent more this year on Lunar New Year festivities, according to United Overseas Bank (Malaysia) Bhd (UOB Malaysia).
Based on its annual Lunar New Year survey, respondents said of their average festive budget of RM4,201 (up from RM3,846 in 2016), they will allocate RM1,008 for food.
UOB Malaysia said this is an increase of 14 per cent over last year, despite the higher cost of food in 2017.
Meanwhile, 43 per cent of the average budget (amounting to RM1,806) will go towards celebrating a traditional reunion dinner with loved ones.
UOB economist Julia Goh said the larger food and travel budgets could be due to consumers not compromising on Lunar New Year traditions, despite higher cost of living pressures.
“On top of the higher price of staples such as sugar, vegetable oils and dairy products due to the rise in global food prices and the weaker ringgit, we are expecting a seasonal price increase of up to 50 per cent on some food items because of the Lunar New Year,” she said in a statement yesterday.
The survey also found that travelling with loved ones is an important focus for the Lunar New Year.
Respondents planning to travel overseas say they expect to spend an average of RM2,334, up seven per cent from a year ago (RM2,181), while those visiting family and friends within Malaysia expect to spend RM1,263, up 66 per cent from 2016.
Goh said feasting and travelling to visit friends and family are central to the way Malaysians bond with each other, especially during festive occasions.
“It is therefore not surprising that Malaysians continue to place a priority on such celebrations, despite the economic environment,” she said.