KUALA LUMPUR: Continuous rise in gross domestic product (GDP) rate leads to an increase in consumer confidence, which in turn indicates the country’s economic health.
Consumers Association of Penang (CAP) president S. M. Mohamed Idris said the level of consumer confidence was an important factor to gauge the willingness of consumers to spend, borrow and save.
“It measures how confident consumers are about the overall state of the economy.
“It is also an indication of how confident people feel about their income’s stability, and shapes their economic decisions such as spending activities,” he told New Straits Times today.
Mohamed Idris was commenting on the announcement by Bank Negara Malaysia (BNM) today on Malaysia’s spurring economy at an annualised 5.8 per cent in the second quarter of 2017.
The 5.8 per cent was the fastest quarterly growth since the first quarter of 2015.
BNM governor Datuk Seri Muhammad Ibrahim said the GDP overall recorded a 5.7 per cent growth for the first half of the year, while the full-year growth would be above 4.8 per cent.
He said growth prospects would continue to be driven by domestic demand with some lift from exports, referring to the steady wage and employment growth, ongoing implementation of infrastructure projects and continued external demand.
Nevertheless, Mohamed Idris reminded consumers to spend wisely despite the economic growth.
“Everyone has a responsibility to manage their budget well and keep an eye out for affordable options and alternatives.”
Meanwhile, Federation of Malaysian Consumers Associations secretary-general Paul Selvaraj said the government could provide assistance in efforts to spread awareness on prudent spending among consumers.
“The government can provide financial education which can help consumers obtain knowledge and an understanding of financial matter.
“The ultimate measure of success for economic growth should be improvement in individual financial well-being.”