Malaysia Emerges as Southeast Asia’s Most Optimistic Economy: Ipsos Survey
Petaling Jaya, The Gulf Observer: Public confidence in Malaysia’s direction has strengthened, positioning the country as the most economically optimistic nation in Southeast Asia, according to the latest Malaysia Cost of Living Monitor by global market research firm Ipsos.
The study found that concerns over corruption, poverty and unemployment have eased, while optimism regarding household spending and future living standards has increased. About 69% of Malaysians surveyed said the country is heading in the right direction.
A total of 73% of the 23,641 respondents aged between 16 and 74 described Malaysia’s economic situation as good or very good, compared with 82% in Singapore. Despite the improved outlook, financial and political corruption (39%), poverty and social inequality (26%), and unemployment (25%) remain the top public concerns.
Looking ahead, 39% of respondents expect their disposable income to rise over the next year, while 45% believe their quality of life will improve.
Ipsos Malaysia Managing Director Arun Menon said national sentiment has turned more positive following recent policy measures. “National confidence in the country’s direction is strengthening, reflecting growing positive sentiment towards recent policy initiatives. Malaysia now stands as the most economically optimistic nation in the region, in contrast to declining confidence across several Southeast Asian countries,” he said.
Menon attributed the improved sentiment to targeted government assistance measures, including SARA, Budi Madani RON95 subsidies and electricity tariff adjustments, which have helped ease daily financial pressures. He added that with improving economic confidence, Malaysians expect higher disposable incomes and better living standards by 2026.
Ipsos noted that easing concerns over poverty, unemployment and corruption signal greater public trust in the country’s stability, translating into stronger household spending intentions that are above the global average. The upcoming 13th Malaysia Plan (13MP), focusing on income growth, social protection and cost-of-living management, is expected to further consolidate these gains.
The positive sentiment comes amid stronger economic performance. Malaysia’s economy expanded 5.2% year-on-year in the third quarter of 2025, marking the fastest quarterly growth in about a year, supported by robust household spending, resilient exports and steady investment.
Net foreign direct investment rose to RM8.5 billion, reflecting sustained investor confidence, while inflation remained low at around 1.3%, helping to preserve consumers’ purchasing power, Ipsos said.
