Consumer Sector Update : Rising Consumerism, Tobacco Hit By Early Excise, Brewery To Await Verdict - 07/10/2010

♦ Consumer spending growth to moderate but remain resilient. RHBRI
forecasts a consumer spending growth of 5.4% p.a. for 2011. Although this
is a more moderate growth compared to the forecasted consumer spending
growth for 2010 of 5.6%, we believe the growth is still relatively resilient,
given the rising consumerism and high savings of the Malaysian population.
The main reasons for the slight dip in consumer spending growth in 2011
are: 1) the subsidy removal; 2) the reinstatement of EPF employee’s
contribution to 11% from 8%; and 3) the higher base effect.

Consumer Sector Update : Rising Consumerism, Tobacco Hit By Early Excise, Brewery To Await Verdict - 07/10/...