PETALING JAYA: Chinese New Year (CNY) spending in 2026 is expected to be back-loaded, with most festive purchases taking place closer to the celebration as households time their spending around bonuses and government cash assistance.
This comes as Malaysia enters 2026 with clearer economic conditions following last year’s subsidy rationalisation measures, including the targeted diesel subsidy, changes to RON95 petrol subsidies, higher cash assistance under Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah, and electricity tariff adjustments, giving consumers better visibility over their disposable income ahead of the festive period.
These measures have allowed consumers to recalibrate spending habits amid stabilising inflation and a tight labour market.
At the retail mall level, Berjaya Times Square assistant general manager for marketing and operations Alex Liew said shoppers continue to seek value for money this Chinese New Year, regardless of broader economic conditions.
“Based on spending behaviour back in Christmas, people always want a bang for their buck. They want to stretch their ringgit, how much one ringgit or ten ringgit can get them,“ he told SunBiz.
Liew said that, for Chinese New Year, festive shopping activity has yet to fully pick up, as the bulk of spending typically occurs closer to the celebration itself.
“With Chinese New Year falling in mid-February this year, the rush usually happens in the final two to three weeks leading up to the festival, and we expect a similar spending pattern to previous years,“ he said.
Supermarket operator The Food Purveyor (TFP), which operates Village Grocer, Ben’s Independent Grocer and BIG, said its 2026 Chinese New Year sales are shaping up better than last year, supported by higher footfall, particularly over weekends.
“For festive seasons, it is always value-driven, but of course, quality matters as well. When we say value-driven, it doesn’t automatically mean low-priced items. It can also be premium items on promotion, i.e. discount or bundle packs,“ a spokesperson told SunBiz.
In line with typical Chinese New Year spending patterns, TFP said, festive purchases tend to be concentrated closer to the celebration and timed to bonus payouts, which are usually released about a week before Chinese New Year.
“As is typical for Chinese New Year, most purchases take place closer to the festive day, except for items such as clothing. As the celebration centres around family reunions, food and gifting form the core of the festivities, with items such as fresh food, including meat, seafood, fruits and vegetables, as well as gifts usually purchased closer to Chinese New Year,“ the spokesperson said.
In the jewellery segment, Tomei Consolidated Bhd group managing director Datuk Ng Yih Pyng is optimistic about Chinese New Year sales this year, citing sustained interest in gold amid rising prices.
“Gold has been a centre of attraction for the last few years, especially last year. As gold prices continue to increase, their attractiveness, whether as an investment or as a piece of jewellery, continues to draw attention,“ he told SunBiz.
He added that the group is hopeful the Year of the Horse will deliver stronger performance, supported by an expanded range of new products and designs aimed at appealing to a wider customer base.
“I’m sure it will, because we have already come out with a lot of products, a lot of new designs, that I think will appeal to different customer profiles, you know. So, personally, I’m optimistic.”
From a macro perspective, AmBank Group chief economist Firdaos Rosli said consumer spending during this Chinese New Year period is expected to remain supportive, underpinned by cash assistance and festive-related outlays.
“With Chinese New Year just around the corner, festive spending is likely to be sustained. All adults will receive an additional RM100, while parents will get RM150, so the cash disbursements will act as a buffer and a policy lever to help distribute growth.”
According to reports from several research houses, by the end of last year, Malaysia’s consumer sentiment was expected to strengthen in 2026, as the bulk of subsidy rationalisation measures had already been rolled out and macroeconomic conditions stabilised.
Maybank Investment Bank Bhd said that, with most subsidy rollbacks announced in 2025, the economy is entering 2026 with less policy uncertainty, which should support improved overall consumer sentiment and a faster recovery in consumer spending.
MBSB Research has also maintained its positive view on Malaysia’s consumer outlook, citing resilient household income and manageable inflation.
The research house projected unemployment will remain stable at an average of 3% in 2026, while inflation is expected to rise slightly but remain manageable to 1.8%.
It said fiscal and policy levers, particularly continued government cash assistance allocations, alongside sustained domestic labour market strength and a recovery in tourism activity, should help support consumer momentum.
CGS International likewise expected Malaysian consumer demand to remain robust. “In addition to healthy economic conditions, further cash distributions to lower-income households via various government programmes should keep demand buoyant, in our view,“ the research house said.
