KUALA LUMPUR: The shift towards subscription-based services is gaining traction in Malaysia, aligning with a broader global trend that redefines how consumers access products.
This model provides an appealing option for many Malaysians, particularly young families and newlyweds, who face rising living costs.
Offering high-quality appliances on a subscription basis eases the financial burden of ownership, allowing consumers to enjoy premium products without the pressure of a large upfront investment.
One notable brand offering subscription-based home appliance services is the South Korean brand, LG.
LG Malaysia product director of subscription business Hojin Jung said the introduction of the LG Rent Up Subscription in Malaysia is a natural progression of the company’s commitment to providing innovative and accessible solutions tailored to the evolving needs of modern consumers.
“LG Rent Up Subscription is inspired by our success with subscription models in South Korea, where we saw significant growth, driven by increasing demand for convenience and affordability.
“Recognising similar trends here, we noticed a growing interest in flexible ownership models in Malaysia, spurred by the need for more cost-effective solutions amidst rising living expenses and fuelled by shifting consumer preferences.
“Since its launch in March 2024, the market response has been encouraging. We have seen growing inquiries from customers who have signed up for our water purifier subscription model and are now exploring subscriptions for other high-demand appliances such as refrigerators, washing machines and TVs.
“This shift highlights a changing mindset in how Malaysians approach home appliance ownership – especially among younger, urban consumers who prioritise access over ownership, seeking premium products without the upfront financial commitment,” Hojin told SunBiz.
He said urbanisation and the desire for more sustainable, convenience-focused living have made subscription services an attractive option.
“By offering top-tier technology on a subscription basis, we make high-end living more accessible while emphasising affordability and environmental responsibility. LG’s Rent Up Subscription model meets Malaysians’ evolving needs, allowing them to enjoy premium technology without the burden of ownership,” he said.
Hojin said the subscription model is gaining popularity among young Malaysians, especially urban professionals and families facing high living costs and limited space.
This trend, he said, reflects a growing shift toward a ‘sharing economy,‘ where access to energy-efficient appliances without the financial strain of ownership is valued.
LG Rent Up Subscription’s launch saw a strong uptake in Kuala Lumpur and major cities, where 40% of tech-savvy millennials prefer renting to stay updated with technology affordably.
Elaborating on the model further, Hojin said that although subscription services share similarities across markets, the Malaysian context has distinct differences.
“In South Korea, for example, the rental model for water purifiers is well-established, with over 70% market penetration. Malaysia, meanwhile, is still in its early phase, but consumer awareness is rising quickly. Moreover, this trend is not isolated to Malaysia. LG is actively preparing to introduce the subscription model in other markets, including Taiwan and Thailand, by year-end.”
Touching on the vision for LG Rent Up in Malaysia, Hojin said the LG Rent Up Subscription is just the beginning of a transformative journey in how it engages with consumers in Malaysia.
“As we look ahead, we plan to expand our subscription offerings to include a wider array of smart home appliances and electronics, reflecting the growing demand for connected living solutions.
“Our vision for LG Rent Up Subscription is to enhance the customer experience by offering seamless integration with our LG ThinQ technology, which already empowers our appliances to be more intuitive and user-friendly. This will allow our customers to enjoy a smart, responsive lifestyle, further elevating the convenience and efficiency of their homes,” he explained.
Hojin said that as the subscription economy continues to evolve, particularly among tech-savvy and environmentally conscious consumers, LG Rent Up Subscription aims to play a pivotal role in making premium technology more accessible.
“Our ultimate goal is to foster a circular economy model in which subscribing to high-quality appliances reduces the financial burden on consumers and contributes to sustainability by extending product lifecycles and minimising waste.
“The more we enhance our subscription model, the more committed we are to making innovative technology more attainable. We ultimately aim to enrich the lives of our customers while promoting responsible consumption and environmental stewardship,” Hojin said.
