PETALING JAYA: Malaysian shoppers are expected to be more strategic and value-conscious in 2026, with inflation, rising costs and global uncertainty shaping spending habits, says Federation of Malaysian Consumers Associations (Fomca) vice-president Datuk Indrani Thuraisingham.
“Consumers will prioritise essentials, compare prices carefully and look for the best value per ringgit,” she told SunBiz.
“Malaysian consumers will practise precision shopping, moving beyond brand loyalty to seek optimal value,” Indrani said.
Improved digital connectivity is expected to allow shoppers to access tailored offers while adhering to data privacy protections under the Personal Data Protection Act 2010.
Retailers are increasingly using artificial intelligence (AI) and data analytics to personalise promotions, drawing on purchase history and browsing habits.
At the same time, conscious consumption is rising, especially among Gen Z and millennials. A 2024 survey found that 53% of Malaysians prefer brands with strong environmental and social governance (ESG) practices. Retailers are expected to meet growing demand for transparency in sourcing, environmental impact and fair trade practices.
Indrani said blended online-offline retail will continue to expand in 2026. “Consumers will expect seamless movement between online and physical stores, with click-and-collect, in-store returns for online purchases, and live commerce becoming standard.”
She added that more retailers in Malaysia are likely to adopt augmented reality (AR) and virtual reality (VR) for virtual try-ons and in-store digital kiosks.
Indrani also highlighted the rise of quick commerce. “Fifteen- to 30-minute deliveries for groceries, electronics, and fast moving consumer goods will expand beyond urban areas. Retailers will need to reassess logistics partnerships and inventory placement to keep up.”
On the trend of recommercialisation, she said second-hand markets, refurbished goods and rental or leasing models will gain traction as consumers look for value and sustainability.
Indrani highlighted shrinkflation and skewflation where products shrink or packaging misleads consumers as major concerns. “Shrinkflation quietly reduces purchasing power and erodes trust. Honesty in packaging and pricing is no longer optional – it is the foundation of the retailer-consumer relationship.”
Price transparency and fair pricing are also critical. Consumers are sensitive to hidden costs, service fees and dynamic pricing surges.
Fomca urges retailers to adopt all-inclusive pricing displays, similar to Australian Competition and Consumer Commission guidelines. Data privacy and ethical AI are increasingly important as personalisation grows. Consumers expect their information to be protected and used responsibly, and breaches can severely damage trust.
Product authenticity, quality assurance and food safety remain high priorities. For health products, supplements and luxury goods, Malaysians expect guaranteed authenticity. Retailers are advised to integrate responsive customer service and redress mechanisms, combining chatbots, hotlines and in-person support in line with Malaysia’s Consumer Protection Act 1999.
Rising costs and inflation are driving structural shifts in spending. Essentials will take priority, discretionary spending on fashion, electronics and dining out will be scrutinised, and consumers are expected to trade down to value or economy brands.
Strategic bulk buying for non-perishables, prolonged replacement cycles for durable goods, and growth in second-hand or recommerce markets are likely. Loyalty will reward retailers offering consistent, genuine discounts and clear value, Indrani noted.
Retailers face challenges in balancing margins with fair pricing while managing supply chain volatility, talent shortages in digital and customer experience roles, digital investment costs, regulatory compliance, and high online customer acquisition costs. Online fraud and scams also threaten e-commerce confidence.
To build trust, Fomca recommends adopting unit pricing, showing cost per 100 grams or mililitres on shelves and online. Other strategies include fair pricing, transparent communication on size and price changes, ethical AI, visible ESG credentials, strong after-sales support, co-creation with consumers and community engagement.
“Retailers that lead with transparency and fairness will earn loyalty and long-term resilience,” Indrani said.
Countries such as Singapore, Australia, New Zealand and those in the European Union have already seen unit pricing boost consumer trust and market efficiency.
Fomca is ready to work with retailers and government agencies to implement these measures and educate consumers, supporting the 13th Malaysia Plan’s goals of market efficiency and consumer well-being, Indrani said.
