The upcoming pay rise for civil servants in December 2024 is set to significantly boost disposable income, enhancing retail consumption in Malaysia. As the pandemic’s impact diminishes, a larger portion of EPF withdrawals is expected to be spent on non-essential items, signaling a shift toward higher consumption levels. This trend will particularly benefit mid-to-high-end food and beverage outlets, as well as retailers of non-essential goods and services. The consumer discretionary sector is anticipated to thrive, especially among lower-income households. Analysts remain optimistic about Aeon (BUY, TP: RM1.67) and Padini (BUY, TP: RM4.30), predicting increased sales driven by rising consumer spending. – MIDF
