A majority of Malaysians expect prices, taxes, and inflation to increase this year, according to a global survey released in December.
As 2025 kicks off, a cloud of financial uncertainty looms over Malaysia, with the majority of citizens bracing for higher taxes, rising prices, and climbing inflation. A recent survey reveals growing concerns about the country’s economic trajectory, with many Malaysians preparing for a challenging year ahead.
However, Ipsos reports that 73% agree the global economy will be stronger than it was in 2024. Ipsos, a global leader in market research, said about 85% of the 1,000 Malaysians surveyed believe that prices will increase faster than their incomes, while 80% expect taxes to be higher than they were in 2024.
Some 76% also expect inflation to rise this year.
In November, Bank Negara Malaysia said the country’s inflation rate is projected to average 2% to 3.5% in 2025 after factoring in domestic policies, including the implementation of targeted RON95 fuel subsidies and the expanded scope of the sales and service tax (SST).
About 79% of Malaysians said it is likely that interest rates will climb, while some 77% predict unemployment will be higher this year, compared to 2024.
In November, the statistics department reported that the country’s unemployment rate stood at 3.2%.
Some 73% also believe that artificial intelligence will “lead to many new jobs being lost” in the country, although 65% feel that AI will lead to “many new jobs being created”.
On the global front, about 73% of Malaysians agree that the global economy will be stronger than it was in 2024.
Malaysians also score above the global average when it comes to two ongoing conflicts.
About 48% believe the war in Ukraine will end in 2025, while 42% are of the view the conflict in the Middle East will end this year. The global average for these two conflicts stands at 27% and 22%, respectively.
Malaysians also score above the global average of 67% when it comes to the increase in the number of migrants into the country, with 79% saying it is likely that immigration into the country will rise.
The United Nations High Commissioner for Refugees recorded 192,170 refugees and asylum seekers, primarily from Myanmar, Pakistan, Yemen, Afghanista, and Somalia, as of November.
