Malaysia Consumer Sector Remains a Safe Haven — Market Talk

Malaysia's consumer sector is still a safe haven despite market turbulence, RHB IB analyst Soong Wei Siang says in a note. Private consumption is expected to remain the main growth driver, supported by a strong labor market, wage growth and a firmer ringgit, while subsidies and fiscal support help cushion inflationary pressures, he says. Despite risks from the Middle East conflict, the sector is seen as resilient due to its domestic-focused earnings base and continued government support, with downside risks viewed as limited under a base-case scenario of a cease-fire holding, he adds. RHB maintains an overweight rating on Malaysia's consumer products sector, pegging Nestle (Malaysia), Farm Fresh, Mr. D.I.Y. Group (M), Eco-Shop Marketing and AEON Co. (M) as its top picks. (yingxian.wong@wsj.com)