KUALA LUMPUR: Malaysian consumers are advised to be prudent with their spending habits despite a forecast drop in headline inflation, said Domestic Trade & Consumer Affairs Minister Datuk Mohd Shafie Apdal. 

The central bank had in its annual report released last month projected inflation at between 2% to 2.5%, but Mohd Shafie said consumers, especially those from the younger generation, would do well to be “cautious”. 

Minister: Spend prudently despite forecast drop in inflation

KUALA LUMPUR: Malaysian consumers are advised to be prudent with their spending habits despite a forecast drop in headline inflation, said Domestic Trade & Consumer Affairs Minister Datuk Mohd Shafie Apdal. 

The central bank had in its annual report released last month projected inflation at between 2% to 2.5%, but Mohd Shafie said consumers, especially those from the younger generation, would do well to be “cautious”. 

Speaking at a media conference after launching Carrefour hypermarket's Lebih Jimat Lebih Hebat (LJLH) campaign on Monday, he said: “Consumer sentiment could improve in 2007 of course, following Bank Negara's prediction. While we are not telling consumers to be overly thrifty, it is advisable to spend only on things they need.” 

In his speech earlier, Mohd Shafie said it was partly a consumer's responsibility to be shrewd in comparing prices and making the correct choice in buying something with quality at a reasonable cost.  

The expansion of franchise hypermarkets such as Carrefour, Mohd Shafie said, would undoubtedly have an adverse effect on the businesses of smaller retail shopkeepers, but added it was better to serve the interests of “26 million Malaysian consumers” by letting giant hypermarkets market necessity goods at lower prices.

Source : thestar.com.my