KUALA LUMPUR, July 16 -- The average Malaysian household now has 18 per cent more purchasing power than it did in 2019, according to a new consumer outlook report from BMI, a Fitch Solutions company.

The findings suggest that while economists remain wary of high debt, the typical Malaysian's money is finally stretching further.

The shift is captured in BMI's real purchasing power index, which measures how far wages actually go once inflation is stripped away. This upward trend is expected to persist through 2030, fuelled by a tight labour market that is pushing real wage growth ahead of rising prices.

Three key pillars are driving this recovery: low inflation, a stable job market, and a central bank that has paused interest rate hikes....