KUALA LUMPUR, Nov. 4 -- Malaysians are expected to keep spending steadily over the next two years, but rising food and fuel prices and heavy household debt could take the shine off.

BMI, a country risk and industry research unit of Fitch Solutions, said in its latest outlook today that consumer spending in Malaysia looks broadly positive.

One reason is that jobs remain plentiful, with unemployment at 3.1 per cent, it said.

Prices are also rising slowly, with inflation easing to 1.8 per cent in September from 1.9 per cent in August.

That is comfortably below the upper end of Bank Negara Malaysia's (BNM) target range of 1.5 per cent to 2.5 per cent.

After taking price rises into account, BMI expects household spending to grow 4.08 per ...