The forecast for the consumer sector is still favorable, with strong retail commerce anticipated in the wake of rising tourism activity and steady demand for goods connected to staples.

Retailers including Aeon Co (M) Bhd, Padini Holdings Bhd, QL Resources Bhd, and Fraser & Neave Holdings Bhd(F&N) should profit this year from the increased trend in retail sales, according to MIDF Research.

According to the research company, an increase in local and foreign tourism might potentially increase sales at convenience stores like FamilyMart under QL.

It anticipates that the steady demand for products related to the maritime and cattle industries would help the group's revenues even more.

According to MIDF, with a rise in tourist arrivals, F&N is well-positioned to profit from the increased demand for ready-to-drink beverages.

Aeon anticipates robust demand for its supermarkets and general retail outlets.

The consumer sector, according to MIDF, is a "defensive play" with strong profit margins for food and beverage (F&B) makers as a result of lowering raw material prices, which could counteract other cost pressures.

The normalized animal feed commodity prices are projected to reduce input costs for poultry players.

The weakening of the ringgit is expected to increase input costs, too, as F&B and poultry firms buy their raw supplies in US dollars.

However, because the majority of its sales are made in the US dollar, firms that focus on exports like Asia File Bhd and Rhong Khen International Bhd will benefit from the stronger greenback.