According to MIDF Research, the rise in tourist numbers will benefit the consumer sector because domestic demand will be higher and the job market will stay steady.

According to the research firm, Malaysia's retail sales will be further boosted by the reopening of most nations' borders thanks to an increase in tourists, particularly those from China. After the many incentives and income tax reductions included in the amended Budget 2023, it is also anticipated that domestic expenditure will contribute more.

As a result of falling Brent crude oil prices, the average price of polyethylene terephthalate (PET resin) decreased by 13.5% year over year (y-o-y), resulting in lower raw material costs for beverage producers.

Since the demand for ready-to-drink beverages is anticipated to increase due to an increase in tourist traffic, this could be advantageous for beverage producers.

Prices for sugar, wheat, and crude palm oil (CPO) have all dramatically risen as a result of a lack of supply and Indonesia's prolonged restriction on CPO exports.

However, the research firm claimed that since last year's price revisions could cover the majority of the expenditures, the impact of higher raw sugar prices would be manageable for food manufacturers.

In terms of poultry prices, the average chicken cost per kilogram in January remained high at RM10.30, up from RM9.48 in the previous year. Grade B eggs from chickens experienced the biggest yearly growth at 9.6% y-o-y, followed by Grade C eggs at 8.2% and Grade A eggs at 6.8%.

According to the research firm, this may be a result of rising animal feed costs, where the price of soybean meal grew by over 25.1% yoy and the price of corn increased by 2.5% yoy as a result of reduced global availability.