KUALA LUMPUR (April 29): Malaysians are spending more on travel, despite concerns about an economic slowdown, with average spending per traveller increasing 15% to 25% at Matta Fair 2025. This reflects a rebound in travel demand and stronger consumer confidence, according to Mercury Securities.

Government officials have said they will revise growth targets for this year amid global developments such as the US’ trade policies. The International Monetary Fund (IMF) is predicting a 4.1% growth for Malaysia while the World Bank’s forecast stands at 3.9%, both lower than the government’s 4.5%-5.5% projection.

Mercury Securities noted, however, that Malaysia’s consumer outlook remains strong, supported by low unemployment (3.1%), stable inflation, rising disposable income and a stronger ringgit, which has made overseas travel more affordable.

The research house conducted a two-day survey at the fair, speaking with over seven major travel agencies. It found that many consumers were comfortable placing 10% to 20% deposit and using 0% installment plans for three to 12 months.

Travel planning was focused on Asia-Pacific destinations like China, Japan, Thailand and Vietnam, with a strong preference for short-haul regional travel, showing practicality and value consciousness. Domestic travel also remains popular due to attractive deals.

Airline expansions and government initiatives have supported this recovery, with promotions from Malaysia Airlines, AirAsia, and Batik Air boosting interest. Free shuttle services to the fair also increased turnout and sales.

It said bookings were primarily for the fourth quarter of 2025 and early 2026, driven by festive seasons and early-bird offers.

Despite ongoing uncertainty over airfares and tariffs, Malaysians remain undeterred.

With broad-based optimism, as shown in the Ipsos Consumer Confidence Index, and resilient household spending, the research house expects continued growth in the travel, tourism and aviation sectors.