75pct of Malaysian firms put domestic market first, highest in Asean
KUALA LUMPUR: Malaysian businesses are shifting strategy to meet inflation and rising costs, tightening operations, targeting growth closer to home, and hiring with precision rather than broad expansion, according to a new regional survey.
KUALA LUMPUR: A new regional survey titled Great Restructuring: Asean Consumer & Business Pulse Survey 2026 reveals that 75% of Malaysian firms are prioritizing their domestic market for growth. This is the highest percentage among the six Southeast Asian markets surveyed. The survey, conducted by Asia-based recruitment specialist Reeracoen Group and Rakuten Insight, the market research arm of Rakuten Group, highlights a distinct domestic-first shift in Malaysia's business landscape.
The survey shows that 75% of Malaysian businesses now consider the domestic market their top growth opportunity, a stronger domestic orientation compared to regional peers. This shift is evident in their decision-making processes, with selective hiring being the most common strategy, adopted by 36% of Malaysian businesses. Only 7% are actively expanding their workforce, while the rest are either holding steady or adjusting their teams to match priorities.
Investment patterns also reflect this cautious approach. Sixteen% of Malaysian businesses are increasing their spending, while nearly half (46%) are maintaining current levels, focusing resources on core operations and sustainable growth. Yohei Yagi, Country Manager of Reeracoen Malaysia, stated that companies focusing on operational efficiency and investing in needed capabilities for growth will be better positioned to seize future opportunities.
On the consumer side, 88% of surveyed Malaysians are adopting a more cautious spending approach, primarily driven by rising food prices (64%), fuel and transport costs (46%), and higher household bills (38%). In response, 54% of households are seeking additional income sources, and 41% are boosting their savings, indicating a long-term financial planning strategy.
Rakuten Insight's Collin Leow emphasized that these shifts should be viewed as smart positioning rather than retreating from opportunities. Malaysia's findings suggest a market adapting pragmatically to changing economic conditions, with businesses emphasizing domestic opportunities and operational discipline, while consumers adjust their spending and financial priorities.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
