Dining out is important for domestic economy, says economist

SHAH ALAM - Dining out is important for driving the domestic economy, especially by boosting the food and beverage (F&B) sector and the delivery business (p-hailing), an economist says.

Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said spending on dining out ensures that businesses, particularly those in the B40 and M40 income groups, can continue to generate income.

He said that the gig economy would also be adversely affected, as the concept of dining out now extends beyond physically eating at restaurants or ordering takeout to include the gig economy or p-hailing sector.

"If many people choose not to spend on dining out, it will have a negative impact on the domestic economy at various levels," he told Sinar on Saturday.

In 2019, Malaysians spent up to RM855 per month on dining out, according to data from the Department of Statistics Malaysia (DOSM).

Factors contributing to this trend include employment conditions, urbanisation, and lifestyle changes, with six states showing dining expenses exceeding RM510 per month.

Putrajaya recorded an average of RM855, Kuala Lumpur (RM843), Selangor (RM725), Penang (RM556), Johor (RM516), and Melaka (RM512).

Mohd Afzanizam added that at the lowest economic level, such as night markets, many vulnerable B40 and M40 groups receive government assistance such as grants to run their businesses.

"If many people do not dine out, how can they make a profit?"

"They also need to repay the microfinancing debt provided by the government," he added.