CHANGING lifestyles, rapid technological advances and the growth of financial technology (FinTech) are reshaping consumer behaviour in Malaysia, with more people prioritising convenience, speed and flexibility in their daily lives.
From shopping and making bookings to completing payments, consumers are increasingly turning to digital platforms that not only save time and effort but also offer greater choice and better value.
The trend suggests Malaysia is moving towards becoming a less cash-dependent society over the next decade.
Universiti Sains Islam Malaysia Faculty of Economics and Muamalat economics and banking senior lecturer Dr Mohd Faisol Ibrahim said the growth of FinTech has encouraged Malaysians to adopt online transactions as they are more beneficial and secure than conventional methods.
He said consumers today increasingly prioritise convenience, experience and digital solutions when making purchasing decisions.
"Within the next 10 years, physical fiat currency may no longer exist, as everything could shift towards cashless payments.
"This is in line with global technological developments, particularly in FinTech, which the government strongly promotes as part of Malaysia's journey towards becoming a developed nation.
"The evolution of money has also changed. In the past, consumers used physical cash for transactions before moving to credit and debit cards. Today, they use QR codes, e-wallets, FPX, Touch 'n Go eWallet, ShopeePay, GrabPay, online banking and many other digital payment methods.
"This shows that consumer spending habits will continue shifting towards cashless transactions and online purchases in the future," he told Sinar.
Faisol said consumers now have more options, while attractive deals and savings are among the main factors driving changes in daily purchasing behaviour.
"Prices offered on digital platforms are generally lower due to various discounts, while also saving consumers time and effort.
"Consumers also enjoy greater choice without having to deal with crowds. This behaviour helps reduce other expenses such as fuel, tolls and travel-related costs.
"Digital shopping also offers greater flexibility, allowing consumers to make purchases anytime without being limited by location, business hours or circumstances," he said.
He noted that the shift poses challenges for businesses that still rely entirely on physical operations, particularly micro, small and medium enterprises (MSMEs).
He said consumers' migration to digital platforms is expected to intensify price competition, reduce profit margins and continue affecting sales at physical outlets, even as operating costs such as rent and utilities remain high.
"Businesses need to build trust among consumers by avoiding price manipulation, maintaining product quality, ensuring reliable delivery services and refraining from exploiting digital systems for excessive short-term profits.
"If these practices are upheld, consumers will remain loyal and the customer base has the potential to grow over time," he said.
At the same time, he stressed that changing consumer behaviour is also creating new opportunities for entrepreneurs, as starting an online business requires far lower capital than conventional models that depend on physical premises.
"This trend will continue to drive the online business sector on a much larger scale, creating spillover benefits for the transportation sector, particularly the gig economy, as well as the banking industry.
"More importantly, it opens opportunities for entrepreneurs to expand their businesses globally across national borders, as consumers are now able to purchase goods without geographical limitations," he said.