Malaysians embrace digital spending, local brands for Aidilfitri

KUALA LUMPUR – As Hari Raya Aidilfitri approaches, Malaysians are increasingly shifting towards cashless transactions, e-commerce, and local brands while preparing for the festive season, according to a new survey by market research firm Milieu Insight.

The study, conducted among 501 Malaysians aged 16 and above, found that while traditional customs such as family gatherings and gift-giving remained significant, convenience, cost savings and digital payment options shaped modern shopping habits.

“Malaysians are moving towards cashless transactions, with 53 per cent opting for e-wallets over cash when purchasing festive clothing. Convenience and security are the key reasons for this shift,” Milieu Insight revealed in its findings in a press release.

Meanwhile, Buy Now, Pay Later (BNPL) services are gaining traction, particularly among younger consumers.

“Our survey shows that 18 per cent of Malaysians, especially the younger demographic, are adopting BNPL as a flexible payment method,” the report stated.

E-commerce continues to dominate festive shopping, with 83 per cent of Malaysians favouring platforms such as Shopee for Raya essentials.

Additionally, 33 per cent are turning to social commerce platforms like TikTok Shop, drawn by the interactive and engaging nature of live shopping experiences.

Early Shopping and Brand Preferences

The survey also highlights that Malaysians are planning their Raya purchases earlier than before.

“Among those shopping for Hari Raya clothing, 36 per cent begin in March, while 23 per cent start as early as January or February,” the survey read.

Interestingly, 18 per cent have already completed their shopping, and 22 per cent are choosing to reuse outfits instead of buying new ones.

Brand loyalty remains strong, but there is a growing openness to new options.

“While 38 per cent of consumers—particularly Gen Z shoppers—are exploring new brands this year, 37 per cent prefer sticking to familiar names.

“A significant 60 per cent of Malaysians prefer homegrown brands for their purchases, reflecting a growing appreciation for local craftsmanship, cultural authenticity and economic sustainability,” the report highlighted.

Budget-Conscious Spending

As Malaysians prepare for Raya, they are focusing on quality over quantity in their spending.

“Our findings show that 25 per cent of shoppers are budgeting between RM101 and RM200 for new outfits, while 26 per cent are setting aside RM201 to RM300 for hampers and gifts."

With the increasing preference for digital transactions and online shopping, Milieu Insight said that businesses must adapt to changing consumer behaviour.

“To resonate with Malaysian consumers, businesses need to adopt digital-first strategies, such as early-bird promotions, seamless e-commerce platforms, and flexible payment options,” the survey concluded.