PETALING JAYA: With the reopening of international borders, consumer spending is likely to accelerate in the second quarter of this year while labour market conditions are set to improve further, says RHB Bank Bhd group chief economist and head of market research Sailesh K. Jha.(pic)
He said private consumption would be the main driver of growth in the first half of the year while private sector activity was on a recovery mode.
“The tourism sector is showing signs of recovery and this development should encourage consumer spending. On the trade front, in real terms, activity is picking up as of April after slowing in the first quarter of this year.
“The main impact of the conflict in Ukraine and elevated commodity prices has been on trade,” he added.
He was speaking on the subject Will reopening of borders bring about recovery in domestic demand at the AEON1000: Suppliers and Partners Conference 2022 at the Kuala Lumpur Convention Centre.He said labour market conditions should improve rapidly in the second half compared with the first half of the year as industrial production and the services sector show further improvement.
RHB Bank is maintaining its year-end unemployment rate forecast at 3.7% and inflation rate at 2.6% year-on-year.
AEON1000 drew about 1,000 participants comprising the movers and shakers of various industries including fast-moving consumer goods, food manufacturing and production, logistics and supply chain and financial services.
Themed Creating sustainable communities, the hybrid conference seeks to culminate the transformational actions from across stakeholders to thrive in a new retail landscape, while pursuing shared growth to create sustainable communities given the challenges facing the local economy as the country forges ahead to a post pandemic phase.
During the event, Aeon Co (M) Bhd deputy managing director Tsutomu Motomura said Aeon recognises every stakeholder’s good work through challenging times and is leveraging on each other’s strength and building long-term partnerships.
The group introduced the Aeon sustainability charter (ASC) – the highest form of commitment by Aeon towards championing environmental, social and governance and aligned with the United Nations’ sustainable development goals.
Aeon chairman Datuk Iskandar Sarudin said: “We are committed in moving our sustainability journey forward by partnering and growing together with the stakeholders.
“We always believe that a sustainable business is one that not only priorities financial returns, but also protects the environment, nurtures its employees and uplifts its communities and the ecosystem.”
At the event, the group also announced “Jimat Poket” – a 100-day initiative in collaboration with its business partners from today to Sept 16 as part of initiatives to reduce the rising cost of living.The campaign features two bundles comprising essential items such as rice, cooking oil, noodles, crackers, coffee and sugar for the customers.
The RM60 bundle comprises 15 commodity goods while the RM100 bundle has 18 commodity goods.
Aeon managing director and CEO Shafie Shamsuddin said the campaign was’ to ensure that the prices of essential products would not inflate drastically.