Malaysian consumers more confident.

Malaysia's Consumer Sentiment Index (CSI) "surges to 124.1 points," which is the highest since the third quarter 2000. The information was released to the press on April 16, 2007 by the Malaysian Institute of Economic Research (MIER).

With its release, MIER also supplied Malaysia's employment index with statistics stretching back 25 quarters to the first quarter 2001. For the first quarter 2007, the employment index is at its highest point for the entire period. Market: Asia Pacific regards this favorable employment environment as the key determinant of rising consumer confidence. However, MIER views employment rather as a supporting element. MIER says, "The stock market rally, salary increment and bonuses, and the largely stable job market, amidst the rise in living costs, may have contributed to better sentiments."

Findings of the Malaysian consumer sentiment survey as well suggest that higher oil prices have become integrated into consumers' outlook.

Household incomes improved during the first quarter and as consumers look ahead to the second half of 2007 and beyond, they expressed more optimism. Inflation in Malaysia has been under control in recent years. The International Monetary Fund (IMF) estimates that the country's rate of inflation will grow 2.6 percent in 2007 compared with having grown 3.6 percent in 2006. Although price volatility in Malaysia has been tamed, such a significant drop in the growth of the rate of inflation is sure to draw consumer attention and has certainly played a role in the noticeable increase in the CSI.

On May 17, 2007, Malaysia's Department of Statistics released its Consumer Price Index (CPI) for April 2007. The index is 105.0 and is unchanged from March 2007. Compared with April 2006, Malaysia's CPI increased 1.5 percent.

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