The annual United Overseas Bank (Malaysia) Bhd Chinese New Year (CNY) survey shows they are willing to set aside 9% more this year.
According to a report in The Star, the survey shows the average budget for this year’s celebration to be RM4,201, an increase from RM3,846 in 2016.
Of this amount, RM1,008 has been set aside for expenditure on food, an increase of 14% over 2016.
About 43% of this amount is expected to go towards celebrating the traditional reunion dinner with loved ones.
Those planning to travel overseas say they expect to spend an average of RM2,334, up 7% from a year ago (RM2,181) while those visiting family and friends within Malaysia expect to spend RM1,263, up 66% from 2016.
A total of 500 people were interviewed in November and December last year for the UOB Malaysia survey. They were aged between 18 and 55.
UOB Malaysia economist Julia Goh was quoted by The Star as saying the larger food and travel budgets could be because consumers were not compromising on tradition.
“On top of the higher price of staples such as sugar, vegetable oils and dairy products due to the increase in global food prices and the weaker ringgit, we are expecting a seasonal increase of up to 50% on some food items because of the CNY,” Goh said.
She said 73% of those who would be receiving red packets said they intended to save the money, while 25% said they would invest it.
More than 90% of respondents receiving red packets on behalf of their children intend to deposit the money into their children’s savings accounts.