Malaysian consumers prioritise Halal assurance, ethical standards in brand choices

Faith-based considerations play a crucial role in purchasing decisions.

Malaysian consumers, especially younger generations, are choosing brands that prioritise Halal assurance, quality, and ethical standards, according to Mastercard and CrescentRating's Unlocking Consumer Trust and Brand Engagement Across Key Segments in Indonesia’s and Malaysia’s Muslim Market report.

"They are highly active on digital platforms and are looking for brands that connect with their cultural identity whilst providing a seamless blend of modern convenience and traditional faith practices," the report said.

With a Muslim population of 23 million, 64% of whom are under 40, faith-based considerations play a crucial role in purchasing decisions.

The report found that faith traditions significantly influence consumer behavior, with 90% of respondents considering brand adherence to Islamic values essential.

Whilst 70% expressed satisfaction with how well brands cater to faith-based needs, a gap remains, highlighting opportunities for improvement.

Halal assurance stood out as the most critical factor in brand selection, scoring 4.8 out of 5, ahead of quality (4.7) and price (4.5).

"These three factors are uncompromisable to the consumers and should be prioritized," the report noted. Remaining factors of customer service, social responsibility, environmental sustainability, and reputation can be built on top of the key factors and add to the brand’s competitiveness and appeal in the market."

In terms of product categories, food and personal care items lead consumer engagement, whilst travel interest surpasses electronics.

Meanwhile, loyalty programs hold strong appeal in Malaysia, with over 60% of consumers actively participating, presenting a key strategy for brands looking to build long-term engagement in this market.

Malaysians rely on TikTok, Instagram, and Facebook for brand discovery, along with online ads, in-store promotions, and word-of-mouth.

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