CONSUMER
$KLSE-F&N [%eygU%] [%jjfQ%] 
Research by CGS
Overweight 

“The subsidy removal drag could be a boost ”

We maintain our Overweight stance on the Malaysian consumer discretionary sector and Neutral stance on the consumer staple sector. We think market fears of the recent diesel subsidy removal and upcoming RON95 petrol subsidy removal in 2H24F weighing on consumer demand, resulting in a 4% decline in the KLCI Consumer Index from its 20 May peak, may be overdone. Instead, we believe the cash handouts to lower income households, in particular, could far outweigh the cost inflation (fuel and others), and leave these households with additional disposable income each month.

Analyst(s):
Prem JEARAJASINGAM
[%rMoE%]
LEW Cheng Wei
[%VbVE%]

CONSUMER
$KLSE-F&N $KLSE-MRDIY $KLSE-MYNEWS 
Research by CGS
Overweight 

“The subsidy removal drag could be a boost ”

We maintain our Overweight stance on the Malaysian consumer discretionary sector and Neutral stance on the consumer staple sector. We think market fears of the recent diesel subsidy removal and upcoming RON95 petrol subsidy removal in 2H24F weighing on consumer demand, resulting in a 4% decline in the KLCI Consumer Index from its 20 May peak, may be overdone. Instead, we believe the cash handouts to lower income households, in particular, could far outweigh the cost inflation (fuel and others), and leave these households with additional disposable income each month.

Analyst(s):
Prem JEARAJASINGAM
prem.jearajasingam@cgsi.com
LEW Cheng Wei
chengwei.lew@cgsi.com