75pct of Malaysian firms put domestic market first, highest in Asean

KUALA LUMPUR: Malaysian businesses are shifting strategy to meet inflation and rising costs, tightening operations, targeting growth closer to home, and hiring with precision rather than broad expansion, according to a new regional survey.

The Great Restructuring: Asean Consumer & Business Pulse Survey 2026, published by Asia-based recruitment specialist Reeracoen Group and Rakuten Insight, the market research arm of Rakuten Group, captures a distinct domestic-first turn across the nation's business landscape.

The survey showed that 75 per cent of Malaysian businesses now identify the domestic market as their top growth opportunity, the strongest domestic orientation recorded across the six Asean markets surveyed.

This clear shift sets Malaysia apart from regional peers, as companies look inward to build resilience amid economic uncertainty.

That measured approach extends directly to workforce and capital decisions. Selective hiring, filling only critical roles, is the most common stance, adopted by 36 per cent of Malaysian businesses. Just 7.0 per cent are actively expanding headcount, while the remainder are holding steady or adjusting teams to match priorities.

Investment follows the same careful pattern. Sixteen per cent are increasing spending, and nearly half, or 46 per cent, are maintaining current levels, channelling resources into core operations and sustainable growth rather than spreading capital thinly.

"Malaysian employers continue to hire for critical roles, but hiring decisions are becoming more focused and aligned with longer-term business priorities," said Yohei Yagi, Country Manager of Reeracoen Malaysia.

"Companies that strengthen operational efficiency while continuing to invest in the capabilities they need for growth will be better positioned to capture opportunities as conditions evolve," she said.

On the household side, Malaysians are also recalibrating. Fully 88 per cent of consumers surveyed say they are spending more cautiously, driven chiefly by food prices (cited by 64 per cent), fuel and transport costs (46 per cent), and rising household bills (38 per cent).

Beyond cutting back, households are actively restructuring their finances, whereby 54 per cent are seeking extra sources of income, and 41 per cent are boosting savings, a clear signal of longer-term financial planning.

Collin Leow, country director for Malaysia & Thailand at Rakuten Insight, frames these shifts not as stepping back, but as smart positioning for what comes next.

"Malaysia's findings show a market adapting pragmatically to changing economic conditions," Leow said.

"Businesses are placing greater emphasis on domestic opportunities and operational discipline, while consumers are adjusting their spending and financial priorities. Together, these trends point to a more deliberate approach to growth rather than a retreat from opportunity."

The survey covers six markets with country-by-country profiles and a leadership playbook outlining eight strategic priorities for regional expansion.