Kuala lumpur: Many Malaysians may be tightening their belts, but when it comes to Hari Raya Aidilfitri, cutting back is often not an option, as households continue to prioritise festive spending despite ongoing cost-of-living pressures.

According to BERNAMA News Agency, across the country, families are adjusting daily expenditure, postponing discretionary purchases, and budgeting more carefully, yet still allocating funds for key festive essentials such as clothing, food preparations, balik kampung travel, and duit raya. The pattern highlights a distinctive dimension of consumer behaviour in Malaysia, where festive consumption remains resilient not merely as an economic activity, but as a reflection of cultural values, social expectations, and household priorities. For many families, ensuring that Aidilfitri is celebrated meaningfully remains a commitment that transcends financial constraints.

A civil servant who wished to be known only as Siti Sulaiman, 38, said she has become more mindful of spending but continues to set aside funds for her four children's festive needs. 'We cut down on eating out and shopping for ourselves, but for Raya, the children still come first. New clothes and balik kampung are things we try to ensure,' she said. Meanwhile, Hafiz Hambali, 29, a private sector employee, said he has started saving earlier to prepare for festive expenses, even as financial conditions remain tight. 'I manage other expenses and save gradually. Raya is still something we look forward to every year, so I set aside duit raya and prepare the basics, even if the celebration is simple,' he said.

Another civil servant, Nur Firdaus Abdul Rahim, said purchasing kuih raya remains a fixed component of her festive preparations each year, describing the practice as deeply embedded in her family's Hari Raya tradition despite rising living costs. 'For me, kuih raya is a must during Hari Raya. Since young, we have been accustomed to having festive cookies at home - whether many or few, there must be some,' she said. Firdaus mentioned managing expenses by adjusting spending in other areas, including limiting purchases of new festive attire to a single outfit on the first day of the celebration and reusing existing clothing thereafter. She added that her kuih raya spending is typically capped at around RM500 annually due to her large family, noting that while reducing such purchases would be disappointing, having even a modest selection would still preserve the festive spirit.

Centre for Market Education chief executive officer Dr Carmelo Ferlito said festive spending should not be viewed purely through the lens of consumption, as it also embodies social meaning embedded in family relationships, reciprocity, and identity. 'Households are not simply buying food, clothes or decorations; they are reaffirming belonging. Even under cost-of-living pressures, they tend to reallocate priorities rather than abandon festive spending,' he told Bernama. Ferlito said traditions and family expectations play a central role in shaping spending decisions, including hosting relatives, preparing meals, and giving duit raya, all of which carry symbolic and emotional significance.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said households today have greater flexibility in financing festive spending, drawing on income, savings, and a range of financial facilities. Such flexibility expands funding options, but does not eliminate financial risk, particularly if households rely heavily on short-term credit. Beyond traditional bank financing, consumers may also utilise the Employees Provident Fund's flexible account, buy-now-pay-later (BNPL) schemes, and Ar Rahnu services, depending on their financial circumstances.

While festive spending remains robust, Mohd Afzanizam cautioned against overleveraging, especially when households obtain financing from multiple sources. He emphasised the importance of financial literacy and prudent spending management, noting that Ramadan also offers an opportunity to practise moderation and restraint in financial decision-making. Ferlito added that a significant decline in festive spending would serve as a strong signal of weakening household expectations and confidence. Ultimately, economists said festive spending offers a window into how Malaysian households interpret their financial realities and future prospects, making Hari Raya consumption not merely a seasonal economic event, but a meaningful indicator of expectations within the household economy.