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KUALA LUMPUR: The first-of-its-kind comprehensive generational spending report on Gen Z – which makes up 25% (2 billion) of the world’s population, revealed that their global spending power is projected to reach US$12 trillion (RM56.53 trillion) by 2030. This potentially makes them the wealthiest generation in every region of the world and are set to be the youngest generation to overtake Boomer spending by then and are expected to contribute over US$9 trillion (RM42.39 trillion) in global spending by 2034, more than any other generation. According to a statement, the ‘Spend Z’ report uncovers precisely what companies seeking to secure pathways to growth need to urgently and intimately understand about Gen Z, including their preferences, spending habits, values, priorities as well as how and where they shop. The takeaways from the report also unveiled that Gen Z demands authenticity as they are more interested in authentic relationships with influencers and brands. ‘Being true to yourself’ is the number one ranked description of success for the generation, globally. In addition, their in-store purchases make up almost 50% of their share of dollars and is higher than every generation before them, even though Gen Z begins their shopping journey online, ranks online reviews from other shoppers as the most important factor when shopping and is heavily influenced by social media. Gen Z will become the highest consumer spending class in many regions and 30% of the global workforce in 2030, whereby North America, Europe and Asia Pacific (APAC) will continue to dominate the majority of spending with APAC becoming increasingly important. Additionally, the report finds that overall Gen Z is health conscious and sustainable and responding to that, NIQ also expects NIQ Better For, a classification leveraging the company’s proprietary algorithm to identify brands through produce characteristics, positioning, sales and distribution, products to continue to grow faster than conventional products. This category includes products that are ‘better for’ the consumer, the environment and society currently small brands are younger generations driving 62% of the growth in this category. — BERNAMA

KUALA LUMPUR: FGV Holdings Berhad (FGV) had concluded its 16th Annual General Meeting (AGM) on a triumphant note, marking it as a resounding success. The virtual gathering, under the leadership of FGV Chairman, Tan Sri Rastam Mohd Isa saw the participation of 1,853 shareholders and proxies, all of whom unequivocally endorsed the nine resolutions presented, signifying a unified commitment to FGV’s strategic direction. During the AGM, the audited financial statement was received for the financial year ending 31 December 2023, along with the reports of the directors and auditors. The decision to distribute a significant dividend of RM109.44 million, translating to 3 sen per share, exemplifies FGV’s balanced approach to capital allocation, ensuring that shareholders are duly rewarded while retaining sufficient internal resources to fuel the Group’s ambitious growth trajectory. Reflecting on FGV’s accomplishments in the past year, Tan Sri Rastam said, “FGV demonstrated resilience and determination, navigating challenges while forging a strategic direction. FGV’s commitment to sustainability and ethical growth has benefited FELDA settlers and independent smallholders, vital to their fresh fruit bunch (FFB) supply chain. “Beyond business goals, FGV’s initiatives aim to empower communities and integrate sustainability into operations. We persist in aligning business practices with social innovation, ensuring ongoing progress, growth, and sustainability.” Meanwhile, its Group Chief Executive Officer, Dato’ Nazrul Mansor added, “FGV sustained profitability amidst market challenges, capitalising on new prospects for sustainable growth. By intensifying the execution of our strategic thrusts, we aimed to achieve business objectives, enhance efficiency, and fortify our growth potential. “Progressing into the second stage of FGV’s Sustainability Strategy, we focused on integrating sustainability practices at the operational level. Additionally, governance initiatives were implemented to bolster transparency, accountability, and operational efficiency.” Such efforts, he emphasised, are integral to FGV’s overarching mission of fostering sustainable growth while simultaneously creating enduring value for all stakeholders. As FGV charts a course towards a future defined by sustainability, innovation, and inclusive growth, its steadfast commitment to excellence and ethical leadership serves as a beacon of inspiration for industries far and wide.

KUALA LUMPUR: Malaysia is expected to benefit from the electronics sector recovery in the second half of the year (2H24), given its position further down the electronics value chain. The Institute of Chartered Accountants in England and Wales (ICAEW) said in a statement that the electronics sector is a bright spot for Southeast Asia’s economy, with the region projected to grow by 4% in 2024 and 2025. “However, this is below the pre-pandemic average of 5% in the 5 years prior, largely due to expected challenges in domestic consumption as interest rates remain higher for longer,” it noted. The association said electronics-focused exporters in Southeast Asia gained a better foothold in the first quarter of this year (1Q24), in large part due to the bottoming out of the electronics sector. “The recovery in global semiconductor sales, which saw a 15.3% year-on-year (YoY) increase in 1Q24 has particularly benefited Vietnam, where export growth soared to an estimated 16.8% YoY. “On a seasonally adjusted basis, Singapore also saw a rebound in non-oil domestic exports in April with an estimated 9.4% month-on-month (MoM) growth, marking a positive turn after 2 consecutive months of decline,” it said. Meanwhile, on domestic consumption in the region, ICAEW said domestic consumption in Southeast Asia was more resilient than expected in 1Q24, but it is unlikely to drive growth in the coming quarter as tight monetary policy in the region is expected to restrain consumer spending. “The persistent weakness in local currencies against the US dollar is likely to limit monetary easing options for Southeast Asian central banks. “The strong US dollar, driven by the US Federal Reserve (Fed) high interest rates prevents local central banks from cutting rates without risking further currency depreciation,” it added. The association noted that in 1Q24, Bank Indonesia was even forced to raise rates to arrest the rupiah’s decline. “The ongoing tight monetary policy means that debt servicing and borrowing costs will remain high, likely constraining private consumption. “Additionally, many consumers and businesses are continuing to consolidate as they are still recovering from the pandemic and are likely to focus on rebuilding savings or repairing their balance sheets in the short term,” it said. On the ringgit, ICAEW noted that the Malaysian ringgit encountered significant challenges in 1Q24, largely attributed to the substantial discount of the Bank Negara Malaysia’s (BNM) policy rate to the US Federal Funds rate. It opined that despite inflation remaining relatively low, hovering below 2% for the past 6 months and showing little indication of a significant increase, the currency weakness poses an obstacle to BNM’s ability to ease policy to support the economy. “This challenge persists until the Fed initiates rate cuts, anticipated to occur in the 3Q, alleviating pressure on the ringgit and potentially enabling policy rate adjustments,” it added. — BERNAMA