KUALA LUMPUR, Dec 25 — Inflation may be looming on the minds of many Malaysians, but it has not overly dampened the spirits of those celebrating Christmas this year.
Despite the financial challenges some families are facing, they are finding ways to come together and make the most of the holiday season, after two years of muted celebrations brought on by Covid-19.
Ahead of the festival, Malay Mail spoke to several families and businesses to gauge how people are feeling about the celebration this year, and how they are navigating rising costs.
Excitement but on a smaller scale
Decorated trees in every room, stairways lit up by fairy lights, neatly wrapped presents, and the scent of Christmas cookies and Indian snacks fills the air – Christmas has always been a grand celebration for Catherine Vasanthi Sebastian’s family.
While this year’s celebrations will continue in Catherine’s household, rising inflation and economic uncertainty have forced them to scale down on their gift-giving tradition.
“As much as I’d love to spend on my loved ones and splurge to spoil them with something they want, I really have to be mindful and cautious about my spending.
“It’s so easy to fall into debt with these ‘buy-now, pay-later’ schemes currently being pushed, so I have to be financially responsible and adhere to a good budget,” Catherine told Malay Mail, adding that she usually spends less than RM50 on gifts for friends and more for immediate family and her partner.
“We have also downsized our volume of baked goods and Indian snacks as ingredients have gotten more expensive.
“We usually like to pack bags with a mixture of all the holiday treats we made and give to all our neighbours, security guards, cleaners, and our friends and family. So, we’re forced to scale the list down a little,” she said.
But for others, the celebration is not much different.
When approached, psychology student Michelle Choong was decked out in festive gear — a Santa hat, Christmas-themed face mask, red T-shirt, and a red handbag — snapping photos of the decorations on display in Mid Valley Megamall.
“It’s the best time of the year. Lots of sales, nice decor, and good music. It’s probably the most magical occasion for me,” she said.
For Choong, Christmas celebrations are typically a small, intimate affair among close family and relatives, so, celebrations have not looked much different from previous years.
“It’s typically a family affair so I’m now with my family Christmas shopping. I’m here to get gifts, treats like gingerbread men and things like that,” she said, usually spending about RM50 to RM150 per person.
“On Christmas Eve, we will have family dinner together. There’re definitely more Christmas events this year compared to previous years, but since a big part of my Christmas is with family, that part (of home gatherings) will still be quite similar,” she said.
Every year, Claudia Chen and her husband, Paul De Belder, drive around town to look at Christmas decorations displayed in shopping malls.
The couple said Malaysia’s improving economy is evident in the mall decorations.
“We think that the economy is coming back because this mall (Mid Valley Megamall) itself compared to last year has spent much more budget on decorations,” Chen said.
“Everything is kind of back to normal and we can celebrate without restrictions,” De Belder added.
Businesses hoping for a joyful outcome
As for businesses, popular family restaurants have seen reservations rolling in since the start of the month, while gift shops’ sales have skyrocketed since the end of November.
“People have already started making reservations for Christmas since we always have a special festive menu around this time of the year.
“We’re doing half reservations and half walk-ins only. Hopefully, it will be a full house,” said Puva, a kitchen manager at popular American restaurant chain TGI Friday’s.
A shopkeeper at gift store S&J Co, Jes Wong, told Malay Mail that Christmas has always been their busiest time of the year, and this year’s sales have improved compared to last year.
“The uptake in sales started around the tail end of November. The sales of this year have been looking much better than last year.
“After all, Christmas is our busiest time of the year, since we sell a lot of Christmas decorations and items that are popular as gifts,” she said.
Catherine, who is also the owner of homegrown self-care brand Herbeevore, said customers were still careful with their spending.
The 24-year-old said that while there was higher demand from consumers for locally-made Christmas gift sets from her self-care business, her margins have been affected by the rising cost of materials.
“The business has grown a lot since last year in terms of sales. We did more market pop-ups and seasonal launches, but with the cost of ingredients increasing, I ended up retaining less profit.
“From what I observed this month, there was more demand for Christmas gift sets, especially in the (self-care, beauty) industry.
“The people have a fair amount of buying power that they’re using to explore some new choices, but at the same time, they’re being cautious around ‘unnecessary’ or ‘extra’ items because things have been very unstable here in our country,” she said, explaining that self-care products like bath scrubs are often thought of as luxuries.
She added that in the spirit of giving, her small business will be absorbing the losses for another month instead of raising prices to show gratitude for her customers.
