Malaysia consumer: Pulse check – July 2026

Research evidence excerpt

Malaysia consumer: Pulse check – July 2026

Global Markets Research

3 August 2026Malaysia consumer

EQUITY: GENERAL CONSUMER

Pulse check – July 2026 Research Analysts

Malaysia Consumer

Start of El Niño, West Asia escalation are leading to an increase in Raghavendra Divekar, CFA - NSM

commodity prices, which should be negative for margins raghavendra.divekar@nomura.com

+603 2027 6893

Commodity price rise in July: negative for margins of consumer companies Research Associates

After the softening of commodity prices in June, commodity prices have risen in July which

Malaysia Consumershould be slightly negative for the margins of F&B (food and beverage) companies and

Amol Dongre - NSFSPLconsumer product companies, in our view. According to Bloomberg, crude oil prices rose

21% m-m in July and have remained elevated above USD85 per barrel levels. Prices of

wheat, corn, and soybean meal have increased by 13%, 8% and 4% m-m, respectively.

Prices of cocoa and coffee have risen by 2% and 4% (up 31% and 24% over the past two

months), respectively, due to weather concerns brought about by the start of the El Nino

weather event, in our view. On the other hand, prices of whole milk powder declined by 3%

m-m while egg prices have increased in July after declining since January 2026. Crude

palm oil (CPO) prices have risen 1% m-m due to the escalation of the West Asia crisis, rise

in crude oil prices, stable exports and MYR while sugar prices have also risen by 1% m-m.

Higher crude oil prices should lead to higher logistics and transportation costs for all

consumer companies in Malaysia. We see the higher prices of corn and soybean meal

being offset by the higher egg prices and to be neutral for egg producers such as QL

Resources (QLG MK, Buy).