KUALA LUMPUR: Malaysians are willing to fork out 9% more to usher in the Year of the Cockrel based on the annual United Overseas Bank (Malaysia) Bhd Chinese New Year (CNY) survey.

It said on Friday that of their average budget of RM4,201 for the CNY festivities, (which is an increase from RM3,846 in 2016, the respondents said they would set aside RM1,008 to food, an increase of 14% over 2016.

“This is despite the higher cost of food this year. Forty-three per cent of this amount will go towards celebrating a traditional reunion dinner with loved ones,” it said.

Travelling to be with loved ones is also an important focus for CNY. Respondents travelling overseas say they expect to spend an average of RM2,334, up 7% from a year ago (RM2,181) while those visiting family and friends within Malaysia expect to spend RM1,263, up 66% from 2016.

UOB Malaysia economist Julia Goh said the larger food and travel budgets could be because consumers are not compromising on CNY traditions despite higher cost of living pressures.

“On top of the higher price of staples such as sugar, vegetable oils and dairy products due to the increase in global food prices and the weaker ringgit, we are expecting a seasonal increase of up to 50% on some food items because of the CNY,” Goh said.

“However, feasting on food and travelling to visit friends and family are central to the way Malaysians bond with one another, especially during festive occasions such as the CNY. It is therefore not surprising that Malaysians continue to place a priority on such celebrations despite the economic environment,” Goh said.

She said while respondents are prepared to spend more this CNY, majority of those receiving red packets said they intend to save the money (73%), while 25% said they will invest it.

More than 90% of respondents receiving red packets on behalf of their children will deposit the money into their child’s savings account, she added.

The UOB Malaysia survey, conducted by Ipsos, interviewed 500 people in Malaysia aged between 18 and 55 on the behaviours and attitudes for the 2017 CNY. The survey was conducted from November to December 2016.