Consumer spending in Malaysia remained moderately strong despite increases in living costs and fuel price hikes, said Domestic Trade and Consumer Affairs Minister Mohamad Shafie Apdal.

"Steady economic growth has helped sustain the level of consumer spending reflecting the higher disposable incomes and enhanced purchasing power of consumers," Shafie said according to state Bernama news agency.

Shafie said the consumer appetite remained moderately strong in the first half of 2006, spurred by the country's robust economy.

Consumer loans and borrowings grew strongly by 15.7 percent to RM351 billion for the first half of the year, Shafie announced at the launch of the Commerce and Consumer Report for January-June 2006.

The 144-page report highlights trends and performances in domestic trade, commerce and consumerism, Bernama said.

Credit card spending also expanded by 14.8 percent to RM24.4 billion from 14.5 percent over the same period last year, according to the report.

"On the downside, however, this is something we have to watch carefully as it shows a trend towards increasingly living on credit," Shafie said.

The report noted a marginal decline in fuel consumption for the six months to June, despite increases in fuel prices while total passenger car sales saw a 2.9 percent drop to 184,606 units compared to the same period last year.