7 August, KUALA LUMPUR – A majority of businesses in Malaysia are optimistic of the economic outlook over the next 12 months, with multinational companies expressing slightly higher optimism, according to the findings of a survey carried out by Ipsos Business Consulting.
The study also disclosed that sentiment was underpinned largely by the hope that the new government would come up with policies and initiatives which are expected to restructure and boost the economy.
“The overall positive sentiment on the economy also translated to an equally upbeat sentiment on their own business prospects, partly due to the expected improvement in the local business climate,” said Kiranjit Singh, Country Head, Ipsos Business Consulting in a statement today.
The one-month survey, carried out from June 2018 and July 2018, was participated by over 100 businesses and was done as the country approached the three months mark since the change of government in Malaysia.
Ipsos engaged with the respondents to understand their main worries, confidence in the economy and areas that they think the new government should focus on and provide an insight for policy makers to understand the views of businesses operating in Malaysia.
Stabilising the local currency and ensuring consistent policies were some of the pertinent areas which Malaysian businesses felt the government should focus on in the next two years.
“The good news is that given the smooth political transition, Malaysia’s long-term attractiveness as an investment destination and a place to do business is now stronger.
“However, the government will now need to communicate a clear, consistent and comprehensive economic policy, failing which, businesses may start losing their optimism and hold back on investment decisions, said Kiranjit, adding that the current upbeat mood among businesses could quickly turn downwards if the uncertainty continued.