Businesses positive on Malaysia’s prospects – UOB survey

KUALA LUMPUR: Malaysian and overseas small and medium enterprises (SMEs), as well as large enterprises, are optimistic about the country’s business landscape and prospects, according to the UOB Business Outlook Study 2024.

The annual study revealed that Malaysia has emerged as the most important country for businesses in ASEAN and Greater China to venture into over the next three years.

UOB Malaysia chief executive officer Ng Wei Wei said the study indicates that local businesses are gearing up for growth and are bullish on Malaysia’s economic potential, while overseas businesses are looking to expand into the country.

“This is due to Malaysia’s strong economic fundamentals and attractiveness as a regional business hub, driven by the China+1 strategy, the upcoming Johor-Singapore special economic zone, the upcycle of the global semiconductor industry, and the rising adoption of sustainability among businesses and states.

“UOB Malaysia remains committed to leveraging our extensive regional network, strong sector expertise, and local market knowledge to support the growth of local businesses and facilitate more foreign direct investments and trade into the country,” she said in a statement.

Now in its fifth year, the study surveyed more than 4,000 SMEs and large enterprises across seven markets, including over 500 Malaysian businesses.

The survey aimed to understand the business outlook and key expectations among SMEs and large enterprises in Malaysia, Hong Kong, Indonesia, Mainland China, Singapore, Thailand and Vietnam.

Among the key findings of the survey, more than seven in ten Malaysian businesses are positive about the current business environment, with 76 per cent expecting business performance to improve this year.

The sectors most positive about the current business environment are industrials, oil and gas (90 per cent), and manufacturing and engineering (80 per cent).

The survey also showed that the top three priorities for local businesses in the next one to three years are reducing costs, adopting digital solutions to improve productivity, and sourcing new customers.

“Almost 80 per cent of Malaysian businesses want to expand overseas to boost their profits, grow revenue and build their reputation as international businesses.

“Businesses also want to incorporate sustainability practices into their operations to attract investors, collaborate more easily with multinational corporations with sustainability goals, and improve their brand and reputation, ” the survey reported. – BK