KUALA LUMPUR: Businesses are firmly optimistic about their three-month outlook, in accordance with RAM-CTOS Business Confidence Index (BCI) survey for the second quarter (Q2) 2022.
“The overall index clocked in at 65.0, up from 55.4 recorded in the preceding quarter and is well above the threshold of 50 which indicates positive sentiment,” it stated in an announcement.
All different sub-indices tracked additionally confirmed positive momentum.
“It is not all smooth sailing, however, as over 80% of the 116 respondents
polled are reporting rising cost pressures which could cap business recovery,” RAM stated.
The RAM-CTOS BCI is a complete survey collectively carried out by RAM and CTOS. The was carried out from 9-27 May, 2022.
According to the survey, the rising cost of doing enterprise stays the highest hurdle this quarter, cited by 83% of companies, up from 72% in 1Q22.
The share of companies citing labour points additionally climbed sharply to 54% in 2Q 2022 from 43% beforehand.
“These challenges are particularly pronounced among manufacturing firms amid current spiralling input prices, supply chain disruptions and the prolonged foreign labour squeeze in Malaysia,” it stated.
The survey additionally famous about 60% of respondents – the bulk comprising SMEs and micro companies – cited a necessity for extra financing in the following six months to fund progress.
These similar companies reported extra hurdles to safe further exterior financing. More than 40% of SMEs and micro companies have had their financing purposes rejected in the final six months, in comparison with simply 10% for company respondents.
It is, nonetheless, noteworthy that over 90% and 60% respectively of company and SME respondents have efficiently raised funds from banks and different sources in the final six months.
The agency optimism noticed this quarter factors towards a powerful enterprise restoration this 12 months.
However, most companies face labour shortages and escalating enter prices from excessive commodity costs and provide chain disruptions.
The imposition of a better minimal wage and rising rates of interest additional compound the challenges confronted by smaller companies with fewer sources.
The survey additionally famous that in opposition to these headwinds, policymakers and monetary establishments are urged to proceed to help SMEs and micro-firms by facilitating entry to financing and different market initiatives.
This will make sure the nation’s financial restoration stays on monitor this 12 months.
