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MIER: Optimistic business sentiment

By November 27, 2024November 28th, 2024No Comments

Business confidence for the fourth quarter of 2024 (4Q24) is positive, with the Business Confidence Index (BCI) approaching 105 points in the third quarter of 2024. Free pic

KUALA LUMPUR: Business confidence for the fourth quarter of 2024 (4Q24) is positive, with the Business Confidence Index (BCI) reaching nearly105 points in the third quarter of 2024 (3Q24).

The Malaysian Institute of Economic Research (MIER) said the key drivers for the outlook include stable production and sales, improved employment levels, increased wage costs, rising investments, and enhanced efficiency in capacity utilisation.

“Business outlook for the next three months remains positive, with most firms optimistic due to Malaysia’s favourable image.

“The index highlights positive trends in employment and sales, signalling resilience and strong recovery potential,” it said in a survey report.

MIER noted that there is a steady trend in production, with the manufacturing sector demonstrating a stable trend.

“Over 70 per cent of the respondents reported a stable and positive trend. The survey revealed that 20 per cent of firms involved in the export markets presented a steady trend.

“Firms operating in the domestic market environment showed a rising trend, with 10 per cent of firms reporting an increase in their production.

“Over 60 per cent of the firms that were involved in both domestic and export markets presented a stable production volume,” it adds.

The institute highlighted a growing trend in investment, with a year-on-year increase of 18 points, reaching 68 in 3Q24 compared to 50 in 3Q23.

They added that more than 70 per cent of firms operating in domestic and export markets reported stable investment levels for their companies.

“13 per cent of firms that operate in domestic markets also reported a stable investment level for their companies.

“The increase was driven by sectors such as nonmetallic mineral products and other manufacturing, repair & installation of machinery and equipment,” it added.

This article first appeared in New Straits Times, Business Times on November 27, 2024