Business sentiment in Malaysia continued to improve in Q2: Dun & Bradsheet

PETALING JAYA: Business sentiment among Malaysian firms continued on an uptrend in the second quarter of 2018 (Q2’18), with the Business Optimism Index (BOI) rising to +12.58 percentage points in from +7.25 percentage points in Q1’18, according to Dun & Bradstreet Malaysia.
On a year-on-year (y-o-y) basis, the BOI climbed from +3.07 percentage points in Q2’17 to +12.58 percentage points in Q2’18.
Dun & Bradstreet said in a statement that five of six indicators have risen on a quarter-on-quarter (q-o-q) basis, except for inventory levels, which fell moderately from +8.0 percentage points in Q1’18 to +3.50 percentage points in Q2’18.
In Q2’18, the manufacturing, services and wholesale sectors were the most optimistic with all six indicators in positive territory.
However, the construction sector is least optimistic with only two indicators in the expansionary zone for Q2’18.
Dun & Bradstreet (Malaysia) Sdn Bhd CEO Audrey Chia said the positive indicators are reflective of broad-based growth across a range of diversified sectors.
“Manufacturing and wholesale have in particular benefited from sustained global demand for semiconductors and stronger export growth. Sentiments within the construction sector have however remained muted due to the latent problems plaguing the sector from foreign labour shortages, rising minimum wages and late payments.”
She expects sentiments to remain positive in the near term supported by budget sweeteners, including investments in schools, hospitals and rural infrastructure ahead of the general election and its relative ease of conducting cross-border trades.