KUALA LUMPUR: There is growing optimism about the country's business environment and growth prospects among both Malaysian businesses and foreign small and medium enterprises (SMEs), according to the UOB Business Outlook Study 2024.
The study also showed that Malaysia has emerged as the most important country that businesses in Asean and Greater China want to venture into in the next three years.
UOB Malaysia chief executive officer Ng Wei Wei said that local businesses are gearing up for a period of growth as they are bullish on Malaysia's economic potential, while overseas businesses are looking to expand into Malaysia.
Ng said this is due to the country'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 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.
The annual study surveyed more than 4,000 SMEs and large enterprises across seven markets that included more than 500 Malaysian businesses. The aim is to understand the business outlook and key expectations among SMEs and large enterprises in Malaysia, Hong Kong SAR, Indonesia, Mainland China, Singapore, Thailand, and Vietnam.
It found that over seven in 10 Malaysian businesses are positive about the current business environment, with 76 per cent expecting business performance to improve this year.
The sectors that are most positive about the current business environment are industrials, oil and gas (90 per cent), and manufacturing and engineering (80 per cent).
"Seven in 10 businesses also expect to see revenue growth each year over the next three years.
"However, many businesses said they are still recovering from the overall economic slowdown and are mindful of the impact of inflation and higher operating costs," it said.
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 for new customers.
Almost 80 per cent of Malaysian businesses want to expand overseas to boost their profits, grow revenue, and build their reputation as an international business, it added.