Economic outlook: Malaysia starts to see light at the end of the tunnel
- Political uncertainty compounded worries associated with the pandemic to make 2020 an extremely challenging year for business, but glimmers of hope are now beginning to show
Despite a tumultuous year, businesses are beginning to look towards a brighter future.
According to Dun & Bradstreet Malaysia’s Business Optimism Index (BOI), optimism rose +0.50 percentage points to -12.83 percentage points in the fourth quarter of 2020, from -13.33 percentage points in the previous quarter.
The study draws on six business indicators to reach its conclusion, namely volume of sales, net profits, selling price, inventory level, employees and new orders. Four of the six indicators climbed on a quarter-on-quarter basis, with only selling price and inventory level dipping.
“The improvement in consumer confidence and rebound in manufacturing activities over the last couple of months are signs of gradual recovery in certain sectors of the Malaysian economy,” said Audrey Chia, the chief executive officer of Dun & Bradstreet (Malaysia) Sdn. Bhd.
“However, it is still premature to predict if sentiments will continue to experience an uptrend as the global economy is still reeling from the impact of the Covid-19 pandemic.”
Fung Siu, principal economist at The Economist Intelligence Unit (The EIU), believes an economic recovery is around the corner.
