KUALA LUMPUR, April 14 ― Business confidence in Malaysia strengthened in the first quarter of the year (1Q17), hitting the highest level since the second quarter of 2015.

The 1Q17 Global Economic Conditions Survey (GECS) released today said the confidence was boosted by rising commodity prices and improving trade prospects.

"The increase in commodity prices has lifted the value of the country’s exports and reduced the need for further government austerity,” it added.

However, the GECS noted that the uncertain outlook for the exchange rate remained the main concern of businesses for the quarter under review, as 70 per cent of respondents expressed worry over the issue.

"The ringgit fell sharply last year, and although it has stabilised in recent months, the country's high short-term debt means that the currency remains vulnerable to any sudden shifts in investor risk appetite,” it said.

The 1Q17 GECS was jointly carried out by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA) from February 24-March 13.

It received 1,334 responses from ACCA and IMA members worldwide, including more than 150 global chief financial officers. ― Bernama