KUALA LUMPUR, Aug 27 — Businesses expect an improving business situation for the third quarter of 2026 (3Q 2026), with a positive confidence indicator of 5.9 per cent compared with a negative 1.8 per cent in 2Q 2026, according to the Department of Statistics Malaysia (DOSM).

In a statement today, DOSM reported that all sectors expect more favourable business performance in 3Q2026, with the industry, services, construction, and wholesale & retail trade sectors showing positive business sentiment.

In its Business Tendency Statistics for the Third Quarter 2026, DOSM noted that the positive outlook across all sectors, with an overall confidence indicator of 5.9 per cent, reflects increased confidence in external and domestic economic activities. 

The Business Tendency Statistics publication presents expectations for business performance over the next three and six months. The statistics are derived from the Business Tendency Survey, which is conducted quarterly. 

According to the department, the industry sector is turning optimistic, with the confidence indicator registering 8.2 per cent in 3Q 2026, up from negative 3.7 per cent in the previous quarter. 

The confidence indicator for the construction sector climbed to 4.1 per cent in the reference quarter, up from negative 9.5 per cent in 2Q 2026.

DOSM said the wholesale & retail trade sector also predicts encouraging performance, with a confidence indicator of 1.2 per cent, up from negative 7.5 per cent recorded in 2Q 2026.  

“The services sector expects its business performance to remain optimistic, with a confidence indicator of 5.2 per cent as compared to 6.2 per cent in the previous quarter,” it noted. 

The confidence indicator at the state level showed varied levels of business confidence, with most states recording positive readings, namely Johor (4.9 per cent), Kedah (5.1 per cent), Kelantan (2.1 per cent), Negeri Sembilan (9.4 per cent), Pahang (7.1 per cent), Penang (5.0 per cent), Perak (1.5 per cent), Perlis (5.4 per cent), Selangor (5.8 per cent), Terengganu (10.5 per cent), Sabah (3.7 per cent), Sarawak (5.8 per cent), Kuala Lumpur (9.5 per cent) and Putrajaya (0.6 per cent). 

However, Melaka (negative 3.9 per cent) and Labuan (negative 5.4 per cent) recorded pessimistic confidence indicators. 

“Looking at the business sentiment for 2Q 2026, businesses remain optimistic, with the net balance rising to 12.9 per cent from 7.9 per cent recorded from April to September 2026.

“The positive outlook across all sectors indicates favourable business conditions in the forecast period,” it added.

In terms of gross revenue, DOSM said that 31.9 per cent of businesses expect an increase in 3Q 2026, while 47.4 per cent anticipate no change and 20.7 per cent foresee a decline, resulting in a net balance of positive 11.2 per cent for the reference quarter.  

Regarding employment, 13.9 per cent of businesses expect to increase their workforce, while 78.3 per cent expect to maintain it.  

“Meanwhile, 7.8 per cent expect a reduction, resulting in a net balance of 6.1 per cent in the third quarter of 2026,” the department added. — Bernama