German business leaders upbeat on Malaysia’s economy under new govt

A general view of the Kuala Lumpur skyline. For Malaysia, of the companies surveyed, 33 per cent expected to see their investments increase significantly in Malaysia. — Picture by Hari Anggara
A general view of the Kuala Lumpur skyline. For Malaysia, of the companies surveyed, 33 per cent expected to see their investments increase significantly in Malaysia. — Picture by Hari Anggara

KUALA LUMPUR, June 27 — A survey by the German Chambers Asean Business Council (GCABC) revealed an emboldened optimism among German business leaders for an improved economy under the new “Malaysia Baharu” government.

GCABC, consisting of the seven German Chambers of Commerce and Industry (AHKs) in the Asean region, namely in Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, had conducted the survey using a sample size based on Germany’s vast network of 2,600 member companies in seven countries across Southeast Asia.

In a statement today, it said the results of the AHK World Business Outlook 2019 survey captured the hopeful confidence of German investors regarding developments in the Southeast Asian region, with the majority of this year’s participants having a cautious view on future market positions.

The chambers said political stability and talent shortage were cited as the top external factors impacting overall investment decisions.

It said the survey also revealed the risk-averse attitudes of German businesses towards a host country’s inflation rate, corruption levels, taxes and financial access.

For Malaysia, of the companies surveyed, 33 per cent expected to see their investments increase significantly in Malaysia.

Daniel Bernbeck, chief executive officer of the Malaysian-German Chamber of Commerce and Industry (MGCC), said the German economy mainly consists of small and medium enterprises (SMEs).

“Many of these companies are family-owned and require stable, reliable and predictable frameworks and conditions.

“This is why, over the years the questions on political and economic factors as well as political stability and rule of law in the respective markets always form the most important sentiments for business people,” he said.

Germany’s vast worldwide network of Chambers of Commerce and Industry draws its strength from the direct outreach to the businesses of all sectors, he said.

“By reflecting the plain views and expectations of private sector entrepreneurs, this survey honestly portrayed where they have concerns as well as where they see opportunities.

“It serves other business folks as well and could be useful for many members of the public sector, administration as well as governments,” Bernbeck added. — Bernama