KUALA LUMPUR, Jan 10 — Corporations and small-medium enterprises (SMEs) are optimistic about the state of business over the next six months, according to a new survey.
The RAM Business Confidence Index, released by RAM Holdings Berhad and RAM Credit Information Sdn Bhd, showed that corporations were more positive, with a score of 56.9, than SMEs that came in at 53.2.
Scores above 50 indicate a positive outlook while those below 50 indicate a negative outlook.
It also said that a majority of the almost 3,000 firms surveyed — 79.3 per cent of SMEs and 62.5 per cent of the corporations — were profitable.
“The overall business confidence indices for both SMEs and corporates, indicate healthy economic prospects over the next six months,” RAM Holdings Group CEO Datuk Seri K Govindan said.
The indices are measured according to key areas such as turnover, profitability, hiring, capital investment, capacity utilisation and access to bank financing.
The survey, conducted between September to November 2016, covered five main industry sectors for both SMEs and corporations including retail, manufacturing and construction.
All five industry sectors for both corporations and SMEs registered indices above 50, it said.
The lowest score belonged to the retail sector among SMEs, which are affected by the “decline in discretionary spending”.
It scored 51.9 on the confidence index.
Corporate manufacturing sector was the most positive, registering a score of 56.5.
RAM Holdings also said that the business confidence index from now on will be released on a quarterly basis.
Yesterday, Prime Minister Datuk Seri Najib Razak said that Malaysia’s economy can keep growing in 2017 thanks to recovering commodity prices and a less volatile ringgit.
