Malaysian Businesses Most Optimistic This Year, Says Survey

Business owners in Malaysia are the most optimistic this year compared to the years before, according to Grant Thornton International Business Report (IBR) survey.

In a statement, SJ Grant Thornton said businesses in Malaysia and the Asia-Pacific were positive that an upturn in the global economy has taken place and expected more positive signs in the second half of 2010.

Its managing partner, Datuk N.K. Jasani, said in Malaysia, business owners were positive on expecting increased revenue, followed by investment in plant and machinery and profitability.

"This suggests that during the recession, businesses have become leaner and more cost-effective. This may enable them to lower prices while still securing increased revenues and crucially, profits.

"As the global economy emerges from recession, we are likely to see many businesses reaping the rewards of recession induced efficiencies to lead the way in the upturn," he said.

The IBR survey covers over 7,400 medium to large enterprises (MLEs) across 36 economies.

Now in its 18th year, it also highlights a group of ten economies where businesses are more optimistic about the outlook for their economies than International Monetary Fund forecasts might suggest.

The survey showed that optimism among MLEs around the world has bounced back to give the Grant Thornton global optimism/pessimism index for 2010 an optimism balance of 24 per cent compared to its lowest ever score of -16 per cent this time last year.

Malaysia scored 49 per cent.

It said businesses in Chile, India, Australia, Vietnam and Brazil were the most optimistic in the world, all scoring over 70 per cent.

"Close behind are South Africa, China, Singapore, Canada and Hong Kong at 60 per cent or higher.

"At the other end of the scale, many euro zone countries were pessimistic about the future," it said.

Italy, Denmark, Finland and France scored nine per cent or lower with Greece (-23 per cent) and Ireland (-42 per cent), it said.

"Spain (-56 per cent) and Japan (-72 per cent) kept their places as the most pessimistic economies in the world, although even here the figures were slightly up on last year," it said.

Jasani said the survey suggested that businesses in the giant emerging markets of China, India and Brazil were confident they could help pull the rest of the world back into growth and businesses in many other economies were equally optimistic that they not only survived this recession but well-placed to help drive the upturn.

"Strong stimulus measures implemented by our government have helped the economy but consumer spending eased and investment and trade slumped.

"Activity is now picking up as exports in the country revive, underpinning strengthening manufacturing. Growth prospects for 2010 look promising.

"MLEs contribute 81 per cent of global gross domestic product and the global business community should be encouraged by the results of this survey," he said.