This article first appeared in The Edge Financial Daily on May 9, 2017

KUALA LUMPUR: Economic confidence in Malaysia jumped four points to 66 in the first quarter of 2017 (1Q17), following a significant 9.4-point increase in 4Q16, the latest Young Presidents’ Organization Inc (YPO) Global Pulse survey revealed.

The increase is similar to that witnessed by Indonesia, Singapore, Thailand, the Philippines and Vietnam.

“For the second consecutive quarter, economic sentiment among the emerging economies in Asia saw a healthy improvement as global commodity prices continued to rebound,” said YPO in a statement yesterday.

“It’s positive to see that business leaders in Asia remain optimistic about the economic climate and the potential for growth, despite uncertainty surrounding the stability of the global economy, and the potential impact of more protectionist US economic policies,” said YPO member Wei Chen, who is also founder and chairman of Sun Capital.

“Of course, chief executives will continue to monitor economic indicators and the sociopolitical events unfolding within the region and beyond, but they will definitely believe that they can take advantage of these current economic conditions,” he added.

YPO noted that confidence among business leaders in Asia rose in 1Q17, reaching a two-year high.

“The YPO Global Pulse Confidence Index for Asia increased for the second consecutive quarter, gaining 2.1 points to 63.3,” it said.

Nevertheless, business leaders in Asia reported a more cautious outlook than their counterparts in the US but were more optimistic than chief executives in the European Union (EU).

YPO said business leaders in Asia were optimistic about short-term economic conditions. The majority (55%) predicted that the economic landscape would improve over the next six months, while only 12% felt that the climate for business would deteriorate.

The YPO Sales Confidence Index for Asia climbed 3.4 points to 70.3 in 1Q17. Almost three quarters (70%) of chief executives expected to increase turnover in the next 12 months, while only 7% predicted a decline in revenue.

When it came to hiring, the YPO Employment Confidence Index edged up 1.5 points to 58.3, its highest level since July 2015.

“A significant 40% of business leaders are expected to increase headcount over the next year, while only 8% predicted a decline in staff numbers. The majority (52%) reported that the size of their workforce would remain flat,” said YPO.

However, the YPO Fixed Investment Confidence Index slipped one point to 63.2. Despite the marginal drop, this was the highest confidence level of any region in the world. More than half (51%) of respondents expected to increase levels of fixed investment in the next 12 months, compared with only 4% who predicted reduced investment.

Globally, the YPO Global Pulse Index edged up 0.3 point to 62.5 during the quarter, its highest level since January 2015. For the second consecutive quarter, the US reported the highest level of confidence in the world, inching up 0.3 point to 64.9.

Confidence in the EU remained flat at 60.9, while Africa is the second-least confident region globally, edging down 0.3 point to 54.4.

The quarterly electronic survey, conducted in the first two weeks of April 2017, gathered answers from 1,216 YPO chief executive officers (CEOs) across the globe, including 153 in Asia.

Today, YPO has more than 24,000 members in more than 130 countries, diversified among industries and types of businesses. Altogether, YPO member-run companies employ more than 15 million people and generate US$6 trillion (RM25.98 trillion) in annual revenues.