KUALA LUMPUR (Oct 9): Business sentiments among Malaysian companies has dipped slightly in Q4 2018, slipping from +13.17 percentage points in Q3 2018 to +12.99 percentage points, according to Dun & Bradstreet (D&B) Malaysia’s Business Optimism Index (BOI) study.

In a statement today, D&B said that on a year-on-year (y-o-y) basis, the BOI jumped significantly from +5.52 percentage points in Q4 2017 to +12.99 percentage points in Q4 2018.

The six business indicators under the quarterly BOI study include volume of sales, net profits, selling price, inventory level, employees and new orders.

D&B said four of six indicators have climbed upwards on a quarter-on-quarter (q-o-q) basis.

It said volume of sales climbed visibly from +18.0 percentage points in Q3 2018 to +25.98 percentage points in Q4 2018

Net profits inched up marginally from +15.50 percentage points in Q3 2018 to +15.69 percentage points in Q4 2018.

Employment levels rose from +7.0 percentage points in Q3 2018 to +9.8 percentage points in Q4 2018.

Also, selling price jumped significantly from +1.0 percentage points in Q3 2018 to +7.35 percentage points in Q4 2018.

Meanwhile, both new orders and inventory levels have fallen in Q4 2018.

D&B said new orders slid from +19.50 percentage points in Q3 2018 to +17.16 percentage points in Q4 2018.

Finally, inventory levels dropped from +18.0 percentage points in Q3 2018 to +1.96 percentage points in Q4 2018.

The study showed that For Q4 2018, the manufacturing and services sectors have emerged as the most upbeat sectors while the construction sector is least optimistic.

D&B said as with Q3 2018, the manufacturing sector is most optimistic with 6 indicators in the positive zone.

“However, 4 of six indicators have moderated downwards,” it said.

Elsewhere, the services sector has also emerged as one of the most optimistic sectors with all 6 indicators in the positive zone.

D&B said 4 of six indicators showed improvements from the previous quarter.

The study revealed that despite remaining as one of the most optimistic sectors, the financial sector saw downward moderations in 3 indicators.

The BOI said the wholesale sector also displayed moderations in its outlook for Q4 2018 with 4 indicators moving downwards.

The construction sector is the least optimistic sector with only 2 indicators in the positive zone for Q4 2018.

“However, 3 indicators have moved upwards in Q4 2018,” said D&B.

The transportation sector has remained downbeat with only 2 indicators in expansionary zone.

As compared to the previous quarter, the sector saw increases in 4 indicators.

Dun & Bradstreet (Malaysia) Sdn Bhd chief executive officer Audrey Chia said for the final quarter of 2018, there were stronger signs of moderation across key sectors such as manufacturing, finance and wholesale trade.

She said the local economy will continue to be exposed to global uncertainties on the external front including rising trade tensions and weaker public investments on major infrastructure projects.

“However, we expect the outlook among Malaysian firms to remain relatively healthy in light of sustained improvements in domestic demand and growth among the key ASEAN economies,” said Chia.