KUALA LUMPUR (Oct 16): Malaysia’s business and consumer sentiment have fallen in the third quarter of 2018 (3Q18) compared to 2Q18, according Malaysian Institute of Economic Research (MIER).

According to the survey, the Consumer Sentiments Index (CSI) slipped by 25.4 points to 107.5 points, from the 132.9 points recorded at last quarter (2Q18). 

Meanwhile, the Business Conditions Index (BCI) fell 7.5 points to 108.8 points in 3Q18, from 116.3 points in 2Q18. 

At a press conference on the Malaysian economy's third quarter outlook today, MIER executive director Emeritus Professor Dr Zakariah Abdul Rashid said despite the business and consumer sentiment in 3Q falling quarter-on-quarter(q-o-q), both indexes are still above the demarcation level of 100-point threshold of optimism.

Commenting on the decline of both sentiments, Zakariah said: “Data showed in previous quarter are overreacting response from the sources; this was due the change in new government — Pakatan-led government defeated the Barisan Nasional, first time in our history in the 14th general election (GE14).”

Notwithstanding a downbeat sentiment as compared to the previous quarter, Zakariah said consumers are still positively optimistic compared to the same quarter of last year, pertaining to their current incomes, expected incomes and employment outlook.

On business sentiments, Zakariah said businesses are still optimistic about the current business environment. This supported by the increase in indices for sale, new domestic orders, as well as new export orders respectively.