KUALA LUMPUR (Oct 8): Business sentiment among Malaysian companies, especially in the agriculture, services and transportation sectors, has remained optimistic in the final quarter of 2019 (4Q19).
According to Dun & Bradstreet (D&B) Malaysia's Business Optimism Index (BOI) study, BOI rose by 2.36 percentage points to +9.58 percentage points in 4Q19, from +7.22 percentage points in 3Q19.
However, on a year-on-year (y-o-y) basis, BOI fell by 3.41 percentage points to +9.58 percentage points in 4Q19, from +12.99 percentage points in 4Q18.
"While we are expecting a relatively positive outlook ahead, there remains much uncertainty as the trade related sectors are vulnerable to external factors and heavily reliant on the global economy," said D&B chief executive officer Audrey Chia in a statement.
"Persistent trade tensions and commodity-related shocks will continue to place pressure on Malaysia to expand its export market to reduce its dependence on its existing export pool. However, the transport, agriculture and services sectors are expected to provide growth support to the economy in the near term," she added.
On prospects for 4Q19, the agriculture, services and transportation sectors have remained upbeat about the outlook while the wholesale trade sector is most downbeat.
There are six business indicators under the quarterly BOI study: sales volume, net profits, selling price, inventory level, employees and new orders. This is the 27th D&B BOI study released in Malaysia.
From the six indicators, only two have climbed upwards on a quarter-on-quarter basis for 4Q19.
The study showed that sales volume has increased visibly to +23.33 percentage points in 4Q19, from +2.5 percentage points in 3Q19, while net profit rebounded into positive territory to +9.17 percentage points in 4Q19, from -5 percentage points in 3Q19.
Meanwhile selling price moderated strongly to +0.83 percentage points in 4Q19, from +9.17 percentage points in 3Q19, and new orders also moderated slightly to +21.67 percentage points in 4Q19, from +25.83 percentage points in 3Q19.
Inventory levels, on the other hand, plunged into the contractionary zone to -1.67 percentage points in 4Q19, from +5 percentage points in 3Q19, and employment levels fell to +4.17 percentage points in 4Q19, from +5.83 percentage points in 3Q19.