KUALA LUMPUR (Nov 11): Malaysian businesses are optimistic about growth outlook for their businesses, despite recent geopolitical developments reshaping global supply chains, a new survey revealed.

According to HSBC’s global survey named Navigator: Now, next and how, more than four in five (81%) businesses in Malaysia expect their sales to grow over the next year, which is ahead of peers globally (79%) and in Asia (77%).

The report surveys more than 9100 companies across 35 global markets in the world — including more than 202 firms from Malaysia.

Meanwhile, next year’s growth is expected to be driven by improved productivity, technological investment and entrance into new markets.

Furthermore, the survey found this sense of optimism is also evidenced by the fact that more than four out of five businesses in Malaysia (85%) feel they have positive prospects for international trade over the next two years. This is above the global level of 81% and Asian 78%.

On trade outlook, the survey found businesses in Malaysia strongly believe in the idea of trade as a force for good, believing that over the next five years, international trade will drive innovation, provide new business opportunities and improve efficiency.

It said companies feel that China (35%) and Singapore (28%) remain Malaysia’s two largest trading partners, while third-placed Indonesia has increased greatly in the last 12 months to 25%, from 19% a year earlier.

“Given the Malaysian government’s focus on attracting investments from China, the Malaysia–China linkage assumes greater importance in the larger context of trade,” HSBC said.

In the next three to five years, HSBC highlighted two-thirds (66%) of Malaysian companies still see Asia as the region offering the best prospects for growth, following with a quarter (24%) who are considering Europe and just 17% who are favourable towards North America.

It said the top five expansion markets over the next three- to five years for Malaysian companies are Singapore, China, Japan, Indonesia and the United States.

“Malaysian businesses are responding positively to changes in the global geopolitical landscape. Enhanced use of digital technology, expansion across new markets and focusing on strategic suppliers in their supply chains will ensure that they are well positioned to leverage opportunities from the changing economic landscape,” HSBC Malaysia chief executive officer Stuart Milne said in a statement. 

Meanwhile, HSBC said following new measures and initiatives for the digital economy in Budget 2020, 42% of Malaysian companies anticipates the most impact from introducing transformative technologies, a level which is considerably above global (28%) or Asia (31%).

“5G technology, artificial intelligence and robotics are the key technologies which will have the biggest future impact on their business, according to the surveyed companies. 

“They feel that adoption of these technologies will help improve the quality of products and services, improve productivity, reduce costs and improve customer experience,” HSBC said.