DESPITE the economic uncertainty, there is still some degree of confidence among Malaysian business leaders regarding emerging opportunities in the current business environment.
This year has proven to be one that is filled with uncertainties, disruption and volatility which is reflected in the Malaysian business sentiment.
However, business leaders who are certain a mindset change will make a considerable difference going into next year, according to Monash University Malaysia’s School of Business head Professor Pervaiz K Ahmed.
He was commenting on the findings of the Malaysian Business Sentiment 2020/2021 which is a joint initiative between Monash University Malaysia and CPA Australia. In this annual edition, 600 respondents from various industries expressed their views current on prospects of their respective industries.
According to the survey, the apprehensive sentiment among business leaders arises from the severe disruption of supply chains and business operations as a consequence of the movement control order (MCO) exercise.
Nonetheless, business leaders remained sanguine in outlook due to the implementation of cost-cutting measures as well as the availability of various financial support programmes which help to dampen the impact of COVID-19 on businesses.
Business leaders were also hopeful that strong adherence to standard operating processes, a more sophisticated and targeted MCO as well as the roll-out of vaccines and better medical therapeutics in the coming months will help increase consumer and investor confidence.
The main concerns plaguing the local market are global economic uncertainty such as the possibilities of the economy entering into a recession, the cost of doing business and a weakening ringgit.
In the survey, political uncertainty was ranked the fourth major concern for businesses in 2020.
A majority of business leaders were of the view that the main three factors that are likely to have positive effects on businesses in the next 12 months are rising business capability, improvements in the regional economy and potential of market expansion as more economies open up due to better management of the health pandemic. – Dec 18, 2020
