DoSM: Malaysia’s biz landscape gears up for positive 3Q

The positivity is boosted by stable job market, uptick in domestic tourism and bullish prospects within the health tourism sector 

MALAYSIA’S business landscape is projected to witness an upturn in the third quarter of 2023 (3Q23), according to the Department of Statistics Malaysia (DoSM). 

The confidence indicator, a key metric reflecting business sentiment, has surged from -3.1% in 2Q23 to a positive 0.7% for the upcoming quarter, underlining a significant shift towards optimism. 

The recently unveiled Business Tendency Statistics for 3Q23, a product of the quarterly Business Tendency Survey, provides insights into the expected business performance for the next three and six months. 

DoSM chief statistician Datuk Seri Dr Mohd Uzir Mahidin stated that the positive trend is bolstered by multiple factors such as a stable job market, a noticeable uptick 

in domestic tourism and bullish prospects within the health tourism sector. 

Of particular note are the services and industry sectors, which stand as harbingers of positivity for 3Q23. The services sector has projected a robust confidence indicator of 6.1%, a notable increase from the 3.9% recorded in the preceding quarter. 

Equally noteworthy is the industry sector’s rebound, posting a confidence indicator of 1.3% after facing a dip to -2.1% in 2Q23. This resurgence in the industry sector is primarily driven by buoyant expectations within the agriculture and mining subsectors. 

In contrast, the construction sector persists in anticipating a negative business climate, reflecting a confidence indicator of -26.9%. 

Similarly, the wholesale and retail trade sector has displayed a slight improvement as it continues to uphold a pessimistic stance with a confidence indicator of -1.5%, an upgrade from -10.2% in the previous quarter. 

Shifting the focus to a six-month perspective, businesses maintain a predominantly positive outlook, albeit with a marginal dip in the net balance from 14.9% to 13.9%. 

This optimistic sentiment permeates all sectors, underscoring a collective anticipation of improved business conditions in the foreseeable future. 

Within the services sector, the net balance for favourable business projections over the next six months stands at 27%, a marginal moderation from the previous 30.1%. 

Similarly, the industry sector envisions a rosier business landscape, boasting a net balance of 9.7%, albeit slightly lower than the 15.6% recorded previously. 

Akin to their counterparts, the wholesale and retail trade sector and the construction sector also align with positive sentiments for the latter half of 2023. 

The wholesale and retail trade sector showcases an enhanced net balance of 7.2%, supported by an upbeat outlook within the whole-sale trade subsector. 

Meanwhile, the construction sector foresees a positive business environment, with a net balance of 2.6%, indicating a marked improvement from the previous 7.7%. — TMR / pic MUHD AMIN NAHARUL


  • This article first appeared in The Malaysian Reserve weekly print edition