Malaysia’s business confidence weakens in Q3 due to pandemic

Operators of businesses in Malaysia are more pessimistic in the third quarter due to the severe and prolonged COVID-19 pandemic, an official survey showed on Thursday.

The Department of Statistics Malaysia (DOSM) said in its Business Tendency Report that the confidence indicator further dipped to minus 21.3 per cent in the quarter under review as against minus 3.1 per cent in the preceding quarter.

“Within the sectors covered, all sectors anticipate unfavourable business conditions for the third quarter in light of severe and prolonged COVID-19 pandemic in this country,” it said.

According to DOSM, the confidence indicator of the wholesale and retail trade sector plunged to a negative trajectory with minus 39.4 per cent as compared to 5.6 per cent in the second quarter.

Meanwhile, the industry and services sectors indicated more pessimism with confidence indicators dropping to minus 11.0 per cent and minus 22.8 per cent respectively in the third quarter, from minus 1.5 per cent and minus 6.1 per cent recorded in the previous quarter.

Concurrently, the construction sector also anticipates that business situation will recede in third quarter with minus 45.0 per cent as against minus 30.5 per cent recorded in the past quarter. (Xinhua/NAN)