Malaysia’s confidence in local economy sinks

Business perceptions of Malaysia's economy have taken a negative turn, according to new findings.

The Global Economic Condition Survey (GECS) reported that in the third quarter of this year, confidence in Malaysia's business market has descended from the second quarter.

"65% of respondents now believe that conditions are deteriorating or stagnating, up from 55% in the second quarter of 2013. Only 13% reported confidence gains, down from 28% in the  previous quarter," the survey found.

The study cited post-election economic blues in the country as one of the primary factors for these figures.

"A surge in perceived post-election business opportunities has now died down, and with it the temporary increase in capital available for investment. Both economic measures are now down year on year," it stated.

Additional pressures on demand and cash flow were spotted as contributing to the bleak business outlook. The report added the rise in inflation and foreign exchange volatility for the third quarter in a row also caused strain on importers.

The GECS is carried out jointly by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants.