Malaysian businesses remain hopeful for Q1 2025, with confidence indicator at +3.2%

The services, construction, and industry sectors anticipate better business conditions, in the first quarter of 2025.

Malaysian businesses are forecasting an encouraging start to 2025, according to the latest Business Tendency Statistics released by the Department of Statistics Malaysia (DOSM).

The confidence indicator, which is based on surveys asking businesses about their current economic situation and future expectations, stands at +3.2% for the first quarter of 2025. While this marks a slight decrease from +4.8% in the previous quarter, the overall outlook remains positive, reflecting businesses' continued confidence in the months ahead.

Sector breakdown:

• Services sector: Confidence rose to +13.5% from +13.1% last quarter.
• Construction sector: Confidence increased to +12.5% from -10.0% in Q4 2024.
• Industry sector: Remains positive with confidence indicator of +0.2%, compared to +1.2% in the previous quarter.

Not all sectors are equally optimistic. The Wholesale and Retail Trade sector anticipates a more challenging quarter, with the confidence indicator dropping to -8.1% from +5.5%. However, the Retail Trade sub-sector remains in positive territory at +4.1%, though lower than the +11.9% recorded last quarter.

Looking ahead to the first half of 2025

For the first six months of 2025, businesses continue to expect growth, although at a slower pace. The net balance stands at +11.9%, compared to +13.8% recorded previously.

• Services sector: Sentiment remains strong with a net balance of +27.5%.
• Construction sector: Anticipates a positive business outlook with a net balance of +12.5%, down from +16.0%.
• Industry sector: Businesses forecast a positive net balance of +6.8%, up from +4.3%.
• Wholesale and Retail Trade sector: Confidence is neutral, reflecting mixed views within the sector.

While some sectors face headwinds, the overall outlook shows that Malaysian businesses are standing firm and remain optimistic

READ MORE: Malaysia’s labour market outlook remains positive in 2025, following performance in Q4 2024: DOSM