KUALA LUMPUR: Small Medium Enterprise Development Bank Malaysia Bhd’s (SME Bank) sentiment index for micro, small and medium-sized enterprises (MSMEs) in the first half of 2025 signals continued confidence despite a moderating outlook.
In a statement yesterday, SME Bank said its SME Sentiment Index registered a solid 55.2, reflecting continued optimism among entrepreneurs nationwide, even as they anticipate economic and financial challenges from US tariffs.
“This marks a slight moderation from 55.8 in the previous half. The index remains well above the neutral 50 level, indicating steady confidence despite a softening from the strong post-Covid rebound seen in earlier surveys,” it said.
The SME Sentiment Index survey, conducted between January and April 2025, reached a record 2,007 respondents from 39 sectors across all business sizes.
Acting group president and chief executive officer Datuk Mohammad Hardee Ibrahim noted more cautious optimism among entrepreneurs, citing softer expectations around sales, expansion and hiring.
“Although short-term sentiment has softened, Malaysia remains on a steady growth path supported by structural reforms, high-quality investments, and a focus on resilience and shared prosperity,” he said.
Meanwhile, SME Bank chief economist Lynette Lee Li Qing said the index serves as a timely barometer of entrepreneurial sentiment, suggesting Malaysia’s overall economy will continue to expand in 2025, albeit at a modest pace.
“The World Bank recently revised Malaysia’s gross domestic product growth forecast down to 3.9%, alongside a cut in global growth due to heightened uncertainties arising from trade tension.”
Source: https://www.thestar.com.my/business/business-news/2025/06/20/sme-confidence-persists-despite-softening-outlook