KUALA LUMPUR (July 15): Malaysian businesses stayed pessimistic for a second straight quarter, mainly due to global trade tensions and US protectionism, a RAM survey showed.
Two-thirds of the 33 firms polled between May 29 to June 28, expect US tariffs to hurt their business, with 27% seeing a major impact. Sales and revenue are expected to be hit the hardest, followed by profit margins, supply chains, and cash flow.
To cope, 42% of firms are cutting operational costs, and 39% are adjusting prices to stay competitive.
The survey showed weaker sentiment in three key areas: sales, capital investment, and capacity use.
Rising business costs were the top concern for 80% of respondents. Other major issues included stronger competition and a weak economy (63%), and supply chain disruptions (40%).
RAM’s Business Confidence Index (BCI) fell to 40 in the second quarter (2Q) of 2025 from 41.1 in the first quarter. A score below 50 signals negative sentiment.
RAM said businesses are calling for more assistance from the government, particularly in improving access to financing and working capital. There is also strong demand for grants and direct subsidies to help mitigate the impact of ongoing trade tensions.
“While businesses remain cautious, it is encouraging to see that companies are still investing and hiring,” said RAM chief executive officer Chris Lee Wai Kit. “It is crucial that government and industry stakeholders work together to respond to the new challenges for businesses to survive and thrive.”
Source: https://theedgemalaysia.com/node/762645