KUALA LUMPUR – Malaysian businesses are coping relatively well despite current challenges, and are expecting to return to pre-Covid-19 profitability levels by the end of 2022.
HSBC’s global survey "Navigator: Now, next and how", which surveyed 200 companies in Malaysia, reveals that 76% of them expect to return to pre-Covid-19 profitability levels by the end of 2022, while 6% are already ahead of their own pre-Covid-19 level of sales.
HSBC Bank Malaysia Bhd chief executive officer Stuart Milne said the resurgence of Covid-19 cases, decline in consumer demand and protectionism have not dampened the inclination of most businesses here to invest in growth.
“Malaysian businesses remain optimistic despite the unprecedented year. About 74% of Malaysian businesses have undergone changes in the last 12 months and looking ahead, Malaysian businesses view innovation and collaboration as the top two characteristics of a successful future business,” he told a virtual media briefing on the survey today.
This latest report by HSBC gauges business sentiment and expectations on trade activity and business growth, and surveyed more than 10,000 companies across 39 markets in the world, including 200 companies in Malaysia.
He said the survey data revealed that, overall, Malaysian businesses are more positive than their regional peers and are coping relatively well with the current challenges.
The proportion of Malaysian businesses (74%) projecting growth over the next year is also well above the average for the Asia-Pacific region (60%), with the top three drivers of business growth including increased domestic demand, expanding to new digital platforms and channels, and introducing new products and services.
Milne said businesses in Malaysia also have an optimistic outlook when it comes to international trade, with 80% of companies expecting their international trade prospects over the next one to two years to be positive.
Given the recent signing of the Regional Comprehensive Economic Partnership (RCEP) traded agreement, the bank expects to see an increase in intra-Asian trade, which is already larger than Asia’s trade with North America and Europe combined.
He said this increase will continue to power global economic growth and pull the economic centre of gravity towards Asia. – Bernama, December 1, 2020
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