MALAYSIAN businesses are urging the government to enhance access to financing and working capital support as they contend with mounting operational challenges, according to a recent survey by RAM Holdings Bhd.
In a statement released today, the credit rating agency said direct financial assistance, such as grants and subsidies, is also in high demand as companies seek relief from the impact of global trade disruptions.
“The latest RAM-CTOS Business Confidence Index (BCI) reflects increasing pressure on businesses in Malaysia arising from rising costs, intensifying competition, and external trade shocks, including tariffs imposed by the United States,” it said.
RAM's Group CEO and Executive Director Chris W\.K. Lee said that although business sentiment remains cautious, it is encouraging to see that companies are continuing to invest and hire.
He added: “The government and industry stakeholders must work together to respond to these emerging challenges, so that businesses can remain resilient and thrive.”
The Q2 2025 survey, conducted from 29 May to 28 June and involving 33 firms, focused on the effects of US tariffs on Malaysian goods.
“Approximately two-thirds of the firms surveyed anticipate negative repercussions from the tariffs, with 27 per cent expecting significant adverse effects, and a further 18 per cent anticipating moderate or minor impacts,” RAM stated.
Sales and revenue topped the list of areas most likely to be affected, followed by profit margins, supply chain operations, and cash flow.
In response, the survey found that companies are implementing cost-focused strategies to mitigate the impact, with 42 per cent reducing operational expenditure and 39 per cent adjusting pricing strategies to remain competitive. - July 15, 2025
