MALAYSIAN BUSINESSES AMONG WORLD’S MOST CONFIDENT ON TRADE GROWTH -- HSBC SURVEY

KUALA LUMPUR, Dec 1 (Bernama) -- Malaysian businesses are among the most confident globally about expanding international trade, with 92 per cent expecting growth over the next two years, surpassing the global average of 87 per cent, according to HSBC’s Global Trade Pulse Survey.

HSBC Malaysia’s head of global trade solutions Shreyas Krishna said Malaysian businesses are showing higher-than-average optimism, preparedness, and certainty about trade growth and policy after successfully navigating a period of high inflation and elevated interest rates.

“This trend shows that businesses are continuously adjusting to an evolving trade and tariff landscape.

“Companies now have a major opportunity to reinvent themselves and amplify their growth potential thanks to the immense possibilities offered by international trade,” he said in a statement.

According to the survey, the country stands out as a clear beneficiary of the current dynamic trade environment, with 51 per cent of firms reporting a positive impact from tariffs and trade uncertainty to date, an eight percentage point increase from six months ago, with expectations for the next two years climbing to 69 per cent.

It said Malaysian companies are increasingly shifting towards intra-Asian trade, with 64 per cent more likely to deepen reliance on Southeast Asia, compared with the global average of 34 per cent.

“Additionally, 47 per cent of these firms plan to increase their reliance on East and North Asia, while 42 per cent aim to enhance their connections with South Asia.

“This trend underscores a growing focus on intra-Asian trade as firms prioritise regional partnerships and opportunities alongside other global trade corridors,” it said.

The survey said that to strengthen resilience, companies are implementing a range of strategies to address trade risks and maintain competitiveness, with 49 per cent of Malaysian businesses revising pricing strategies, 47 per cent developing risk management plans, and 43 per cent diversifying revenue streams.

“The survey also indicates that 48 per cent of businesses are engaging in inventory buffering to manage supply disruptions by increasing stock levels, while 42 per cent are diversifying their suppliers to expand their network across different regions.

“Investment in supply chain visibility tools is also a priority, with 44 per cent of companies having already made such investments and another 45 per cent planning to do so,” it said.

Moreover, since 2024, 68 per cent of businesses have experienced changes in working capital requirements due to trade and tariff uncertainty, it noted.

Despite these measures, Malaysian firms remain highly exposed to external market forces, as 67 per cent attribute revenue changes to tariff adjustments, 53 per cent to pricing changes and 52 per cent to exchange rate fluctuations.

As trade conditions grow more complex, companies are increasingly seeking external expertise, looking for guidance on expansion or supply chain realignment, requiring crisis planning and resilience support, and needing assistance with compliance, tariffs and regulatory matters. 

The HSBC survey includes feedback from 6,750 decision makers across 17 markets, including 250 Malaysian-based companies.

-- BERNAMA