SME SENTIMENT INDEX 2H 2025 SIGNALS STRONGER ECONOMIC MOMENTUM AND RISING CONFIDENCE AMONG MSMES

KUALA LUMPUR, Dec 22 (Bernama) -- Small Medium Enterprise Development Bank Malaysia Berhad (“SME Bank”), a subsidiary of Bank Pembangunan Malaysia Berhad (“BPMB”) Group has released the findings of its SME Sentiment Index for the second half of 2025 (“2H 2025”), signalling a stronger economic momentum and rising optimism across the country’s MSME landscape. The overall Sentiment Index rose to 56.8, compared with 55.1 in 1H 2025, reflecting improved expectations on economic conditions, sales prospects, expansionary activities and employment despite elevated external pressures.

SME Bank’s Relief President and Chief Executive Officer, Samad Majid Zain said “Malaysian MSMEs continue to demonstrate remarkable resilience, supported by stronger economic fundamentals and opportunities ahead. The rise in the Sentiment Index with 68% of respondents expecting higher sales and 53% planning to expand their workforce, reflects a more positive operating climate even as the business community navigates higher external import tariffs, wider Sales & Services Tax (“SST”) application and adjustments in electricity costs. The strongest optimism is recorded among manufacturing segments, where up to 89% of businesses anticipate growth. These trends signal that MSMEs are preparing for increased demand and renewed investment activity. SME Bank will continue to support MSMEs in strengthening their financial position, improving productivity and enhancing competitiveness as Malaysia advances toward sustainable economic growth.