BUSINESSES FORESEE ENCOURAGING ENVIRONMENT IN 1Q 2025 - DOSM

KUALA LUMPUR, Feb 27 (Bernama) -- Businesses are anticipating a favourable business environment in the first quarter of 2025 (1Q 2025), underpinned by a positive confidence indicator of 3.2 per cent compared to 4.8 per cent in the previous quarter, according to the Department of Statistics Malaysia (DOSM).

It noted that the services, construction, and industry sectors are the three sectors that expect better business conditions in 1Q 2025.

“The business confidence for the services sector remains positive, with the confidence indicator increasing to 13.5 per cent from 13.1 per cent in the preceding quarter.

“Simultaneously, sentiments within the construction sector have reversed to positive, posting 12.5 per cent compared to −10.0 per cent in the fourth quarter of 2024 (4Q 2024),” it said in a statement on the business tendency statistics for 1Q 2025.

Meanwhile, the industry sector continues to be optimistic about business performance, with a confidence indicator of 0.2 per cent for the quarter under review, against 1.2 per cent in 4Q 2024.

However, DOSM noted that businesses within the wholesale and retail trade sector expect a pessimistic business outlook as the confidence indicator fell to −8.1 per cent in 1Q 2025 from 5.5 per cent in 4Q 2024.

Nonetheless, the retail trade sub-sector remains on a positive trajectory, recording 4.1 per cent compared to 11.9 per cent previously.

“Looking ahead, the business outlook for the first half of 2025 remains upbeat despite moderating, with a net balance of 11.9 per cent against 13.8 per cent previously, with all sectors registering positive results except for wholesale and retail trade, which shows a neutral opinion.

Sentiments within the services sector for January to June 2025 remain positive with a net balance of 27.5 per cent, the same as the previous quarter, while the construction sector also foresees an optimistic business outlook, with a net balance of 12.5 per cent, down from 16.0 per cent for the same period before.

The department also noted that, concurrently, the industry sector anticipates favourable business conditions, with a net balance of 6.8 per cent compared to 4.3 per cent previously.

It added that the wholesale and retail trade sector shows neutral confidence regarding business expectations for the next six months, influenced by mixed perceptions within the wholesale and retail trade sub-sectors.

-- BERNAMA