ASEAN KEY DESTINATIONS
Confidence in Malaysia’s economy rises
SJ Grant Thornton managing partner N.K. Jasani said the IBR also revealed that 52 per cent of Malaysian businesses were expecting higher revenue for the year ahead. Meanwhile, 42 per cent of businesses expect to invest in plant and machinery and 35 per cent expect profitability for this year.
For the global economy, according to the report which surveyed 3,200 business leaders in 44 economies, global business optimism stood at 4 per cent at end-2012, up from 0 per cent a year ago.
However, this scenario is painted quite differently for Asia, in particular for Asean nations. The Philippines is the most optimistic at 72 per cent, followed by Singapore at 26 per cent and Thailand at 19 per cent.
However, Vietnam's optimism level has dropped from 34 per cent previously to -10 per cent for the year.
The IBR reveals a more mixed picture regionally. Business optimism in emerging markets like Latin America remained stable in the past year. The Bric (Brazil, Russia, India and China) economies also remained consistently optimistic, while Asia Pacific excluding Japan saw a rise in optimism to 28 per cent from 23 per cent over the same period.
Comparatively, business optimism in North America swung from 6 per cent in the fourth quarter of 2011 and then to 52 per cent in second quarter of 2012 before declining to 1 per cent in the fourth quarter of 2012.
Meanwhile, the G7 economies saw similar swings while businesses in Europe reported a slow decline in business optimism.
“The upswing in mature economy business optimism we saw in the first half of 2012 followed pronouncements by the European Central Bank and the Federal Reserve on the level of support they were prepared to provide their respective economies. However, this confidence has dissipated over the second half of the year.
“By contrast, emerging economies have remained far less volatile. It's a fascinating trend, which drives home where the major problems in the global economy lie at present,” he added.
He urged business owners to focus on their long-term growth objectives although the uncertainty in the economy elicits a “wait and see” policy from businesses. He added that opportunities exist for dynamic businesses, which were prepared to balance reason with instinct in their decision-making.
“Those that lock in their best people, be pro-active in marketing and backup planning and invest to be first out of the gate in a recovery are likely to find themselves ahead of the competition,” he said.
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