RAM Holdings' Lee said the latest BCI readings coincided with the recent uptick in macroeconomic and trade data.
KUALA LUMPUR: The RAM-CTOS Business Confidence Index (BCI), which examines forward-looking business sentiment in Malaysia, rose to 53.4 in the first quarter of 2024 (1Q24), following two consecutive quarters of decline.
The positive score, which is above the neutral level of 50, delineating positive and negative sentiment, was recorded as compared to the downturn posted in 3Q23 at 50.4 and 4Q23 at 48.9, said RAM Holdings Bhd and CTOS Data Systems Sdn Bhd in a joint statement yesterday.
“The upturn in sentiment was observed across all five surveyed aspects of doing business as respondents were sanguine about higher sales, capital investments and hiring prospects, but the still-elevated cost pressures inhibited their profitability expectations,” they said.
Commenting on the improved sentiment, RAM Holdings Bhd group chief executive officer (CEO) and executive director Chris W. K. Lee said the latest BCI readings coincided with the recent uptick in macroeconomic and trade data, signalling that the Malaysian economy is poised for higher growth this year.
“This aligns with RAM’s 2024 gross domestic product growth projection of 4.5% to 5.5%, an acceleration after a relatively weak 3.7% last year,” he said.
Meanwhile, CTOS Digital Bhd
group CEO Erick Hamburger said while the latest BCI reflected a notable upturn, companies must leverage this positive sentiment wisely to navigate the challenges ahead, particularly concerning profitability outlook amidst rising costs.
“Embracing credit management best practices becomes paramount in harnessing these opportunities effectively.
“By prioritising prudent credit assessments and fostering healthy financial relationships, small and medium enterprises (SMEs) can fortify their positions in the market and capitalise on the emerging economic upswing,” he said.
According to the survey, the rising cost of doing business continued to top the list of challenges for the ninth consecutive survey and was cited even more widely than in the last quarter.
The BCI survey noted that about 90% of the 115 firms polled had cited rising costs as their top challenge in the next three months. — Bernama
