PETALING JAYA: German companies in Malaysia continue to show strong confidence in the country’s business and economic environment, according to the Malaysian-German Chamber of Commerce and Industry’s (MGCC) latest World Business Outlook Spring 2025 Survey.
The survey was conducted among 104 respondents, mostly German-based companies primarily from the manufacturing, trade and services sectors that have branches in Malaysia.
The survey was conducted between Mach 17 and April 15, and is part of the broader AHK World Business Outlook, a bi-annual global research initiative conducted by the German Chamber of Commerce and Industry.
According to the survey, 91% of German businesses rate their current business situation in Malaysia as “good” or “satisfactory”, underscoring sustained optimism despite a volatile global economic landscape.
MGCC executive director Jan Noether said, despite geopolitical tensions, shifting trade policies, and economic uncertainty, German companies operating in Malaysia remain strongly optimistic about the country’s long-term prospects.
Noether said this optimism signalled the strength of Malaysia’s position as a strategic business and logistics hub in South-East Asia.
“As companies seek resilient, future-ready markets to grow and invest in, Malaysia continues to stand out as a reliable and attractive destination for German businesses across various sectors,” he said.
Meanwhile, the survey revealed that overall, sentiment was positive, however, there were certain areas that required attention moving forward.
“These include demand uncertainty (59.8%), economic policy conditions (46.1%), and regulatory considerations such as preferences for local firms (43.1%).
“These insights reflect the complexities of operating in a dynamic economic environment and underscore the importance of continuing dialogue, policy clarity, and adaptive business strategies to ensure sustained growth and competitiveness,” the survey said.
Additionally, the survey said there were concerns over the US tariffs and their impact.
“Some 38% of companies anticipate a minor impact on local operations and 20.4% cited a major impact, largely due to expected increases in input costs, shifts in consumer behaviour, and reduced export demand.
In contrast, 36% of respondents said the tariffs would have no impact, with some noting potential opportunities for Malaysian-based operations to fill emerging supply-chain gaps.
On another note, the survey reported that respondents felt investment sentiment was strong, evident by the 68% of companies that plan to either maintain or increase their local investments over the next 12 months.
“Hiring trends also reflect a stable employment outlook, with 40% planning to increase hiring while 53% intend to maintain current workforce levels.
“This reflects a 6% improvement in overall job stability compared with last year,” the survey noted.
MGCC has been in Malaysia since 1991 and serves as a service provider, membership organisation and voice for German industry in the country.
