KUALA LUMPUR: Businesses are calling for more assistance from the government, especially in terms of better access to financing and working capital, according to RAM Holdings Bhd.
In a statement today, the credit rating agency said grants and direct subsidies are equally in demand to help offset the challenges posed by trade tensions.
"The latest RAM-CTOS Business Confidence Index (BCI) survey highlighted the growing pressures Malaysian businesses face from rising costs, intensified competition and external trade disruptions such as the United States (US) tariffs,” it said.
RAM chief executive officer and executive director Chris W.K. Lee said that while businesses remain cautious, it is encouraging to see that companies are still investing and hiring.
He said government and industry stakeholders must work together to respond to the new challenges for businesses to survive and thrive.
Meanwhile, RAM said that the second quarter of 2025’s survey, conducted from May 29 to June 28 and involving 33 firms, placed special focus on the impact of US tariffs on Malaysian goods.
"Around two-thirds of firms surveyed anticipate a negative impact from these tariffs, of which a significant 27 per cent of firms expect a major negative impact, with firms anticipating moderate and minor impact each at 18 per cent.
"Sales and revenue topped the list of business aspects likely to be hit, followed by profit margins, supply chains and cash flow,” it said.
The company said, in response, that firms are mainly adopting cost-related strategies to mitigate tariff impacts.
About 42 per cent are focusing on cutting operational expenses, while 39 per cent are adjusting pricing strategies to remain competitive, it added. - Bernama
