KUALA LUMPUR: Malaysian businesses are among the most confident globally about expanding international trade, with 92% expecting growth over the next two years, surpassing the global average of 87%, according to HSBC’s Global Trade Pulse Survey.
HSBC Malaysia’s head of global trade solutions Shreyas Krishna said Malaysian businesses are showing higher-than-average optimism, preparedness and certainty about trade growth and policy after successfully navigating a period of high inflation and elevated interest rates.
“This trend shows that businesses are continuously adjusting to an evolving trade and tariff landscape.
“Companies now have a major opportunity to reinvent themselves and amplify their growth potential, thanks to the immense possibilities offered by international trade,” the HSBC’s global trade solutions head said in a statement.
According to the survey, the country stands out as a clear beneficiary of the current dynamic trade environment, with 51% of firms reporting a positive impact from tariffs and trade uncertainty to date, an eight percentage point increase from six months ago, with expectations for the next two years climbing to 69%.
It said Malaysian companies are increasingly shifting towards intra-Asian trade, with 64% more likely to deepen reliance on South-East Asia, compared with the global average of 34%.
“Additionally, 47% of these firms plan to increase their reliance on East and North Asia, while 42% aim to enhance their connections with South Asia.
“This trend underscores a growing focus on intra-Asian trade as firms prioritise regional partnerships and opportunities alongside other global trade corridors,” it said.
The survey said that to strengthen resilience, companies are implementing a range of strategies to address trade risks and maintain competitiveness, with 49% of Malaysian businesses revising pricing strategies, 47% developing risk management plans, and 43% diversifying revenue streams.
“Furthermore, the survey also indicates that 48% of businesses are engaging in inventory buffering to manage supply disruptions by increasing stock levels, while 42% are diversifying their suppliers to expand their network across different regions.
“Investment in supply chain visibility tools is also a priority, with 44% of companies having already made such investments and another 45% planning to do so,” it said.
Moreover, since 2024, 68% of businesses have experienced changes in working capital requirements due to trade and tariff uncertainty, it noted.
Despite these measures, Malaysian firms remain highly exposed to external market forces, as 67% attribute revenue changes to tariff adjustments, 53% to pricing changes and 52% to exchange rate fluctuations.
As trade conditions grow more complex, companies are increasingly seeking external expertise, looking for guidance on expansion or supply chain realignment, requiring crisis planning and resilience support.
Not to mention, needing assistance with compliance, tariffs as well as regulatory matters.
The HSBC survey includes feedback from 6,750 decision makers across 17 markets, including 250 Malaysian-based companies. — Bernama
