UOB study: SMEs stay resilient as energy management becomes key priority


UOB Malaysia chief executive officer Ng Wei Wei

KUALA LUMPUR: Malaysian businesses remain resilient despite persistent cost pressures, with energy management emerging as a strategic priority as companies seek to improve efficiency and manage operating expenses, according to the UOB Business Outlook Study 2026.

In a statement, the bank said the study found that 77% of small and medium-sized enterprises (SMEs) remained positive about their business outlook this year, although confidence was more subdued among smaller firms.

Nearly three in 10 SMEs, however, continue to face pressure from rising operating expenses, higher manpower costs and increased interest rates.

About three in four businesses consider energy management and efficiency important, with 84% of companies in the manufacturing, engineering and industrial sectors identifying it as a priority.

Businesses cited reducing energy consumption (48%), lowering energy costs (44%) and ensuring a stable and reliable energy supply (40%) as their key priorities.

"The UOB Business Outlook Study 2026 shows that cost pressures, including energy and fuel costs, continue to weigh on many businesses. Energy management has become a practical priority, particularly for medium enterprises that are better positioned to execute efficiency initiatives, supported by sector-specific solutions that address their operating needs,” UOB Malaysia chief executive officer Ng Wei Wei said in the statement.

She said smaller firms facing tighter financial constraints could tap initiatives such as Bank Negara Malaysia's SME Stabilisation Relief Facility, alongside UOB's own relief assistance efforts.

"This support is focused on helping our SME customers manage cash-flow pressures, sustain operations, and navigate evolving market conditions."

The study found that around two in five businesses have already installed solar panels and LED lighting to reduce energy consumption, while SMEs are also increasingly interested in digital tools to improve energy efficiency and lower costs.

According to UOB, businesses are shifting their focus from aggressive expansion to resilience, with energy management increasingly integrated into strategies to strengthen operational stability, improve supply chain continuity and support regional expansion.

The UOB Business Outlook Study, now in its seventh year, covers seven markets: Singapore, Indonesia, Malaysia, Thailand, Vietnam, mainland China and Hong Kong SAR.

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