KUALA LUMPUR: The outlook remains optimistic in Malaysia’s commerce landscape next year, even with the impending implementation of Goods and Services Tax (GST) and an expected inflation, according to the Malaysian Business Sentiment Survey 2014/ 2015.
The recent Malay-sian Business Sentiment Survey 2014/ 2015, a research conducted by Monash University Malaysia in collaboration with CPA Australia, found one in four businesses believe that the business environment will change for the better in the next 12 months, with 74 per cent of businesses saying they are confident about business prospects, which is a good sign for capital investment and the labour market.
That being said, 72 per cent of businesses expressed concerns about the increased cost of doing business and 65 per cent on the implementation of the GST next year.
“Malaysian chief executives officers (CEOs) and senior managers seem to be anticipating better than average business prospects, but in preparation for the implementation of GST in 2015, effective cost management initiatives and the pursuit of growth in new markets with existing products and services are their immediate strategic and sales priorities,” said lead researcher and head of discipline (marketing) Associate Professor Brian Low Koon Huat in a statement.
“The generally upbeat business confidence will, however, be dampened if cost pressures mount and margins decline in the face of increasing competition and global economic uncertainty.”
The research noted that to ensure longer-term sustainability, businesses need to seek out new markets while concurrently developing and reinforcing existing business relationships. Improvements in business processes reinforce the need to better manage their costs.