KUALA LUMPUR: Malaysian corporates appear to be are more optimistic in their business outlook over the next six months than their Small and Medium Enterprises (SMEs) counterparts.
That is the findings of independent credit research and advisory services company, RAM Holdings Bhd's RAM Business Confidence Index released today.
The forward-looking index concludes that although corporates lead SMEs, both business sectors were optimistic in their 1H2017 outlook as they scored 56.9 and 53.2 in the index, respectively.
A score of above 50 indicates a positive sentiment, said RAM Holdings Group's chief executive officer and executive director Datuk Seri Dr K. Govindan.
He explained that the inaugural RAM Business Confidence Index, covering 1Q-2Q 2017 is a leading indicator that offers a useful perspective on how companies view the business environment in the next six months.
"The survey will be done quarterly and is useful for analysts, the government (policy makers), and investors," he explained.
"Having surveyed nearly 3,000 SMEs and Corporates, the RAM Business Confidence Index is the most comprehensive survey of business sentiments in Malaysia.
"The overall business confidence indices for both SMEs and Corporates indicates healthy economic prospects over the next six months," he added.
In the survey, corporates are defined as companies with turnover of RM50 million and above, while SMEs are defined as businesses having a turnover of less than RM50 million annually.
The five main industry sectors covered for SMEs were retail, construction, business services, transport & storage and manufacturing.
Meanwhile, corporates were from the manufacturing, construction, wholesale, agriculture and mining, and transport and storage sectors.