KUALA LUMPUR, Jan 23 — Micro, small and medium enterprises (MSMEs) continue to demonstrate positive viability and resilience in the second half of 2023 (2H 2023), according to the latest Small Medium Enterprise Development Bank Malaysia Bhd’s (SME Bank) SME Sentiment Index survey.
The index recorded a slight increase to 53.5 in 2H 2023 from 52.9 in the first half of 2023, the bank said in a statement today.
Its group president and chief executive officer Datuk Aria Putera Ismail said it is encouraging to see that business owners were maintaining a positive outlook, showing resilience and adaptability as they navigate the challenging economic landscape.
“These findings further strengthen our belief in the potential and endurance of our business community.
“As such, SME Bank remains committed to supporting and empowering MSMEs on their journey towards sustained growth and success,” he said.
The survey further highlighted that business confidence remained intact as 66 per cent of the respondents foresaw an increase in revenue, while 64 per cent anticipated a growth in profits over the next six to 12 months.
It found that a high-cost environment remained a concern for MSMEs, with the majority (88 per cent) expecting costs to increase in the next six to 12 months.
The survey noted that respondents also acknowledged the profound impact of inflation (98 per cent) on their business performance.
Moreover, changes in government policies (88 per cent) were perceived as impactful, including targeted subsidies, political uncertainty, and regulatory requirements, such as environmental, social, and corporate governance adherence, tax compliance, and labour laws.
“The valuable insights derived from this index will serve as a strategic resource for businesses and stakeholders, empowering them to adeptly navigate challenges and capitalise on opportunities within the evolving business landscape,” said the bank.
Meanwhile, group chief risk officer Mohammad Azam Ahmad said this would be an opportune time to re-evaluate business strategies and risk management approaches.
“In light of the positive trends in the SME Sentiment Index and recognising the ever-changing business landscape, we encourage business owners to proactively manage and mitigate risks to enhance resilience,” he added.
— Bernama
