Business confidence low in Malaysia, Indonesia
Market sentiments in ASEAN are widely differing, a new survey by Ernst & Young (EY) shows. The EY Capital Confidence Barometer, a survey of over 1,600 senior executives in 72 countries, of which 127 were from Singapore, Malaysia, Indonesia, the Philippines, Thailand and Vietnam, was conducted in September 2013.
In ASEAN, close to half (48 per cent) of respondents believed that their local economies are improving, up from 39 per cent who held such views six months ago.
Confidence levels in the Philippines, Thailand, Singapore and Vietnam were high, while those in Indonesia and Malaysia were moderate, EY said.
A higher proportion of regional corporates – 45 per cent, up from 33 per cent six months ago – believed that their local economies would grow by more than 3 per cent in the next 12 months. This confidence is evident as an overwhelming 91 per cent expected to maintain current headcount levels or create jobs in the year ahead.
“With 88 per cent of Southeast Asia respondents expecting their local economies to grow and 51 per cent expecting to create more employment, corporate confidence in Southeast Asia continues to be high. The respondents are also bullish about the global economy with signs of stability and growth in developed markets,” EY managing partner for transaction advisory services for Asean, Harsha Basnayake, said.
“However, this sentiment is not evenly felt across markets, with respondents from Indonesia and Malaysia, in particular, being more pessimistic in their outlook and expecting a decline in their local economic prospects over the next six months,” he added.
EY Malaysia transactions advisory leader George Koshy said growing concerns over Malaysia’s recent economic outlook have caused corporates to shift their focus from growth to more risk adverse strategies.
“More than half of the Malaysian respondents highlighted cost reduction and increasing operational efficiency as the focus of their boards, and this trend is expected to continue over the next 12 months.”
Market sentiments in ASEAN are widely differing, a new survey by Ernst & Young (EY) shows. The EY Capital Confidence Barometer, a survey of over 1,600 senior executives in 72 countries, of which 127 were from Singapore, Malaysia, Indonesia, the Philippines, Thailand and Vietnam, was conducted in September 2013. In ASEAN, close to half (48 per cent) of respondents believed that their local economies are improving, up from 39 per cent who held such views six months ago. Confidence levels in the Philippines, Thailand, Singapore and Vietnam were high, while those in Indonesia and Malaysia were moderate, EY said. A...
Market sentiments in ASEAN are widely differing, a new survey by Ernst & Young (EY) shows. The EY Capital Confidence Barometer, a survey of over 1,600 senior executives in 72 countries, of which 127 were from Singapore, Malaysia, Indonesia, the Philippines, Thailand and Vietnam, was conducted in September 2013.
In ASEAN, close to half (48 per cent) of respondents believed that their local economies are improving, up from 39 per cent who held such views six months ago.
Confidence levels in the Philippines, Thailand, Singapore and Vietnam were high, while those in Indonesia and Malaysia were moderate, EY said.
A higher proportion of regional corporates – 45 per cent, up from 33 per cent six months ago – believed that their local economies would grow by more than 3 per cent in the next 12 months. This confidence is evident as an overwhelming 91 per cent expected to maintain current headcount levels or create jobs in the year ahead.
“With 88 per cent of Southeast Asia respondents expecting their local economies to grow and 51 per cent expecting to create more employment, corporate confidence in Southeast Asia continues to be high. The respondents are also bullish about the global economy with signs of stability and growth in developed markets,” EY managing partner for transaction advisory services for Asean, Harsha Basnayake, said.
“However, this sentiment is not evenly felt across markets, with respondents from Indonesia and Malaysia, in particular, being more pessimistic in their outlook and expecting a decline in their local economic prospects over the next six months,” he added.
EY Malaysia transactions advisory leader George Koshy said growing concerns over Malaysia’s recent economic outlook have caused corporates to shift their focus from growth to more risk adverse strategies.
“More than half of the Malaysian respondents highlighted cost reduction and increasing operational efficiency as the focus of their boards, and this trend is expected to continue over the next 12 months.”
