Malaysians more positive on global, local economic outlook: poll

By The Star | Source: ANN
Malaysians are more positive on the global and local economic outlook compared to the second half of 2012, according to Ernst & Young’s latest bi-annual South-East Asia issue of the Global Capital Confidence Barometre.

The survey, which covered over 1,500 senior executives from large companies around the world across various sectors, also indicated that the Malaysian confidence level was higher than its international peers.

The report showed that 100 per cent of the Malaysian respondents surveyed believed that the global economy was stable or improving compared to 54 per cent six months ago. They felt likewise about the Malaysian economy compared to 77 per cent in the previous survey.

“The majority of respondents expected the country’s growth to be within 1 per cent to 5 per cent over the next 12 months, similar to that achieved in 2012,” it said.

Ernst & Young Malaysia Transaction Advisory Services leader George Koshy said: “There has been a significant positive shift in corporate confidence among the corporates in Malaysia. The confidence level is also higher than the outlook of their peers globally and regionally.”

He said Malaysian companies were optimistic about global corporate earnings and credit availability, while there was also a positive trend in the stock market outlook and expectations in employment growth coupled with favourable sentiments on the regulatory environment for business growth.

“As such, we can expect companies in Malaysia to focus on growth and capital optimisation over the next year,” he added.

Regionally, confidence has picked up, with most Southeast Asian markets maintaining steady growth and providing good prospects for investments, underpinned by the increased growth certainty in China, steady monetary and economic policies in main Southeast Asian markets, the opening up of frontier markets such as Myanmar, and improved capital markets around the world, stated the report.