SME Bank group president/chief executive officer Datuk Dr Aria Putera Ismail.
KUALA LUMPUR: The small and medium enterprise (SME) sentiment index has improved, rising to 54.7 in the first half of 2024 from 53.5 in the second half of 2023.
SME Development Bank Malaysia Bhd (SME Bank) group president/chief executive officer Datuk Dr Aria Putera Ismail said the positive shift was primarily driven by better economic expectations, improved cash flow, and stronger liquidity buffers among micro, small and medium enterprises (MSMEs).
“These results reflect the optimism, resilience and adaptability of our MSMEs as they navigate Malaysia’s steady economic recovery,” he said in a statement.
Aria Putera said the upward trend “resonates strongly with the government’s effort under the Madani Economy framework, which aimed to rejuvenate the Malaysian economy by fostering inclusive and sustainable growth.”
“The improved sentiment among MSMEs underscores their critical role in this economic revival, highlighting their ability to adapt and thrive in a dynamic business environment.
“As we continue to support MSMEs, their positive outlook will be pivotal in driving Malaysia towards a more robust and resilient future,” he added.
SME Bank chief economist Lynette Lee Li Qing said the sentiment is consistent with Malaysia’s gross domestic product growth forecast of 4% to 5% for 2024, an increase from 3.6% in 2023.
“Malaysia’s economy continued to expand by 4.2% year-on-year in the first quarter of 2024, surpassing the 2.9% growth recorded in the previous quarter.
“Other forward-looking indicators, such as the Malaysian Institute of Economic Research consumer sentiment index and business tendency statistics from the Department of Statistics Malaysia, also indicate sustained economic expansion,” she said.
Nonetheless, challenges persist regarding profitability, employment decisions and expansion initiatives amid a high-cost environment, she added. — Bernama
