M'sia business, consumer sentiment down in Q3

DESPITE a third-quarter recovery in exports and better-than-expected economic growth of 5 per cent, Malaysia's manufacturers and consumers seem pessimistic about the coming months, predicting sluggish conditions on the back of declining demand and cost increases.

This note of caution was reflected in the Business Confidence Index's Q3 decline of 15.6 points to 98.6 points, with manufacturers citing unexciting production volumes and wage pressures as some of the challenges ahead.

Nearly half of respondents in a business conditions survey by the Malaysian Institute of Economic Research (Mier), an independent think tank, reported sales as "satisfactory", but a significant number also said they were affected by lower sales which were notably weaker in chemical, rubber, plastics, metal-based products and heavy machinery.