Japanese firms' business sentiment in Malaysia to improve in 1H22

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KUALA LUMPUR: Business sentiment among Japanese companies in Malaysia is forecast to improve in the first half of 2022 (1H2022) based on a survey by the Japanese Chamber of Trade and Industry Malaysia (JACTIM).

According to the survey, which is conducted bi-annually, the business sentiment diffusion index is projected to improve to 3.1 points in 1H2022, after being in the negative territory since 2H2018.

"In the survey, many respondents pointed out that production activities are gradually resuming following the relaxation of the Malaysian government's restrictions on social and economic activities, in line with the rising vaccination rates,” Onozawa told Bernama in an interview recently. "This led to an increase in demand for related services such as import/export, sales and transportation of related products,” she said.

"With the suspension of new hiring of foreign workers from June 2020, in addition to the COVID-19 infection countermeasure, many companies said the number of general workers they were able to secure had decreased significantly. "It is also important to secure a stable minimum workforce. We would like to request the Malaysian government to provide more opportunities to train Malaysian workers to promote recruitment and resume hiring new foreign workers where it is needed,” she added.

"As these issues cannot be resolved immediately, companies are expecting the situation of excess demand to continue for the time being,” she said.

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