‘BUSINESS SENTIMENT RECOVERS’

Uptrend seen continuing next year as impact of forex fluctuations diminishes

BUSINESS sentiment among Japanese companies in Malaysia has recovered for the first time in three years and is likely to improve further next year, said Japanese Chamber of Commerce of Malaysia (Jactim).

In a recent business survey of 192 companies, which represented 35 per cent of the chamber’s total membership, it acknowledged that the impact of foreign exchange (forex) fluctuations on its businesses was diminishing.

Leading indicators like the diffusion index leaped to 2.1 points from minus 8.8 points for the second half of this year.

“The impact of forex fluctuations on business is diminishing and business sentiment of Japanese business community in Malaysia will continue to trend upwards modestly,” said Jactim research committee head Akira Kajita during a media briefing.

Jactim has 546 members and is the main voice of Japanese businesses in Malaysia.

However, Kajita, who is also the managing director of Japan External Trade Organisation (Jetro), said manpower shortage continued to affect business operations.

Most of them were impacted by the restrictions on hiring foreign workers, he added.

Earlier this month, Jactim, Jetro and Japanese Ambassador to Malaysia Dr Makio Miyazawa had a dialogue session with International Trade and Industry