Trade war may dampen business optimism

However, US-China trade war may adversely impact local and regional companies

MALAYSIA will see improvements in business ecosystem over the next 12 months, riding on short- and mediumterm incoming investments to Asean region.

Monash University Malaysia vice-president (research and development) Professor Mahendhiran S. Nair, however, cautioned that a full trade war between the United States and its trading partners would jeopardise the optimism and this may adversely impact local and regional firms.

Therefore, local firms should look for opportunities within the domestic economy and expand their operations in Asean as well as other Asia-Pacific markets.

“Business players should adapt to new technology and innovate their products and services to reduce operational costs and maximise efficiency, while broaden their business reach” he said after announcing the Malaysian Business Sentiment Survey 2018/2019 results yesterday.

The survey, conducted by Monash University Malaysia in collaboration with CPA Australia, gathered the opinions from Malaysia’s business leaders, highlighting concerns that could potentially affect business growth through investments in new markets.

It is also important for universities to nurture talent that would enable firms to enhance their innovative capacity, process improvement and product development.

Local firms should also mitigate the risk of intensifying global competition and a potential trade war by exploring new markets and defending existing market with the introduction of new products and services.

Mahendhiran said the survey’s primary objective was to enable decision makers, business leaders and key stakeholders to take proactive measures to improve the local business ecosystem and build a competitive advantage.

Monash University Malaysia deputy head of school and director of research, Professor Pervaiz Ahmed said it was essential for the government to have competitive, open and fair business environments.

“Business-friendly policy will build the firm’s strength domestically as well as help them to venture into other regions.”

The survey also revealed that the local market is concerned about the increasing cost of doing business and the weakening of ringgit, which will have an impact on their bottom lines and their production process. BUSINESS ECOSYSTEM SEEN IMPROVING

BLOOMBERG PIC Monash University Malaysia survey suggests local companies must look for domestic opportunities and expand in Asean.

EIZAIRI SHAMSUDIN PIC BY Monash University professors Hamendhiran S Nair (right) and Pervaiz Ahmed at the announcement of the Malaysian Business Sentiment Survey 2018 results in Kuala Lumpur yesterday.