Biz performance for 1H19 to enjoy steady pick-up
KUCHING: Business performance for the first half of 2019 has been projected by analysts to enjoy a steady pick-up, particularly for the agriculture, manufacturing and service sectors.
In reference to business expectation for the next six months, the research arm of MIDF Amanah Investment Bank Bhd ( MIDF Research) highlighted that overall business performanceisexpectedtoimprove modestly.
“Overall business performance for 1H19 is expected to enjoy steady pick-up especially for agriculture, manufacturing and services sectors,” MIDF Research said.
“Strong domestic demand and low inflationary pressure are fundamental factors supporting services sectors.”
On the external front, the research arm viewed the US and China will reach a deal soon and the effects of trade war are gradually contained by most economies including Malaysia.
“Business confidence among manufacturers is on improving trend, expecting better performance for the next six months.
“As for commodity-based sectors, we expect better performance in 1H19 amid gradual pick-up in global commodity prices.”
MIDF Research recapped that the latest Business Tendency Survey revealed overall business performance weakened at 2.2 per cent, lowest since 1Q17.
The research arm noted that the main dragging factors were construction, mining, manufacturing and services sectors.
“Uncertainty on trade war, volatility of global commodity prices and reform measures by the federal government are reasons for the fell in overall business confidence in 1Q19.
“Henceforth, we expect gross domestic product (GDP) growth for the first quarter this year to remain below five per cent.”