A majority of businesses in Malaysia (73.4%) anticipate retaining their employees for the third quarter of 2023, according to research from the Department of Statistics Malaysia.

Approximately 17.6% of businesses expect to hire more, whereas only 9.0% intend to reduce their headcount, which induced a net balance of +8.5 per cent for the reference quarter.

Meanwhile, businesses foresee an improving business situation for the third quarter of 2023, with a positive confidence indicator of 0.7% compared to -3.1% in the second quarter of 2023. In the third quarter of 2023, positive business expectation is bolstered by the services and industry sectors.

The services sector is optimistic about the business outlook, with a confidence indicator of 6.1% compared to +3.9% in the previous quarter. Simultaneously, sentiments within the industrial sector are +1.3% against -2.1% in the second quarter 2023.

On the other hand, the construction sector persistently anticipates adverse business conditions with a confidence indicator of -26.9% in the third quarter 2023. Likewise, the wholesale & retail trade sector remains pessimistic, with an improved confidence indicator of -1.5% in the reference quarter from -10.2% in the second quarter of 2023.

Overall, a net balance of 19.2% signifies that businesses anticipate an increase in their gross revenue. Among these, 39.0% of establishments predict higher gross revenue for the third quarter, while 19.8% hold a contrary view. Concurrently, 41.2% of establishments predict no change in their gross revenue.

Looking at the business sentiment for six months ahead, ending December 2023, businesses remain upbeat, albeit at a lower net balance of +13.9 per cent from +14.9 per cent recorded previously.

A positive outlook is underpinned across all sectors, indicating improved business conditions in the forecasted period.