Kuala lumpur: Businesses anticipate a more favorable economic environment for the third quarter of 2026, with the confidence indicator bouncing back to 5.9 percent from a negative 1.8 percent in the previous quarter. According to BERNAMA News Agency, the Department of Statistics Malaysia (DOSM) has reported this optimistic shift, signaling potential growth across various sectors including industry, services, construction, and wholesale and retail trade.
In its latest Business Tendency Statistics for the Third Quarter 2026, DOSM highlights the increased confidence in both external and domestic economic activities, as evidenced by the overall positive confidence indicator of 5.9 percent. These statistics are derived from the quarterly Business Tendency Survey, which examines business performance expectations for the coming months.
The department detailed that the industry sector is showing signs of optimism, with its confidence indicator improving to 8.2 percent in 3Q 2026 from negative 3.7 percent previously. Similarly, the construction sector's confidence indicator rose to 4.1 percent, recovering from negative 9.5 percent in the second quarter.
In the wholesale and retail trade sector, the confidence indicator rose to 1.2 percent, a positive change from the negative 7.5 percent recorded in the last quarter. The services sector also maintains an optimistic outlook, with a confidence indicator of 5.2 percent, slightly down from 6.2 percent in 2Q 2026.
State-level data reveals varied business confidence, with most states showing positive indicators. Notable performances include Terengganu at 10.5 percent, Kuala Lumpur at 9.5 percent, and Negeri Sembilan at 9.4 percent. However, Melaka and Labuan reported negative indicators of 3.9 percent and 5.4 percent, respectively.
DOSM further noted the net balance for business sentiment improved to 12.9 percent in 2Q 2026 from 7.9 percent earlier in the year, indicating favorable business conditions in the forecast period. In terms of gross revenue expectations, 31.9 percent of businesses anticipate an increase in 3Q 2026, while 47.4 percent expect stability, and 20.7 percent foresee a decline, resulting in a net balance of positive 11.2 percent.
Employment prospects also show positivity, with 13.9 percent of businesses planning to increase their workforce and 78.3 percent intending to maintain current levels. A smaller percentage, 7.8 percent, expects a reduction, leading to a net employment balance of 6.1 percent for the third quarter of 2026.