Business sentiment among Malaysian companies has improved further for the third consecutive quarter in Q4 2017, reaching its new peak in six consecutive quarters. According to Dun & Bradstreet (D&B) Malaysia’s Business Optimism Index (BOI) study, overall BOI climbed from +3.40 percentage points in Q3 2017 to +5.52 percentage points in Q4 2017. On a year-on-year (y-o-y) basis, BOI rose from +3.83 percentage points in Q4 2016 to +5.52 percentage points in Q4 2017.
For Q4 2017, 5 of six indicators have climbed upwards on a quarter-on-quarter (q-o-q) basis. On a year-on-year basis, 4 of six business indicators have improved. The construction, manufacturing and services sectors were most upbeat for Q4 2017 with all 6 indicators in the positive region. Meanwhile, the mining sector is expected to be pessimistic with 3 indicators in the negative region.
The D&B Malaysia Index (BOI) is a measure of business confidence in the economy. Released quarterly, it is based on a business sentiment survey that is designed to capture business expectations and is one of the most effective ways to track how the business community perceives the business environment, and where they think it is moving. This is commonly used, worldwide, to assist in analyzing major trends and issues concerning the business community through tracking business parameters including net profits, selling prices, new orders, inventory levels, and employee count.