Thursday, 22 Apr 2021 11:51 AM MYT
KUALA LUMPUR, April 22 ― Malaysia’s Business Conditions Index (BCI) increased by 28.8 points year-on-year (y-o-y) to 111.8 points in the first quarter ended March 2021 (Q1 2021), indicating that manufacturers had regained their confidence since the outbreak of the Covid-19 in Q1 2020.
The Malaysian Institute of Economic Research (MIER) said the expansionary mode was also partly driven by the recovery in the domestic and global economy, the launch of the National Covid-19 Immunisation Programme, and the provision of the economic stimulus packages to manufacturers.
On a quarter-on-quarter (q-o-q) basis, MIER said the BCI slipped 3.6 points to 111.8 points, attributed to the decline in sales following the drop in domestic and external orders, as well as the falling production due to lower demand from local and foreign sources.
Business confidence in NSW fell in the first quarter of the year, with the end of JobKeeper having an impact.
The latest Business Conditions Survey from Business NSW conducted in March, found more businesses viewed the economy as getting weaker (39 per cent) than viewed it as getting stronger (29 per cent).
Business NSW chief executive Nola Watson said the data from both businesses in metropolitan and regional areas was concerning, but not totally unexpected . About one third of businesses who received JobKeeper believe they may have to close their business, either on a temporary or permanent basis, when the full benefits of the program cease, Ms Watson said on Thursday.
New South Wales’ peak business bodies are calling on the Federal Government to introduce a new wage subsidy support program for industries most affected by Covid-19 restrictions.
Business NSW and the Australian Chamber of Commerce and Industry (ACCI) are proposing the new program supports travel, tourism, hospitality and international education sectors, once JobKeeper winds up in March.
The Hunter Business Chamber has backed this proposal, which Business NSW has now submitted to the Treasury in its annual Pre-Budget, arguing that the government needs to provide a clear pathway for business recovery
“In our most recent Business Conditions Survey conducted across NSW, 23 per cent of businesses believed they were at a high risk of failure when supports such as JobKeeper, tax relief, interest waivers and other measures end,” Hunter Business Chamber CEO Bob Hawes said.