KUALA LUMPUR, May 30 ― Businesses are expecting a favourable environment in the second quarter (2Q) of 2024, backed by a marginal positive confidence indicator of 0.7 per cent compared to 4.2 per cent in the previous quarter, the Department of Statistics Malaysia (DoSM) said.

Chief Statistician Malaysia Datuk Seri Mohd Uzir Mahidin said the industry sector continues to be optimistic about business performance, with a confidence indicator of 5.3 per cent for the corresponding quarter, compared to 0.6 per cent in the 1Q 2024.

"The improved outlook in the industry sector is influenced by three sub-sectors: mining, manufacturing, and electricity & water, which predict encouraging business conditions in the reference quarter.

"However, the construction, wholesale & retail trade, and services sectors foresee challenging business conditions in 2Q 2024,” he said in a statement today.

Mohd Uzir said business confidence in the construction sector weakened, with the confidence indicator recording a 14.8 per cent decline in the reference quarter, while the wholesale & retail trade and services sectors turned pessimistic in the same quarter.

"Respondents within the wholesale & retail trade sector expect a less favourable business outlook, with a confidence indicator of 4.1 per cent weaker in 2Q 2024, compared to a 4.7 per cent increase in the last quarter.

"The services sector also foresees a less desirable business situation in 2Q 2024, with a confidence indicator of 0.9 per cent lower, as compared to an 8.6 per cent rise previously,” he said.

Looking into the future, Mohd Uzir said the business outlook from April to September 2024 remains lively, with a net balance of 14.9 per cent, compared to 10.0 per cent recorded previously.

"All sectors register positively, except the wholesale & retail trade sector. Sentiments in the Industry sector show a brighter business outlook, with a net balance of 19.0 per cent, up from zero per cent recorded previously.

"For the next six months, the services sector anticipates a positive business environment, with a net balance of 9.5 per cent from 24 per cent in 1Q 2024. The construction sector also foresees an optimistic business prospect, with a net balance of 3.7 per cent for the coming period,” he said.

On the other hand, Mohd Uzir said the wholesale & retail trade sector expects a challenging business outlook for the following six months, with a net balance of negative 1.5 per cent, compared to 15.1 per cent previously.

Nevertheless, he added that the wholesale trade sub-sector maintains a positive trajectory, recording 2.2 per cent, as compared to 17 per cent previously. ― Bernama