Business sentiments in the first quarter of this year (Q1’23) improved as challenges faced by firms eased slightly.
The RAM-CTOS Business Confidence Index (RAM-CTOS BCI) revealed that the overall BCI for Q1’23 rose to 51.4 from 46.2 in the previous quarter.
RAM-CTOS BCI is a comprehensive survey jointly conducted by RAM and CTOS, starting Q1’22, on forward looking business sentiment among small and medium enterprises (SME).
“An index of 50 delineates positive and negative sentiments. While sentiments across several sub-indices showed improvement, firms remain pessimistic on their profitability outlook (sub-index reading: 40.4) amid elevated cost pressures,” RAM Holdings Bhd said in a statement today.
CTOS Digital Bhd group CEO Erick Hamburger said that in Q1’23, CTOS SME subscribers accessed 30% more business reports compared with the same period last year.
“Businesses carrying out additional due diligence on new customers and reevaluating existing customers is a good indicator that they are ramping up operations and productivity, which is in line with the RAM-CTOS BCI business sentiment findings,” he said. “The return to positive sentiment this quarter is a good sign for the economy as SMEs play a crucial role in driving economic growth,” he added.
On the recently tabled revised Budget 2023, the survey said it was generally well received by respondent firms and may have partly contributed to the better sentiments in this survey.
About 30% of the firms polled thought measures in the revised budget would help their business – a much higher figure compared with the 9% in the Q4’22 survey.
The revised Budget 2023 is the largest on record, with an allocation of RM386.1 billion, which includes measures such as cut in the corporate tax rate and various loan and financing schemes for micro SME.
Meanwhile, of the 122 firms polled in Q1’23, chiefly small and medium enterprises, almost 80% are grappling with rising costs as their top challenge.
Source: thesundaily.com
