Malaysian Businesses Expects Pre-Covid Profitability by End-2022
01 Dec 2020
Malaysian businesses are coping relatively well despite current challenges and are expected to return to pre-COVID-19 profitability levels by the end of 2022.
HSBC’s global survey ‘Navigator: Now, next and how’, which surveyed 200 companies in Malaysia, reveals that 76 per cent of them expect to return to pre-COVID-19 profitability levels by the end of 2022, while six per cent were already ahead of their own pre-COVID-19 level of sales.
HSBC Bank Malaysia Bhd chief executive officer Stuart Milne said the resurgence of COVID-19 cases, decline in consumer demand and protectionism have not dampened the inclination of most Malaysian businesses to invest to grow.
“Malaysian businesses remain optimistic despite the unprecedented year. About 74 per cent of Malaysian businesses have undergone changes in the last 12 months and looking ahead, Malaysian businesses view innovation and collaboration as the top two characteristics of a successful future business,” he told a virtual media briefing on the survey Monday.
This latest report by HSBC gauges business sentiment and expectations on trade activity and business growth, and surveyed more than 10,000 companies across 39 markets in the world, including 200 companies in Malaysia.
He said the survey data disclose that overall, Malaysian businesses are more positive than their regional peers and are coping relatively well with the current challenges.
The proportion of Malaysian businesses (74 per cent) projecting growth over the next year is also well above the average for Asia Pacific (60 per cent), with the top three drivers of business growth include increased domestic demand, expanding to new digital platforms and channels, and introducing new products and services.
Milne said businesses in Malaysia also have an optimistic outlook when it comes to international trade with 80 per cent of companies expect their international trade prospect over the next one to two years to be positive.
Given the recent signing (and eventual ratification) of the Regional Comprehensive Economic Partnership (RCEP), the bank expects to see an increase in intra-Asian trade, which is already larger than Asia’s trade with North America and Europe combined.
He said this increase would continue to power global economic growth and pull the economic centre of gravity towards Asia.