Malaysia business confidence rebounds in 3Q 2026, DOSM says

Business confidence in Malaysia rebounded in the third quarter of 2026, according to the Department of Statistics Malaysia (DOSM). The confidence indicator for 3Q 2026 stood at 5.9 percent, a marked improvement from the negative 1.8 percent in the previous quarter (2Q 2026). Across all sectors, businesses projected more favorable business performance.

The industry sector showed particular optimism, with a confidence indicator of 8.2 percent, up from negative 3.7 percent in the prior quarter. Similarly, the construction sector’s confidence indicator improved to 4.1 percent, compared to negative 9.5 percent in 2Q 2026. The wholesale and retail trade sector also displayed encouraging performance, with a confidence indicator of 1.2 percent, an increase from negative 7.5 percent in 2Q 2026.

The services sector maintained its optimistic outlook, with a confidence indicator of 5.2 percent, up from 6.2 percent in the previous quarter.

At the state level, most states exhibited positive business confidence, including Johor (4.9 percent), Kedah (5.1 percent), Kelantan (2.1 percent), Negeri Sembilan (9.4 percent), Pahang (7.1 percent), Penang (5.0 percent), Perak (1.5 percent), Perlis (5.4 percent), Selangor (5.8 percent), Terengganu (10.5 percent), Sabah (3.7 percent), Sarawak (5.8 percent), Kuala Lumpur (9.5 percent), and Putrajaya (0.6 percent).

However, Melaka and Labuan recorded pessimistic confidence indicators of negative 3.9 percent and negative 5.4 percent, respectively.

Looking at the broader picture, 31.9 percent of businesses anticipated an increase in gross revenue during 3Q 2026, while 47.4 percent expected no change and 20.7 percent forecasted a decline, resulting in a net balance of positive 11.2 percent. In terms of employment, 13.9 percent of businesses planned to increase their workforce, while 78.3 percent intended to maintain it, and 7.8 percent anticipated a reduction, yielding a net balance of 6.1 percent.