Sarawak businesses maintain confidence in 3Q

KUCHING, August 27 — Sarawak businesses are retaining a positive outlook for the third quarter of 2026, with the state's Business Tendency Statistics for Q3 indicating a confidence indicator of 5.8 percent, according to the Department of Statistics Malaysia (DOSM). Sarawak's figure was slightly below the national average of 5.9 percent, but still higher than Sabah's 3.7 percent confidence rating.

The nationwide boost in business sentiment came as businesses across all sectors anticipated improved operating conditions, with the national confidence indicator increasing from -1.8 percent in Q2 to the current level of 5.9 percent. DOSM explained that the statistics are based on the quarterly Business Tendency Survey.

Among the states, Terengganu recorded the highest confidence indicator of 10.5 percent, followed by Kuala Lumpur at 9.5 percent and Negeri Sembilan at 9.4 percent. Pahang, Selangor, Perlis, Kedah, Penang, Johor, Sabah, Kelantan, Perak, and Putrajaya also reported positive sentiment, while only Melaka (-3.9 percent) and Labuan (-5.4 percent) showed pessimistic business confidence.

Overall, all four sectors surveyed - Industry, Services, Construction, and Wholesale and Retail Trade - recorded positive business sentiment for Q3. The Industry sector showed the strongest improvement, with its confidence indicator rising to 8.2 percent from -3.7 percent in the previous quarter. The net balance of business performance expectations for the next six months also rose to 12.9 percent from 7.9 percent for Q4 2026.

DOSM reported that 31.9 percent of businesses nationwide expected an increase in their gross revenue, while 47.4 percent anticipated no change, and 20.7 percent expected a decline. In terms of employment, 13.9 percent of businesses planned to expand their workforce, with 78.3 percent intending to maintain their current workforce and 7.8 percent expecting a reduction.