KUALA LUMPUR: Small Medium Enterprise Development Bank Malaysia Bhd’s (SME Bank) sentiment index for micro, small and medium-sized enterprises for the first half of 2025 has signalled continued confidence despite a moderating outlook.
In a statement today, SME Bank said its SME Sentiment Index registered a solid 55.2, reflecting continued optimism among entrepreneurs nationwide while anticipating economic and financial challenges arising from the United States’ tariffs.
“This marks a slight moderation from 55.8 in the previous half. The index remains well above the neutral 50 level, indicating steady confidence despite a softening from the strong post-Covid rebound seen in earlier surveys,” it said.
The SME Sentiment Index survey, conducted between January and April, hit a new record high of 2,007 respondents to include participants from 39 sectors across all business sizes.
Acting group president and CEO Datuk Mohammad Hardee Ibrahim said entrepreneurs showed more cautious optimism, citing softer expectations around sales, expansion and hiring.
“Although short-term sentiment has softened, Malaysia remains on a steady growth path supported by structural reforms, high-quality investments and a focus on resilience and shared prosperity,” he said.
Meanwhile, SME Bank chief economist Lynette Lee Li Qing said the SME Sentiment Index serves as a timely barometer of entrepreneurial sentiment. It suggests that Malaysia’s overall economy will continue to expand in 2025, albeit at a modest pace.
“World Bank has recently revised Malaysia’s gross domestic product (GDP) growth forecast down to 3.9 per cent, alongside a cut in global growth due to heightened uncertainties arising from trade tension.
“Nonetheless, Malaysia’s growth rate is still above some regional peers such as Thailand (3.1 per cent) and Singapore (3.9 per cent),” she said. – Bernama
