PETALING JAYA: A positive trajectory is indicated for micro, small, and medium enterprises (MSME) with the business landscape demonstrating resilience and sustained optimism, according to the SME Sentiment Survey for the second half of 2023 released by SME Bank Bhd today.
SME Bank group president/CEO Datuk Wira Aria Putera Ismail said the SME Sentiment Index showed a slight increase from 52.9 in the first half to 53.5 in the second half of the year, which signified that MSME continued to demonstrate positive viability and resilience.
“It is encouraging to see that business owners are maintaining a positive outlook, showing resilience and adaptability as they navigate the challenging economic landscape. These findings further strengthen our belief in the potential and endurance of our business community. SME Bank remains committed to supporting and empowering MSMEs on their journey towards sustained growth and success,” he added.
The latest gross domestic product (GDP) of Malaysia’s MSME has demonstrated robust growth of 11.6%, surpassing the overall national GDP growth of 8.7% in 2022, highlighting the significant contribution of MSME to economic expansion.
SME Bank Group chief risk officer Mohammad Azam Ahmad said, “As MSMEs’ performance in 2022 exceeds pre-pandemic levels in 2019, we can see a substantial increase of MSMEs’ contribution to the GDP from 37.4% in 2021 to 38.4%, with the value-added soaring from RM520 billion in 2021 to RM580.4 billion.”
He added that this is an opportune time to re-evaluate business strategies and risk management approaches. “In light of the positive trends in the SME Sentiment Index and recognising the ever-changing business landscape, we encourage business owners to proactively manage and mitigate risks to enhance resilience. Embracing a robust risk management strategy can help businesses navigate uncertainties and thrive in dynamic economic conditions.”
Looking ahead, the second-half 2023 SME Sentiment Index reaffirms the enduring resilience of MSME amid economic uncertainties. The valuable insights derived from this index will serve as a strategic resource for businesses and stakeholders, empowering them to adeptly navigate challenges and capitalise on opportunities within the evolving business landscape, SME Bank said..
