KUALA LUMPUR: A recent survey conducted by the American Malaysian Chamber of Commerce (AmCham) showed that 53% of respondents in Malaysia believe that the profit outlook among businesses in Malaysia will increase in 2014.

The 2015 Asean Business Outlook Survey, which was conducted among 588 senior executives representing American (US) companies in all 10 Asean countries also indicated that 77% of respondents in Malaysia expect a profit increase in 2015.

“Malaysia continues to be crucial for US businesses operating in the Asean region, as evidenced by the fact that 77% of respondents in Malaysia expect a profit increase in 2015, up from 53% in 2014,” said AmCham president Sanjeev Nanavati.

Additionally, the survey indicated that 70% of respondents reported that they plan to expand their business in Malaysia, while none plan to contract.

“Fifty-two per cent of respondents in Malaysia expect their companies’ workforce to increase ... it is important that the Malaysian government continues to provide a business-friendly environment in the coming years so that companies can help realise Malaysia as a regional hub and centre of excellence,” Sanjeev told a news conference yesterday.

Meanwhile, the survey found that the Malaysian government has much opportunity to engage the private sector more actively, as only 27% of the respondents reported that the government always or often consults with them on new laws and regulations, 47% stated that their input is sometimes sought by the government whereas 26% stated their input is rarely sought.

The survey also showed that 87% of respondents indicated that Asean integration is important in helping their companies do business in the region, an improvement from 78% in 2013.

However, the survey indicated some areas of concern such as corruption, with 67% of the respondents expressing their dissatisfaction with corruption in the local business environment and a 42% dissatisfaction rate in the level of personal security.

“I think at this point the best we [as a chamber] can do is point out the areas that are of concern to companies, [and] we do provide the government with policy positions on various issues,” he said.

Most Malaysian business executives (97%) reported that the Trans-Pacific Partnership (TPP) will help or have a neutral effect on their company’s regional trade and investment.

On whether AmCham is concerned about the pace of TPP negotiations, which is a trade agreement pursued by the US and 11 other countries, including Malaysia, Sanjeev said the negotiations are not easy.

“We don’t have complete insight into exactly where negotiations stand ... how close or how far ... from what we gather there seems to be desire to reach an agreement that works for everyone, which is not unreasonable,” he said.


This article first appeared in The Edge Financial Daily, on September 9, 2014.