Business slowdown in Q2 of 2016: Statistics Dept

Business in the second quarter 2016 is expected to slow down, as shown by the confidence indicator of -3.7 percent as compared to -0.7 percent in the preceding quarter, said the Department of Statistics.

The confidence indicator summarises the overall views on the short-term business situation in various sectors in Malaysia, the department said in a statement today.

It said the business performance for all sectors – construction, wholesale and retail trade, services and industry – is expected to decline in the second quarter of 2016 with a confidence indicator of -14.5 percent, -8.2 percent, -3.7 percent and -1.8 percent, respectively.

In terms of number of employees, 16 percent of establishments forecast an increase with 11.8 percent predicting a decrease in the second quarter of 2016.

The magnitude of the positive net balance for the number of employees in the second quarter of 2016 was lower (+4.2 percent) than the +7.1 percent registered for the first quarter of 2016, it added.

The department said business performance in the first quarter 2016 was much better with an overall net balance of all sectors of -6.4 percent as compared to -8.3 percent in the previous quarter.

"A significant majority of establishments (63.0 percent) reported the current situation of their business as remaining the same, while 15.3 percent reported an improvement and 21.7 percent reported less favourable conditions," it added.